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Last quarter, the video card market shrank 6.5% to 11 million units
10.03.2021 [06:53],
Alexey Razin

The fourth quarter is usually characterized by either an increase in the volume of sales of video cards, or their stability relative to the third, but the last quarter of last year was an exception, showing a decline of 3.9%. In an annual comparison, the video card market generally shrank by 6.5%, so the presence of a shortage of graphics processors cannot be disputed.

Image source: Medium

A separate report on the dynamics of the market for discrete video cards was published by the agency Jon Peddie Research. It has tracked the number of graphics cards sold annually since 1987, peaking in 1999 with 114 million graphics cards sold. In the past quarter, no more than 11 million video cards were sold, and the revenue from their sale by the end of 2021 reached $ 14.8 billion. Experts expect that by 2023 this amount will increase to $ 18.6 billion, which will be facilitated by Intel’s return to the discrete graphics segment.

Image source: Jon Peddie Research

The fourth quarter of last year showed a 3.9% decrease in the number of sold video cards compared to the third quarter. Amid a 27.9% rise in the desktop CPU market, this gap is impressive. Compared to the fourth quarter of 2021, the video card market decreased by 6.5%. The desktop processor market grew by 5.2% during this time. As a result, as the authors of the study note, the share of new desktop systems with discrete graphics decreased over the year from 43 to 38%, while in the third quarter of 2021 it was 51%.

Image source: Jon Peddie Research

Such dynamics can be explained not only by the shortage of graphics processors, but also by the activity of cryptocurrency market participants who actively bought video cards for the extraction of «digital gold». AMD’s share of the video card market has consistently decreased from 23% to 17%, NVIDIA has strengthened its position from 77% to 83%. In the fourth quarter of 2021, it occupied no more than 69% of the market, 31% was controlled by AMD.

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