PC Gaming Market Hits $44.5B in 2025 Driven by Windows 11 Upgrades

• PC gaming hardware market expected to grow 35% in 2025 to $44.5B
• Growth fueled by Windows 11 hardware requirements, prompting upgrades
• Sales up from $33B in 2024, with momentum expected through 2028

The PC gaming hardware market is entering a major growth wave, with sales expected to jump 35 percent in 2025 to reach $44.5 billion USD, according to Jon Peddie Research (JPR). The surge is largely driven by Microsoft’s Windows 11 hardware requirements, which are driving millions of gamers to upgrade or replace their systems.

Sales have risen from $33 billion USD in 2024, marking one of the strongest periods for the industry in years, and JPR expects the market to remain above $40 billion USD annually through 2028.

The report covers desktops, laptops, add-in boards, and peripherals. Unlike past upgrade cycles led by graphics cards, Windows 11 requires CPU, motherboard, and memory replacements, creating a much broader wave of upgrades. For many players, the shift isn’t optional; their existing hardware simply won’t run the new OS.

“Never before in the history of the Microsoft Windows operating system has there been a forced hardware migration requirement,” said Mr. Ted Pollak, JPR’s senior analyst of game tech. “And this cannot be solved by swapping out a graphics card. It requires a CPU upgrade for over 100 million gamers, which, in turn, requires a motherboard upgrade and most likely RAM as well.”

Mr. Pollak even added that many gamers are opting for prebuilt systems instead of piecemeal upgrades. Enthusiasts, meanwhile, are building new rigs while keeping their older Windows 10 PCs running until the transition is complete. It’s a strategy that lets players avoid downtime while preparing for the inevitable switch.

Peripheral makers and component suppliers can also expect gains from the wave. Mouse, keyboards, headsets, and monitors are being upgraded alongside the core systems, creating ripple effects across the ecosystem. For an industry that often swings between highs and lows, Windows 11 has delivered a rare moment of sustained demand, and for gamers, it’s a reminder of the platform’s enduring centrality and the costs that come with keeping up.