PC market analysis reveals AI & Windows 11 potential

CONTEXT, a global market intelligence firm, has released a new analysis focused on the current and future state of the PC market amidst economic challenges and technological developments.

The analysis comes at a time when the PC market is experiencing a weaker demand than anticipated, affected by economic and political factors. Consumer and business confidence continues to be low, hindering the market's recovery progress. Nevertheless, certain regions are observing growth, particularly where government-supported education and public sector frameworks are in place.

Marie-Christine Pygott, Senior Analyst at CONTEXT, stated, "While the PC market has faced a challenging landscape, there are bright spots. Stable stock levels, localized growth, and the rising influence of AI-enabled PCs are paving the way for future opportunities. Windows 11-driven refreshes and advancements in AI capabilities will be key factors shaping demand in the months ahead."

The analysis highlights the increasing integration of AI-enabled PCs, characterised by built-in Neural Processing Units (NPUs). These devices are becoming more pervasive as the variety increases and prices fall, potentially boosting their appeal. However, the shift towards adopting AI-powered PCs currently tends to be more driven by supply rather than demand, as users are gradually discovering the everyday advantages AI can offer.

CONTEXT projects a two-phase recovery for the PC market in 2025. In the first half of the year, demand is expected to remain low as consumers and businesses carefully deal with ongoing economic difficulties. During the latter half, the anticipated end of Windows 10 support in October is likely to lead to a wave of refresh activity. This phase is expected to be significantly influenced by AI advancements, particularly in sectors like healthcare, design, and engineering, where there is a strong demand for AI's capabilities.

Pygott further explained, "The next 12-16 months will bring greater clarity on how AI will redefine personal computing. Competition among chip vendors will intensify, product variety will increase, and price reductions will drive adoption. These factors, combined with the Windows 11 transition, will shape a transformative period for the PC market."

The entry of a new chip vendor into the market in 2024, coupled with promises of AI-driven innovation, signals significant changes on the horizon. CONTEXT anticipates that these technological advancements, alongside growing consumer awareness of AI's potential, will fundamentally alter the PC landscape in the coming years.