JPR: Desktop Graphics Semiconductor Market grew 6.5% quarter to quarter in Q4’05 to $1.6 Billion Wor

Integrated still leads market, closely followed by Performance AIBs

Robert Dow

TIBURON, CA—February 7, 2006—Jon Peddie Research
(JPR), the leading research and consulting firm for graphics and multimedia,
has just completed its measurement of the value of the desktop graphics
market and broken it out into six segments.

Figure 1. Q4’05 Desktop Graphics Semiconductor Market
Value, Millions of dollars Worldwide.


Value in Millions













Table 1. The graphics market is divided
between integrated chipsets (IGP/IGC) and discrete graphics
chips. The integrated graphics chipsets are most often used
in value and mainstream computers.

As the chart indicates, in Q4 of 2005, the desktop semiconductor
graphics market was worth $1.59 billion dollars.

“The Enthusiast and Performance segments slipped in Q4, with
the explanation being that the majority of the semiconductor buys
were made in Q3 for the holiday rush,” said Lisa Epstein, a senior
analyst at Jon Peddie Research. “However, with JiT (just-in-time)
manufacturing the integrated segment showed strong growth in Q4, with
Intel and VIA taking the lion’s share of the market at 74% between
them, and ATI in third place with 11% during the period,” Epstein

JPR estimates that approximately 60.2 million desktop graphics devices
shipped in Q4’05, 37.9 million or 63% of them were integrated parts—an
increase of 4.4% over the previous quarter showing the continued growth
of the integrated segment in desktop graphics. .

Overall, Intel claimed 32% of the desktop graphics market—a
drop of five points (13.5%) from the previous quarter, ATI held steady
at 24%, and Nvidia picked up one point to come in at 23%.

While Intel was still the largest supplier of desktop graphics during
the period, the company’s segment market share declined sequentially
from their high of 40% in Q4’04.

Meanwhile, Nvidia’s lead over ATI in the discrete desktop segment
increased to 52% (compared to ATI’s 47%) attributed to Nvidia’s successes
in the high-end retail channel where ATI has been absent.

It has been a great year for PC graphics (desktop, mobile, and servers)
with 2005 growing 12.7% year-to-year.