Global PC Market Returns to Growth in Q1 2024 as AI PCs Gain Momentum
After two years of decline, the worldwide PC market is showing signs of recovery. According to the latest data from IDC, global PC shipments reached 59.8 million units in Q1 2024. This marks a 1.5% year-over-year increase and a near return to pre-pandemic levels, with Q1 2019 recording 60.5 million shipments.
The rebound in PC shipments has been most evident in the Americas and Europe, Middle East, and Africa (EMEA) regions. However, the recovery was not uniform across all segments Although notebook shipments witnessed growth, the desktop market continued to experience a decline due to weak demand in China, the largest consumer of desktop PCs.
Analysts are cautiously optimistic about the rest of 2024, citing a forthcoming Windows 11 refresh cycle and the emergence of a new generation AI PCs as key drivers of demand. With approximately 40% of Windows PCs now six years old or older, and one in five not eligible for an upgrade to Windows 11, a considerable portion of the installed base may need replacing over the next 18 months.
New AI PCs with powerful processor platforms that boost performance for tasks like content creation, video editing, and machine learning applications look set to further boost demand. Research firm Canalys forecasts that nearly 50 million PCs shipped in 2024 will be AI-capable, tracking Intel’s expectation that it will ship processors for 40 million AI PCs this year. Canalys further predicts that the AI PC market will grow at a compound annual growth rate (CAGR) of 44%, potentially reaching 205 million units by 2028 and accounting for 70% of the market at that point.
Despite this positive change in momentum, the PC industry still has a lot of work to do to accelerate market growth. The development of powerful new applications that enable consumers and commercial users to take advantage of the new hardware capabilities of AI PCs will be critical for driving demand.
