Gartner Research

Forecast Analysis: Semiconductors and Electronics, Worldwide

Published: 03 August 2023


Gartner forecasts 2023 semiconductor revenue will drop 12.3% to $525.9 billion, then jump up 20.4% to $633.0 billion in 2024, as demand rebounds from most application lines. Memory will decline 40.6% and lead the downturn cycle while nonmemory revenue will decline by 3.4% in 2023.

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Forecast Assumptions
  • After an oversupply for most of 2023, memory devices are expected to enter shortages throughout 2024, with prices increasing 40% after declining by nearly half in 2023.

  • With recovery in demand, the semiconductor inventory index is expected to decline sharply in 2H23 before stabilizing in 1H24.

  • By 2027, more than 17% of servers deployed in data centers will include workload accelerators, up from less than 7% in 2022.

Market Impacts
  • Memory revenue will lead the market rebound in 2024, with 82.2% growth and revenue reaching $154.9 billion.

  • The inventory index peaked in 2Q23 within the surplus zone. However, it is expected

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