PC Gaming Hardware Hits $30 Billion in 2016

Kevork Djansezian/Getty Images
Kevork Djansezian/Getty Images

The PC gaming hardware industry reached a $30 billion TAM (Total Available Market) for the first time in 2016.

Jon Peddie Research announced the record-breaking year in gaming PC hardware, which includes “pre and DIY built gaming computers, upgrades, and accessories such as input devices and audio/communication systems.” In 2016, more people than ever were building and beefing up rigs to get the most out of everything from Deus Ex: Mankind Divided to Battlefield 1.

JPR credits the “Asia-Pacific” region for the most growth, with an $ 11.3 billion TAM fueled by an “entrenched PC gaming culture” within the population, which remains largely unimpressed by the current generation of consoles. But while the Asia-Pacific region experienced the largest overall growth, it was North America and Europe that led the high-end market.

According to the report, budget hardware made up about 22% of the overall market, and mid-range came in at 35%. Hardware manufacturers made most of their money on the cutting edge, with a whopping 43% of the TAM spent on the most powerful parts on the market.

To explain the steadily excellent growth, JPR credits the sheer wealth of options available to PC gamers. The “complete customization” available “from a functionally and aesthetic perspective” combine with a “[strong] appetite” among consumers for builds that can cost thousands of dollars. JPR also offered a more subjective reason, citing “superior control with mouse and keyboard control interfaces” that “[have] been validated with eSports overwhelmingly being played on PCs.”

Finally, Jon Peddie Research predicts a healthy 6% CAGR (Compound Annual Growth Rate) through 2019. And with the emerging influence of virtual reality on the market, there’s a very good chance that PC hardware will outstrip this conservative estimate.

Follow Nate Church @Get2Church on Twitter for the latest news in gaming and technology, and snarky opinions on both.