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JPR: Mobile and Integrated PC Graphics Show Strong Growth in 2004, Desktop Shipments Slower Year-ove

Posted: 03.08.05
ATI overtakes Nvidia, Intel remains the world's leading graphics supplier

TIBURON, CA—March 8, 2005—Jon Peddie Research (JPR), a leading research and consulting firm for graphics and multimedia, today announced estimated graphics shipments and supplier market share for 2004. Detailed year-end results are available in the Q4'04 edition of Jon Peddie's Market Watch, the firm's quarterly graphics survey. Market Watch provides an in-depth look at the PC graphics market and includes unit shipment and segment market share data, trend analysis, shipment forecasts, and profiles of major suppliers.

Jon Peddie Research estimates that approximately 239 million PC graphics devices shipped from eight suppliers in 2004, a 10.1% increase over 2003. Desktop graphics shipments grew a modest 6.9% year-over-year while mobile graphics shipments climbed 25.2% during the period.

Shipments of integrated graphics outpaced those of discrete controllers in 2004, with IGCs claiming 56.1% of the total graphics market during the year. This represents a year-over-year gain of more than three points in share for integrated graphics, which held 52.9% of the total market in 2003. Mobile graphics held 20.2% share of the graphics market relative to desktop devices in 2004, up from 17.8% in 2003. Growth in the mobile segment was a bright spot for the industry in 2004 with similar positive performance expected in the coming year.

Intel was the world's leading supplier of PC graphics in 2004, claiming 37.5% of the total market, up from 31.3% in 2003. ATI was the second largest supplier to the market in 2004, with 25.6% share, up from 22.2% in the prior year. Nvidia followed with 21.0% share, down sharply from 27.2% in 2003.

Intel's share of the graphics market comes entirely through shipments of integrated devices for its desktop and notebook processors. The company led the desktop graphics segment in 2004 with 38.3% of the market, up from 34.3% in 2003. Intel was second only to ATI in graphics shipments to the mobile segment during the year. ATI claimed 47.6% of the mobile graphics market in 2004, down from 56.8% in 2003, while Intel held 34.4% of the segment, up from 17.7% in 2003.

Intel grew its graphics shipment and market share in 2004 with the new 915G integrated desktop controller, which features support for PCI Express and DirectX 9 features. Growth also came from shipments of mobile integrated controllers for the Centrino platform including the 855GM and 855GME. In addition, Intel continued in 2004 to ship existing integrated products such as the mainstream 865G and value-class 845G desktop chipsets.

>ATI was the leading supplier of discrete graphics devices in 2004, with 51.5% of the market, up from 40.2% in 2003. Nvidia held 46.3% of the discrete market during the period, down from 54.1% in 2003. Shipments from ATI and Nvidia together accounted for 97.8% of the discrete graphics market in 2004, up from 94.3% in the prior year. Consolidation has reshaped the graphics industry in the recent years, and smaller suppliers such as 3Dlabs and Matrox no longer command significant share of the discrete graphics market.

Intel was the leading supplier of integrated graphics devices in 2004 by a wide margin. The company held 66.9% of the IGC market during the period, up from 59.2% in 2003. VIA was the second largest supplier to the IGC segment with 15.4% share, followed by SiS, which held 11.2% share. ATI and Nvidia claimed the balance of the IGC market in 2004, but each with relatively small share in comparison to the three leading suppliers.

The following table lists the ranking and relative market share, based on unit shipments in 2003 and 2004, of the major graphics suppliers to the PC industry.

Rank

Graphics Supplier

Q3'04
Market Share

Q4'04
Market Share

1

Intel

31.3%

37.5%

2

ATI Technologies

22.2%

25.6%

3

Nvidia

27.2%

21.0%

4

VIA Technologies

9.2%

8.7%

5

Silicon Integrated Systems (SiS)

8.6%

6.4%

6

Matrox Graphics

0.8%

0.4%

7

Trident

0.3%

N/A

8

XGI

0.2%

0.3%

9

3Dlabs (Creative Technology)

0.2%

0.1%