Friday, September 7th 2018

Jon Peddie Research Releases its Q2-2018 Graphics Card Report

The add-in board market decreased in Q2'18 from last quarter, while NVIDIA gained market share. Over $3.2 billion dollars of AIBs shipped in the quarter. The market shares for the desktop discrete GPU suppliers shifted in the quarter, Nvidia increased market share from last quarter, while AMD enjoyed an increase in share year-to-year.

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 private, often large, high-speed memory, as compared to the integrated GPUs in CPUs that share slower system memory.
The PC AIB market now has just two chip (GPU) suppliers which also build and sell AIBs. The primary suppliers of GPUs are AMD and Nvidia. There are 48 AIB suppliers, the AIB OEM customers of the GPU suppliers, which they call "partners."

In addition to privately branded AIBs offered worldwide, about a dozen PC suppliers offer AIBs as part of a system, and/or as an option, and some that offer AIBs as separate aftermarket products. We have been tracking AIB shipments quarterly since 1987-the volume of those boards peaked in 1999, reaching 114 million units, in 2017, 52 million shipped. Since 1981, 2,070 million AIBs have been shipped.

Q2 is normally down from the previous quarter. This quarter it showed a decrease of 28.0% that is -18.2% below the ten-year average of -9.8% which is very low when compared to the desktop PC market, which decreased 3.4% quarter-to-quarter.

The relative changes from quarter-to-quarter are illustrated in the following chart.
On a year-to-year basis, we found that total AIB shipments during the quarter fell 5.7%, while desktop PCs rose 8.8% for the same quarter a year ago, this discrepancy reflects the weakening Crypto-mining market.

Overall, AIBs shipments had been declining slightly, but not as great as the PC due to gaming and Crypto-mining. In 2015 when the use of AIB for cryptocurrency mining became widespread, AIB sales started to rise while PC sales fell. In Q1'18, the demand for AIBs for Crypto-mining ended due to a change from an Ethereum consensus based on the Proof of Work (PoW) system to one based on the so-called Proof of Stake. That change dramatically reduced the need for localized memory, and that made expensive AIBs no longer needed. Also, the price of Ethereum dropped.

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

The gaming PC (system) market is vibrant. All OEMs are investing in the gaming space because the demand for gaming PCs is robust. Intel also validated this on their earnings call when they announced a new Enthusiast CPU. However, it won't show in the overall market numbers, because like gaming GPUs, the gaming PCs are dwarfed by the general-purpose machines.

Discrete GPUs are the heart and soul of add-in boards (AIBs) and Jon Peddie Research's Add-in Board Quarterly Report covers the market activity of PC-based graphics for Q1'18.

This detailed 111-page report will provide you with all the data, analysis and insight you need to clearly understand where this technology is today and where it's headed.

JPR also publishes a series of reports on the PC Gaming Hardware Market, which covers the total market including system and accessories, and looks at 31 countries.

Pricing and Availability
Jon Peddie Research's AIB Report is available now in both electronic and hardcopy editions and sells for $2,500. The annual subscription price for JPR's AIB Report is $5,000 and includes four quarterly issues. Full subscribers to JPR services TechWatch 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
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26 Comments on Jon Peddie Research Releases its Q2-2018 Graphics Card Report

#1
FreedomEclipse
~Technological Technocrat~
What happened to Matrox? Or are they using rebranded AMD chips now?
Posted on Reply
#2
Vya Domus
FreedomEclipse, post: 3899347, member: 38411"
What happened to Matrox? Or are they using rebranded AMD chips now?
You think they would even make it in the chart?
Posted on Reply
#3
theoneandonlymrk
FreedomEclipse, post: 3899347, member: 38411"
What happened to Matrox? Or are they using rebranded AMD chips now?
Have been for a while.
Posted on Reply
#4
R-T-B
theoneandonlymrk, post: 3899352, member: 82332"
Have been for a while.
Hell SiS made their own chips longer than Matrox... even made their own weird multigu spec.
Posted on Reply
#5
Vayra86
4% market share gone per quarter for AMD. At that rate, they will be completely gone by the time Navi launches. They have about 2 years left.

So much for 'targeting the midrange' and it being a great idea. Duh.
Posted on Reply
#6
DeathtoGnomes
can say I'm surprised by the market share changes, AMD was up mostly do to mining demands. Etailers are still price gouging and hasnt let up on AMD cards either, so that hurts the market share too. Several sites I looked at recently actually raised prices for vega cards. Wouldnt mind seeing the market share break down by card, but im not dishing out $2500 for that tidbit.
Posted on Reply
#7
StrayKAT
Vayra86, post: 3899942, member: 152404"
4% market share gone per quarter for AMD. At that rate, they will be completely gone by the time Navi launches. They have about 2 years left.

