ARM Microprocessor Market Size, Share, Growth, And Industry Analysis, By Type (8 bit, 16 bit, 32 bit, 64 bit, & Others) By Application (Consumer electronics, Server, Automotive, Banking, financial services, and insurance (BFSI), Aerospace and defense, Medical, Industrial, & Others), Regional Insights and Forecast From 2025 To 2035

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ARM MICROPROCESSOR MARKET OVERVIEW

The global arm microprocessor market stood at USD 14.19 billion in 2025 and is expected to rise to USD 15.29 billion in 2026, maintaining a strong growth trajectory to reach USD 29.81 billion by 2035, with a CAGR of 7.7% from 2025 to 2035.

An ARM microprocessor, often simply referred to as an ARM processor, is a type of microprocessor architecture developed by ARM Holdings (now a subsidiary of NVIDIA Corporation). ARM stands for "Advanced RISC Machine," and RISC stands for "Reduced Instruction Set Computer." ARM processors are known for their energy efficiency, low power consumption, and widespread use in a variety of electronic devices, including smartphones, tablets, embedded systems, IoT devices, and more.

ARM microprocessors continued to be a dominant force in the semiconductor industry, with a strong presence in various markets. ARM processors were widely used in mobile devices, including smartphones and tablets. ARM-based server processors started gaining traction in data centers and cloud computing environments. ARM server chips, like those from companies like Ampere and Marvell, were seen as energy-efficient alternatives to traditional x86 processors, potentially reducing power consumption and operating costs.

KEY FINDINGS

COVID-19 IMPACT

Market Faced a Rise in Demand Due to Increased Demand for Consumer Electronics During the Pandemic

The global COVID-19 pandemic has been unprecedented and staggering, with the ARM microprocessor market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels once the pandemic is over.

There was no single sector unaffected by COVID-19. The ARM Microprocessor market was affected as well. With more people working and studying from home, there was a surge in demand for consumer electronics like laptops, tablets, and smartphones. Many of these devices are powered by ARM-based processors, and the increased demand put pressure on semiconductor manufacturers to ramp up production.

LATEST TRENDS

AI and Machine Learning Acceleration to Bring Efficiency in The Market Products

The ARM Microprocessor market is as dynamic as any market. In the market, there are everyday development in the market to add more benefits to it. Recently, ARM processors were increasingly incorporating AI and machine learning capabilities through dedicated hardware accelerators. This trend aimed to enhance performance and energy efficiency for AI workloads, making ARM processors attractive for edge computing and AI applications.

• According to the U.S. National Institute of Standards and Technology (NIST), ARM-based microprocessors accounted for over 20% of the global microprocessor market in 2023, as the architecture becomes more widely adopted for mobile devices, IoT applications, and consumer electronics.

• According to the U.S. Department of Energy (DOE), ARM-based microprocessors are increasingly being used in energy-efficient computing systems, with a 30% increase in their deployment in green data centers and low-power computing devices between 2021 and 2023.

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ARM MICROPROCESSOR MARKET SEGMENTATION

By Type

According to type, the market can be segmented into 8 bit, 16 bit, 32 bit, 64 bit, & Others.

 In terms of services, 32 bit is the largest segment, as it holds the maximum share of the market.

By Application

Based on application, the market can be divided into Consumer electronics, Serve, Automotive, Banking, financial services, and insurance (BFSI), Aerospace and defense, Medical, Industrial, & Others.

DRIVING FACTORS

Rising Use in the Automotive Electronics Has Increased Demand in the Market

ARM processors are widely used in automotive applications, powering infotainment systems, ADAS (Advanced Driver Assistance Systems), and in-vehicle networking. The increasing complexity of automotive electronics is driving demand for more powerful and efficient processors. The rising use of ARM microprocessors in automotive electronics is a notable trend in the automotive industry. ARM-based processors are gaining popularity in various automotive applications due to their energy efficiency, scalability, and versatility. ARM processors power the infotainment systems in modern vehicles. These systems include touchscreens, multimedia playback, navigation, voice recognition, and connectivity features. ARM-based processors provide the computing power required for a seamless and user-friendly infotainment experience.

IoT Growth Has Influenced the Demand in the Market

The Internet of Things (IoT) market has been expanding rapidly, requiring low-power, cost-effective processors for a wide array of connected devices. ARM processors are well-suited for IoT applications due to their scalability and energy efficiency. Many IoT devices operate on battery power or have limited power resources. ARM microprocessors are known for their energy-efficient designs, making them ideal for IoT applications where power consumption is a critical consideration. Their low power consumption extends device battery life, a crucial factor for IoT devices that need to operate for extended periods without frequent recharging. This contributes to the ARM Microprocessor market growth. 

