Jon Peddie Research has released its 2H 2025 PC Gaming Hardware model, which now includes Arm PCs.
Figure 1. The Arm PC gaming hardware market value over time.
Jon Peddie Research has unveiled its 2H 2025 PC Gaming Hardware model, and the numbers tell a lively story. While game software sales drift through a lukewarm cycle, spending on gaming PCs—both system-integrated rigs and DIY builds—along with upgrades and peripherals, continues to surge. Gamers are investing in the machines that power their worlds. JPR projects a healthy 10.67% CAGR in hardware spending through 2028, driving the market toward a total addressable value of roughly $52 billion.
The high-end portion of this market is well over twice the size of entry-level and midrange combined. This has been a trend occurring for the past decade, as the vast majority of high-end systems are purchased specifically for gaming. Within the JPR model, the gaming market size is calculated based on purchase intent, which makes it very accurate because it actually measures money spent on gaming as opposed to counting SKUs or tallying capabilities.
In the past few years, there has been a new force in the market that has started to raise some eyebrows. Not even on the radar in 2023, Arm-based notebooks and desktops within the entry-level gaming category have experienced explosive growth. Our model sees a staggering 31% CAGR in notebooks, which are the largest absolute Arm category, and a 49% CAGR for desktops in 2024 to 2028. The JPR model gives little weight to consumers’ purchase intent for gaming in the entry-level category. Most of these systems are purchased for basic computing tasks. If Arm- and entry-level-optimized game software take off on PCs, we could see a healthy resurgence in the entry-level gaming PC category. If performance can push into the midrange for local processing, it is sure to attract even more game development and, of course, as cloud gaming improves, the sky is the limit for AAA titles, as streaming requires little GPU processing.
Ted Pollak, senior consultant for game tech, said, “There is some doom and gloom right now, especially with US and European software sales and certain console trends, but we can confidently say that PC gamers are not slowing down their buying, building, upgrading, and customizing. Just walk into a Costco or Best Buy and the shelf of glowing gaming PCs is right there to see. It’s aspirational for both kids and adults. The only negative we currently observe is that lack of midrange product could dissuade new entrants.”
Jon Peddie, JPR president, adds, “We are excited to incorporate Arm PCs into our model and advise our clients how to navigate. The unit counts are high, the gaming purchase intent modifier is low for now, but this could be a blue-sky segment and opportunity.”
JPR’s PC Gaming Hardware Market Study offers an advanced financial modeling of the global PC gaming hardware market. The study is available as a single report or as a subscription, comprises two issuances per year, and includes a one-year history, a current-year estimate, a three-year forecast, and eight hours of consulting.
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