Date
03/18/2026
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Omdia: Semiconductor market surpasses $830bn in 2025, driven by AI demand and broad segment growth
New research from Omdia reveals that the semiconductor market surpassed $830 billion in 2025, marking the second consecutive year of more than 20% annual revenue growth. For the first time since Omdia began tracking the semiconductor market in 2001, the industry had two consecutive years with 20% annual revenue growth.
Demand for AI-related technologies continues to drive market expansion, with companies leading in this space contributing significantly to industry growth. However, unlike 2024 when automotive, consumer, and industrial segments declined, all major semiconductor application segments recorded revenue growth in 2025.
“While AI-driven demand initially strengthened pricing for high-bandwidth memory (HBM) in 2024, the impact has increasingly extended across the broader DRAM market,” said Senior Principal Analyst Lino Jeng. “AI servers require not only more HBM but also significantly more system memory, particularly DDR5. At the same time, suppliers have shifted wafer allocation toward HBM and high-density server DRAM. As a result, pricing improvements have spread across multiple DRAM segments in 2025 as the market recovers from the downturn in 2023. DRAM revenue has nearly tripled from just over $50bn at the market low in 2023 to above $150bn in 2025, making it the fastest-growing semiconductor component with year-over-year growth exceeding 50%.”
The sharp increase in semiconductor revenue since 2023 has also resulted in market share concentration among the largest companies. While the total semiconductor market revenue grew approximately 53% between 2023 and 2025, revenue among the top ten semiconductor companies increased by 90% compared with 8% growth across the remainder of the market.
Growth has been concentrated among memory suppliers and NVIDIA, highlighting how significantly AI demand is shaping the semiconductor market. Combined, these four companies increased their share of total semiconductor revenue from 24% in 2023 to 42% in 2025.
Although the data processing segment recorded the highest annual revenue growth, increasing over 40% year-over-year (YoY), all other semiconductor application segments also expanded in 2025.
The industrial semiconductor market returned to growth in 2025 after two consecutive years of declines. Inventory corrections in 2023 and 2024 following strong growth post-pandemic demand, resulted in a sharp decrease in industrial semiconductor revenue. However, the segment rebounded in 2025, with the market up over 6% YoY.
Following a market decline in 2023, the semiconductor industry in 2024 grew, due to strong AI-related demand, though growth was uneven across segments. In 2025, AI demand remained strong while growth broadened across the entire semiconductor market.
If AI demand continues through 2026, and the market records another year of more than 20% growth, total semiconductor revenue could surpass $1 trillion for the first time.
