Graphic Add-In-Boards (AIBS) Market - Forecasts from 2023 to 2028

The graphic add-in-boards (AIBs) market is projected to grow at a CAGR of 29.72% during the forecast period.

A graphic add-in-board (AIB) is a specialized circuit board containing a graphics processing unit (GPU) and other components required to display graphics on a computer or other electronic device. These components are dominantly designed and manufactured by third-party or external companies, such as ASUS, Gigabyte, MSI, and EVGA, by adopting GPUs primarily manufactured by companies like Nvidia and AMD to create customized AIBs with enhanced features such as improved cooling, higher clock speeds, and additional memory. The market for graphics AIBs is primarily driven by the increasing demand for high-quality graphics performance in various applications such as gaming, virtual reality, artificial intelligence, machine learning, and professional graphics. In addition, gamers and other high-performance users who require more powerful and sophisticated graphics processing capabilities than those provided by the standard graphics card or onboard graphics of their devices are generating a high demand for graphic AIBs. As a result, AIBs are extensively used in personal computers, gaming consoles, data centers, high-performance computing, design, and other devices that require high-quality graphics processing. In addition, the demand for machine learning and artificial intelligence applications that require high-performance computing power and advanced graphics capabilities is expected to drive the market demand for graphics AIBs over the forecast period.

Market Drivers:

The surge in demand for gaming products

The significant rise in gaming activities across several major economies is creating a high demand for graphic AIBs. The gaming industry is one of the major consumers of the graphics AIB market since gamers demand high-performance graphics cards to support the latest and most demanding games. Further, the rise of esports and live streaming has fueled the demand for high-quality graphics cards and graphic AIBs among gamers. A report compiled by a gaming venture capital firm, Lumikai, revealed that the number of gamers in India increased from 400 million in 2020 to 507 million in 2021, with the pandemic expanding the number of Indians consuming gaming applications by 45%. In addition, the continuous progression and advancement of new technologies, including real-time rendering, ray tracing, and 4K resolution, is increasing the need for more powerful and specialized graphics cards, driving the demand for graphics AIBs even further. For instance, in November 2022, Epic Games, Inc., a company manufacturing and developing video games, introduced a new collection of features, Unreal Engine 5.1, to assist in the faster creation of animated content by improving the VFX and graphics. Therefore, the rise in the number of gamers and the rapid evolution of graphic technology in gaming studios is expected to expand the graphic AIB market.

Growing demand for animation and 3D modeling

The use of graphics AIBs in professional applications, such as 3D modeling, animation, and video editing, is contributing majorly to the development of the graphic AIB market. Furthermore, the rising consumption of animated content among children and the adult population in the form of anime series is resulting in an advanced production of animated content, which offers an opportunity for increased graphic AIB consumption by animation studios to facilitate the generation of animated content integrated with advanced graphics levels. Furthermore, the rise in subscribers to various online streaming sites indicates the growth in the number of anime viewers. For instance, Crunchyroll revealed that its subscribers increased from 3 million in 2020 to 8 million in 2022, comprising approximately 5 million paid customers. In addition, Netflix announced that about 100 million users viewed at least one anime content in 2020, an increase of more than 50% from its 2019 value. Therefore, the constant developments in animation graphics and resolution driven by the global rise in consumption of animated content are expected to grow the demand for graphic AIB among production studios.

By type, discrete graphic AIBs are expected to hold a prominent market share.

Discrete graphics AIBs refer to dedicated graphics cards installed separately in a computer or other electronic device. They contain a separate graphics processing unit, memory, and other components needed to display graphics and are highly sophisticated and offer better graphics performance than integrated graphics solutions. Discrete graphics AIBs are ideal for high-performance gaming, video editing, and 3D modeling applications. In contrast, integrated graphics AIBs suit basic computing tasks such as web browsing, email, and word processing. Therefore, the higher performance ability of graphic AIB is expected to result in its high consumption over the forecast period.

The technical constraints associated with graphic AIBs are limiting the market growth.

High-performance graphics AIBs require more power and generate an excessive amount of heat radiation compared to standard graphics cards, which can lead to several issues, such as heat dissipation and additional power consumption. Furthermore, they tend to create compatibility issues with some devices and require technical expertise for installation and configuration. In addition, the rapid evolution of technology necessitates the ability of graphics AIBs to adopt new features and relevant capabilities to remain competitive. Hence, the high number of technical concerns associated with graphic AIB usage could result in the limited growth of the market.

Asia Pacific region holds a significant portion of the graphic AIB market and is expected to witness modest growth during the forecast period.

The expansion of the gaming industry in major Asian economies and the advancement in animation are significant factors fueling the growth of graphic AIBs in the region. For example, the Indian Brand Equity Foundation estimated that the gaming industry of India reached a value of US$2.6 billion in 2022 and is estimated to grow to US$8.6 billion in 2027. In addition, the Association of Japanese Animations also revealed that the Japanese anime industry increased from US$19.7 billion in 2018 to US$22.5 billion in 2022. Therefore, the high graphics consumption by these industries and the growing demand for advanced graphics is expected to simultaneously grow the demand for graphic AIBs along with its expansion.

Market Segmentation:

By Type

• Discrete
• Integrated

By Application

• Gaming
• Design and Visualization
• High-performance Computing
• Data Center
• Others

By End-User

• Desktops
• Notebooks and Tablets
• Workstations
• Others

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• Germany
• France
• United Kingdom
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Israel
• Others
• Asia Pacific
• China
• Japan
• India
• South Korea
• Indonesia
• Taiwan
• Others