The global semiconductor market is poised for substantial growth, with Gartner’s latest report projecting a 14% revenue increase, reaching $717 billion by 2025. Released on October 28, 2024, the report highlights that after a recession in 2023, the industry has mounted a strong rebound, driven primarily by surging demand for AI-related semiconductors and a resurgence in electronics production. This year, semiconductor revenue is expected to hit $630 billion, reflecting an impressive 18.8% growth from the previous year. However, as noted by Rajeev Rajput, Senior Principal Analyst at Gartner, the automotive and industrial sectors continue to face weak demand.

Particularly, memory markets—especially DRAM and NAND—are set to deliver significant growth, contributing substantially to the semiconductor sector’s overall revenue. The memory segment is forecast to expand by 20.5% in 2025, reaching $196.3 billion. A persistent shortage in 2024 is expected to drive NAND prices up by 60% this year, though a modest 3% price decline is anticipated in 2025 as supply stabilizes. Meanwhile, DRAM revenue is also rising due to escalating demand for advanced technologies like double data rate 5 (DDR5) and high-bandwidth memory (HBM). This segment is projected to generate $115.6 billion in revenue in 2025, up from $90.1 billion in 2024.

Advancements in AI technologies, particularly in graphics processing units (GPUs), continue to reshape the semiconductor landscape. Gartner estimates that revenue from GPUs used in AI model training will grow to $51 billion, a 27% increase in 2025. The surging demand for HBM—critical for next-generation AI servers—has spurred significant production investments, with HBM revenue expected to rise by 70% in 2025, totaling $21 billion. By 2026, over 40% of HBM chips are anticipated to support AI inference workloads, underscoring the growing role of semiconductors in enabling advanced AI applications across industries.