Semiconductor Industry Size, Share & Trends

Updated on : Sep 12, 2024

Semiconductor Industry Outlook 2024 Size & Growth

In the rapidly evolving technology landscape, the Global Semiconductor Industry anticipates a dynamic trajectory for 2024. This year's outlook delves into the intricate interplay of market forces, technological advancements, and emerging trends that promise to shape the semiconductor sector. From the intricacies of chip design to the ever-expanding applications of integrated circuits, our analysis sheds light on the crucial role semiconductors play in powering the innovations that define interconnected world.

MarketsandMarkets anticipates the global semiconductor market Size, Share, Industry Growth, Trends & Analysis was valued at USD 529 billion in 2023 and is projected to reach USD 617 billion by 2024, registering an annual growth of 16.6% in 2024. The market growth is expected to be driven by the rising demand for semiconductors in data centers, high-performance computing (HPC), and the automotive industry. The global semiconductor industry is expected to witness robust growth in 2024, fueled due to surge in overall market valuations across memory, logic, micro, sensors, analog, and discrete segments. Growing interests of enterprises in generative-AI fueling demand for AI-chips, increasing demand for GPUs from data centers, and increase in semiconductor content per vehicle – are some trends that spearhead an uptick in global semiconductor market growth.

Global Semiconductor Industry Outlook 2024

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Global Semiconductor Industry Outlook 2024 Trends: Robust Growth Amid Technological Advancements

The report offers a wealth of information about the semiconductor industry growth, such as:

• 2023:

• GPU demand from data centers stayed strong – With generative AI revolutionizing every industry, enterprises are progressively searching for extensive computing resources within data centers. NVIDIA, AMD, and Intel are intensifying competition in the growing data center GPU market driven by increasing demand from AI & ML workloads.
• Growing interests of enterprises in Generative-AI fueling demand for AI-chips – The surging interest in generative AI among enterprises propels the demand for AI chips, particularly GPUs, within data center infrastructure, presenting a lucrative revenue opportunity for industry participants. Top semiconductor companies are planning to expand in the AI field, recognizing the lucrative potential of AI model infrastructure, such as the HGX H200 introduced by NVIDIA for generative AI and HPC tasks.
• Chiplet: Emerging new wave of Moore’s Law – Intel, AMD, Apple, Marvell, and IBM embrace chiplet technology. Intel targets a quadruple increase in advanced chip packaging capacity by 2025, signaling a shift toward chipset architecture adoption in the market. Chiplets have emerged as a promising alternative, offering a way to continue the progress of Moore's Law by embracing a modular approach to chip design.

• 2024:

• Co-packaged Optics to take a leap forward with growing demand from data centers – As data centers and HPC environments confront soaring demands, co-packaged optics (CPO) technology emerges as a critical solution, elevating bandwidth and reducing latency by seamlessly integrating optical components onto semiconductor packages.
• MRAM is set to dominate the next-generation memory market in 2024, HPC and data centers are the key applications – Next-generation memory technologies like MRAM, ReRAM, HMC, and HBM have reached commercialization after extensive R&D efforts. Leading foundries and IDM are currently qualifying STT MRAM technology for various applications, including low-power MCU/SoC chips, ASIC products, IoT devices, wearables, and CMOS image sensors.
• 2024 will be the breakthrough year for quantum computing commercialization – 2024 marks a significant turning point for quantum computing, transitioning from theoretical research to practical commercial applications. Quantum computing efforts in 2024 focus on developing scalable quantum processors, overcoming key challenges to enable broader adoption in various industries.

The MarketsandMarkets - Global Semiconductor Industry Outlook 2024 report can help prepare business leaders and semiconductor professionals for the year ahead. The report incorporates years of experience in the rapidly expanding semiconductor sector, the opinions of industry experts, comprehensive evaluations by analysts, and extensive interviews with stakeholder groups worldwide. Discover the latest semiconductor industry trends with our in-depth semiconductor industry analysis.