Total shipments reached 68.8 million units in a quarter marked by seasonality and geopolitical uncertainty.
The latest report from Jon Peddie Research (JPR) confirms a contraction in the global market for graphics processing units (GPUs) for PCs, with a 12% decline from the previous quarter and a year-over-year drop of 1.6%. According to the analysis, the industry is below the historical average and is experiencing the combined impact of typical first-quarter seasonality and economic volatility stemming from trade wars.
A Declining Market with Negative Projections
Total GPU shipments in the first quarter reached 68.8 million units, while PC CPU shipments totaled 61.9 million. JPR projects a compound annual growth rate (CAGR) of -6.1% through 2028, at which point the global installed base is expected to reach 2.8 billion units.
One of the most significant figures from the study is the penetration of dedicated GPUs (dGPU) in PCs, which is expected to remain around 15% over the next five years, solidifying its role in the high-performance segment but not expanding into the mass market.
Device Type Distribution
Shipments of GPUs for desktops fell 16% year-over-year, while shipments for laptops decreased by 10%, in line with moderated consumer demand and market saturation following the pandemic surge.
Market Share Among Manufacturers
As for the market share of the top three manufacturers:
- AMD lost 1.6 percentage points.
- Intel declined by 2.1 points.
- NVIDIA, on the other hand, gained 3.6 points, solidifying its leadership.
These movements reflect the increasing specialization of the market, with NVIDIA capitalizing on the rise of artificial intelligence and high-performance gaming, while AMD and Intel face challenges in their integrated and dedicated graphics product lines.
CPU Market Evolution
The processor market also showed signs of slowdowns, with an overall decline of 0.3% from the previous quarter. In detail:
- AMD recorded a 12% drop in shipments.
- Intel fell by 14%.
Despite this, the attach rate between CPUs and GPUs—which includes both integrated and dedicated—rose to 111%, indicating that each PC has, on average, more than one GPU assigned, driven by dual configurations and the growth of hybrid work environments.
Geopolitical and Trade Factors
The JPR report notes that the uncertainty stemming from trade policies, especially in the United States, has directly impacted the planning of manufacturers and distributors. “The PC market is caught in the crosswinds—some might say crossfire—of Trump’s trade wars,” explained Dr. Jon Peddie, president of JPR. Anticipated purchases to lock in prices may temporarily relieve pressure, but lead to downturns in future demand.
Conclusion: A Complex 2025 for the Industry
The report warns that the PC market, along with the client-facing GPU market, may close the year with figures below the initially anticipated levels. The macroeconomic context, cooling consumer demand, and regulatory tensions are directly affecting a segment that, while still crucial in areas such as gaming, design, and artificial intelligence, is entering a phase of structural reorganization.
Source: jonpeddie