The market for personal computer gaming hardware is experiencing its highest growth surge in years, according to a new industry analysis.
A report from Jon Peddie Research forecasts record growth of 35 percent for 2025, with total sales expected to reach $44.5 billion. The research firm projects that this robust market, which includes desktops, laptops, graphics cards, and peripherals, will maintain sales above $40 billion annually through 2028.
Analysts point to the Windows 11 operating system as a primary driver. Its stricter hardware requirements are compelling many gamers to upgrade their existing systems or purchase new, pre-built computers.
The demand for more powerful components is also being fueled by heavier video games. New titles, particularly those built with technologies like Unreal Engine 5, require modern graphics cards with upscaling capabilities and newer, more powerful processors to run smoothly.
While the high-end market expands, the report indicates a shift away from entry-level PC gaming. This segment is projected to shrink by 13 percent over the next five years, with an estimated 10 million users migrating to consoles or mobile devices. However, a significant number of budget-conscious gamers are instead choosing to invest in more capable mid-range or high-end PC hardware, a trend that benefits manufacturers through higher profit margins.