Graphics Card Trends and Forecast
The future of the global graphics card market looks promising with opportunities in the desktop and laptop markets. The global graphics card market is expected to grow with a CAGR of 5.2% from 2024 to 2030. The major drivers for this market are significant advancements in graphic technology and rising demand from the gaming industry.
• Lucintel forecasts that, within the type category, built-in independent graphics card is expected to witness a higher growth over the forecast period due to widespread availability, affordability, and adequate performance for everyday needs.
• Within the application category, desktops will remain a larger segment.
• In terms of regions, APAC will remain the largest segment over the forecast period due to the immense population of gaming enthusiasts and increasing government investment in developing high-performance graphic cards for military and intelligence.
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Recent developments in the graphics card market are mainly due to several factors, such as technological advances, growing demand for high-performance computing, and changing customer requirements. GPU technology has advanced significantly, which is why the market is growing so fast. Additionally, gaming and professional applications have pushed GPU development and other technologies further.
• United States: The US graphics card market is experiencing significant growth due to advancements in GPU technology and an increase in its usage for gaming and AI applications. For instance, NVIDIA and AMD have developed the latest GPU architectures that enhance both performance and efficiency. Therefore, graphics cards with high resolutions are suitable for gaming and virtual reality (VR). As a result, companies are competing to improve technology and offer lower prices.
• China: Similarly, China’s graphics card market has swiftly expanded due to the rise of the gaming industry and increased investments in AI and data centers. Firms in China are making strides in developing GPUs to contend with renowned global companies. To promote local innovation and reduce reliance on foreign technology, the government is focusing on technological self-reliance. With improved manufacturing capabilities supported by government initiatives, the wider adoption of advanced graphics cards can be achieved across multiple applications.
• Germany: Additionally, Germany’s graphics card market is growing due to advancements in high-performance computing (HPC) as well as the automotive industry. German companies have invested heavily in GPU technology for use in autonomous vehicles and industrial automation. This creates opportunities, as there is also increasing demand for high-performance graphic solutions from the gaming industry and professional visualization sectors. To this end, German firms are working on creating custom-made graphics solutions to meet diverse commercial interests, encouraging innovation while expanding markets.
• India: As India’s graphics card market expands with the uptake of more games and professional applications, gaming enthusiasts are increasingly demanding high-performance graphics solutions. Additionally, the growth of data centers and AI deployments is driving the demand for cutting-edge GPUs. Given that both Indian firms and consumers are now looking for cost-effective, high-performance graphics cards, local and international players must meet these rising requirements.
• Japan: The graphics card market in Japan has recently grown due to technological advancements and high demand from its gaming and tech sectors. Japanese companies are focused on developing GPUs for gaming, VR, and AI that can deliver exceptional visual experiences, among other applications. There is considerable innovation in the area of graphics technology, and competition is based on product offerings. The adoption of advanced graphics solutions is driven by Japan’s strong technological infrastructure and consumer interest in state-of-the-art gaming experiences.
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Emerging Trends in the Graphics Card Market
The graphic card market is being reshaped by emerging trends that are manifesting through advances in technology, changing customer inclinations, and evolving application needs. Notable among these are the upsurge in AI and machine learning usage, increased demand for high-resolution and VR gaming, improved GPU architecture, sustainability efforts, and the growth of mobile or integrated graphics solutions.
• AI and Machine Learning Integration: The current trend of incorporating artificial intelligence (AI) and machine learning into graphic cards is having a significant impact on this industry. In particular, modern GPUs are now designed to handle AI workloads, which have enhanced their performance in data processing as well as real-time analytics. This is due to the increasing need for high-performance computing as part of AI applications, such as deep learning and neural networks. The ability of GPUs to perform AI functions has resulted in major advancements both at the enterprise level and at the consumer level.
