Gartner, a leading IT research and advisory company, just announced a growth forecast of 12.3% for the semiconductor market in 2017. This figure is based on a projected revenue of $386 billion and the upward trend isn’t expected to plateau until 2019.
Semiconductor Industry Growth Factors
Investments driving growth during 2016 continue to build revenue this year. DRAM and NAND flash memory are lucrative markets as demand continues to be high; Gartner expects demand to peak in the second quarter of this year.
Gartner researchers cite variables that may slow growth after the 2017 revenue increase:
- Increased profits lead companies to expand manufacturing, increasing supply and decreasing demand,
- China’s investments in the industry may affect prices, even though in terms of innovation they have a wide gap to close,
- The IoT and wearable technologies, while they generate a lot of buzz, are still in their infancy compared to other applications, meaning they will have less of an impact than more common consumer goods such as smart phones, game systems and and PCs.
For more details, refer to Gartner’s press release.