The graphics processing unit (GPU) market has shown a notable upswing with shipments reaching 76.9 million in the fourth quarter of 2024. While desktop GPU shipments saw a decline, the overall market benefited significantly from the booming data center sector. According to recently published data by Jon Peddie Research, there was an impressive 4.4% increase in GPU shipments from the third to the fourth quarter of 2024.
The growth is praiseworthy, especially against the backdrop of a challenging first half in 2024. However, the desktop segment experienced a contraction with a 5.4% reduction in shipments year-on-year. The flourishing demand for data center GPUs played a pivotal role in the market expansion. Additionally, notebook graphics shipments saw a slight year-on-year increase of 1%, providing an additional boost.
Despite the positive quarterly results, the year-on-year comparison tells a different story with a marginal decline of 0.9%. External factors, such as international trade tariffs, have stirred the market’s stability, influencing consumer behavior. The data center segment, however, was a standout performer with shipments skyrocketing by 13.8% quarter-over-quarter.
NVIDIA, even as a dominant player, faced challenges, experiencing a drop in market share to 15%, marking a 3.3% decrease. In contrast, rivals such as Intel and AMD have gained ground, improving their shares by 1.9% and 1.3% respectively. NVIDIA’s struggle to keep up with demand has affected the potential for greater market growth. With threats of further tariffs looming, the market’s trajectory in 2025 remains uncertain, possibly overshadowing the appeal of AI-driven personal computing advancements.
Looking ahead, the GPU market is projected to grow at a rate of 1.4% annually from 2024 to 2028, eventually achieving an installed base of over 3 billion units.
Turning to the CPU domain, the notebook CPU market share witnessed a slight dip to 69%, down from its previous 70%. The desktop CPU segment holds a 31% market share, with the total CPU shipments for the client market reaching 71.7 million units in the final quarter of 2024. Contrary to the GPU market, the CPU sector recorded a robust growth of 4.6% year-over-year and 7.8% quarter-over-quarter, highlighting varying trends in the tech landscape.