• High-Resolution and VR Gaming: The demand for high-resolution visual display capabilities and virtual reality (VR) gaming has influenced developments in graphic card technology. Graphic cards can now support higher resolutions while making games more immersive and visually appealing, with VR enabling them to deliver superior performance. This trend is compelling manufacturers to develop innovative GPU architectures that can support 4K-plus resolutions or even higher, while also improving VR experiences for gamers.
• Advancements in GPU Architecture: Continuous improvements in GPU architecture are one of the key trends currently observed in the graphic card market. These new architectures enhance computational power, energy efficiency, and overall performance, among other benefits. For example, modern GPUs have more cores than ever before, employ advanced cooling technologies, and offer better memory bandwidth, which enables them to power demanding applications and provide a superior user experience. As a result, competition between manufacturers has intensified, forcing them to come up with innovative solutions.
• Sustainability and Eco-Friendly Practices: Sustainability and eco-friendliness are becoming increasingly important in the graphic card market. To reduce the environmental footprint of GPU production, companies are seeking ways to improve energy efficiency. These initiatives include minimizing waste, using sustainable materials, and developing energy-saving technologies. Manufacturers have also begun paying more attention to greening their operations and producing graphic cards that are environmentally friendly, recognizing that customers and regulators are increasingly focused on sustainability issues.
Emerging trends such as AI integration, high-resolution and VR gaming, improvements in GPU architecture, sustainable development initiatives, and the expansion of mobile or integrated solutions indicate significant changes occurring within the industry. These trends have an impact on technological advancements, competition intensity, and consumer preferences, among other factors. For all stakeholders in these evolving markets, it will be necessary to monitor these developments closely to stay relevant by capitalizing on emerging opportunities in the industry.
Recent Developments in the Graphics Card Market
The recent advancements in the graphics card market reveal significant achievements resulting from technological innovations and changing consumer preferences. The sector is growing rapidly due to the increased demand for high-performance computing, GPU architecture development, and the rise of immersive games. These developments are shaping markets, product offerings, and regional competition.
• Advanced GPU Architectures: Innovations such as NVIDIA’s Ada Lovelace and AMD’s RDNA 3 have significantly improved the performance and efficiency of graphics cards. These new architectures offer increased processing power, better energy efficiency, and support for ray tracing and AI-based enhancements. This change is defining new standards for gaming applications, professional applications, and data processing.
• Increased Adoption of AI and ML: Graphics cards are increasingly being integrated with artificial intelligence (AI) frameworks and machine learning (ML) capabilities. The current GPUs are designed to handle AI/ML workloads, providing accelerated processing for tasks such as deep learning and data analysis. This trend is broadening the application areas for graphics cards, expanding beyond gaming consoles and rendering engines to include autonomous systems and real-time analytics.
• Expansion of VR and AR Capabilities: The increase in virtual reality (VR) and augmented reality (AR) applications has necessitated the use of high-performance graphics cards. For instance, newer models come with features that enhance VR experiences, such as higher frame rates, better resolutions, and lower latency rates. This trend compels manufacturers to innovate by producing GPUs capable of meeting the increasing demands of immersive technologies.
• Sustainability and Energy Efficiency: Sustainability and energy efficiency have gained prominence in the graphics card market in recent years. In a bid to address environmental concerns, many companies are developing GPUs that consume less power while ensuring superior thermal management practices. More consumers are seeking greener products, while regulations require firms to adopt more environmentally friendly manufacturing methods and energy-efficient designs.
As it stands, recent developments in the graphics card market are heavily influenced by improvements in GPU architecture, AI/ML adoption, VR/AR expansion, sustainability efforts, and the rise of mobile and integrated graphics solutions. These advancements are spurring innovation, affecting consumer preferences, and defining competitive dynamics. The path ahead for graphic technology will be significantly shaped by these trends as the market continues to evolve.
