The average person spends about $5,000 on hardware that will eventually mine a GPU chip, according to a recent report from the consulting firm Gartner.
But that’s just a fraction of the estimated $1 trillion market.
Gartener, in an earlier report from December, estimated that by 2020 the industry could earn more than $6 trillion in revenue, based on new products, technologies, and processes.
It said mining would add $150 billion to the global economy, generating $2.5 trillion in additional economic activity, including $300 billion in consumer spending and $1.2 trillion in exports.
With mining costs rising and the industry expected to generate about $6.5 billion in annual revenue by 2024, it’s no surprise that mining companies are betting heavily on GPU chips.
In December, Intel and Nvidia announced a $300 million investment to build and produce 3,000 Gigabyte (GB) of new chips each year.
But according to Gartners report, those chips will be available in the mid-2020s and will cost $300 per gigabyte, which is $30 less than today’s $500 chip.
Intel and AMD’s announcements are part of a push to accelerate the growth of the GPU mining industry.
The chipmaker said that its chips would generate more than 2.7 trillion global computing hours (GCEU) in 2025 and $5.4 trillion in gross margins by 2030.
Intel is also aiming to produce a third of the chips that will be sold in 2025.
AMD has announced plans to produce up to 4.7 teraflops of chips per year, which would be around 2 terafls of GPUs.
Nvidia has been working on a plan to produce 3.5 teraflies of chips annually by 2020, which could make chips that power a billion smartphones by 2035.
Meanwhile, Nvidia is building a new manufacturing facility in Arizona that will allow it to build up to 2.5 million chips per month.
With the growth in GPU mining coming, some mining companies have begun investing in new chip fabrication technologies.
In June, Advanced Micro Devices (AMD) announced it would build a new fab in New Mexico to support the development of its new chips.
Meanwhile the semiconductor giant Intel is expanding its fab in Arizona to build chip fabs for GPUs, including those in Arizona and North Carolina.