Desktop GPU market hits 2 year high as gaming drives PC sales and upgrades

Market analyst firm Jon Peddie Research released their latest coverage for Q3 2016 revealing video games as a driving force in PC sales (via AnandTech). In fact, the climb of climb of discrete GPUs from manufacturers such as AMD and NVIDIA seems to be acting as the last leg as PC sales in total continue to decline.

To clarify, a discrete GPU is a video card that is not integrated into the motherboard and uses its own processing resources to run at a higher capacity. Standalone graphics cards such as the AMD’s Radeon RX series and NVIDIA GeForce GTX 10 series are leading the charge of GPU shipments with a 20% increase since last quarter, a two-year high for the market!

GPU Research for Desktops from Jon Peddie Research

Meanwhile, PC sales are continuing to falter. Even though they saw a minimal rise from last quarter by 8.09%, they are still gradually dropping 5.37% from this time last year.

Other highlights from the report include:

  • AMD’s overall unit shipments increased 15.38% quarter-to-quarter, Intel’s total shipments increased 17.70% from last quarter, and Nvidia’s increased 39.31%.
  • The attach rate of GPUs (includes integrated and discrete GPUs) to PCs for the quarter was 146% which was up 14.96% from last quarter.
  • Discrete GPUs were in 34.84% of PCs, which is up 7.06%.
  • The overall PC market increased 8.09% quarter-to-quarter, and decreased -5.37% year-to-year.
  • Desktop graphics add-in boards (AIBs) that use discrete GPUs increased 38.16% from last quarter.
  • Q3’16 saw a decrease in tablet shipments from last quarter and saw notebook sales out sell tablets for the first time in three years

It’s worth noting that the numbers reported in this analysis aren’t necessarily the turnout of sales to users, but the estimations of products being shipped to distributors.

JPR is attributing many of these market changes to the promise of virtual reality and the waves of new gaming content. Players are certainly not lacking in video games, the saturated market claiming over $200 million spent on gaming PCs compared to only $90 million on consoles this year.

The 54-page report covers more specifics about discrete and integrated graphics and can be found from JonPeddie.com

 

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