GPU demand slowed in the first months of 2022, but the market is still poised for solid...

nanoguy

Posts: 1,232   +24
Staff member
Why it matters: Graphics card shipments usually take a small dive in the first quarter, and it's no different this time. The supply side has improved significantly in the past several months, while demand has only decreased every month. We might see prices dip below MSRP with a bit of luck later this year.

By now, it's no secret the days of highly-profitable GPU mining are behind us. A combination of surging energy prices and a sharp drop in Ethereum's value has put a damper on many people's dreams of "printing money" with little effort using consumer hardware that they can always resell to gamers on the second-hand market. At the same time, gamers are reluctant to pay even manufacturer-suggested prices for graphics cards when a new generation is right around the corner.

Jon Peddie Research (JPR) reports that the GPU market shows signs of slowing down after a few years of unrelenting demand. The first quarter of 2022 saw GPU makers sell 96 million units, which is a 6.2 percent decrease from the previous quarter. Analysts believe this dip results from lockdowns in China, the Russia/Ukraine conflict, and growing delays in the global freight transportation system. However, JPR still predicts a favorable annual growth rate of 6.3 percent through 2026 for the industry and a market penetration rate of 46 percent for discrete GPUs by the end of the forecast period.

Intel saw the most significant decline, dropping 8.7 percent for the three months ending in March, while AMD shipments decreased by 1.5 percent. In contrast, Nvidia saw an increase of 3.2 percent. Furthermore, demand for discrete GPUs made by AIB partners increased by 1.4 percent over the same period, good news for gamers.

The overall dedicated GPU market landscape has remained the same, with Nvidia holding a market share of 78 percent while AMD sits at a much more modest 17 percent. Intel has a little over 4 percent, which won't change until it starts shipping its Arc A-series GPUs globally.

The analysts also note that CPU shipments saw a 10.8 percent drop in Q1 2022 compared to the previous quarter and a 26.2 percent drop compared to the same quarter of last year. This negative growth suggests that consumers' appetite for CPU upgrades is waning, so retailers may soon offer discounts to make them more attractive.

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ET3D

Posts: 1,785   +415
Counting iGPUs never made sense. The real news is that GPU sales went up while CPU sales (and therefore iGPU sales) went down. So GPU demand certainly hasn't slowed.
 

hahahanoobs

Posts: 4,526   +2,495
Counting iGPUs never made sense. The real news is that GPU sales went up while CPU sales (and therefore iGPU sales) went down. So GPU demand certainly hasn't slowed.
"The first quarter of 2022 saw GPU makers sell 96 million units, which is a 6.2 percent decrease from the previous quarter."
 

BadThad

Posts: 1,102   +1,300
This is GREAT timing for the dummies at Intel who managed to delay, delay and delay some more on their new discrete GPU. If it ever arrives, they'll have have to discount it with the next gen GPU's right around the corner and waning demand. Hopefully when it does come, they'll absolutely flood the market with them and drive down ALL prices.
 

p51d007

Posts: 3,215   +2,749
Well, if you COULD get a GPU last half of last year, first half of this year, you had to pay
multiple times what it was "worth".
 

Nobina

Posts: 3,831   +4,278
I have a few games that would benefit from a GPU upgrade but let's face it, most recent releases were complete and utter trash. GPU sales might go down simply because there's no game worth upgrading over.
 

ET3D

Posts: 1,785   +415
"The first quarter of 2022 saw GPU makers sell 96 million units, which is a 6.2 percent decrease from the previous quarter."

Which include iGPUs. Hence what I said. That's the problem with these stats, that they make people with not enough attention think it means something about dGPUs.
 

hahahanoobs

Posts: 4,526   +2,495
Which include iGPUs. Hence what I said. That's the problem with these stats, that they make people with not enough attention think it means something about dGPUs.
That's where source links and your own research comes in.
If you're into tech, then educate yourself on tech. If you don't know something or you're confused about something - research and ask questions until you understand it.
 

ET3D

Posts: 1,785   +415
That's where source links and your own research comes in.
If you're into tech, then educate yourself on tech. If you don't know something or you're confused about something - research and ask questions until you understand it.
And if you have nothing valuable to say, don't say it.

Honestly, did you have a point?