CHICAGO – Nov. 21, 2024 – The U.S. personal computer (PC) market shows growth potential across both consumer and business-to-business (B2B) segments, but it is tempered by complex economic and technological challenges, according to the latest data-driven insights from Circana™. While the consumer market is navigating demand limitations and affordability issues, B2B buyers are ready for expansion, driven by a pressing need to refresh pre-pandemic systems and integrate the latest advancements.
The consumer PC sector has seen niche growth this year, driven largely by gaming. While combined desktop and notebook PC revenue reached $12.9 billion year-to-date (YTD), a 3% decline driven by 2% lower average selling prices, sales of gaming devices grew 11% year-over-year (YoY), with gaming desktop revenue rising by 30% and notebook gaming devices by 1%.
While high-income consumers have also been the source of some growth in PC sales, economic pressures have dampened broader consumer demand. With many households still using pre-pandemic devices nearing the end of their lifecycle, a surge in upgrades is anticipated as economic conditions stabilize.
Commercial B2B PC spending is up, with combined desktop and notebook revenue at $7.7 billion YTD—a 7% YoY increase. Many businesses, still relying on older devices, are approaching an inflection point as they consider system upgrades to enhance productivity and security.
“For B2B, AI PCs offer a promising, albeit cautiously approached, solution. However the sector concentration remains high,” said Mike Crosby, executive director and industry advisor, Circana. “Three of the 20 NAICS sectors, including professional and scientific, finance, and health care, represent nearly 50% of the total unit sales. Companies are evaluating these new technologies carefully, weighing the benefits of innovation against the risks to their established environments.”
The impending October 2025 sunset of Windows 10 further amplifies the urgency, with nearly 60-70% of the installed base still on older versions. Microsoft’s extended security update (ESU) offers a temporary reprieve, but Circana expects modernization to ramp up quickly as the deadline approaches.
Companies are preparing for a robust refresh cycle, and in the short term consumers will be looking to maximize value opportunities presented by holiday season deals. Anticipated interest rate cuts in 2025 and stable inflation will help to encourage both business investment and consumer purchasing power in the coming years.
Crosby adds, “Post-election uncertainty affects planning and purchasing behavior for both consumers and businesses. The near-term outlook may seem unpredictable, but we expect positive trends to emerge once the dust settles.”
