According to a report by Gartner, global semiconductor revenue is expected to increase by 14 per cent to reach $717 billion in 2025, up from $630 billion this year. In the short term, growth in the memory market and graphics processing units (GPUs) will significantly contribute to this revenue surge.
The report noted that the worldwide memory market is projected to grow by 20.5 per cent in 2025, reaching $196.3 billion. A sustained undersupply in 2024 is anticipated to drive NAND prices up by 60 per cent, although a decline of 3 per cent is expected in 2025. Consequently, NAND flash revenue is forecasted to reach $75.5 billion in 2025, marking a 12 per cent increase from the previous year.
As per the report, after a downturn in 2023, semiconductor revenue is rebounding and is expected to show double-digit growth in both 2024 and 2025. Additionally, the DRAM market will see improved supply and demand dynamics due to better undersupply conditions, high-bandwidth memory (HBM) production, and rising prices for double data rate 5 (DDR5) technology. Overall, DRAM revenue is projected to rise to $115.6 billion in 2025, up from $90.1 billion in 2024.
Further, the report stated that GPUs continue to play a crucial role in the development and training of AI models, with their revenue expected to reach $51 billion, reflecting a 27 per cent increase in 2025.
