2024 Forecast: Semiconductor Market to Surge

29-11-2023 | By Astute Electronics

In a recent update, the International Data Corporation (IDC) forecasts a significant rebound for the semiconductor industry. According to IDC, the sector is set to experience a 20.2% growth in 2024, elevating its market value to an impressive $632.8 billion. This projection marks an upward revision from the earlier estimate of $625.9 billion, signaling a recovery phase for the industry.

Resurgence in Major Global Markets 

Key drivers for this growth include the resurgence of demand in major markets such as the United States and China. Notably, China's market is anticipated to start its recovery in the latter half of 2024, playing a crucial role in this global industry upswing. Concurrently, the U.S. market maintains its strong demand, further bolstering the industry's growth trajectory.

Electrification as a Growth Catalyst

Electrification emerges as a pivotal factor in this growth narrative. The alignment of the automotive and industrial sectors with global electrification trends is expected to normalize inventory levels by the second half of 2024. This shift not only benefits semiconductor manufacturers but also underscores the industry's agility and strategic foresight.

Innovation Driving Semiconductor Demand

Technological innovation remains a cornerstone of the semiconductor industry's growth. The advent of AI PCs and AI-enabled smartphones is set to escalate the demand and value of semiconductors across diverse market segments. This trend highlights the semiconductor industry's integral role in driving technological advancement.

Positive Market Outlook and Investment Cycle

IDC's report also indicates a positive shift in the semiconductor market outlook, transitioning from a period of stagnation ("TROUGH") to a phase of "Sustainable GROWTH". This change is underpinned by anticipated improvements in capital expenditures by early 2024, initiating a new cycle of investment within the supply chain. The global semiconductor revenue is projected to reach $526.5 billion in 2023, marking a recovery from the downturn seen in 2022.

Semiconductor Industry: A New Era of Growth and Innovation

As the semiconductor industry approaches a new era of growth and technological innovation, it reaffirms its critical position in the global technology landscape. This resurgence is not just a positive development for semiconductor manufacturers but also signifies progress for the entire electronics industry.

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By Astute Electronics

Astute Electronics are one of the world’s most knowledgeable, quality-driven experts in franchised ‘Hi-Rel’ electronics distribution, global procurement and supply-chain management.