PC GPU Market Is Back In The Green In Q3 2023 As Segment Sees 16.8% Growth, Graphics Cards Climb Above 37%

Global GPU Shipments Increase By 1.8% In Q2 2024, NVIDIA GPU Share Increased By 2% 1

The PC GPU market has made a huge recovery after several years of decline as both GPU & graphics card shipments saw the biggest quarterly increase in 2020.

The GPU market has been in a constant decline since 2020 which was the last time it peaked and saw a quarterly growth of around 20%. The main reasons were the disruption in supply due to the COVID-19 pandemic which led to lower quantities of products in the market and higher prices. The situation however changed in 2023 with the market returning to normalization & prices across the entire PC segment seeing a drastic drop.

The GPU shipments which had been on a decline since 2020 fell from 120+ million units to less than 60 million units by the end of 2022. That's almost half of the 2020 shipment figures which were also the highest since 2014.

As of Q3 2023, the market is now back in the green, witnessing the first positive quarter of Q2 2021 and a rise to 16.8%. Not only that but the GPU shipments also saw an increase to 71.9 million units. Given the current trajectory, GPUs will have an installed base of 5 billion units by the end of 2026 (both iGPUs & dGPUs).

Now moving to the GPU market share amongst the top three GPU suppliers, AMD saw the biggest increase in Q3 2024 with a 2.4% share increase with a 36.6% shipment increase from the previous quarter, NVIDIA is second with a share increase of 1.30% with a 25.2% shipment increase while Intel's share fell by -3.7% despite a 10.4% increase in shipments. These figures include both dGPUs and iGPUs.

AMD's strong growth here can be attributed to strong sales in the notebook PC market as this particular segment saw a big growth in terms of CPU shipments. All of AMD's Ryzen notebook processors come equipped with iGPUs. The same is true for the Ryzen 7000 Desktop CPUs that were also popular in the past few months thanks to the lowering of prices of the AM5 platform & great deals on the CPUs too.

The GPU’s overall attach rate (which includes integrated and discrete GPUs, desktops, notebooks, and workstations) in PCs for the quarter was 117%, up 1.6% from last quarter.

Desktop graphics add-in boards (AIBs that use discrete GPUs) increased by 37.4% from the last quarter.

This quarter saw 6.1% change in tablet shipments from last quarter.

The overall PC CPU market increased by 15.2% quarter to quarter and decreased -6.0% year to year.

For discrete GPUs which includes AIBs that offer graphics cards, the graphics segment saw an increase of 37.4% from the previous quarter. The specific figures haven't yet been released but it looks like the entry of mainstream options such as the RTX 4060 series and AMD's RX 7700/7800 series might have resulted in strong sales while RTX 40 GPUs did perform well in the high end laptop segment.

Given the current trends, Discrete GPUs such as graphics cards are expected to retain a 30% market penetration over the next five years while the rest of the 70% market will consist of iGPUs. For total CPU shipments, a 15.2% share increase was seen over the previous quarter with desktop chips now accounting to 31% and notebook chips accounting to 69%. We'll have more detailed breakdown of the discrete AIB graphics card market in the coming weeks.