Home Tech Global Chip Market: Global chip market to recover in 2024: Here are the biggest growth drivers

Global Chip Market: Global chip market to recover in 2024: Here are the biggest growth drivers

by hrithik singh t
Global Chip Market

Global Chip Market

Global Chip Market: After struggling in the last few years, the global chip market may see a turnaround in 2024. According to a new report, the global semiconductor sales market will recover in 2024 with an annual growth rate of 20 per cent. The semiconductor industry is expected to usher in a new wave of growth, according to IDC’s latest research. Semiconductor products comprise logic integrated circuits (IC), analog IC, microprocessor and microcontroller IC, and memories.
The growth drivers for the market are said to be the exploding global demand for artificial intelligence (AI) and high-performance computing (HPC), coupled with the stabilising demand for smartphones, personal computers, infrastructure, and resilient growth in automotive.
“Memory manufacturers’ strict control of supply and output has led to increasing prices from the start of November, and the demand for AI across all major applications will drive the overall semiconductor sales market to recover in 2024,” said Galen Zeng, Senior Research Manager, Semiconductor Research, IDC Asia/Pacific. Adding a tinge of positivity, Zeng said that the semiconductor supply chain, including design, manufacturing, packaging, and testing, will bid farewell to the downturn in 2023.
With the advancement of semiconductor technology, it is expected that more AI functions will be integrated into personal devices starting in 2024. Report forecasts AI smartphones, AI PCs, and AI wearable devices to be gradually launched into the market. “It is expected that there will be more innovative applications for personal devices after the introduction of AI, which will positively stimulate the increase in demand for semiconductors and advanced packaging,” the IDC report predicted.
Auto industry boost
In the auto space, which too suffered due to delay and bottlenecks in the chip supply chain during Covid-19 pandemic, there are greenshoots and growth drivers. “Overall, more and more automotive electronics will rely on chips, which means the demand for semiconductors will be long-term and steady,” said the report. The report says that although the growth of the automotive market has remained resilient, the trend of automotive intelligence and electrification is clear and an important driver for the future semiconductor market.
ADAS or Advanced Driver Assistance Systems accounts for the largest share of the automotive semiconductor market, with a compound annual growth rate (CAGR) of 19.8 per cent by 2027. The number accounts for 30 per cent of the automotive semiconductor market in that year.

Global Chip Market

Infotainment accounts for the second largest share of the automotive semiconductor market, with a CAGR of 14.6 per cent by 2027, accounting for 20 per cent of the market in that year, driven by automotive intelligence and connectivity.


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