Semiconductor market posts strong Q3 says Omdia
The semiconductor industry continues to thrive, posting robust growth in the third quarter of 2024.
According to Omdia, the worldwide semiconductor market rose in Q32024, with revenues increasing 8.5% from USD 163.8 billion during the previous quarter to USD 177.8 billion, fuelled by the booming AI segment.
The analyst and consulting firm says that this represents a 25% year-over-year increase from USD 141.6 billion in Q32023, positioning the industry for an impressive 24% annual expansion. Aggregate semiconductor revenue for the first three quarters of 2024 increased by 26% compared to the same period in 2023 – a USD 102 billion increase.
“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 USD 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,” says Cliff Leimbach, Senior Analyst at Omdia, in a press release.
AI propels Nvidia and SK hynix
The AI boom has helped two companies significantly, namely SK hynix, with its high-bandwidth memory, and Nvidia, with its GPUs. Omdia states that among the 127 semiconductor companies analysed in its report, these two companies are the only ones who have more than doubled revenue in the first three quarters of 2024 when compared to the same period in 2023.
Looking forward, Omdia says that semiconductor revenue is expected to maintain its momentum in Q4, with revenues forecast to grow by another 4.5%, reaching nearly USD 186 billion – as AI-focused companies continue to outperform the broader semiconductor industry.
Despite the AI surge, growth outside this segment has been uneven. The automotive sector, which had shown consistent growth from 3Q20 to 3Q23, has stabilised, with revenue expected to remain flat in 2024 compared to last year. Meanwhile, weak macroeconomic conditions have hit the industrial segment, which is forecast to see a USD 10 billion revenue decline year-over-year.
Even with the uneven performance across different semiconductor segments, Omdia reports that all of the top 10 companies saw sequential growth in 3Q23. Unsurprisingly Nvidia retained the number one spot in the third quarter, with a 10.5% revenue increase from Q2 – driven by AI demand. Its share of the semiconductor market rose slightly to over 15%.
Improved memory market dynamics have boosted rankings for memory companies. The memory market is forecast to grow by USD 73 billion in 2024 than 2023 placing Samsung, SK Hynix, and Micron in the top six.
