Info-tech

Global PC market likely to grow 8% in 2021

Hemani Sheth Mumbai | Updated on March 05, 2021

The global PC market including desktops, notebooks and tablets is expected to grow 8 per cent in 2021, according to the latest forecasts by Canalys.

As per Canalys’ estimates, the total PC shipments in 2021 are expected to hit 496.8 million units, with all categories enjoying growth.

“Backlogs on device orders from last year are being boosted by continued demand from workers and students still affected by Covid-19 restrictions. But supply issues will persist throughout this year and be the main restriction on higher growth levels,” Canalys said in an official release.

Shipments are expected to rise 54 per cent in Q1 and 7 per cent in Q2 with growth expected to be frontloaded in the first half of the year.

“Following the boom in 2020, the PC industry is set to grow for years to come,” said Canalys Research Director Rushabh Doshi.

“Order backlogs and ongoing strong demand present a great short-term opportunity, while the ballooned installed base of PC users presents significant future opportunities for refreshes and upgrades. But Canalys is taking a relatively conservative view, projecting single-digit growth for this year and next due to prevailing uncertainty around supply and distribution,” Doshi said.

According to Doshi, there is likely to be a shortage in critical components for PC internals like displays, GPUs and other smaller chips for most of 2021 and well into 2022.

“Competition for components from the automotive, smart manufacturing and smart IoT industries will also put pressure on PC vendors, which will see their prioritization fall. Logistics and transportation are also a limiting factor in meeting demand, with vendors turning to more expensive air freight to help cut delivery times. If the industry can overcome these persistent issues, we could see higher growth levels,” said Doshi.

Chromebooks and tablets are expected to lead the growth for the industry in 2021, achieving growth of 30 per cent and 8 per cent, respectively.

“Chromebooks and tablets were both big winners in 2020, and Canalys forecasts a rosy future for both product categories this year and beyond,” said Ishan Dutt, Analyst at Canalys.

“The education segment will continue to be a key driver, with Chromebooks facing some of the most severe order backlogs of any PC category. In addition, Canalys also expects the broader commercial segment to expand deployments of Chromebooks and tablets. As economies begin to open up, restricting human-to-human interaction remains important and tablets allow for simple tasks in retail, hospitality and travel to be undertaken more easily. And in developing markets, Android slate tablets will be of particular importance as they support affordable moves to digital education. Vendors with healthy Chromebook and tablet portfolios will be well placed to achieve growth in the coming years,” added Dutt.

Published on March 05, 2021

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