October 31, 2024 /SemiMedia/ — The global semiconductor market is set to grow 18.8% in 2024, reaching $629.8 billion, according to a report by market research firm Gartner. This growth, driven by soaring demand for artificial intelligence (AI), exceeds Gartner’s initial forecast of 16.8%.

Rajeev Rajput, Gartner’s senior principal analyst, highlighted that AI-related semiconductor demand and a recovery in electronics production are fueling this growth, while demand in the automotive and industrial sectors remains weak. The report points to memory and graphics processing units (GPUs) as primary revenue drivers in the near term.

Global memory revenue is projected to grow by 20.5% in 2025, reaching $196.3 billion. NAND prices are expected to rise 60% in 2024 due to tight supply, before easing by 3% in 2025, with total NAND revenue projected at $75.5 billion.

In DRAM, a supply-demand recovery, increased high-bandwidth memory (HBM) output, and rising DDR5 DRAM prices are expected to drive growth, with DRAM revenue anticipated to rise from $90.1 billion in 2024 to $115.6 billion in 2025. The GPU market is forecast to expand by 27% in 2025, reaching $51 billion.

High-bandwidth memory (HBM) has emerged as the fastest-growing segment. Gartner projects HBM DRAM revenue will surge 284% in 2024 and over 70% in 2025, reaching $12.3 billion and $21 billion, respectively.