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Discrete GPU shipments fell 3.9% last quarter
05.03.2021 [13:29],
Alexey Razin

Traditionally, the fourth quarter is characterized by an increase in demand for video cards and laptops, which often become gifts for the holidays concentrated at the end of the year. Last year, all the usual trends were disrupted by a pandemic, but it cannot be argued that all new trends were negative. True, the direct volume of deliveries of video cards decreased by 3.9%.

Image source: NVIDIA

This is evidenced by a new report by Jon Peddie Research, which takes into account the results of the fourth quarter. We emphasize that the original research note examines the state of the entire GPU market, which includes not only discrete, but also integrated, including those used in tablets. Collectively, the GPU market in the fourth quarter grew by 20.5% sequentially, with Intel gaining the most (+ 33.2%), while AMD’s shipments grew 6.4% and NVIDIA cut them by 7.3%.

Image source: Jon Peddie Research

Thus, AMD reduced its share in the graphics market from 19% to 17%, NVIDIA reduced it from 19% to 15%, and Intel consistently strengthened its position from 62% to 69%. In general, the volume of shipments of discrete graphics cards decreased by 3.9% compared to the third quarter, and the entire PC market grew by 30.25% compared to the fourth quarter of 2021, which explains the progress of Intel. The growth in the supply of laptops is especially noticeable — for the whole year the number of sold mobile PCs increased by 49% to 230 million units. Notebook shipments are expected to grow 6% this year, JPR analysts believe, and this will be above the average in recent years.

The entire PC market grew by 35.76% in 2021, laptops clearly had a decisive influence on this dynamics. Directly, the volume of deliveries of graphics processors at the end of 2021 increased by 12.4%. By the end of 2025, the authors of the report predict the capacity of the GPU market will reach 419 million as a result of an average increase of 3.7% per year. Discrete GPU Penetration to Reach 21% by End of Forecast Period. This means that almost one in five PCs sold will be equipped with discrete graphics.

Image source: Jon Peddie Research

Interestingly, even with a reduction in its share in the total GPU market, NVIDIA in the discrete graphics segment strengthened its position in the fourth quarter from 80 to 82%, but AMD had to give up these two percent to a competitor, now its share does not exceed 18%. Intel in the segment of discrete graphics is present only nominally, although soon everything may change.

JPR experts urge not to overestimate the degree of influence of the cryptocurrency factor on the market in the current quarter. The upcoming reforms that will negatively affect the need for computing resources for Ethereum mining should reduce the demand for video cards from miners.

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