• According to the U.S. Federal Communications Commission (FCC), mobile devices, which make extensive use of ARM processors, saw a 12% increase in global shipments in 2023, boosting the demand for ARM microprocessors in smartphones, tablets, and wearables.

• According to the International Telecommunication Union (ITU), the number of connected IoT devices worldwide reached 14.4 billion in 2023, driving the need for ARM-based microprocessors to provide efficient power and performance in these devices.

RESTRAINING FACTORS

Complexity of Customization Could Lead to a Declining Trend in the Market 

While customization is a strength of ARM's licensing model, it can also be a challenge. Developing custom ARM-based SoCs requires significant engineering resources and expertise. As a consequence, there can be a declining trend in the market. 

• According to the U.S. Department of Defense (DoD), x86-based processors still dominate high-performance computing and server markets, with ARM microprocessors facing challenges in gaining significant market share in these segments due to performance limitations and software compatibility.

• According to the European Union Agency for Cybersecurity (ENISA), security vulnerabilities in ARM processors, such as those associated with firmware and hardware-level exploits, could hinder their adoption in critical infrastructure and defense sectors.

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ARM MICROPROCESSOR MARKET REGIONAL INSIGHTS

North America Region Dominates the Market Has Semiconductor Industry Presence

North America has the largest ARM Microprocessor market share as it has a strong presence in the semiconductor industry. Silicon Valley, located in California, is a renowned hub for technology companies, including those involved in semiconductor design and manufacturing. This concentration of industry expertise and resources contributes to the region's dominance in microprocessor technology. North America boasts a robust ecosystem of semiconductor design companies, foundries, and technology startups. This ecosystem supports the development, customization, and production of ARM-based microprocessors. Many companies in the region are licensed ARM partners, allowing them to design and manufacture ARM-based chips for various applications. North America is a significant market for consumer electronics, including smartphones, tablets, and IoT devices. ARM processors are prevalent in these devices due to their energy efficiency and performance, driving demand for ARM-based solutions.

KEY INDUSTRY PLAYERS

Key Players Focus On Product Development and Customization for Market Expansion

Key players engage in extensive research and development (R&D) efforts to design and develop ARM-based microprocessors. They work closely with ARM Holdings to access the latest processor cores and technologies. Product development involves optimizing performance, power efficiency, and features to meet the demands of specific applications and markets. Key players often customize ARM processor designs to create specialized chips tailored for specific use cases. Customizations can include adding dedicated hardware accelerators (e.g., GPUs, NPUs) or integrating security features to enhance the capabilities and competitiveness of their products.  Key players actively seek opportunities to expand ARM microprocessor adoption across various industries. They identify new markets and applications where ARM-based solutions can provide value and work to penetrate these markets.

• Intel Corporation (US)- According to the U.S. Department of Commerce, Intel remains a leading player in the microprocessor market with its x86 processors, while it has also started integrating ARM architecture in some products, specifically in its IoT and embedded solutions, contributing to the diversification of its product portfolio.

• Nvidia Corporation (US)- According to the U.S. Federal Trade Commission (FTC), Nvidia’s acquisition of ARM Holdings in 2020 aimed at enhancing their ARM-based processing capabilities, particularly in AI, machine learning, and automotive applications, which are rapidly growing areas within the ARM ecosystem.

List of Top ARM Microprocessor Companies

• Intel Corporation (US)
• Nvidia Corporation (US)
• IBM Corporation (US)
• Qualcomm Technologies Incorporated (US)
• NXP Semiconductors (Netherlands)
• Microchip Technology Incorporated (US)

REPORT COVERAGE

The report brings together extensive research on the qualitative and quantitative factors affecting the market. It gives an overall macro and micro view of the online reputation service industry. This research profiles a report with extensive studies on the online reputation management services market that describe the firms affecting the forecasting period. Detailed studies also offer a comprehensive analysis by inspecting factors like segmentation, opportunities, industrial developments, trends, growth, size, share, restraints, etc.

Furthermore, the post-COVID-19 pandemic’s effect on international market restrictions and a deep understanding of how the industry will recover and strategies are also stated in the report. Finally, the competitive landscape has also been examined in detail to provide clarification of the competitive landscape.