After a tumultuous and unnatural spike in sales for gaming computers, peripherals, and components in 2021, and a pullback based on demand quenching in 2022, the PC gaming hardware market is now facing additional headwinds. These headwinds primarily germinate with recession fears, layoffs, and corresponding forecasts of reductions in discretionary spending for 2023.
However, the light at the end of the tunnel is that the market will recover over $5 billion in revenue through 2025—an increase of 12% from 2022. Led by the High-End category with growth of $3.92 billion (17%), we nevertheless forecast a retraction in the Mid-range of $1.15 billion (-8%). The Entry-Level category will make an unusual and significant contribution to growth of $2.29 billion (45%) from 2022.
Dr. Jon Peddie, president of JPR, cites the growth in High-End as being partially based on a focus by manufacturers in this category but at the expense of developing Mid-range offerings. Additionally, Dr. Peddie believes that Intel’s entry into the discrete graphics market helps boost the Entry-Level, as well as some of AMD’s older GPUs, which are still being manufactured and are being discounted to Entry-Level from their previous position in the Mid-range pricing tier.
Ted Pollak, senior game tech analyst at JPR, notes that a recovering macroeconomic environment in 2024 and the system replacement refresh cycle are the larger story in the forecast and growth of the market. But, also contributing is a renaissance in PC gaming display development with gamers gravitating toward ultra-wide screens with High-End aspirational products now available in 5K and 8K resolutions. And for the Entry-Level and lower Mid-range consumers, 3440 × 1440 ultra-wide displays are currently priced starting at around $320, which is in reach for tens of millions of gamers. This increase in screen resolutions will force gamers to upgrade their systems so that they can obtain smooth frame rates.
The PC Gaming Hardware Market Study by Jon Peddie Research is a comprehensive analysis that dives deep into the rapidly evolving global PC gaming hardware market. Leveraging advanced financial modeling, this indispensable resource provides insights into market size, value, segments, and unit shipments.
