NVIDIA Commands 90% Discrete GPU Market Share: A Class of Its Own
NVIDIA's position in the graphics card industry is unparalleled. Recent analysis from Jon Peddie & Associates reveals a significant detail: NVIDIA holds a 90% market share for discrete GPUs shipped to major computer manufacturers (OEMs). This substantial portion of the market was achieved in the third quarter of 2024.
Market Trends: Seasonal Dip, NVIDIA's Rise
This market dominance occurs during an overall seasonal downturn in the graphics card market. Typically, the third quarter sees increased sales, but 2024 presented a different scenario. Shipments of graphics processors declined by 14.5% from the previous quarter. This represents a decrease from 9.5 million units to 8.1 million. Despite ample GPU availability from various companies, the market experienced contraction.
However, the technology sector saw positive movement in CPUs. The CPU market demonstrated strong growth during the same period. CPU sales increased to 20.1 million units, a notable 42.2% rise from the second quarter. While positive, it is important to note that CPU sales were still down 3.4% compared to the same quarter last year.
Shifting Desktop Graphics Card Landscape
These market shifts are evident in the desktop graphics card sector. NVIDIA's market leadership is particularly pronounced here. Despite overall market fluctuations, NVIDIA increased its market share. They gained an additional 2% from the second quarter of 2024, reaching the impressive 90% market share.
Looking at year-over-year growth, NVIDIA's performance is even more remarkable. Their market share has expanded by a significant 8% compared to the same period last year. Concurrently, competitors AMD and Intel have experienced market share losses. The data clearly indicates NVIDIA's strong hold on the discrete GPU market, solidifying their leading position.
NVIDIA's Dominance: Factors at Play
The reasons behind NVIDIA's exceptional dominance are noteworthy. Factors such as advanced technology, strong brand recognition, and strategic market positioning likely contribute. Regardless of the precise explanation, NVIDIA's control of the graphics card market is undeniable. The evolution of this market dynamic in the coming years will be closely observed.
Source: Based on research from Jon Peddie Research
