Next Generation Memory Market Size, Share & Trends Analysis Report By Technology (Volatile, Non-volatile), By Wafer Size, By Application (BFSI, Consumer Electronics, Telecommunications, IT), By Region, And Segment Forecasts, 2023 - 2030

Next Generation Memory Market Trends

The global next generation memory market size was estimated at USD 7.08 billion in 2022, and is projected to grow at a compound annual growth rate (CAGR) of 16.6% from 2023 to 2030. The escalating complexities of modern workloads are giving rise to the demand for accelerated data processing. This results in huge quantities of data further creating a demand for advanced memory technologies. These technologies must be capable of seamlessly adapting to the ever-evolving requirements of computing systems. The industry’s focus has shifted toward the next generation- non-volatile and low power memory solutions.

These innovations play a pivotal role in ensuring both energy efficiency and data retention, two critical factors that significantly impact the performance and longevity of mobile and IoT devices. The expansion of data centers, especially in the booming cloud computing industry, necessitates these solutions that perfectly balance speed and energy efficiency. This equilibrium is fundamental in effectively managing the colossal volume of data being processed within these data centers.

Next-generation memory represents a category of cutting-edge computer memory technology currently under development. These innovations address the limitations of traditional memory types such as DRAM and NAND Flash. The primary goal is to deliver substantial enhancements in areas critical to business performance, including speed, durability, energy efficiency, and storage capacity. These technologies often offer higher data density, enabling organizations to store more information in a smaller physical footprint. Adopting these advanced solutions can provide businesses with a competitive edge, enabling faster and more efficient data processing, which is crucial in today's data-driven marketplace.

Emerging technologies like AI, machine learning, and edge computing rely heavily on memory technologies that provide rapid access to extensive datasets. These advancements are pivotal in enabling the development and deployment of cutting-edge applications and services. A significant advantage of next-generation memory technologies is their non-volatile nature. It means they retain data even when power is removed. This characteristic contributes to faster boot times and plays a pivotal role in enhancing data integrity, a critical concern for businesses relying on uninterrupted access to critical information.

COVID-19 Impact

The global markets faced a downturn due to mandatory shutdowns and stay-at-home orders imposed to mitigate the spread of COVID-19. These measures triggered a substantial rise in job layoffs and a scaling down of expansion plans across various industries. The International Labor Organization (ILO) estimated that approximately 400 million jobs were lost globally in the second quarter of 2020 due to the pandemic. Notably, the COVID-19 pandemic has substantially influenced the next-generation memory sector. Although the demand for advanced memory technologies remains robust, driven by the increasing need for swift and efficient data processing in remote work settings, e-commerce, and digital services, the pandemic created disruptions across global supply chains and manufacturing operations.

Delays in production and distribution, coupled with supply chain complexities, have impacted the availability and pricing of vital components necessary for developing next-generation memory. Moreover, economic uncertainties prompted certain businesses to postpone or downscale their investments in Information Technology (IT), affecting the uptake of these emerging memory technologies. Nevertheless, the pandemic underscored the critical importance of resilient and effective data infrastructure, potentially fueling increased investments in advanced memory solutions during the post-pandemic recovery phase.

Technology Insights

Based on technology, the next-generation memory market is bifurcated into volatile and non-volatile. The non-volatile segment led with more than 79.6% share of the global revenue in 2022. The non-volatile memory is categorized into Hybrid Memory Cube (HMC) and High-bandwidth Memory (HBM). The non-volatile technology brings a suite of advantages crucial for modern businesses. One of the standout features is their ability to retain data even when power is removed. The non-volatile technology leads to faster boot times and improved data integrity, which is vital for applications where data consistency is paramount, such as financial transactions and critical data storage.

