Digging into the high-level overview takes some maneuvering, because the macro graphics market is a two part affair. There’s the overall shipment of GPUs, which includes integrated graphics that are packaged with CPUs (even if the end user isn’t making use of the iGPU), and the discrete graphics chip market, which is the one we’re more interested in.
Yes, you can further segment the graphics categories into even more ways, such as embedded GPUs as found in game consoles like the PlayStation 5 and Xbox Series X|S (as well as handhelds), add-in boards (graphics cards that you stuff into your desktop, essentially), and discrete GPUs that are plopped into laptops, to give some examples. And from there, you can discern between GPUs for professionals, data center applications, and gamers.
JPR’s report doesn’t take a fine tooth comb to the many tentacles of the GPU category, but it does offer some interesting insights. First, the PC-based graphics card market reached 78 million units in the fourth quarter of 2024, while PC CPU shipments settled in at 72 million units.
Looking at overall GPU shipments (including all platforms, not just add-in boards) increased by 1%. Meanwhile, desktop graphics decreased by 3% and notebook graphics increased by 2%. As such, the total breakdown of GPU shipments continues to favor Intel with a massive 65% share (up 0.8% from the previous quarter), followed by AMD with an 18% share (up 1%), and finally NVIDIA at 16% (down 1.8%).
Obviously CPU shipments with integrated graphics are playing a huge role in the overall breakdown. That’s mainly interesting from the perspective of the PC market as a whole. We’re more interested in discrete GPUs, and according to JPR, the penetration rate of dGPUs will hit 15% in the next five years.
It could potentially be better, but there are two major factors holding back growth. One is the “global political turmoil” resulting from tariffs, and other is a big gap in demand versus supply for NVIDIA’s GPUs. The latter is having an increased impact because when it comes to discrete GPUs, NVIDIA is king of the hill.
What about the impact of AI PCs? According to Peddie, even though there’s some excitement over the category, it’s not enough to drive more spending by consumers.