The global semiconductor market is forecasted to experience significant growth in the coming years, with total revenue projected to reach USD 630 billion in 2024, a 19 percent increase from the previous year. According to a recent report by Gartner, Inc., this growth is expected to continue, with revenue anticipated to climb to USD 717 billion in 2025, marking an additional 14 percent increase. This growth follows a challenging period in 2023, when the semiconductor market faced a decline, but double-digit growth rates in 2024 and 2025 signal a robust rebound. The surge in demand for AI-related semiconductors and a recovery in electronics production are driving this growth, while demand from the automotive and industrial sectors remains weak.
Rajeev Rajput, Senior Principal Analyst at Gartner, stated, “The growth is driven by a continued surge in AI-related semiconductor demand and recovery in electronic production, while demand from the automotive and industrial sectors continues to be weak.” The report also highlighted that the memory market and graphics processing units (GPUs) are expected to play a significant role in driving semiconductor revenue in the near term. Memory market revenue is forecasted to grow by 20.5 percent in 2025, reaching USD 196.3 billion. This growth is influenced by a sustained undersupply of memory components in 2024, expected to drive NAND flash memory prices up by 60 percent. Although prices are expected to soften by about 3 percent in 2025, NAND flash revenue is forecasted to reach USD 75.5 billion, a 12 percent increase from 2024.
DRAM, another crucial memory segment, is predicted to experience a recovery, with revenues expected to reach USD 115.6 billion in 2025, up from USD 90.1 billion in 2024. This growth is supported by an easing undersupply, increased production of high-bandwidth memory (HBM), and rising demand for double data rate 5 (DDR5) technology. The GPU market, essential for the training and development of AI models, is also projected to see significant growth, with an expected 27 percent increase in revenue in 2025, bringing it to USD 51 billion. Demand for HBM, a specialized memory solution for high-performance AI servers, is also on the rise, with vendors investing in production and packaging to meet next-generation GPU/AI accelerator memory requirements.
In conclusion, the semiconductor industry is poised for a promising future, with AI and memory technology serving as major catalysts for growth in the coming years. As demand for AI-related semiconductors continues to surge and electronics production recovers, the industry is expected to see double-digit growth in both 2024 and 2025. The memory market, including NAND flash and DRAM, as well as GPUs, are expected to drive semiconductor revenue in the near term, with significant growth projected for these segments. Overall, the semiconductor market is on track for substantial growth, with AI and memory technology at the forefront of driving innovation and expansion in the industry.
