The worldwide chip market is anticipated to rise 11.2 percent to a record $697.18 billion in 2025, boosted by healthy demand for semiconductors for use in artificial intelligence-powered smartphones and data centers, according to an industry organization projection.
The prediction was revised up from a June estimate of $687.38 billion, the World Semiconductor Trade Statistics, an association created by key chipmakers, said.
Chip demand has surged as a result of the growing use of AI technology across nations and industries. Tech companies worldwide are scrambling to secure enough supply for data centers that support the development of generative AI and gadgets that use the technology.
According to the organization’s most recent outlook, which was released in early December, demand for logic semiconductors—the brains of electronic devices—is predicted to grow 16.8% to $243.78 billion by product, while demand for memory chips—which store data—is predicted to increase 13.4% to $189.41 billion.
As long as the world economy expands at least somewhat, it is anticipated that the markets for other semiconductor types, such as analog chips, would also rise.
By region, the Americas are forecast to log the biggest growth with a 15.4 percent increase to $215.31 billion, followed by the Asia-Pacific region with 10.4 percent growth to $376.27 billion.
Europe is expected to see the smallest growth of 3.3% to $53.74 billion. The Japanese market is projected to expand 9.4 percent to $51.87 billion, according to the forecast.
The global chip market in 2024 is estimated at $626.87 billion, up 19.0 percent, the organization said, as growth in AI-related chips covered sluggish demand for those used for cars and industrial equipment.
WSTS Semiconductor Market Forecast Fall 2024
The non-profit mutual benefit company WSTS Semiconductor Market Forecast Fall 2024 projects that the semiconductor market would grow broadly in 2025, increasing by 11.2%, reaching an estimated $697 billion in global market worth.
The logic and memory industries, which are expected to be worth over $400 billion combined, will be the main drivers of the growth. This includes Logic’s and Memory’s annual increase of more than 17% and 13%, respectively.
The sector is anticipated to develop steadily overall as other semiconductor categories are predicted to grow at more moderate, single-digit rates.
All regions are expected to continue to grow in 2025. It is anticipated that the Americas and Asia Pacific will continue to rise by double digits annually.