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Slow growth in GPU market says analyst

Shipments down in Q4, overall market grew just 4.3% in 2010

JPR predicts a good year for graphics processor sales in 2011.
JPR predicts a good year for graphics processor sales in 2011.

Specialist graphics and multimedia analyst company Jon Peddie Research (JPR) has announced slow growth in the graphics market in 2010, and shipments down year-on-year for Q4 2010.

The company reported shipments were down 7.8% in Q4 compared to the same quarter in 2009, bucking the usual trend for a seasonal rise at year end. The overall graphics device market only grew by an estimated 4.3% for the whole year, which the company described as "disappointing".

The fourth quarter saw shipments of 113 million graphic chips and CPU's with graphics, with Intel holding the majority of the market, with 52.5% share. Intel's sales were driven by its Clarksdale processor (Core i3 and i5), Atom sales for netbooks and Sandy Bridge microarchitecture, although Intel lost on quarter-to-quarter basis to AMD and Nvidia, who held 24.2% and 22.5% of the market respectively.

JPR said that it remained optimistic for GPU sales in 2011, with full adoption of DirectX 11 for high-end and mainstream PCs likely to put a premium on GPU sales, and that AMD's Fusion and Intel's Sandy Bridge would also become more mainstream.

The graphics market has become more difficult to track however, the company said, with results for the PC market coming in under predictions, and the strength of tablets and other devices that don't use graphics processors, cutting into low-end PC sales.