Semiconductor Memory Market - Forecasts from 2024 to 2029

The semiconductor memory market is anticipated to grow at a compound annual growth rate (CAGR) of 0.69% over the forecast period to reach US$163.413 billion by 2029, increasing from US$155.68 billion in 2022.

The growing use of semiconductor components in a variety of industries, such as automotive, consumer electronics, and IT & telecom, is expected to propel the market'’s growth on a global basis. It is a necessary electronic device that uses integrated circuit (IC) technology to function as computer memory or chips. The development of semiconductor technology, which includes refining procedures, energy efficiency, and chip capacity optimization, has opened the door for innovative memory solutions suited to various industries.

Moreover, the widespread use of smartphones and other portable devices has created an unprecedented demand for high-performance chips that can meet the changing needs and aspirations of modern users by providing seamless user experiences, quick app loading times, and seamless multitasking capabilities. For instance, in 2023, the smartphone market in India shipped 146 million units, exhibiting a nominal year-over-year (YoY) growth of 1%, as per the International Data Corporation's (IDC) Worldwide Quarterly Mobile Phone Tracker. After a steep 10% drop in the first half of the year, the second half of the year grew by 11% YoY in 2H23. With 37 million units shipped, 4Q23 grew by 26% YoY. This was largely due to stronger-than-expected shipments in the second half of the quarter, which included the launch of several new models.

Additionally, the market's growth is also being driven by the dynamic adoption of memory-centric components in innovative products like wearables, smartphones, and electronic gadgets. In addition, the growing dependence of the electronics and automotive industries on semiconductor devices - such as DRAM and Flash ROM - is clearly driving up demand for integrated chips and devices. The demand for smart devices, consumer electronics, smartphones, and workstations across the globe emphasizes the need for chips with advanced technology. As a result, the market is experiencing a remarkable period of expansion, offering numerous opportunities for companies involved in this sector.

Growing demand from the automotive industry is anticipated to propel market growth.

Memory solutions are increasingly being used in automotive safety systems due to their excellent performance and low power consumption benefits. Memory solutions are essential to the development of autonomous driving capabilities, especially for comprehensive in-vehicle infotainment (IVI) systems and vehicle-to-everything (V2X) connectivity. Power memory solutions are needed for these technologies, and Samsung and other companies are leading the charge. Consequently, during the projected period, these factors are anticipated to fuel the growth of the global semiconductor memory market.

Moreover, the market is also growing due to the increasing use of software and electronic components in modern vehicles. Accordingly, as cars get increasingly linked and integrated with smart technologies, there is an increasing need for high-capacity memory solutions, which is driving up market growth. The market is expanding due to the increased use of hybrid and electric vehicles (EVs), which need sophisticated memory systems for energy efficiency and battery management. For instance, according to the International Energy Agency, the stock of battery electric vehicles increased in the United States from 1.5 million in 2021 to 2.1 million in 2022.

Additionally, a favorable outlook for market growth is being created by the growing use of artificial intelligence (AI) and machine learning (ML) in automotive systems for applications like autonomous driving and predictive maintenance. Moreover, modern innovations from manufacturers are enable to keep a competitive edge in a market that is changing rapidly. For instance, in July 2023, a leading global provider of cutting-edge semiconductor technology, Samsung Electronics, announced that mass production of its new automotive Universal Flash Storage (UFS) 3.1 memory solution, which is designed for in-car infotainment (IVI) systems, has begun. With the lowest energy consumption in the industry, the new solution enables automakers to give customers the best possible mobility experience. To accommodate varying customer needs, the UFS 3.1 lineup was made available in 128, 256, and 512 gigabytes (GB) variants. The improved lineup enables future automotive applications, like electric or driverless vehicles, to manage battery life more effectively.

The NAND segment of the semiconductor memory market is anticipated to propel market growth.

NAND flash memory is a non-volatile storage that preserves data without needing power. A key aim in NAND flash advancement has been to lower the cost per bit and boost chip capacity, allowing it to compete with magnetic storage like hard disks. It NAND flash is popular in devices where large files, such as MP3 players, digital cameras, and USB flash drives, are regularly uploaded and swapped out,

NAND flash stores data in blocks and utilizes electric circuits for data storage. When power is disconnected, a metal-oxide-semiconductor, usually a floating-gate transistor (FGT), supplies additional charge to the memory cell, preserving the data. These FGTs resemble NAND logic gates in structure. NAND memory cells consist of two kinds of gates: control gates and floating gates, both of which regulate data flow. To program a cell, a voltage charge is applied to the control gate.

