PC Gaming Hardware Market to Grow by $3.6 Billion in 2020 Thanks to COVID-19
The latest Jon Peddie Research report reveals that the PC Gaming Hardware market is set on a significant path for growth this year, mostly thanks to the COVID-19 pandemic.
The lockdown measures have resulted in gamers ordering upgrades and accessories for their PC gaming hardware. Even more interesting is that the report highlights the arrival of 'millions' of brand new gamers during the pandemic, which had already been noted by two of the biggest publishers in the industry (Activision and Electronic Arts) a couple of months ago.
The PC Gaming Hardware market is thus poised to grow by approximately $3.6 billion this year, with a 10.3% sequential growth of sales year-over-year.
Ted Pollak, Senior Analyst Gaming Industry, stated:
The PC Gaming Hardware market is in a rare scenario where every segment is going up. We see a lot of people buying and upgrading personal and company subsidized computers with better parts, with the intention of playing video games. In the Entry-Level, much of this revenue comes from new gamers.
The 2020 Entry-Level category is forecast to grow 21.7% which is unprecedented and totally unexpected. The Mid-Range has bounced back from a slide; now in positive territory. At the High-End, 1440p+ display sales (spurred by more affordable offerings) created a chain reaction of upgrades as gamers configure rigs for 60+ frames per second.
Due to TV broadcasting of sim racing events, we are observing an uptick in racing simulation builds. These include a high-performance computer often with premium audio, racing wheel/shifter/pedals, sometimes a racing seat, and other elements. Many of the sim racers are new to the market but have money and spend $2,000 - $5,000 on systems, audio, and accessories.
Jon Peddie, President of JPR, added:
COVID-19 has created a big spike in sales for PC gaming products in the near term. The total market is approaching $40 billion in 2020. However, we temper our forecasts for possible economic issues in 2021 and beyond. Forecasts are heavily dependent on consumer confidence. Nevertheless, we still predict growth over five years even in the face of a console cycle. We have improved our accessory analysis this year and added a new category for game recording and streaming products. Studio quality cameras and microphones, capture cards, and personal lighting have become common items for high-end gamers and are making their way down into the mass market.
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