The personal computer (PC) market has experienced a significant slump in recent years, but industry analysts are predicting its revival in the near future. After a challenging period due to various factors, including macroeconomic headwinds and the shift in IT budgets, there is finally a glimmer of hope on the horizon. Analysts anticipate that the demand for newer PCs, particularly those equipped with artificial intelligence (AI) features, will drive the market’s growth. In this article, we explore the reasons behind this projected revival and the potential impact of AI on the PC industry.
Amidst a difficult year for the PC market, projections indicate that the industry is expected to witness a growth of 8% in 2024. This resurgence is primarily fueled by consumers seeking to refresh their PCs in the aftermath of the pandemic era. Furthermore, the discontinuation of support for Windows 10 by Microsoft in 2025 is anticipated to incentivize consumers to invest in newer devices. Canalys, a leading market research firm, suggests that this could prevent hundreds of millions of devices from being recycled prematurely, which, in turn, will contribute to increased sales of PCs.
The aging installed base of commercial PCs, set to surpass the four-year mark by 2024, is a key factor driving the necessity for a refresh. Additionally, the demand to migrate towards the latest Windows 11 operating system further reinforces the need for PC upgrades. According to market intelligence firm IDC, this demand for PC refresh is expected to coincide with the pressing need for businesses to modernize their PC infrastructure. As a result, IDC predicts a 3.4% growth in the PC market in the coming year.
The integration of AI capabilities into PCs is poised to revolutionize the market and drive consumer interest. By enhancing productivity and leisure experiences, AI features are expected to attract customers who actively seek the benefits that AI can offer. Canalys predicts that by 2027, 60% of PCs shipped will be AI-capable, reflecting the growing importance of AI in both work and personal life.
Leading PC manufacturers are actively working towards harnessing the power of AI to propel the market’s growth. HP, for instance, is set to launch new computers with AI capabilities, with CEO Enrique Lores boldly stating that it will double the growth of the PC category starting next year. While initially targeting specific segments of the enterprise market, as cost reductions occur and use cases expand, AI-integrated PCs are expected to find their way into the broader consumer market.
The personal computer market is on the verge of a revival after a challenging period. With consumers keen to upgrade their PCs, driven by the need for refresh and the appeal of AI features, analysts project a positive growth trajectory. The integration of AI capabilities into PCs is set to usher in a new era of enhanced productivity and leisure experiences. As industry players embrace this trend, we can expect the PC market to experience significant growth in the years to come.
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