The global semiconductor memory market size was valued at USD 85.56 billion in 2019 and is expected to expand at a compound annual growth rate (CAGR) of 5.9% from 2020 to 2027. The market is expected to witness an increase in demand at the global level owing to the growing use of semiconductor components in various industries, such as automotive, consumer electronics, and IT, and telecom. Semiconductor memory is an electronic device used as a computer memory in which digital information is maintained by using IC (Integrated Circuit) technology. Moreover, these memories are classified on the basis of the type of data storage and data access, such as volatile RAM (Random Access Memory) and non-volatile ROM (Read Only Memory).
Rapid development in the form of digitalization and automation in the electronics industry, along with the use of memory-based elements in technologically advanced products, such as smartphones, wearables devices, and electronic gadgets, is propelling the market growth across the globe. Increasing usage of semiconductor devices in the automobile and electronics systems, such as Flash ROM and DRAM, is a key factor driving the demand for integrated gadgets and chips. DRAM and Flash ROM used in lighting control and ADAS systems offer increased speed and better connectivity to vehicle systems.
Moreover, integration of Internet of Things (IoT) into the consumer electronics, automotive, and industrial applications, along with the rising acceptance of the IoT in all these industries, is driving the overall market across the globe. These technologies include smart and automated systems that executive management and manufacturing operations more rapidly, thereby improving productivity and reducing cost. Besides, in recent years, multiple companies are utilizing semiconductor memory chips with high storage capabilities in order to resolve the data center complexities, thereby increasing market growth.
On the other hand, factors such as high cost of manufacturing, increasing cost associated with new plant constructions and existing fabrication plants, and a significant amount of capital investment might pose a challenge to the global industry over the forecast years. However, semiconductor memory manufacturers are expected to carry out operational development programs for existing semiconductor memory products that can achieve targets for Return on Investment (ROI) and overcome these challenges. Moreover, semiconductor memory companies have been focusing on outsourcing a significant part of their chip production to manufacturing firms to minimize the overall net capital expenditure.
In addition, the COVID-19 pandemic is anticipated to negatively impact the overall market growth over the next few years owing to restrictions over the trade of electronics globally. Various countries including Italy, Germany, France, U.S., South Korea, and Japan are severely disrupted in the short term. Thus, semiconductors and electronics are expected to incur major declines in the first half of 2020 due to a decline in trade constraints. However, it is expected that the trade of electronics should return to normal levels by the end of the second quarter of 2020.
Electrical grids involve various components such as switches, wires, and transformers, wherein the smart grid system incorporates remote control and digital communication capabilities. Smart grids allow for two-way communication, assisting consumers in minimizing power outages, energy management, and delivering the necessary electricity. A smart grid's essential components are smart meters and a communication channel. Smart meters have the potential to improve the reliability, efficiency, and security of the electrical system. Smart meters use semiconductors to ensure connectivity between the customer's location and the remote center. As a result, the government's rising smart grid initiatives, supported by smart meter installations, are likely to significantly drive the semiconductor industry throughout the projection period.
Because of the rise in immunodeficiency illnesses among the population, worldwide healthcare spending is increasing. There is an expanding senior population, as well as ailments like diabetes and high blood pressure. As a result, there is a growing demand for electronic medical devices that detect blood pressure, sugar levels, and other parameters. Semiconductors are critical components utilized in a wide range of medical devices to improve reliability and cost effectiveness. A large number of memory chips are used in devices like blood glucose meters and blood pressure monitors. As a result, the medical industry has a high demand for memory chips.
The leading companies from many sectors such as telecommunications, consumer electronics, and automotive are intensely focusing on incorporating artificial intelligence into their products. For instance, Qualcomm Technologies, Inc. made huge investments in the research and development of on-device AI. The integration of machine learning in automobiles, smartphones, robots, and drones is becoming possible due to increased computing power and improved AI algorithms. On-device AI provides better security and privacy protection as all the processing is done offline and on the device. The AI industry is witnessing a shift toward embedded artificial intelligence.
Such state-of-the-art developments in AI, ANN, and machine learning are paving new ways for applying semiconductors in numerous fields such as medical, smart cities, smart factories, IoT, and so on. This is expected to create growth opportunities for the semiconductor market players.
Manufacturers offer various types of semiconductor memory chips, namely SRAM, MRAM, DRAM, Flash ROM, and others. The dynamic random access memory (DRAM) segment held the largest market share of more than 45.0% in 2019. The growth is attributed to growing computing capabilities with Artificial Intelligence (AI) in smartwatches, laptops, and smartphones requiring compatible memory solutions.
Besides, rising integration of electronic components in vehicles is expected to create growth opportunities for DRAM semiconductor memory industry players. DRAM memory used in Advanced Driver-Assistance Systems (ADAS) and lighting control offers improved connectivity and high-speed to vehicle systems. Moreover, several market players are offering automotive semiconductor memory chips in order to cater to high demand in the automotive industry.
For instance, in November 2018, Micron Technology, Inc., a memory and storage solutions provider, announced an alliance with BMW Group. This alliance was intended to help Micron Technology, Inc. to improve its storage and memory technology in the automotive sector, along with expanding its product portfolio of NOR, NAND, and DRAM technologies globally. Furthermore, this collaboration would help BMW Group to improve the development of their automotive memory solutions.
In 2019, the consumer electronics segment accounted for the largest market share of more than 35.0% of the global revenue. The consumer electronics vertical is anticipated to offer significant growth opportunities for all the players involved in the value chain on the back of increasing the use of semiconductor memory in smartphones, wearable devices, and tablets across the globe. Semiconductor memory offers various advantages including increased storage, improved volatile memory, high endurance, and low power consumption, leading to increased adoption of the component in the consumer electronics industry. Moreover, consumer electronics manufacturers are collaborating with technology providers to provide high technology products to consumers.