Additionally, non-volatile memory is central to enhancing energy efficiency, extending battery life in mobile devices, and reducing operational costs in data centers. As sustainability and cost-effectiveness continue to be pivotal in business strategies, the energy-saving attributes of non-volatile technology make it an attractive choice. Furthermore, the higher endurance of these technologies, enduring more read and write cycles before degradation occurs, ensures long-term reliability and cost savings, particularly in environments with heavy data usage.

The volatile segment is anticipated to witness a CAGR of around 16.0% throughout the forecast period. The volatile segment is further categorized into Magneto-Resistive Random-Access Memory (MRAM), Static Random Access Memory (SRAM), Ferroelectric RAM (FRAM), Nano RAM, Resistive Random-Access Memory (ReRAM), and Others (Phase change RAM & STT-RAM). One key benefit of volatile technologies is their exceptional speed, which provides faster read and write operations than traditional memory. This heightened performance can significantly enhance overall system responsiveness and productivity, a critical factor in data-driven industries. They also contribute to reduced energy consumption, making them an environment-friendly choice that can lead to cost savings in energy-intensive data center operations. These solutions also boast impressive endurance, with the ability to endure a high number of read and write cycles before showing signs of wear and tear.

Wafer Size Insights

By wafer size segment, the market is bifurcated into 200 mm and 300 mm. The 300 mm segment led with more than 62.0% share of the global revenue in 2022. Adopting 300 mm wafer size holds strategic advantages in this market. These larger wafers lead to increased production efficiency and economies of scale. As businesses aim to meet the growing demand for advanced memory technologies, using 300 mm wafers translates to higher throughput and lower production costs per unit. This scalability is especially beneficial in high-volume production scenarios, such as data centers and consumer electronics, where cost optimization and yield improvements are paramount. These wafers align well with industry trends favoring larger wafer size to accommodate cutting-edge memory components' intricate design and manufacturing requirements.

The 200 mm segment is anticipated to grow at a considerable CAGR of 18.5% throughout the forecast period. Utilizing 200 mm wafer size in the semiconductor industry presents notable business advantages. One key benefit is cost-effectiveness, as manufacturing of smaller wafers tends to be more economical. This appeals to businesses seeking to optimize their production processes and reduce expenses without compromising the quality and performance of next-generation memory components. 200 mm wafers are particularly attractive for niche markets and specialized applications where smaller production volumes are sufficient. The flexibility afforded by them allows companies to cater to unique customer demands without the need for high-volume production facilities. As a result, 200 mm wafer adoption remains driven by the pursuit of cost-efficiency and adaptability in the dynamic landscape of next-generation memory technology.

Application Insights

Based on application segment, the market is segmented into BFSI, consumer electronics, government, telecommunications, IT, and others. The BFSI segment led with more than 23.0% share of the global revenue in 2022. In the BFSI sector, integrating next-generation memory technologies brings substantial benefits to the forefront. The speed and efficiency of these solutions play a pivotal role in improving real-time transaction processing and data analytics capabilities. For financial institutions, this translates into faster and more accurate decision-making, essential in markets where microseconds can make a significant difference. Furthermore, the non-volatile nature of certain next-gen memory types ensures data integrity, a critical factor in maintaining trust and regulatory compliance. With the increasing volume of financial data and the need for robust security measures, next-generation memory is a driving force behind enhancing operational efficiency and data security in the BFSI sector.

The government application segment is anticipated to grow at a CAGR of 17.0% throughout the forecast period. Government agencies are turning to next-generation memory technologies to revolutionize data management and decision-making processes. Their speed accelerates data analysis and enables timely responses to emerging challenges. Government bodies often deal with vast citizen services, public safety, and infrastructure management datasets. The high-speed access to these datasets afforded by next-gen memory aids in informed decision-making, ensuring that resources are allocated efficiently, and services are delivered effectively. Moreover, the energy efficiency of these technologies aligns with the government's sustainability objectives and budgetary constraints. Non-volatile technology supports both environmental goals and cost savings by reducing power consumption in data centers and mission-critical systems.

