Study from Jon Peddie Research Shows Mobile Devices Leading the Way in Hardware as Game Consoles Decline

Mobile technologies are likely to lead new growth in the computer graphics market, which is on track to grow at an annual rate of about 5.3% over the next few years, according to a new report from Jon Peddie Research (JPR).

The research firm sees the total market for computer graphics hardware and software growing from $115.77 billion in 2012 to $121.49 billion in 2013, and then to $141.43 billion by 2016. JPR pegs the overall annual growth rate from 2011 to 2015 at 5.7% for software and 5.2% for hardware.

Source: Jon Peddie Research

Mobile devices are expected to be the big revenue driver when it comes to hardware. JPR estimates that in 2013, mobile devices will account for $67.86 billion out of a total $106.93 billion computer graphics hardware market, or about 63%.  By 2016, JPR expects that figure to grow to $82.44 billion, or 66% of the total $124.45 market. Also on the rise are workstations and monitors, which JPR sees increasing by healthy amounts to account for 7.4% and 0.7% of the total hardware market, respectively.

JPR even forecasts growth in sales of gaming PCs, which dipped slightly in 2013, but sees bad news ahead for game consoles. After a modest increase to $13.17 billion in 2013, goosed by the arrival of next-generation consoles from Sony and Microsoft to compete with Nintendo's Wii U, JPR sees console revenues falling to $11.20 billion in 2016 — presumably as even more gaming shifts to those mobile devices dominating the market.

Source: Jon Peddie Research

On the software side, the CAD market is where most of the action is, followed at a distant second place by visualization and simulation. CAD software sales will be worth $7.92 billion in 2013, JPR said, and are set to climb to $9.72 billion in 2016. Visualization will increase from $3.30 billion to $3.81 billion over the same time period. Digital video software is expected to increase from $1.50 billion in 2013 to $1.73 billion in 2016, with modeling and animation climbing from just $230 million in 2013 to $270 million in 2016.