DRAM Dominates the Global Memory Market with Fastest CAGR, Fueled by Demand in High-Performance Computing, AI, and Mobile Devices

DUBLIN, Nov. 6, 2023 /PRNewswire/ -- The "Global Memory Market: Analysis by Type, Demand, Supply, and Region with Impact Analysis of COVID-19 and Forecast up to 2028" report has been added to  ResearchAndMarkets.com's offering.

The global memory market, valued at $110.16 billion in 2022, is poised for significant growth, with a projected Compound Annual Growth Rate (CAGR) of 19.54% during the forecast period from 2023 to 2028.

This substantial expansion is driven by various factors, including increased demand for faster, more reliable, and power-efficient memory solutions, as well as the rise in demand for memory and storage devices in next-generation connected automobiles and automotive safety systems.

Market Decline in 2023 Due to Global Chip Shortage

The memory market is expected to experience a temporary decline in 2023 due to inflation and weakening demand in end markets, particularly those relying on consumer spending. The global chip shortage has led to a backlog of demand, which is anticipated to be released once the chip shortage is resolved. However, despite this short-term setback, the long-term prospects for the memory market remain strong.

Market Segmentation Analysis

• By Type: The global memory market is segmented into three types: DRAM, NAND, and Others. The DRAM segment, indispensable across various industries and applications, including high-performance computing, cloud services, gaming, artificial intelligence, and machine learning, holds the majority share and has the fastest CAGR. Despite a decline in 2022 due to weak demand, the DRAM market is expected to rebound as technology evolves and demand for robust computing systems and mobile devices continues to rise.
• By Demand: The memory market is categorized based on the demand for DRAM and NAND memory. The growth of cloud computing and data center services has significantly increased the demand for DRAM. In 2023, DRAM demand is expected to increase, driven by inventory restocking in mobile and PC segments. Meanwhile, NAND memory demand continues to grow, with SSD NAND memory leading the market due to its high performance and durability.
• By Supply: The DRAM supply is expected to rise as the semiconductor industry advances its manufacturing processes. NAND memory manufacturers have also announced substantial investments in new fabs, which will lead to a significant increase in NAND memory supply in the coming years.
• By Region: South Korea dominates the memory market supply, followed by Japan, China, Taiwan, and the US. South Korea's market share was the highest in 2022, with companies expanding their business and exploring opportunities in emerging markets. China, on the other hand, has the highest CAGR, driven by significant investments by the government to boost domestic production of memory chips.

Global Memory Market Dynamics

• Growth Drivers: The global memory market is expected to thrive due to the transformative impact of 5G technology, driving the demand for memory components. Additionally, the proliferation of IoT devices, rising smartphone penetration, increased use of semiconductor components across industries, growing data storage demands, the establishment of data centers, and the flourishing gaming and entertainment industry contribute to market growth.
• Challenges: Challenges in the memory market include cyclical demand patterns, barriers to entry, and managing oversupply and price fluctuations. Seasonal demand patterns and competition from alternative technologies also pose challenges to manufacturers.
• Trends: A significant trend in the memory market is the growth of high bandwidth memory (HBM), which vertically stacks memory chips to create smaller and more powerful devices. Other trends include the increasing use of memory in artificial intelligence and machine learning applications and the emergence of next-generation memories like MRAM.

Impact Analysis of COVID-19 and Way Forward:

The COVID-19 had a significant impact on memory market. The market increased in 2020 due to the increased use of laptops and other devices in work from home, which impacted positively for memory market.

Competitive Landscape and Recent Developments:

Global memory market is concentrated, with two main suppliers in the market, namely Samsung and Micron accounting for more than 50% of the market.

Key players of global memory market are:

• Samsung Electronics Co., Ltd.
• Micron Technology, Inc.
• Infineon Technologies AG
• Intel Corporation
• Microchip Technology Inc.
• Macronix International Co. Ltd.
• SK Hynix Inc.
• Winbond Electronics Corporation
• Nanya Technology Corp
• KIOXIA Holdings Corporation
• Yangtze Memory Technologies Corp
• Integrated Silicon Solution, Inc.

The key players are constantly investing in strategic initiatives, such as new product launches, introducing their products to emerging markets and more, to maintain a competitive edge in this market. For instance, in May 2023, Samsung Electronics announced that it had begun mass production of its new 3-nanometer (nm) DRAM chips. These chips are the first in the world to be manufactured using the 3nm process, and they offer significant performance and power efficiency improvements over previous generations. In April 2023, SK Hynix also announced that it had begun mass production of its new 16-gigabit (Gb) LPDDR5 DRAM chips.

Key Topics Covered:

1. Executive Summary

2. Introduction

3. Global Market Analysis

4. Regional Market Analysis

5. Impact of COVID-19

6. Market Dynamics
6.1 Growth Drivers
6.1.1 Rising Emergence of 5G Technology
6.1.2 Rising Penetration of IoT Devices
6.1.3 Growing Use of DRAM in Smartphones
6.1.4 Growing Establishment of Data Centers
6.1.5 Rising Use of Semiconductor Components across Various Industries
6.1.6 Increasing Demand for Data Storage
6.1.7 Rise in Gaming & Entertainment Industry
6.2 Challenges
6.2.1 Cyclical Demand
6.2.2 Barriers to Entry
6.3 Market Trends
6.3.1 Growth in High Bandwidth Memory TAM
6.3.2 Artificial Intelligence and Machine Learning
6.3.3 Next-generation Memories Like MRAM Memories

7. Competitive Landscape

8. Company Profiles

For more information about this report visit https://www.researchandmarkets.com/r/1cx3ti

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