Jon Peddie Research: Global Q3'19 add-in board market soars led by Nvidia

[Raevenlord]

The add-in board market increased in Q3'19 by 42% from last quarter, with over $2.8 billion dollars of AIBs shipped. Nvidia increased its market share to 73% in Q3. The last fiscal quarter was transitional for Nvidia as older products made their way through the channel allowing the company to ramp up production and ship more new products at the end of the quarter. Nvidia not only boosted their market share but they raised the overall AIB market. Their channel inventory is now reported as healthy says the company. Nvidia's RTX line is doing well and represents 66% of its gaming revenue.

Quarter-to-quarter graphics add-in board shipments increased by 42.2% and increased by 6.2% year-to-year. The market shares for the desktop discrete GPU suppliers shifted in the quarter, Nvidia significantly increased market share from last quarter, while AMD increased share year-over-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 dedicated, often large, high-speed memory. Systems with integrated GPUs in CPUs 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 54 AIB suppliers. They are the AIB OEM customers of the two major GPU suppliers, which they call partners. Some of the AIB suppliers offer AMD and Nvidia-based products, and others offer only one or the other.

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 offer AIBs as separate aftermarket products. We have been tracking quarterly AIB shipments since 1987—the volume of those boards peaked in 1999, reaching 114 million units when every PC had a graphics AIB in them. This quarter 10.5 million AIBs shipped.

The AIB market hit $15 billion last year and is forecasted to be $15 billion by 2023.

Since 1981, 1,299 million AIBs have been shipped.

The third quarter is normally the strongest from the previous quarter. This quarter it was up 42.2% from the last quarter. That is above the ten-year average of 14.9% which is unusually high when compared to the desktop PC market, which increased 9.6% from the last quarter.



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, AIBs shipments had been declining slightly, but not as great as the PC due to gaming. However, in 2015 when the use of AIB for cryptocurrency mining became widespread, AIB sales started to rise while PC sales fell.

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 market growth and has attracted new users. VR continues to be interesting but is not having a measurable influence on the AIB market.

View at TechPowerUp Main Site

 

[bug]

So, as much as we love to hate them, the Supers seem to be doing their job. Unlike Navi

 

[nguyen]

Not surprising since Nvidia flooded the market with Turing GPUs at every price point

 

[kings]

Q4 is likely to be even worse for AMD, given the 1650/1660 Super refresh and the RX 5500 still missing in combat (probably only by mid-December).

 

[TheinsanegamerN]

So, as much as we love to hate them, the Supers seem to be doing their job. Unlike Navi

It helps that Turing is available to buy, unlike Big navi. Much as the peons love to scream that most people dont buy high end GPUs and that competing with nvidias entire range is silly, sure seems that Nvidia is selling a LOT of those high end GPUs......

 

[Xaled]

PR, false info
Why would AMD market share be 32 at first place, this doesn't make sense at all
JPR blacklisted!

This part alone is enough to show how bullshet this "report" is:
"The last fiscal quarter was transitional for Nvidia as older products made their way through the channel allowing the company to ramp up production and ship more new products at the end of the quarter. Nvidia not only boosted their market share but they raised the overall AIB market. Their channel inventory is now reported as healthy says the company. Nvidia's RTX line is doing well and represents 66% of its gaming revenue"

 

[prtskg]

PR, false info
Why would AMD market share be 32 at first place, this doesn't make sense at all
JPR blacklisted!

This part alone is enough to show how bullshet this "report" is:
"The last fiscal quarter was transitional for Nvidia as older products made their way through the channel allowing the company to ramp up production and ship more new products at the end of the quarter. Nvidia not only boosted their market share but they raised the overall AIB market. Their channel inventory is now reported as healthy says the company. Nvidia's RTX line is doing well and represents 66% of its gaming revenue"

JPR's report actually matches the revenue report from AMD and Nvidia. I think their data is quite reasonable. Earlier Nvidia's gpus didn't have good price - performance ratio but now they are good enough compared to competition. It also helps that entire high end is in their grip.

