Global Semiconductor Market Experiences Strong Growth in 2024: AI-Driven Data Centers Fuel Expansion, Samsung Reclaims Top Spot

Tech 2025-02-14 13:00:26 Source: Network

Global Semiconductor Market Experiences Strong Growth in 2024: AI-Driven Data Centers Fuel Expansion, Samsung Reclaims Top SpotPreliminary data from Gartner reveals a robust 18.1% year-over-year increase in the global semiconductor market revenue in 2024, reaching $626 billion

Preliminary data from Gartner reveals a robust 18.1% year-over-year increase in the global semiconductor market revenue in 2024, reaching $626 billion. Further growth to $705 billion is projected for 2025. This surge is primarily driven by the rapid advancement of artificial intelligence (AI) and generative AI, particularly the explosive demand for GPUs and AI processors from data centers. Gartner Research Vice President George Brocklehurst highlights data center applications, including servers and accelerator cards, as the key driver of the chip industry's growth in 2024.

Data centers have emerged as the second-largest semiconductor market in 2024, surpassed only by smartphones. Semiconductor revenue for data centers skyrocketed from $64.8 billion in 2023 to $112 billion in 2024, a remarkable increase. This reflects the exploding computational demands of AI and generative AI workloads, coupled with sustained investment in data center infrastructure by businesses. This trend indicates that data centers will remain a significant engine for semiconductor industry growth in the coming years, with continued focus on R&D and innovation in related technologies and products.

The competitive landscape has also seen significant shifts. Samsung Electronics successfully reclaimed the leading position in global semiconductor market share in 2024, surpassing Intel, thanks to a strong rebound in memory device prices. Samsung's semiconductor revenue reached $66.5 billion in 2024, showcasing its strong overall capabilities and market competitiveness.

In contrast to Samsung's robust growth, Intel's performance in 2024 was relatively flat. While contributions from its AIPC and Core Ultra chipsets were positive, these gains were insufficient to offset the negative impact of slow growth in AI accelerator products and the x86 business. Intel's semiconductor revenue grew by only 0.1% in 2024, essentially remaining flat compared to 2023, relegating it to second place. This indicates a need for Intel to increase its investment in AI to address the increasingly competitive market and maintain its leadership position in the semiconductor industry.

Nvidia, leveraging its strength in AI, experienced remarkable growth. Its semiconductor revenue reached $46 billion in 2024, representing an impressive 84% year-over-year increase. This is primarily attributed to its technological leadership in AI and its accurate grasp of market demand. Nvidia's success underscores that possessing advanced technology and rapidly responding to market needs are crucial for success in the AI era. Its position in the AI field is further solidified, making it a significant force driving global semiconductor market growth.

In summary, the global semiconductor market exhibited strong growth in 2024, fueled primarily by the rapid development of AI and generative AI, with data centers as the key market driver. Samsung Electronics regained its market leadership position due to its strength in the memory sector, while Nvidia solidified its top-three ranking through robust AI-driven growth. Intel faces challenges in the AI arena and needs to increase R&D investment to maintain competitiveness. This changing market landscape indicates a dynamic and competitive future for the semiconductor industry, where technological innovation and market strategy will be crucial for success. Companies will need to adapt their strategies to navigate the AI era and thrive in intense competition. This market trend presents both opportunities and challenges for the entire technology industry, further stimulating innovation and development. As AI technology matures and applications expand, the global semiconductor market is expected to maintain strong growth. Simultaneously, competition will intensify, requiring companies to proactively address challenges to achieve success.

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