Strategic Growth Opportunities for Graphics Card Market
Technological breakthroughs and the increasing demand for high-performance computers have brought about various strategic growth opportunities across many applications within the graphics card market. Some of these include the growing gaming markets, VR/AR expansion, AI and ML growth, better cloud computing services, increased demand for high-resolution displays, and the emergence of mobile/integrated graphics, among others.
• Gaming and eSports: The increasing popularity of gaming and eSports presents a significant growth opportunity for graphics card producers. This has led to a greater demand for high-performance graphics cards that can support higher resolutions, frame rates, and more advanced graphical features as gaming experiences become more immersive and competitive. The demand drives innovation, allowing firms to create state-of-the-art graphics solutions optimized for gamers.
• Virtual and Augmented Reality: The growth of virtual reality (VR) and augmented reality (AR) technologies represents a major opportunity in the graphics card market. This calls for GPUs with advanced features to power the required immersive experiences and interactive applications. It also provides room for developing dedicated graphics devices with better performance and greater realism in virtual or augmented environments.
• AI and Machine Learning: Another opportunity arises from integrating artificial intelligence (AI) technology into graphics cards. They are now increasingly in demand for performing AI analysis, deep learning, real-time computing, and other machine learning tasks. As a result, businesses may expand into emerging markets where supercomputing is essential to advancing AI technologies.
• Cloud Computing and Gaming: Cloud computing, along with cloud-based gaming, has created new prospects for graphics card manufacturers. GPUs are used in data centers and cloud settings to provide the high-performance computational power necessary. As a result, those who fail to meet the growing demands of cloud-based services and virtualized gaming experiences will be left behind.
The graphics card market’s strategic growth opportunities, including gaming and eSports, VR and AR technologies, AI and ML integration, cloud computing, and mobile graphics, offer significant potential for market expansion and innovation. These demands are driving high-tech graphics solutions in the industry. Successful companies will seek to position themselves within these areas of growth while serving customers during the early stages of their evolution.
Graphics Card Market Driver and Challenges
The graphics card marketplace is influenced by various drivers and challenges that impact its growth and development. Key drivers include technological advancements, increasing demand for high-performance computing, growth in gaming and VR/AR applications, and the rise of AI and machine learning. Challenges include supply chain disruptions, high production costs, and regulatory issues.
The factors responsible for driving the graphics card market include:
• Technological Advancements: A major driver in this space comes from continuous advancements in GPU architectures and features. These improvements apply to attributes such as enhanced power efficiency, processing ability, and other advances like ray tracing and artificial intelligence support, all aimed at enhancing product performance and attracting consumers. In this regard, businesses must place more emphasis on research to remain relevant by meeting the changing demands of the market.
• Growing Demand for High-Performance Computing: The increasing demand for high-performance computing in gaming, professional applications, and data processing is a key factor behind the graphics card boom. Applications are becoming increasingly demanding, requiring GPUs that offer improved performance and can handle complex tasks. This demand drives the development of modern graphics solutions and supports the growth of the market.
• Expansion of Gaming and VR/AR Applications: Demand for graphics cards is significantly driven by the expansion of gaming and VR/AR applications. As immersive gaming experiences and interactive virtual environments rise, powerful GPUs capable of delivering better display quality and smooth performance are required. This demand encourages manufacturers to innovate and develop products for rapidly growing markets.
Challenges in the graphics card market include:
• Supply Chain Disruptions: Supply chain disruptions, including semiconductor shortages and logistical problems, present a significant challenge for the graphics card market. These disturbances affect production capabilities, leading to product availability delays. To maintain a steady component supply and remain competitive, companies must navigate these challenges effectively.
• High Production Costs: The graphics card market faces the challenge of high production costs, which include expenses related to advanced materials and manufacturing processes. Rising costs affect pricing strategies and profitability, making it necessary for firms to find cost-effective solutions while maintaining the quality and performance of their products.
