- GPU shipments grew by 6.2% in Q4 2024 but are expected to decline by 1% annually from 2024 to 2028, with only 15% of systems using discrete GPUs by 2030.
- Nvidia, holding the largest market share, has faced challenges in meeting demand, particularly for high-end and mid-range GPUs.
- Tariffs, GPU shortages, and rising prices due to scalpers and paper launches are affecting demand and slowing market growth.
Over 78 million PC GPUs were shipped in the last quarter of 2024, a 6.2% increase over the previous quarter. Year-over-year GPU shipments on all platforms rose by 1%, according to Jon Peddie Research, with a 2% gain in laptop GPU sales and a 3% decline in desktop graphics card sales.
Why it matters: Nvidia’s supply issues and the expected market decline could make GPUs harder to get and more expensive for consumers.
Only 15% of systems will have a discrete GPU by 2030, and the market for GPUs will drop by 1% annually between 2024 and 2028. Additionally, factors like tariffs and Nvidia GPU shortages might also affect the market.
According to Dr. Jon Peddie, president of the team that produced this analysis, Nvidia’s shortage delayed the increase of GPU shipments. With the biggest market share, Nvidia struggled to meet demand, preventing the GPU industry from growing as much as it could have.
Nevertheless, it appears that Nvidia is still having problems meeting the demand for high-end and mid-range GPUs, as nearly all of its recently released graphics cards, ranging from the RTX 5090 to the RTX 5070 Ti, are sold out in stores around the world.
Furthermore, the research also predicts that the market for discrete GPUs will decline in the coming years. It makes sense that more individuals will be eager to obtain more powerful graphics cards as they become available.
However, many potential customers are likely being turned off by the rising prices brought on by tariffs, paper launches, and scalpers. With both Nvidia and Intel struggling to fulfill demands, it’s probably the best time for AMD to shine through with its new Radeon RX 9070 series.
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[News Reporter]
Malik Usman is student of Computer Science focused on using his knowledge to produce detailed and informative articles covering the latest findings from the tech industry. His expertise allows him to cover subjects like processors, graphics cards, and more. In addition to the latest hardware, Malik can be found writing about the gaming industry from time to time. He is fond of games like God of War, and his work has been mentioned on websites like Whatculture, VG247, IGN, and Eurogamer.
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