Omdia: Semiconductor Market Experiences Quarterly Decline Due to Weak Demand
In the first quarter of 2024, the semiconductor market experienced approximately a 2% decline, dropping to $151.5 billion. It is common for the first quarter of each year to see a downturn, with market revenue typically decreasing by about 4.4%. This trend is largely attributed to the strong seasonal demand in the fourth quarter that boosts the market. However, in the first quarter of 2024, most segments within the semiconductor market faced downward pressure. Consumer electronics were hit the hardest, seeing a 10.4% drop compared to the fourth quarter of 2023, while the industrial sector declined by 8.5% due to inventory adjustments. Even the automotive sector, which has shown steady growth in recent years, experienced a 5.1% negative growth in the first quarter of 2024.
Despite these declines, the robust demand from data centers mitigated the overall drop in the semiconductor market. The data center-related semiconductor segment grew by 3.7%, driven primarily by high demand and high prices for AI-related products, notably NVIDIA GPUs.
The shift towards electrification and smart technologies, along with supply chain consolidation triggered by the pandemic, had previously spurred significant growth in the automotive semiconductor market. However, as the overall growth trend slowed, the automotive sector was not immune to the downturn. Starting from the third quarter of 2020, the automotive segment saw revenue growth for 13 consecutive quarters but experienced a minor decline of 0.6% in the fourth quarter of 2023. The decline was more pronounced in the first quarter of 2024, with a 5.1% drop from the previous quarter. This downward trend reflects a broad deceleration in automotive demand. In recent quarters, the growth rate of electric vehicles has slowed down, leading to an adjustment in semiconductor demand. Despite these challenges, the automotive semiconductor market is still expected to maintain long-term growth over the next five years.
（Omdia: A Leading Research and Consulting Group Specializing in the Technology Industry）