South Korea dominates memory chip production, with Samsung Electronics and SK Hynix holding 73% of the global DRAM market and 51% of the NAND flash market. However, for different semiconductor products like microprocessors and sensors, South Korean firms depend on various government-led initiatives to strengthen the industry .

Industry participants in the NAND segment of the semiconductor memory market concentrate on mergers and acquisitions to expand their supply chain.

Both companies aimed to secure necessary governmental approvals. After obtaining those approvals, SK Hynix purchased the NAND SSD business (including associated IP and employees) and the Dalian facility for an initial payment of $7 billion. The remaining assets, including IP related to NAND flash wafer manufacturing and design, R&D employees, and the Dalian fab workforce, were acquired by SK Hynix upon a final closing, with a further payment of $2 billion. According to the agreement, Intel will continue producing NAND wafers at the Dalian Memory Manufacturing Facility and retain all IP related to NAND flash wafer manufacturing and design until the final closing.

The market is projected to grow in the America’s region.

The United States, semiconductor memory market is anticipated to grow owing to various factors, including technological innovation, and growing demand for high-performance computing. This high-performance computing includes services used in multiple sectors including data centers, artificial AI, and edge computing.

With a total of $246.4 billion in 2021, the semiconductor sector in the United States contributed significantly to the GDP's Gross Value Added (GVA). This included $55.8 billion in direct GVA, $98.6 billion in indirect GVA, and $92.0 billion in induced GVA. The semiconductor industry's strong performance is a reflection of its vital position in the American economy and plays a significant role in fueling the semiconductor memory market during the forecast period.

Furthermore, the increasing need for high-performance computing and the burgeoning use of 5G services are further driving the semiconductor memory market. For instance, to provide carriers with up to $9 billion in Universal Service Fund funding to provide advanced 5G mobile wireless services in rural America (including up to $680 million for deployment on tribal territories), the Commission created the 5G Fund for Rural America in October 2020. Additionally, the Fund allows at least $1 billion expressly for deployments supporting the requirements of precision agriculture .

The semiconductor industry is greatly impacted by the growing focus of the United States government on in the nation. Over $200 billion in private investments were made by American and international companies between 2020 and 2022 to increase domestic manufacturing capacities for semiconductor fabrication, equipment, and materials across 16 states. The largest investments went towards logic and memory chip fabrication facilities in Arizona, Texas, Idaho, Ohio, and New York.

Furthermore, various product launches and innovations by key market players are further boosting the market. For instance, in July 2022, NEO Semiconductor, a pioneer in the creation of cutting-edge NAND flash and DRAM memory designs, announced the availability of its second-generation X-NAND architecture. Furthermore, in August 2022, one of the biggest semiconductor firms in the world and the only memory maker with headquarters in the United States, Micron Technology, Inc. revealed its intentions to invest $40 billion by the end of the decade to establish state-of-the-art memory production in various stages in the United States. Comprehensively, these innovative strategies lead to various product launches in the nation, impacting the market positively.

Key Market Developments:

• October 20,2020, SK Hynix and Intel announced a deal where SK Hynix would acquire Intel's NAND memory and storage business for $9 billion. This included the NAND SSD business, the NAND component and wafer business, and the Dalian NAND memory manufacturing facility in China. Intel plans to keep its Intel® OptaneTM business separate.

Key Players:

• Samsung's DRAM technology fuels innovation and boosts performance across a range of computing solutions, spanning from personal computers to advanced AI servers. Samsung offers a diverse collection of DRAM products tailored to meet different needs. For instance, Samsung's DDR solutions are optimized for high-performance servers, desktops, laptops, and other devices. These solutions prioritize both high bandwidth and energy efficiency, delivering enhanced performance.
• Toshiba Corporation developed a 128-gigabyte (GB) embedded NAND flash memory module, setting a new industry standard for capacity. The module adhered to the e•MMCTM standard and is intended for use in various digital consumer products like smartphones, tablet PCs, and digital video cameras. Toshiba offers a wide range of single-package embedded NAND Flash memories with capacities ranging from 2GB to 128 GB .
• SK Hynix provides a diverse selection of DRAM products catering to various needs. These include RDIMM and LRDIMM, which are for server applications, and UDIMM and SODIMM designed for personal computer usage. Their DDR solutions ensure swift computing and reliable data transfers. Their GDDR memory facilitates the rapid rendering of complex graphics, delivering realistic visual experiences .

Segmentation:

By Type:

• NAND
• DRAM

By Industry Vertical:

• Consumer Electronics
• Communication & Technology
• Automotive
• Manufacturing

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• UK
• Germany
• France
• Italy
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Others
• Asia Pacific
• China
• Japan
• India
• South Korea
• Taiwan
• Thailand
• Indonesia
• Others