 

[Xaled]

JPR's report actually matches the revenue report from AMD and Nvidia. I think their data is quite reasonable. Earlier Nvidia's gpus didn't have good price - performance ratio but now they are good enough compared to competition. It also helps that entire high end is in their grip.

Still, these results dont make sense. Why would AMD s market share increase in Q2 and Year to Year and drop in Q3 as AMD didn't release anything in previous 3 quarters ?

 

[cucker tarlson]

Still, these results dont make sense. Why would AMD s market share increase in Q2 and Year to Year and drop in Q3 as AMD didn't release anything in previous 3 quarters ?

lots of 570s/580s and Vega cards with prices slashed.
I don't think amd's revenue increases that much when they launch something new.more like when they put something on sale.then sales go through the roof for a couple of weeks.

 

[jabbadap]

Still, these results dont make sense. Why would AMD s market share increase in Q2 and Year to Year and drop in Q3 as AMD didn't release anything in previous 3 quarters ?

Jon Peddie is all about quantity of sales and most sales are low-mid end cards. AMD have been very competitive on sub $200 price range for ages now.

 

[efikkan]

Despite all the Navi hype, AMD's market shares are stagnant at best.
Even though RX 5700 is doing okay, it's still not changing the game.
Steam hardware survey:

 

[Xzibit]

Despite all the Navi hype, AMD's market shares are stagnant at best.
Even though RX 5700 is doing okay, it's still not changing the game.
Steam hardware survey:
View attachment 137982View attachment 137983

Did the CS:GO & DOTA 2 requirements increase ?

 

[SIGSEGV]

this is not good at all.

 

[prtskg]

Despite all the Navi hype, AMD's market shares are stagnant at best.
Even though RX 5700 is doing okay, it's still not changing the game.
Steam hardware survey:
View attachment 137982View attachment 137983

It's not like Nvidia is stagnant. Navi is much better compared to previous GCN cards but super refreshes from Nvidia is quite good too.

 

[efikkan]

It's not like Nvidia is stagnant. Navi is much better compared to previous GCN cards but super refreshes from Nvidia is quite good too.

I know, Nvidia keeps pushing forward. I was making a point since there have been a lot of talk of how "successful" RX 5700 have been, most recently in an article here just a few days ago. Yet, we see that Nvidia's comparable products (2060 Super, 2070 Super, plus the other ones) are outselling it by a significant factor. All this, despite all the free press and positive attention Navi has gotten compared to the 2060 Super/2070 Super which launched at the same time.

It's not that long ago that several of the YouTubers often mentioned here in the forums (I will not name them, but you know who) claimed that Navi will crush Nvidia, but once again they're lagging behind. This is sad because we need some real competition in the graphics market, and this is simply not good enough. Nvidia is probably launching their next generation "soon", and I seriously hope that AMD have something better than recycled Navi by then.

 

[cucker tarlson]

It's not like Nvidia is stagnant. Navi is much better compared to previous GCN cards but super refreshes from Nvidia is quite good too.

this is rtg's problem.
intel was so dominant cause it was pitted against wack amd cpus.once they got their stuff together it turned out intel is losing ground fast.
but nvidia is able to dominate against good amd cards.in gpu market faster in gaming means everything.nobody buys these for productivity.

 

[RH92]

this is not good at all.

For sure as far as competition goes this is bad news ! This being said once again the only one responsible for this is AMD , 5700/XTs are fine but when competition offers either more perf , more features ( peoples like it or not raytracing is a massive marketing argument and it's the future ) , more efficiency or a combination of those ..... well AMD needs something more than '' just fine '' . On top of that this year AMD lost their main advantage which has been lower pricing , indeed these days when AMD manages to compete with Nvidia pricing is on part with Nvidia as-well and FreeSync ( read AdaptiveSync ) monitors have become compatible with Nvidia GPUs !

The most scary part of all this is that Nvidia is crushing the market despite RTX being in its infancy stage and despite the inferior lithography . Next year Nvidia is moving to 7nm EUV which will allow them to extend even further their lead in performance and efficiency and at the same time refine the ray-tracing aspect , meanwhile AMD has yet to catch-up 1080Ti perf ...... let that idea sink in for a moment .

