In a nutshell: Given that chip scarcity is dominating the headlines, one might expect the GPU and CPU markets to have shrunk, but the opposite is true. GPU shipments rose a massive 37% year over year in the second quarter of 2021 and increased 3.4% sequentially. Of the three graphics companies, Nvidia and Intel gained more of the pie, while AMD's market share declined.
Jon Peddie Research (JPR) writes that 123 million GPUs shipped in the second quarter. It was also a good Q2 for CPUs, which saw shipments jump 42% year over year. The company writes that the installed base of GPUs will grow at an annual rate of 3.5% over the next four years, reaching 3,318 million units by 2025. Discrete GPUs, meanwhile, will grow to a level of 25%.
If you look at the market shares, which also include integrated GPUs, Intel continues to lead with 68.29% (plus 0.1%). AMD follows with 16.48% (minus -0.2%) and Nvidia with 15.23% (plus 0.06%). In terms of shipments, however, all companies saw sequential increases: AMD shipments rose 2.3%, Intel shipments rose 3.6%, and Nvidia shipments rose 3.8%.
JPR notes that total GPU shipments were typically down in the second quarter compared to the previous quarter, but this year they are up 3.4% year over year.
In the world of dedicated GPUs, things are of course different. Nvidia now takes 83% of that market, up 2%, while AMD has fallen to 17%. Both companies have struggled to meet demand since launching their respective new graphics cards, but Team Green has done a lot better than its rival – as the latest Steam poll shows.
Market shares in PC-dGPU deliveries
|2nd quarter 2020||Q1 2021||Q2 2021|
Intel recently announced that the first product in its discrete Arc brand for discrete graphics cards, Alchemist, will hit the market in the first quarter of 2022, so Chipzilla should eventually join Nvidia and AMD on the dGPU list.
Here are some of the other highlights of the report:
- The overall connectivity rate of GPUs (including integrated and discrete GPUs, desktops, notebooks and workstations) to PCs was 117% in the quarter, a decrease of -0.1% compared to the previous quarter.
- Desktop graphics add-in boards (AIBs that use separate GPUs) were down -2.9% compared to last quarter.
- In the quarter, tablet shipments rose 3.4% from the previous quarter.
“Covid has skewed every predictive model in the universe – even Moore's Law was disrupted. Forecasts based on short-term terms have resulted in conflicting and skewed estimates from some quarters that will prove false and embarrassing, ”said JPR President Jon Peddie.
In terms of when the graphics card market will return to normal for consumers, Nvidia CEO Jensen Huang recently warned that the current delivery problems would last for most of 2022. We have also heard that chip delivery times have reached record levels of 20 weeks.