LONDON, Dec. 12,
2024 /PRNewswire/ -- The global semiconductor market
surged in Q32024, with revenues climbing 8.5% from the previous
quarter to $177.8 billion, (from
$163.8 billion) driven by the booming
AI segment. This demonstrates a remarkable 25% year-over-year
growth from $141.6 billion in Q32023,
positioning the industry for an impressive 24% annual expansion
according to Omdia's latest research.
Aggregate semiconductor revenue for the first three quarters of
2024 increased by 26% compared to the same period in 2023 – a
$102 billion increase – according to
Omdia's Competitive Landscaping Tool report. This growth was fueled
by strong demand for AI and related semiconductor components.
Cliff Leimbach, Senior Analyst at
Omdia, stated, "The high demand for AI is setting 2024 up to be a
record-breaking year. Semiconductor revenue from the first
three quarters of 2024, approximately $494
billion, has already surpassed the total for all of 2020.
However, this robust revenue is not evenly distributed across the
industry. For example, the industrial sector is facing weak demand
and is projected to see a 16% year-over-year decline in 2024."
NVIDIA and SK Hynix are two companies that have greatly
benefited from the AI surge: NVIDIA through its GPUs, and SK Hynix
through high-bandwidth memory. Among the 127 semiconductor
companies analyzed in the Competitive Landscaping Tool report,
these two companies are the only ones who have more than doubled
revenue in the first three quarters of 2024 compared to same period
in 2023.
Semiconductor revenue is expected to continue growing = in the
fourth quarter, increasing approximately 4.5% to nearly
$186 billion, as AI-focused companies
continue to outperform the broader semiconductor industry.
However, growth outside of AI has been challenging in certain
sectors. The automotive market, saw consistent semiconductor
revenue growth from Q32020 through Q32023, has stabilized as demand
leveled off in 2024, with revenue expected to remain flat compared
to 2023. Additionally, weak macroeconomic conditions have impacted
the industrial segment, which is forecasted to experience a
$10 billion in decline in revenue in
2024 compared to 2023.
Despite the unevenness performance across semiconductor
segments, all top ten companies saw sequential revenue growth in
Q32024 with 17 of the top twenty companies also growing
quarter-over-quarter.
NVIDIA held the number one ranking in the third quarter, with a
10.5% revenue increase from Q22024 driven by AI demand. Its share
of the semiconductor market rose slightly to over 15%.
Outside of NVIDIA, improved memory market dynamics have
boosted rankings for memory companies. The memory market is
forecast to grow by $73 billion in
2024 than 2023 placing Samsung, SK Hynix, and Micron in the top
six.
ABOUT OMDIA
Omdia, part of Informa TechTarget, Inc. (Nasdaq: TTGT), is a
technology research and advisory group. Our deep knowledge of tech
markets combined with our actionable insights empower organizations
to make smart growth decisions.
Contact
Fasiha Khan- fasiha.khan@omdia.com
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SOURCE Omdia