So much for 'targeting the midrange' and it being a great idea. Duh.
You're depressing me.

If that happens, I hope Intel finds a place in the market. Nvidia monopoly would not be good... not even for Nvidia fans.
Posted on Reply
#8
lexluthermiester
Vayra86, post: 3899942, member: 152404"
4% market share gone per quarter for AMD. At that rate, they will be completely gone by the time Navi launches. They have about 2 years left.
So much for 'targeting the midrange' and it being a great idea. Duh.
You are failing to see the big picture. Did you notice the "year on year" numbers? They've gained .5% in the last 12 months. And when we're talking about such a large market, that's an impressive stride.

StrayKAT, post: 3899990, member: 174092"
You're depressing me.
Be of good cheer. AMD's GPU lines aren't going anywhere.
Posted on Reply
#9
Vayra86
lexluthermiester, post: 3899998, member: 134537"
You are failing to see the big picture. Did you notice the "year on year" numbers? They've gained .5% in the last 12 months. And when we're talking about such a large market, that's an impressive stride.


Be of good cheer. AMD's GPU lines aren't going anywhere.
This isn't a large market, Intel is excluded from these results, this is pure dedicated we're looking at. Gaining half a percent is equal to complete stagnation, and their current quarter is the result of not having anything to offer in this segment - a fact that continues to be the case all the way until Navi launches. I don't see 7nm Vega doing anything substantial either. The mining hype is over, the only way their share can go is down.
Posted on Reply
#10
lexluthermiester
Vayra86, post: 3900006, member: 152404"
This isn't a large market, Intel is excluded from these results, this is pure dedicated we're looking at. Gaining half a percent is equal to complete stagnation, and their current quarter is the result of not having anything to offer in this segment - a fact that continues to be the case all the way until Navi launches. I don't see 7nm Vega doing anything substantial either. The mining hype is over, the only way their share can go is down.
When the numbers are measured in the hundreds of millions per year world wide, that's not a small market sector. Cryptomining was balanced more or less evenly between AMD and NVidia. Both are in decline. You still missed the big picture.
Posted on Reply
#11
Arjai
Vayra86, post: 3900006, member: 152404"
The mining hype is over, the only way their share can go is down.
I don't mean to be combative but, what makes you the expert? Amd's Market share, this quarter, is still better than the market share they held last year. Considering they have not got a new GPU out that is pretty good (or , rather that they can't supply them and they are selling at inflated prices because of demand).

Vayra86, post: 3899942, member: 152404"
At that rate, they will be completely gone by the time Navi launches.
Speculate much? That's a broad statement. AMD is not going to be 'Gone'. Anybody have the stats on Console sales? Is AMD 'Gone'?

Remember your statement, because I will remind you a year from now!

:shadedshu:
Posted on Reply
#12
Vayra86
Arjai, post: 3900066, member: 104448"
I don't mean to be combative but, what makes you the expert? Amd's Market share, this quarter, is still better than the market share they held last year. Considering they have not got a new GPU out that is pretty good (or , rather that they can't supply them and they are selling at inflated prices because of demand).



Speculate much? That's a broad statement. AMD is not going to be 'Gone'. Anybody have the stats on Console sales? Is AMD 'Gone'?

Remember your statement, because I will remind you a year from now!

:shadedshu:
Its no secret AMD is not making an effort to come back any time soon. Do remind me a year from now. It'll be interesting to see where they are by then.

The console market is not the dedicated GPU market...
Posted on Reply
#13
lexluthermiester
Vayra86, post: 3900084, member: 152404"
Its no secret AMD is not making an effort to come back any time soon. Do remind me a year from now. It'll be interesting to see where they are by then.
Not an opinion supported by market numbers, historical facts or simple observation.
Posted on Reply
#14
Arjai
Vayra86, post: 3900084, member: 152404"
Do remind me a year from now.
Putting it in my Calendar, now.
:toast:
Posted on Reply
#15
qcmadness
Vayra86, post: 3900084, member: 152404"
Its no secret AMD is not making an effort to come back any time soon. Do remind me a year from now. It'll be interesting to see where they are by then.
The console market is not the dedicated GPU market...
lexluthermiester, post: 3900140, member: 134537"
Not an opinion supported by market numbers, historical facts or simple observation.
AMD is not making effort as Raja had not done his job since 2016.
As the new head of GPU was hired in early 2018, I would expect a new architecture to be out in 2020-2022.