• Regulatory Issues: Regulatory issues, including compliance with environmental policies and trade provisions, pose challenges to this market. Energy efficiency guidelines, waste disposal regulations, and international trade boundaries are among the regulatory frameworks companies must adhere to. These regulations influence how graphics cards are produced, leading to increased dynamism in the market.
Major drivers and challenges facing the graphics card market include technological advancements, the increasing demand for high-performance computing, expansion of gaming and VR/AR applications, growth in AI and machine learning, and the increased adoption of cloud computing. Additionally, critical challenges include supply chain disruptions, high production costs, and regulatory issues, among others. Understanding the various aspects of the market is important for stakeholders who want to exploit opportunities while overcoming potential threats that could hinder growth.
List of Graphics Card Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. With these strategies graphics card companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the graphics card companies profiled in this report include-
• ASUSTeK Computer
• Micro-Star
• Gigabyte Technology
• Colorful
• Galax
• Sapphire
• EVGA
• ZOTAC
• Maxsun
• PNY Technologies
Graphics Card by Segment
The study includes a forecast for the global graphics card by type, application, and region.
Graphics Card Market by Type [Analysis by Value from 2018 to 2030]:
• Built-In Independent Graphics Card
• External Graphics
Graphics Card Market by Application [Analysis by Value from 2018 to 2030]:
• Desktop
• Laptop
• Others
Graphics Card Market by Region [Analysis by Value from 2018 to 2030]:
• North America
• Europe
• Asia Pacific
• The Rest of the World
Features of the Global Graphics Card Market
Market Size Estimates: Graphics card market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends (2018 to 2023) and forecast (2024 to 2030) by various segments and regions.
Segmentation Analysis: Graphics card market size by type, application, and region in terms of value ($B).
Regional Analysis: Graphics card market breakdown by North America, Europe, Asia Pacific, and Rest of the World.
Growth Opportunities: Analysis of growth opportunities in different types, applications, and regions for the graphics card market.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the graphics card market.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
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FAQ
Q1. What is the growth forecast for graphics card market?
Answer: The global graphics card market is expected to grow with a CAGR of 5.2% from 2024 to 2030.
Q2. What are the major drivers influencing the growth of the graphics card market?
Answer: The major drivers for this market are significant advancements in graphic technology and rising demand from the gaming industry.
Q3. What are the major segments for graphics card market?
Answer: The future of the graphics card market looks promising with opportunities in the desktop and laptop markets.
Q4. Who are the key graphics card market companies?
Answer: Some of the key graphics card companies are as follows:
• ASUSTeK Computer
• Micro-Star
• Gigabyte Technology
• Colorful
• Galax
• Sapphire
• EVGA
• ZOTAC
• Maxsun
• PNY Technologies
Q5. Which graphics card market segment will be the largest in future?
Answer: Lucintel forecasts that built-in independent graphics card is expected to witness higher growth over the forecast period due to widespread availability, affordability, and adequate performance for everyday needs.
Q6. In graphics card market, which region is expected to be the largest in next 5 years?
Answer: APAC will remain the largest segment over the forecast period due to the immense population of gaming enthusiasts and increasing government investment in developing high-performance graphic cards for military and intelligence.
Q.7 Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 11 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the graphics card market by type (built-in independent graphics card and external graphics), application (desktop, laptop, and others), and region (North America, Europe, Asia Pacific, and the Rest of the World)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. Which region will grow at a faster pace and why?
Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.5. What are the business risks and competitive threats in this market?
Q.6. What are the emerging trends in this market and the reasons behind them?
Q.7. What are some of the changing demands of customers in the market?
Q.8. What are the new developments in the market? Which companies are leading these developments?
Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
For any questions related to Graphics Card Market, Graphics Card Market Size, Graphics Card Market Growth, Graphics Card Market Analysis, Graphics Card Market Report, Graphics Card Market Share, Graphics Card Market Trends, Graphics Card Market Forecast, Graphics Card Companies, write Lucintel analyst at email: helpdesk@lucintel.com. We will be glad to get back to you soon.