AI Powers Record 2024 Revenue, but Automotive and Industrial Struggles Linger Says Omdia

Total semiconductor revenue Omdia CLT 4Q24
However, this record-setting year masked uneven performance across the industry. While the data processing segment experienced strong growth, other key segments - automotive, consumer, and industrial semiconductor – experienced revenue declines in 2024. These struggles highlight areas of weakness within an otherwise booming market.
AI and memory complete a strong 2024
Throughout 2024, AI’s influence on the semiconductor market has been a dominant force, driving record revenues and reshaping industry dynamics. NVIDIA emerged as the clear leader, climbing the market share rankings with strong revenue growth the last few years due to its AI GPUs. HBM, a critical component for AI applications surged alongside, significantly boosting revenues for memory companies. While HBM outpaced other DRAM segments in growth, an improved supply-demand balance contributed to higher average selling prices (ASPs) and revenue gains across the broader memory market.
Industrial segment faces a second consecutive year of decline
The downturn in the industrial semiconductor segment, which began in 2023, deepened in 2024, posing challenges for companies focused on this sector. “Historically, the industrial semiconductor market has grown approximately
Automotive market stalls
While the automotive semiconductor market performed better than the industrial sector, it also experienced a revenue decline in 2024. After nearly doubling in size from 2020 to 2023, far exceeding the historical average annual growth rate of
NVIDIA takes the top spot as market rankings shift
NVIDIA’s dominance in AI-driven GPUs pushed it to the top position in semiconductor companies by revenue, surpassing Samsung which held the number one position in 2023.
The strong memory market also reshaped the leaderboard with Samsung, SK Hynix, and Micron all ranking among the top seven largest semiconductor companies by revenue. Each of these companies climbed at least one spot from their 2023 rankings, marking a significant shift from the previous year when they were spread across the top eleven.
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Omdia, part of Informa TechTarget, Inc. (Nasdaq: TTGT), is a technology research and advisory group. Our deep knowledge of tech markets combined with our actionable insights empower organizations to make smart growth decisions.
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Fasiha Khan: fasiha.khan@omdia.com
Source: Omdia