Regional Insights

North America is expected to grow at a CAGR of 17.8% during the forecast period. The North American region is experiencing a rapid uptake of next-generation memory technologies, driven by several key factors. The relentless demand for faster data processing capabilities in finance, healthcare, and cloud computing sectors is pushing companies to embrace advanced solutions. Businesses understand that these speed and efficiency gains are paramount to maintaining competitiveness and meeting evolving customer expectations. Secondly, North America has a thriving technology and semiconductor industry, fostering innovation and research in memory technologies. The region's leading companies and research institutions are at the forefront of developing and implementing these solutions. Additionally, the growing emphasis on data security and compliance regulations underscores the significance of non-volatile memory in safeguarding sensitive information.

Asia Pacific led the overall market in 2022, with a revenue share of more than 49.0%. In this region, the adoption of next-generation memory technology is surging, driven by a confluence of factors that align with the region's dynamic business landscape. The exponential growth of mobile technology and IoT devices across Asia Pacific countries has intensified the need for energy-efficient memory solutions to retain data in power-off scenarios. This demand directly responds to the region's tech-savvy consumer base and the proliferation of smart devices. Secondly, Asia Pacific boasts a robust manufacturing ecosystem, making it a hotspot for semiconductor production. This positioning facilitates the rapid integration of advanced memory technologies into a wide range of devices, from smartphones to smart appliances. Lastly, the region's burgeoning data center industry, driven by the rise of cloud computing and digital services, necessitates memory solutions that can offer speed and energy efficiency.

Key Companies & Market Share Insights

The market is highly competitive. Major players are investing in Research & Development (R&D) to drive innovation. These players are adopting various development strategies such as mergers & acquisitions, product launches, and others to expand their presence and market share in the next-generation memory industry. Along with key strategies, these companies are introducing new features to improve the customer experience. For instance, in July 2023, Samsung Electronics announced the development of the Graphics Double Data Rate 7 (GDDR7) DRAM which marks a significant step forward in the world of graphics technology.

In the coming years, the GDDR7 DRAM will be integrated into the next-generation systems of key clients for testing and validation, setting the stage for the future growth of the graphics market. Notably, when compared to GDDR6, the most recent design exhibits a remarkable 20% improvement in energy efficiency, the advanced power-saving technology is tailored for high-speed operations. For applications such as laptops, where power consumption is a critical consideration, the company also provides a low-operating voltage option, ensuring that energy-conscious businesses and users can benefit from these enhancements. Some prominent players in the global next-generation memory market include:

• Samsung

• Micron Technology, Inc.

• Fujitsu

• SK HYNIX INC.

• Honeywell International Inc.

• Microchip Technology Inc.

• Everspin Technologies Inc.

• Infineon Technologies AG

• Kingston Technology Europe Co LLP

• KIOXIA Singapore Pte. Ltd.

Next Generation Memory Market Report Scope

Global Next-generation Memory Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and offers a qualitative and quantitative analysis of the market trends for each of the segments and sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global next-generation memory market report based on technology, wafer size, application, and region.

• Technology Outlook (Revenue, USD Million, 2017 - 2030)

  • Volatile

    • SRAM

    • Magneto-Resistive Random-Access Memory (MRAM)

    • Ferroelectric RAM (FRAM)

    • Resistive Random-Access Memory (ReRAM)

    • Nano RAM

    • Other

  • Non-volatile

    • Hybrid Memory Cube (HMC)

    • High-bandwidth Memory (HBM)

• Wafer Size Outlook (Revenue, USD Million, 2017 - 2030)

  • 200 mm

  • 300 mm

• Application Outlook (Revenue, USD Million, 2017 - 2030)

  • BFSI

  • Consumer Electronics

  • Government

  • Telecommunications

  • Information Technology

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • UK

    • Germany

    • France

  • Asia Pacific

    • India

    • China

    • Japan

    • South Korea

    • Australia

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa

    • Kingdom of Saudi Arabia (KSA)

    • UAE

    • South Africa