GPU Market Shifts: Nvidia Dominates as AMD Share Declines

The global graphics processing unit (GPU) market continues to evolve, with recent data indicating a significant shift in market share. While the overall GPU market is projected to exceed $98.5 billion in 2024 ¹, Nvidia has solidified its position as the dominant player, particularly in the discrete desktop GPU segment.

Discrete GPU Shipments Surge in Q2 2024

Shipments of discrete graphics cards saw a substantial increase in the second quarter of 2024, with 11.5 million units sold – a 36% rise compared to the same period in 2023. ⁴ However, these numbers are relatively lower when compared to previous quarters of the year, potentially due to market saturation following the release of new products in the spring and summer, as well as increased customs duties and rising graphics card prices driven by memory costs.

Nvidia’s Market Dominance Reaches New Heights

Nvidia currently controls 94% of the discrete desktop GPU market, a historic high. ⁴ This surpasses a previous peak where Nvidia also held 94% of the market, but at that time, AMD had 6% and Intel held no share. Currently, AMD has a 5% market share, and Intel holds 1%.

AMD’s Declining Share

This represents the worst quarter in history for Radeon graphics cards in terms of relative market share. ⁴ Historically, AMD maintained a market share above 20% until 2022, even reaching nearly 38% at its peak. The decline is partly attributed to the diminishing market for low-end graphics cards, as modern processors increasingly feature capable integrated graphics.

Overall GPU Market Breakdown

While AMD’s discrete GPU share is declining, its overall GPU market share (including notebook and integrated graphics) remains at 18%, consistent with the previous year. ¹ Nvidia holds 23% of the overall market, while Intel leads with a 59% share. However, Nvidia gained seven percentage points from Intel in the past year.

GPU Applications Expand Beyond Traditional Markets

GPUs are now integral components in a wide range of applications, extending far beyond gaming and personal computers. These include:

• Smartphones
• Vehicles
• PCs with integrated GPUs
• Internet of Things (IoT) devices
• Data center GPUs
• Smart TVs
• Robotics
• Augmented and virtual reality
• Game consoles
• Medical diagnosis systems ¹

Looking Ahead

The GPU market is expected to continue its growth trajectory, driven by increasing demand from emerging fields like artificial intelligence. ¹ Nvidia’s current dominance suggests a continued strong position, but AMD and Intel are actively developing new technologies to compete in this dynamic landscape. The annual GPU Market and Products report from Jon Peddie Research consolidates these developments for ongoing analysis. ¹