Unlocking Notebook Growth: The Power of AI Applications

Notebooks with AI acceleration engines designed to efficiently manage workloads and power consumption, enhanced by Microsoft Windows 11's Copilot, are expected to revitalize the notebook market, according to a report by TrendForce.

The initial target demographic for AI PCs includes high-end business users and content creators, who are willing to pay a higher price point for advanced features. However, the lack of compelling AI applications may initially limit consumer uptake. The success of these AI notebooks critically depends on software innovation, which will drive the development of new and exciting applications.

In 2023, the notebook market struggled due to high inflation, resulting in annual shipments reaching only 166 million units, a 10.8% year-on-year decrease. Although this decline was significant, it was less severe compared to the previous year.

However, financial improvements in the United States and operating system updates from Microsoft are expected to contribute to a steady quarterly improvement in the notebook market for 2024. TrendForce projects an annual growth rate of approximately 3.6%, with shipments reaching 172 million units.

With the integration of AI acceleration engines and the advancements brought by Microsoft Windows 11's Copilot, notebooks are set to become more powerful and energy-efficient. This combination of hardware and software enhancements will attract high-end business users and content creators who require top-notch performance.