The COVID-19 pandemic is mostly responsible for the 3.6B predicated growth for the gaming hardware industry for 2020.
There have been tens of thousands more of us sitting at home over the course of the past few months. Inevitably a lot of that time has been spent in front of our computer screens, and for a percentage of us that screen is connected to the hardware allowing us to play our favorite game. The COVID-19 lockdowns have disrupted a lot of businesses that’s a fact. But it is also responsible for creating explosive growth.
Take for example the PC gaming hardware industry. You know, everything you need in order to play computer games. A recent report from Jon Peddie Research indicates that this market is going to explode this year due to COVID-19 lockdowns and stay-at-home orders.
Not being able to leave the house has resulted in gamers spending record hours engaged in their favorite games. It”s also has led to gamers ordering upgrades and accessories for their gaming rigs. It’s also interesting to note that during the last 5 months, literally “millions” of people have become classified as brand new gamers. This has been noted by two big publishers in the industry (Activision and Electronic Arts) a couple of months ago.
The PC gaming hardware market is predicted to grow by $3.6B in 2020, with a 10.3% year-over-year sequential growth.
“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.”
-Ted Pollack, Senior Analyst Gaming Industry
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.
-Jon Peddie, President of JPR