IMARC Group has recently released a new research study titled “South Korea Application Processor Market Size, Share, Trends and Forecast by Device Type, Core Type, and Region, 2025-2033”, offers a detailed analysis of the market drivers, segmentation, growth opportunities, trends and competitive landscape to understand the current and future market scenarios.
South Korea Application Processor Market Overview
The South Korea application processor market size reached USD 718.20 Million in 2024 and is expected to grow to USD 880.65 Million by 2033, expanding at a CAGR of 2.06% during 2025-2033. This growth is driven by the rising demand for mobile phones, integration of artificial intelligence and machine learning in electronic devices, and the transition to 5G connectivity. These factors are increasing the need for efficient and powerful processors optimized for real-time data processing in smartphones, autonomous vehicles, smart homes, and other IoT devices.
STUDY ASSUMPTION YEARS
- Base Year: 2024
- Historical Years: 2019-2024
- Forecast Period: 2025-2033
SOUTH KOREA APPLICATION PROCESSOR MARKET KEY TAKEAWAYS
- Current Market Size: USD 718.20 Million in 2024
- CAGR: 2.06%
- Forecast Period: 2025-2033
- The heightened demand for mobile phones is fueling the market, with consumers seeking smartphones with better gaming performance, AI integration, and multimedia capabilities.
- Progress in AI and ML is boosting demand for customized processors capable of handling sophisticated AI algorithms and big data in real time.
- South Korea’s transition to 5G connectivity and IoT expansion demands powerful processors to support high data speeds and low-latency communication.
- The government plans to acquire 10,000 high-performance GPUs via public-private partnerships to advance AI computing infrastructure.
- South Korean firms are embedding AI processing power into application processors to enhance efficiency and functionality.
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MARKET GROWTH FACTORS
The South Korea application processor market growth is strongly influenced by the growing need for mobile devices. The demand for mobile phones with enhanced capabilities such as increased gaming performance, AI integration, and improved multimedia features is driving the market. South Korean manufacturers are launching new smartphone models with higher performance needs, increasing the demand for powerful and efficient application processors optimized for handling large data volumes and delivering superior user experiences. Additionally, the accelerated deployment of 5G networks enhances the demand for processors capable of supporting real-time applications and high-definition content.
Advancements in artificial intelligence (AI) and machine learning (ML) are vital to market expansion. These technologies are increasingly integrated into electronic devices, including smartphones, autonomous cars, and smart home devices, necessitating application processors with customized processing capabilities. South Korean companies are embedding AI processing capabilities directly into their processors to facilitate efficient real-time recognition, prediction, and data analysis. The country is investing significantly in research and development to develop processors optimized for ML and deep learning, thus fueling technology adoption and market growth.
The transition to 5G connectivity along with the expansion of the Internet of Things (IoT) ecosystem is another critical factor. With 5G networks offering greater data speeds and low latency, devices require more powerful processors to manage increased data traffic seamlessly. South Korean manufacturers are designing processors specifically for 5G applications, improving connectivity across devices. The IoT ecosystem’s growth raises the number of connected devices, demanding efficient processing power to handle and analyze extensive data from these networks. According to the Korean government, 5G transmission speeds increased by 9.2% in 2024 compared to the prior year, significantly enhancing service quality.
MARKET SEGMENTATION
- Device Type:
- Mobile Phones: The primary device category fueling demand for application processors due to increasing smartphone capabilities and user needs.
- PC Tablets and E-Readers: Devices requiring efficient processors for mobile computing and multimedia consumption.
- Smart Wearables: Wearable devices that integrate advanced processors for health tracking, communication, and AI features.
- Automotive ADAS and Infotainment Devices: Application processors tailored for automotive safety systems and entertainment units.
- Core Type:
- Octa-Core: Processors with eight cores designed for high performance and multitasking efficiency.
- Hexa-Core: Six-core processors that balance performance and power consumption.
- Quad-Core: Four-core processors suitable for mid-range applications.
- Dual-Core: Two-core processors for basic to moderate processing requirements.
- Single-Core: Processors with one core, typically used for low-power applications.
REGIONAL INSIGHTS
The report covers key regional markets including the Seoul Capital Area, Yeongnam (Southeastern Region), Honam (Southwestern Region), Hoseo (Central Region), and others. The Seoul Capital Area stands out as a dominant region due to its status as a technological hub and concentration of industry players. Precise market share and CAGR figures by region are not provided in the source. The growth across these regions is driven by increasing adoption of 5G networks and IoT devices, contributing to regional expansions in processor demand.
RECENT DEVELOPMENTS NEWS
In 2025, South Korea announced plans to sanction 10,000 high-performance graphics processing units (GPUs) acquired through public-private partnerships to keep pace with the global AI competition. This initiative aims to assist the nation in promptly establishing facilities at its national AI computing center. The government’s commitment reflects strong support for AI technology advancements and underscores investments in computing infrastructure necessary for advanced application processors.
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