Global semiconductor revenue to grow 14% in 2025
Global semiconductor revenue is projected to grow 14% in 2025 to total USD 717 billion, according to the latest forecast from Gartner. In 2024, the market is forecast to grow 19% and reach USD 630 billion.
Revenue from semiconductors is increasing after a drop in 2023, and a double-digit increase is expected in 2024 and 2025.
“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,” said Rajeev Rajput, Senior Principal Analyst at Gartner.
| 2023 | 2024 | 2025 | |
| Revenues | 530.0 | 629.8 | 716.7 |
| Growth (%) | -11.7 | 18.8 | 13.8 |
Graphics processing units (GPUs) and the memory business will support semiconductor revenue in the near future on a global scale.
In 2025, the global memory revenue market is forecast to record a 20.5% growth – reaching USD 196.3 billion. Sustained undersupply in 2024 will fuel NAND prices up 60% in 2024, but they are poised to decline by 3% in 2025. It is anticipated that NAND flash sales will reach USD 75.5 billion in 2025, up 12% from 2024, due to a softer pricing landscape and lower supply.
DRAM supply and demand will rebound due to improved undersupply, unprecedented high-bandwidth memory (HBM) production and rising demand, and the increase in double data rate 5 (DDR5) prices. Overall, DRAM revenue is expected to total USD 115.6 billion in 2025, up from USD 90.1 billion in 2024.
GPUs have dominated AI model development and training since 2023. In 2025, their revenue is projected to reach USD 51 billion, a 27% increase.
“However, the market is now shifting to a return on investment (ROI) phase where inference revenues need to grow to multiples of training investments,” said George Brocklehurst, VP Analyst at Gartner.
Among them is a steep increase in HBM demand, a high-performance AI server memory solution. Brocklehurst continues to say that vendors are investing significantly in HBM production and packaging to match next-generation GPU/AI accelerator memory requirements.
HBM revenue is expected to increase by more than 284% in 2024 and 70% in 2025, reaching USD 12.3 billion and USD 21 billion, respectively.
Gartner analysts forecast that by 2026, over 40% of HBM chips will support AI inference workloads, up from less than 30% today. This shift is primarily driven by the growth in inference deployments and limited adaptability of these chips for training GPUs.
