Global Semiconductor Market Sees Robust Growth in Q3 2024 Amid AI Boom
The semiconductor industry has witnessed a remarkable surge in the third quarter of 2024, as reported by Omdia, a leading technology research and advisory group. Quarterly revenues have experienced an 8.5% increase, topping $177.8 billion, a substantial rise from $163.8 billion in the previous quarter. Notably, comparing year-over-year figures, this marks a substantial 25% increase from $141.6 billion in Q3 2023. The strong growth in revenues is primarily attributed to the booming artificial intelligence (AI) segment, projecting a promising future for the semiconductor market with an expected 24% overall annual expansion.
According to Omdia's Competitive Landscaping Tool report, the total semiconductor revenue for the first three quarters of 2024 reached approximately $494 billion, which has already surpassed the total revenue recorded for the entire year of 2020. This impressive growth showcases an increased demand for semiconductor components that support AI technologies. However, it is essential to note that this prosperous revenue generation is unevenly distributed across different sectors of the semiconductor industry. For instance, while companies involved in AI-related products are thriving, the industrial sector is currently facing challenges due to weak demand, projecting a 16% year-over-year revenue decline for 2024.
Cliff Leimbach, a Senior Analyst at Omdia, emphasized the pivotal role of AI in shaping the semiconductor market's trajectory in 2024, calling it a record-breaking year. Companies such as NVIDIA and SK Hynix have stood out as significant beneficiaries of this AI surge. NVIDIA, known for its graphics processing units (GPUs), and SK Hynix, specializing in high-bandwidth memory, reported noteworthy revenue increases. Out of the 127 semiconductor companies analyzed, these two firms were the only ones that more than doubled their revenues in the first three quarters of 2024 compared to the same period in 2023.
Looking forward, Omdia forecasts the semiconductor revenue to continue its upward trend, with an estimated growth of about 4.5% in the fourth quarter, potentially reaching nearly $186 billion. This growth is anticipated as AI-focused enterprises continue to outperform the broader semiconductor market. However, the automotive market, which had seen consistent revenue growth from Q3 2020 through Q3 2023, appears to be stabilizing as demand levels off, with revenue expected to remain flat compared to 2023. Additionally, the industrial segment is under pressure due to challenging macroeconomic conditions, anticipating a decline of $10 billion in revenue for 2024 relative to the previous year.
Despite these disparities, a bright spot remains: all ten of the top semiconductor companies reported sequential revenue growth in Q3 2024. Out of the top twenty firms, 17 also displayed quarter-over-quarter increases, indicating a generally positive outlook within the industry. NVIDIA maintained its number one ranking, showcasing a 10.5% revenue increase from Q2 2024, attributed to the soaring demand for AI technologies, while its market share rose slightly to over 15%. Furthermore, the memory market dynamics have improved, elevating Samsung, SK Hynix, and Micron into the upper echelons of the industry, as expectations suggest the memory segment will grow by $73 billion in 2024 compared to 2023, reinforcing these companies' competitive positions.
In conclusion, the latest research findings from Omdia highlight a buoyant semiconductor market propelled by AI-related demand, indicating a highly promising future as the industry adapts to evolving technologies and market conditions. The anticipated growth trajectories and strong performances from key players will undoubtedly shape the dynamics of the semiconductor landscape in the coming years.
According to Omdia's Competitive Landscaping Tool report, the total semiconductor revenue for the first three quarters of 2024 reached approximately $494 billion, which has already surpassed the total revenue recorded for the entire year of 2020. This impressive growth showcases an increased demand for semiconductor components that support AI technologies. However, it is essential to note that this prosperous revenue generation is unevenly distributed across different sectors of the semiconductor industry. For instance, while companies involved in AI-related products are thriving, the industrial sector is currently facing challenges due to weak demand, projecting a 16% year-over-year revenue decline for 2024.
Cliff Leimbach, a Senior Analyst at Omdia, emphasized the pivotal role of AI in shaping the semiconductor market's trajectory in 2024, calling it a record-breaking year. Companies such as NVIDIA and SK Hynix have stood out as significant beneficiaries of this AI surge. NVIDIA, known for its graphics processing units (GPUs), and SK Hynix, specializing in high-bandwidth memory, reported noteworthy revenue increases. Out of the 127 semiconductor companies analyzed, these two firms were the only ones that more than doubled their revenues in the first three quarters of 2024 compared to the same period in 2023.
Looking forward, Omdia forecasts the semiconductor revenue to continue its upward trend, with an estimated growth of about 4.5% in the fourth quarter, potentially reaching nearly $186 billion. This growth is anticipated as AI-focused enterprises continue to outperform the broader semiconductor market. However, the automotive market, which had seen consistent revenue growth from Q3 2020 through Q3 2023, appears to be stabilizing as demand levels off, with revenue expected to remain flat compared to 2023. Additionally, the industrial segment is under pressure due to challenging macroeconomic conditions, anticipating a decline of $10 billion in revenue for 2024 relative to the previous year.
Despite these disparities, a bright spot remains: all ten of the top semiconductor companies reported sequential revenue growth in Q3 2024. Out of the top twenty firms, 17 also displayed quarter-over-quarter increases, indicating a generally positive outlook within the industry. NVIDIA maintained its number one ranking, showcasing a 10.5% revenue increase from Q2 2024, attributed to the soaring demand for AI technologies, while its market share rose slightly to over 15%. Furthermore, the memory market dynamics have improved, elevating Samsung, SK Hynix, and Micron into the upper echelons of the industry, as expectations suggest the memory segment will grow by $73 billion in 2024 compared to 2023, reinforcing these companies' competitive positions.
In conclusion, the latest research findings from Omdia highlight a buoyant semiconductor market propelled by AI-related demand, indicating a highly promising future as the industry adapts to evolving technologies and market conditions. The anticipated growth trajectories and strong performances from key players will undoubtedly shape the dynamics of the semiconductor landscape in the coming years.
Topics Consumer Technology）
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