The add-in board market increased in Q4'19 from last quarter, and AMD gained market share. Over $3.9 billion dollars of AIBs shipped in the quarter.

Quarter-to-quarter graphics add-in board shipments increased significantly by 12.2% and increased by 33.4% year-to-year.

The market shares for the desktop discrete GPU suppliers shifted in the quarter too, AMD increased market share from last quarter, and AMD increased share from last year.

GPU Supplier Market share this quarter Market share last quarter Marker share last year AMD 31.08% 27.08% 18.77% Nvidia 68.92% 72.92% 81.23% Total 100% 100% 100% Market share changes quarter-to-quarter, and year-to-year

Jon Peddie, president of JPR noted, “this is the third consecutive quarter of increased AIB shipments, However, Q1 which is seasonally flat to down may show an unusual dip because of supply chain interruptions from China due to the Coronavirus epidemic. 2020 is going to be a game-changer with Intel’s entry into the discrete GPU market and a possible fourth entry by an IP company.”

Intel’s entry into the AIB market in 2020 will shift market share but not have an immediate influence on overall sales. However, we believe Intel’s brand is so powerful that new AIB customers will come into the market. Offsetting that will be the effect of streaming gaming from Google, Nvidia and others which may cause some gamers to delay buying a new AIB.

GPUs are traditionally a leading indicator of the market since a GPU goes into every system before the suppliers' ships the PC. Most of the semiconductor vendors are guiding down for next quarter, by an average of -9%. Some that guidance is based on normal seasonality, but there is also a factor for the Coronavirus impact.

Add-in boards (AIBs) using discrete GPUs are found in desktop PCs, workstations, servers, rendering and mining farms, and other devices such as scientific instruments. They are sold directly to customers as aftermarket products, or are factory installed by OEMs. In all cases, AIBs represent the higher end of the graphics industry with their discrete chips and dedicated, often large, high-speed memory. Systems with integrated GPUs in CPUs share slower system memory.

The AIB market hit $16.1 billion last year and is forecasted to be $16.3 billion by 2023.

Since 1981, 1,303 million AIBs have been shipped.

The fourth quarter is normally flat to up from the previous quarter. This quarter it was up 12.2% from the last quarter. That is above the ten-year average of -2.3% which is unusually high when compared to the desktop PC market, which increased 22.4% from the last quarter.

The relative changes from quarter-to-quarter are illustrated in the following chart.

AIBs attach rate

On a year-to-year basis, we found that total AIB shipments during the quarter rose 6.2%, which is greater than desktop PCs, which fell -15.9% from the same quarter a year ago.

Overall, AIB shipments had been declining slightly, but not as much as the PC thanks to gamers upgrading their systems.

Similarly in 2015, when the use of AIB for cryptocurrency mining became widespread, AIB sales rose while PC sales fell.

Despite the overall PC churn, somewhat due to tablets and embedded graphics, the PC gaming momentum continues to be a bright spot in the AIB market. The impact and influence of eSports have also contributed to market growth and has attracted new users. VR continues to be interesting but is not having a measurable influence on the AIB market.

JPR also publishes a series of reports on the PC Gaming Hardware Market, which covers the total market including system and accessories called the Worldwide PC Gaming Hardware Market Report Series.

Pricing and availability

Jon Peddie Research’s AIB Report is available now in both electronic and hard copy editions and sells for $2,750. The annual subscription price for JPR’s AIB Report is $5,500 and includes four quarterly issues, and four hours of consulting. Full subscribers to JPR services Tech Watch are eligible for a 10% discount. Bundle packages are also available. For information about purchasing the AIB Report, please call 415/435-9368 or visit the Jon Peddie Research website at www.jonpeddie.com.

Contact Robert Dow at JPR (Robert@jonpeddie.com) for a free sample of any of our reports.

About Jon Peddie Research

Dr. Jon Peddie has been active in the graphics and multimedia fields for more than 30 years. Jon Peddie Research is a technically oriented multimedia and graphics research and consulting firm. Based in Tiburon, California, JPR provides consulting, research, and other specialized services to technology companies in a variety of fields including graphics development, multimedia for professional applications and consumer electronics, high-end computing, and Internet-access product development. Jon Peddie’s Market Watch is a quarterly report focused on the market activity of PC graphics controllers for notebook and desktop computing.

About Jon Peddie Research

Dr. Jon Peddie has been active in the graphics and multimedia fields for more than 30 years. Jon Peddie Research is a technically oriented multimedia and graphics research and consulting firm. Based in Tiburon, California, JPR provides consulting, research, and other specialized services to technology companies in a variety of fields including graphics development, multimedia for professional applications and consumer electronics, high-end computing, and Internet-access product development. JPR’s Market Watch is a quarterly report focused on the market activity of PC graphics controllers for notebook and desktop computing.

Company Contact:

Jon Peddie, Jon Peddie Research

415/435-9368

jon@jonpeddie.com

Robert Dow, Jon Peddie Research

415/435-9368

robert@jonpeddie.com

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