European PC market grows 3% in Q4 2024 with AI interest
The European PC market saw modest growth in the fourth quarter of 2024, primarily driven by an increase in consumer demand as highlighted by a report from market intelligence firm CONTEXT.
CONTEXT's analysis indicates that overall revenue for notebooks, desktops, and tablets increased by 3% compared to the same period in 2023. The month of December was particularly strong, with revenues up by 7% compared to the previous year.
Senior Analyst at CONTEXT, Marie-Christine Pygott, commented on the findings: "The final quarter of the year saw a small but meaningful increase in PC revenues, driven by promotional activities during the holiday season as well as local government initiatives in the commercial segment."
Among European countries, Spain experienced the most significant growth in Q4 2024, largely due to government-led digitalisation initiatives. "Amongst the largest European markets, Spain stood out as the strongest-growing country in Q4 as its commercial sector benefitted from the ongoing Digital Kit Initiative, which now includes devices," Pygott noted.
The UK also recorded notable performance gains. "The UK was the top performer in December due to a surge in consumer e-tail sales, bolstered by seasonal discounts and promotions," added Pygott. Despite these positive signals, Pygott warned that overall European performance remains modest, illustrating ongoing challenges in the industry.
In terms of product categories, desktops saw a 5% year-on-year increase in 2024-Q4, slightly outperforming notebooks, which increased by 3%. Countries like Spain, Germany, and Poland were key contributors to desktop sales, although a weak prior-year performance influenced these figures.
The report highlights that consumer channels outperformed business channels, with promotions playing a pivotal role in boosting sales.
On the frontier of new technology, an increase was seen in the adoption of AI-capable notebooks, which rose to 32% in the last quarter of 2024 from 22% in the previous quarter. The share of Copilot+ PCs within this segment also grew slightly from 3% to 5%.
"It is early days for the next-generation AI PCs, or Copilot+ PCs, and adoption rates are still trailing initial projections," Pygott explained. "While price reductions helped stimulate some interest in Q4, the value proposition of these devices still needs to be communicated more effectively to users. As the concept matures, awareness grows and a greater range of price points is being addressed, we expect adoption rates to increase in 2025," she added.
The overall country revenue growth figures, presented in a fixed exchange rate for the Euro, varied significantly. Austria showed the highest growth at 19.2%, while Slovakia experienced the largest decline at -27.2%.
Looking ahead, CONTEXT anticipates that the early-stage interest in AI-capable devices might evolve into broader adoption as market awareness and pricing strategies improve. Nevertheless, the firm acknowledges the complexities faced by the industry in sustaining growth amid various market challenges.
