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32-Bit refers to the number of bits that can be transmitted or processed in parallel. In other words, 32-bits is the number of bits that compose a data element.

• For a data bus, 32-bit means the number of pathways available, meaning that it has 32 pathways in parallel for data to travel.
• For microprocessors, it indicates the width of the registers and can process any data and use memory addresses that are represented in 32-bits. This is part of the processor’s architecture.
• For operating systems, 32-bits refer to how it handles data. It is used to represent a memory address and works in conjunction with the microprocessor.
• As for graphic devices like digital cameras or scanners, it refers to the number of bits used to represent the pixels. 24-bits are used for color information and 8-bits are used for the control information (alpha channel).

Source: 32-Bit