PC market decline has yet to reach monitors as demand increases in Q2 2022

In a word: A post-pandemic hangover is plummeting demand for PC components across the board, but those negative numbers haven’t shown up for monitors. The global market for this sector recorded modest gains in the second quarter, but analysts predict that difficult times are ahead.

A new report from International Data Corporation (IDC) shows a 2.7% growth in global monitor shipments in the second quarter of 2022 compared to the second quarter of 2021. The figures contrast with the current decline in demand for PCs and other computer components, at least for now.

In emerging markets outside of China and Russia, growth exceeded 16%, contributing significantly to the global increase. The company that benefited the most was HP, which saw shipments increase 30.3% year over year. All other manufacturers only saw single-digit changes. Dell retains the largest market share of the major monitor vendors, with 22.6%.

The growth in monitor shipments is unlikely to last, as other components such as graphics cards and SSDs are already showing lower demand and prices in the third and fourth quarters. Analysts are already reporting an increase in monitor inventory in several territories.

Global monitor shipments for all of 2022 could fall 3.1% from 2021 and another 4.1% in 2023. Most of that decline will come from China – the second-largest monitor market – which is expected to experience an unprecedented drop of 19%. As the dust settles in the back and forth between office and home work, a transition to hybrid employment could stabilize the market by the end of 2023, leading to a minor recovery by 2024 .

The decline in the GPU market is already affecting monitors from at least one retailer. Earlier this month, Newegg bundled gaming monitors with graphics cards out of desperation to drain GPU stock ahead of new products like Nvidia’s Ada Lovelace, AMD’s RDNA3, and Intel’s Arc Alchemist.

If monitors finally face the same pricing pressure currently hitting GPUs and SSDs, they could become one more factor making late 2022 a great time to build or upgrade a PC, as well as the multitude of new processors that will soon be launched. However, factors such as product competition and a possible impending macroeconomic recession make price projections for 2023 difficult at this stage.

Edward N. Arrington