 

[Vayra86]

this is rtg's problem.
intel was so dominant cause it was pitted against wack amd cpus.once they got their stuff together it turned out intel is losing ground fast.
but nvidia is able to dominate against good amd cards.in gpu market faster in gaming means everything.nobody buys these for productivity.

Said it then and will say it now: AMD"s focus on the midrange Polaris announcement was the moment they effectively lost their chance to compete in the high end for the foreseeable future. People chalk that up to 'strategy' but that only applies in the sense of keeping AMD's GPU division alive, not in the sense of being a competitive player in dGPU. Because really, AMD is not, even with Navi. Across all these releases and all this noise, they are still trailing a full gen, not only in performance, but also in tech (RT).

 

[cucker tarlson]

Said it then and will say it now: AMD"s focus on the midrange Polaris announcement was the moment they effectively lost their chance to compete in the high end for the foreseeable future. People chalk that up to 'strategy' but that only applies in the sense of keeping AMD's GPU division alive, not in the sense of being a competitive player in dGPU. Because really, AMD is not, even with Navi. Across all these releases and all this noise, they are still trailing a full gen, not only in performance, but also in tech (RT).

they put everything on 5700/xt,and while that seems like the best bet,you can't compete with 2 cards against 15.it'll keep them afloat but man,this is only gonna get worse.

 

[efikkan]

this is rtg's problem.
intel was so dominant cause it was pitted against wack amd cpus.once they got their stuff together it turned out intel is losing ground fast.
but nvidia is able to dominate against good amd cards.in gpu market faster in gaming means everything.nobody buys these for productivity.

A large part of AMD's problem is lack of proper focus in the GPU market. Obviously they have more limited resources than Nvidia, and this requires them to work harder and choose which markets to focus on. If AMD had ignored the data center and "AI" markets (as they have no chances there anyway), and instead of making these custom chips for the consoles had made a purely gaming focused GPU (which they also put in the consoles), they would at least stand a chance. As long as their primary focus remains on spending resources customizing their chips (effort which is largely wasteful), they will continue to lag behind Nvidia. We need AMD to catch up to drive the competition forward.

 

[TheGuruStud]

Dubious claims. Warehouses have been overflowing with unsold Nvidia cards for forever.

 

[Xzibit]

Dubious claims. Warehouses have been overflowing with unsold Nvidia cards for forever.

They managed to get inventory down the last two quarters. 1 more quarter and they should be back to normal. They also increased Margins 4%.

 

[jabbadap]

A large part of AMD's problem is lack of proper focus in the GPU market. Obviously they have more limited resources than Nvidia, and this requires them to work harder and choose which markets to focus on. If AMD had ignored the data center and "AI" markets (as they have no chances there anyway), and instead of making these custom chips for the consoles had made a purely gaming focused GPU (which they also put in the consoles), they would at least stand a chance. As long as their primary focus remains on spending resources customizing their chips (effort which is largely wasteful), they will continue to lag behind Nvidia. We need AMD to catch up to drive the competition forward.

Well they already have compute arch GCN, and RDNA will be more gaming focused on now on. And yeah both will coexists: RDNA on gaming consoles gaming graphics cards and GCN as compute on Arcturus will go to full fill HPC contract with ORNL.

 

[prtskg]

Well they already have compute arch GCN, and RDNA will be more gaming focused on now on. And yeah both will coexists: RDNA on gaming consoles gaming graphics cards and GCN as compute on Arcturus will go to full fill HPC contract with ORNL.

AMD is improving, no doubt about that. Here's to hoping that they'll give sustained competition to Intel and Nvidia. That'll be beneficial to us all.

 

[medi01]

Releasing Navi vs Turing, AMD managed to grab GPU market share y/y, yawn.

Imagine the effects we'll see when increased R&D budget of the graphics department will kick in.

Despite all the Navi hype, AMD's market shares are stagnant at best.

You know, perhaps AMD PR guy pissing on steam stats wasn't convincing enough, but after an independent source confirms steam survey is shite, it's perhaps time to at least have some doubts about it?