But in fact, does AMD care about the discrete GPU market? The CPU server market is larger than the entire GPU market. Why would AMD prioritize GPU market over CPU server market in 2015-2017?
Posted on Reply
#16
StrayKAT
qcmadness, post: 3900357, member: 177550"
AMD is not making effort as Raja had not done his job since 2016.
As the new head of GPU was hired in early 2018, I would expect a new architecture to be out in 2020-2022.

But in fact, does AMD care about the discrete GPU market? The CPU server market is larger than the entire GPU market. Why would AMD prioritize GPU market over CPU server market in 2015-2017?
Well, if they didn't care, they never should have bought ATI in the first place.
Posted on Reply
#17
qcmadness
StrayKAT, post: 3900385, member: 174092"
Well, if they didn't care, they never should have bought ATI in the first place.
They could not care during the Bulldozer days.

Also AMD bought ATi to counter Intel's own integrated GPU project, but not voluntarily.
Posted on Reply
#18
StrayKAT
qcmadness, post: 3900390, member: 177550"
They could not care during the Bulldozer days.

Also AMD bought ATi to counter Intel's own integrated GPU project, but not voluntarily.
Well, now they'd be smart to actually care if they didn't.. for the same reason ironically. Because Intel's about to enter this game in a bigger way. Neither one may take Nvidia's throne, but there's going to be a fight for #2. Should they give up before it even starts? Why the hell for? They have the advantage at the moment.
Posted on Reply
#19
hat
Enthusiast
qcmadness, post: 3900357, member: 177550"
AMD is not making effort as Raja had not done his job since 2016.
As the new head of GPU was hired in early 2018, I would expect a new architecture to be out in 2020-2022.

But in fact, does AMD care about the discrete GPU market? The CPU server market is larger than the entire GPU market. Why would AMD prioritize GPU market over CPU server market in 2015-2017?
They would care because the discrete GPU market is pretty big, both in servers and consumer systems. There's loads of gamers who have been put off by high prices who could use a new video card (RX580 is pretty affordable nowadays, but that only goes so far). There are professionals who might be looking to AMD for professional cards. They could get in with Dell, HP etc and put Radeon graphics in prebuilt systems.
Posted on Reply
#20
renz496
StrayKAT, post: 3900385, member: 174092"
Well, if they didn't care, they never should have bought ATI in the first place.
And AMD acquire ATI not because they really want to compete heavily in discrete gpu market but it is for their APU. just that before their APU truly ready they will still going to offer discrete solution to the market. AMD dream with APU is to create software that can only be accelerated properly by APU. Meaning no matter how fast the CPU or GPU is the processing speed will never beat an APU due to unique nature of APU (remember APU itself referring to Accelerated Processing Unit). Sadly software is not really a strong forte for a cpu company like AMD. That specilized APU software that AMD talk about in the past never happen. so APU did not end up like what AMD had imagine in the past and just become a "CPU with integrated GPU in it".
Posted on Reply
#21
StrayKAT
renz496, post: 3900592, member: 104135"
And AMD acquire ATI not because they really want to compete heavily in discrete gpu market but it is for their APU. just that before their APU truly ready they will still going to offer discrete solution to the market. AMD dream with APU is to create software that can only be accelerated properly by APU. Meaning no matter how fast the CPU or GPU is the processing speed will never beat an APU due to unique nature of APU (remember APU itself referring to Accelerated Processing Unit). Sadly software is not really a strong forte for a cpu company like AMD. That specilized APU software that AMD talk about in the past never happen. so APU did not end up like what AMD had imagine in the past and just become a "CPU with integrated GPU in it".
I don't know if cpu company has anything to do with it. I think Intel makes good software.

But I didn't know anything about their APU ambitions. I was out of the loop with PC hardware for awhile.
Posted on Reply
#22
hat
Enthusiast
A lot of us pretty much figured this would happen when we heard the news that AMD was buying ATi.
Posted on Reply
#23
StrayKAT
The good thing is there isn't anything I'm too dependent on either. I transitioned to this Vega from a 1060.. Either way, I can play most games on them. I'm sold on AMD because I have Freesync displays, but if push came to shove, I *could* go back to Nvidia. I'll just have to go high end (to get good 4K performance..which I can already fake with Freesync). I hope AMD sticks around, but whatever.
Posted on Reply
#24
lexluthermiester
hat, post: 3900690, member: 32804"
A lot of us pretty much figured this would happen when we heard the news that AMD was buying ATi.
Good grief, that was 13 years ago. Seriously with that?
Posted on Reply
#25
hat
Enthusiast
Just saying, when the news first surfaced that AMD was buying ATi, the possibility of AMD putting out processors that were also capable of graphics (like today's APUs) was discussed.
Posted on Reply
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