The global semiconductor memory market was valued at more than USD 90 billion in 2019 and poised to grow at a compound annual growth rate (CAGR) of around 6.1% during the forecast period 2020 to 2027.
The global semiconductor memory market size is expected to be worth around USD 134.95 billion by 2027.
Increasing application of semiconductor components in different industries, such as consumer electronics, automotive, and IT & Telecom expected to fuel the market growth for semiconductor memory. Rapid development in the form of automation and digitalization in the electronics industry coupled with the implementation of memory-based elements in the advanced products such as wearable devices, smartphones, and electronic gadgets propels the market growth across the globe. Increasing application of semiconductor devices in the electronics systems and automobile such as DRAM and Flash ROM is a key factor that drives the demand for chips and integrated gadgets. Flash ROM and DRAM used in ADAS and lighting control systems offer better connectivity and increased speed to vehicle systems.
On the other hand, high manufacturing cost, other costs associated with the operation and maintenance of the existing and new fabrication plants, and increased amount of capital investment required are the prime factors that pose challenge to the global semiconductor memory industry over the forecast period.
In 2019, the Dynamic Random Access Memory (DRAM) segment captured the major market revenue share of more than 45%. The growth is attributed to the increasing computing capabilities with the implementation of Artificial Intelligence (AI) in laptops, smartwatches, and smartphones that require compatible memory solutions. Further, increasing integration of electronic components in automotive sector expected to offer significant growth opportunities for the DRAM semiconductor memory industry players. DRAM memory that is used in lighting control and Advanced Driver-Assistance Systems (ADAS) systems offer high-speed and improved connectivity to the vehicle systems. Moreover, several market players offer automotive semiconductor memory chips pertaining to cater to the increasing demand of electronic devices in the automotive industry.
Based on application, consumer electronics dominated the global semiconductor memory market and accounted for nearly 35% of market value share in the year 2019. The segment anticipated to offer alluring growth opportunities for all the market players involved in the value chain on the account of rising application of semiconductor memory in wearable devices, smartphones, and tablets across the globe. Semiconductor memory provides numerous advantages that include improved volatile memory, increased storage, low power consumption, and high endurance that leads to the rising adoption of semiconductor components in the consumer electronics industry.
Besides this, the automotive segment anticipated to register considerable growth rate over the analysis period. The growth of the segment is attributed to the rising adoption of advanced safety systems in automobiles such as advanced driver-assistance systems (ADAS), lighting, airbags, and braking that use large amount of sensors and Engine Control Units (ECUs). These ECUs and sensors require highly efficient memory components. Subsequently, automotive manufacturers are significantly adopting semiconductor memory chips in the vehicle safety systems due to their improved performance and low power consumption advantages.
The Asia Pacific led the global semiconductor memory market with more than 45% of market value share in the year 2019. This is attributed to the increasing data center investments in countries such as Singapore, India, and Indonesia, thus create prominent demand for semiconductor memory in the region. Moreover, the developing countries in the region such as China, India, and Japan are supporting the market growth owing to several factors including increasing production of consumer electronics products and memory chips, increasing penetration of high technology gadgets, and growing digitization. In addition, easy availability of raw materials at lower cost attracts various prominent market participants that include Toshiba Corporation and Samsung Electronics to expand their offering and presence in the region, thereby fuels the market growth.
On the other hand, North America seeks to be the most opportunistic region during the forecast period, followed by Europe. Rising investment for research & development activities by the companies along with the significant presence of major market players that are dedicated towards the development of new technologies propel the growth of the region significantly. Increasing adoption of smart and advanced technologies in the automotive sector accounts for the other prominent factor that triggers the growth for semiconductor memory market during the forthcoming years. Both North America and Europe registered significant growth in advanced mobility infrastructure coupled with favorable policies from regulatory bodies of the region positively influence the market growth.
Key Companies & Market Share Insights
The global semiconductor memory market witness significant competition among the market participants due to rapid changing consumer preference. Implementation of advanced technologies in the consumer electronics, automotive, IT & Telecom, medical and other verticals have completely transformed the consumer expectation, thereby increasing the competition among players. Further, the market players are investing significantly in the research & development activity to cater the rising consumer expectation. This in turn, also enhances their product portfolio and improves the market position. For instance, in March 2018, RenesasElectronics Corporation introduced its on-chip flash memory microcontroller that was developed for automotive application.
Some of the prominent players in the semiconductor memory market include:
Segments Covered in the Report
This research study encompasses comprehensive assessment of the marketplace revenue with the help of prevalent quantitative and qualitative intelligences, and prognoses of the market. This report presents breakdown of market into major and niche segments. Furthermore, this research study gauges market revenue growth and its drift at global, regional, and country from 2016 to 2027. This report comprises market division and its revenue valuation by categorizing it depending on of type, application, and region:
By Regional Outlook
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