A report from Jon Peddie Research projects the PC gaming hardware market will see record growth of 35% in 2025, reaching $44.5 billion in sales. This growth is driven by new hardware requirements and increasingly demanding software.
The analysis forecasts that this financial momentum will be sustained, with annual sales expected to remain above the $40 billion mark through 2028. This projected increase represents the most significant growth the market has experienced in recent years. The research encompasses products that constitute the PC gaming hardware ecosystem, including pre-built desktop computers, gaming notebooks, and individual components such as add-in-board (AIB) graphics cards. The valuation also factors in sales of gaming peripherals.
A primary factor for the anticipated sales surge is the hardware requirements of Windows 11. According to the report, these specifications are compelling many gamers to upgrade components or purchase new pre-built PCs. The rising technical demands of modern AAA video games further fuel this trend. Titles developed on advanced platforms like Unreal Engine 5 necessitate more powerful hardware to run effectively, creating a strong incentive for consumers to invest in newer systems for these high-fidelity experiences.
Specific technological advancements are accelerating hardware upgrade cycles. New GPU features, including AI-driven upscaling and frame generation, provide performance benefits, particularly in unoptimized games, encouraging adoption of the latest graphics cards. Concurrently, the market is transitioning away from GPUs with 8 GB of video memory as gamers opt for higher-capacity models to handle modern game requirements. On the processor front, growing consumer interest in newer CPUs, such as AMD’s 3D V-Cache lineup and processors with eight or more cores, is leading to complete platform upgrades rather than single-component swaps.
The report also identifies a structural shift within the consumer base. Projections indicate the entry-level PC gaming segment is set to contract by 13% over the next five years. This change is partly attributed to an estimated 10 million PC gamers expected to migrate to alternative platforms. These platforms include home consoles, handheld gaming devices, and mobile gaming, with cost considerations cited as a potential reason for the platform shift.
Despite this migration, a substantial number of gamers using entry-level hardware are expected to remain on the PC platform, upgrading to mid-range or high-end hardware within a two-to-four-year period. While the entry-level market is characterized by high sales volume, it generates comparatively lower revenue and profit margins for manufacturers. In contrast, the mid-range and high-end tiers deliver significantly higher revenues and profitability. This consumer movement toward more premium hardware is expected to bolster the PC gaming market’s overall financial performance in the coming years.
