The semiconductor industry has been on a meteoric rise, with market revenues surging by an astonishing 75% since 2019. This rapid growth has helped the largest players in the market, including Nvidia, Taiwan Semiconductor Manufacturing, Samsung, and Intel, to add trillions to their stock values. And the momentum isn’t slowing down, with 2025 set to push the market to new record highs.
According to data presented by Stocklytics.com, semiconductors are set for a massive $95 billion surge this year, pushing total market revenue beyond $702 billion.
The Third-Largest Annual Growth in a Decade
For a gigantic industry like semiconductors, which homes some of the biggest names in the tech space, including Nvidia, Samsung, and Taiwan Semiconductor Manufacturing, reporting hundreds of billions of dollars in revenue is nothing unusual. However, the semiconductor market’s post-2023 rebound has been nothing short of remarkable, even by tech industry standards.
After a significant $70 billion revenue drop in 2023, triggered by weak consumer demand, excess chip inventory, and a post-pandemic correction following the 2021-2022 supply boom, the market gained new momentum, helping it reach record highs.
According to a Statista Market Insights survey, the global semiconductor industry generated $607.4 billion in revenue in 2024, an increase of $104 billion from the previous year. This marked the second-largest revenue increase in a decade, trailing only the $117 billion surge in 2021. However, the market projections for this year are also quite impressive.
With AI, cloud computing, and autonomous tech fuelling demand and governments worldwide investing heavily in chip production to secure supply chains and reduce reliance on geopolitical rivals, the industry is set for another leap. Statista expects market revenues to skyrocket by an additional $95 billion and hit $702 billion, marking the third-largest increase between 2019 and 2029.
To put this into perspective, with $702 billion in revenue, semiconductors will come close to matching last year’s $733 billion public cloud industry revenue. Also, the market will generate nearly three times the revenue of the AI sector, which is expected to gross $243 billion this year.
Semiconductors on Track to Become a Trillion-Dollar Industry by 2030
Although the annual growth rate in the semiconductor industry will slow in the following years, falling from 15% in 2025 to around 7% in 2029, the market is still heading toward a historic milestone.
According to Statista, even with this pace of growth, semiconductors will still become a trillion-dollar industry by 2030. Most of that value will come from the integrated circuits segment, which is forecasted to reach $850 billion in revenue by the end of the decade. The semiconductor sales will also grow by 15% in the next five years and reach over 1.4 billion units.
The full story and statistics can be found here.
