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According to a new report by Jon Peddie Research, the PC gaming hardware market is experiencing its most significant growth in years. The report forecasts a record 35% growth in 2025, with total sales expected to reach $44.5 billion. This trend is anticipated to continue through 2028.
The research covers sales of PC gaming hardware, including desktops and notebooks, graphics cards (AIBs), and gaming peripherals. The primary factor driving this growth is the release of Windows 11, which has raised new hardware requirements. Many gamers are either upgrading their existing systems or purchasing pre-built computers based on newer technology.
The following chart illustrates the projected sales for PC gaming hardware from 2024 to 2028:
Ted Pollak, a senior analyst at Jon Peddie Research, explains that this hardware migration is unprecedented. It necessitates not only a CPU upgrade but also motherboard and potentially RAM updates for over 100 million gamers.
Pollak further states that most PC gamers are purchasing new prebuilt systems rather than upgrading their existing ones. DIY enthusiasts are also preparing for the transition by building new computers alongside their current Windows 10 setups, allowing them to use their PCs until they fully upgrade to Windows 11.
The report also notes that the entry-level PC gaming market is projected to shrink by 13% over the next five years. However, around 10 million gamers are expected to move to other platforms like consoles, handhelds, and mobile devices due to cost considerations. Nevertheless, many will upgrade to higher-tier hardware such as mid-range or high-end systems.
This pattern of upgrading to better hardware is common in the PC gaming market. While entry-level sales volume is significant, revenue generation from higher-tier products is substantial. This ensures that the PC gaming market remains vibrant for years to come.