The automotive segment is expected to witness considerable growth over the forecast period. The growth is attributed to the growing adoption of advanced safety systems in automobiles, such as airbags, lighting, advanced driver-assistance systems (ADAS), and braking, which use several sensors and Engine Control Units (ECUs). These sensors and ECUs need highly efficient memory components. Thus, automotive manufacturers are increasingly adopting semiconductor memory chips for vehicle safety systems owing to their low power consumption and improved performance advantages.
Furthermore, the in-vehicle communication system is calling for non-volatile memory, such as flash ROM. This flash ROM helps in creating efficient wireless connections and storing numerous security certificates. In recent years, semiconductor memory manufacturers are focusing on manufacturing products depending on the requirements of automobile manufacturers to gain a competitive edge in the market.
Asia Pacific held the largest share of more than 45.0% in 2019. The growth is attributed to rising data center investments in countries, including India, Singapore, and Indonesia, thus creating a high demand for semiconductor memory in the region. Moreover, developing economies such as China, Japan, and India are supporting the market growth due to various factors such as rising production of memory chips and consumer electronics products, growing digitization, and rising penetration of high-tech gadgets. Moreover, several major players such as Toshiba Electronic Devices & Storage Corporation and Samsung are adopting market strategies to expand their offerings in the region owing to the easy availability of raw materials at a lower cost, thereby propelling the market growth.
In addition, the COVID-19 pandemic, which recently spread across Asia Pacific countries, especially China, has highly impacted the steady growth of the regional market. Besides China, various other Asian countries including Taiwan, Singapore, and South Korea are the major contributors to the market growth. However, considering the fact that China is coming close to its recovery phase, it is anticipated the impact of this pandemic on the growth of China's market would be at a lesser rate compared to Japan and India over the forecast years.
North America is anticipated to emerge as the fastest-growing regional market over the forecast period, followed by Europe. Before the COVID-19 outbreak, U.S., Germany, France, U.K., and Italy were expected to witness the highest growth in the region on account of rising research & development (R&D) activities by companies and presence of large market players dedicated to developing new technologies. However, the European market is expected to have a long-term impact (2-3 years or more) of COVID-19, considering the worsening situations in Italy, Spain, Germany, and France. Moreover, the U.S. has few expectations with respect to the market growth over the forecast period, considering the country’s efforts towards flattening the COVID-19 curve.
Application-specific Integrated Circuit (ASIC) providers are focusing on research & development, which, in turn, would help increase their market presence. For instance, in August 2019, Macronix International Co., Ltd. announced the implementation of its ArmorFlash memory on the artificial intelligence (AI) based ADAS systems, including NVIDIA DRIVE AGX Xavier and DRIVE AGX Pegasus, through autonomous driving solutions for better quality and secured data storage. Some of the prominent players in the global semiconductor memory market include:
Integrated Silicon Solution Inc.
Micron Technology
Macronix International Co., Ltd.
Samsung Electronics
SK Hynix
Taiwan Semiconductor
Texas Instruments
Toshiba
Cypress Semiconductor Corporation
IBM
Report Attribute |
Details |
Market size value in 2020 |
USD 90.29 Billion |
Revenue forecast in 2027 |
USD 134.64 Billion |
Growth Rate |
CAGR of 5.9% from 2020 to 2027 |
Base year for estimation |
2019 |
Historical data |
2016 - 2018 |
Forecast period |
2020 - 2027 |
Quantitative units |
Revenue in USD million and CAGR from 2020 to 2027 |
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
Segments covered |
Type, application, region |
Regional scope |
North America; Europe; Asia Pacific; South America; MEA |
Country scope |
U.S.; Canada; Mexico; U.K.; Germany; France; China; India; Japan; South Korea; Brazil |
Key companies profiled |
Integrated Silicon Solution Inc.; Micron Technology; Macronix International Co., Ltd.; Samsung Electronics; SK Hynix; Taiwan Semiconductor; Texas Instruments; Toshiba; Cypress Semiconductor Corporation; IBM |
Customization scope |
Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope. |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global semiconductor memory market report on the basis of type, application, and region.
Type Outlook (Revenue, USD Million, 2016 - 2027)
SRAM
MRAM
DRAM
Flash ROM
Others
Application Outlook (Revenue, USD Million, 2016 - 2027)
Consumer Electronics
IT & Telecommunication
Automotive
Industrial
Aerospace & Defense
Medical
Others
Regional Outlook (Revenue, USD Million, 2016 - 2027)
North America
The U.S.
Canada
Mexico
Europe
The U.K.
Germany
France
Asia Pacific
China
India
Japan
South Korea
South America
Brazil
Middle East & Africa
b. The global semiconductor memory market size was estimated at USD 85.6 billion in 2019 and is expected to reach USD 90.3 billion in 2020.
b. The global semiconductor memory market is expected to grow at a compound annual growth rate of 5.9% from 2020 to 2027 to reach USD 134.6 billion by 2027.
b. Asia Pacific dominated the semiconductor memory market with a share of 48.9% in 2019. This is attributable to the rising data center investments in countries including India, Singapore, and Indonesia, which is creating a high demand for semiconductor memory in the region.
b. Some key players operating in the semiconductor memory market include Integrated Silicon Solution Inc., Micron Technology, Macronix International Co., Ltd., Samsung Electronics, SK Hynix, Taiwan Semiconductor, Texas Instruments, and Toshiba.
b. Key factors that are driving the market growth include a rapid development in the form of digitization and automation in the entire electronics industry, along with the use of memory-based elements in technologically advanced products such as smartphones, wearable devices, and electronic gadgets.
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The exponential spread of COVID-19 worldwide has had an adverse impact on the semiconductor industry with manufacturing facilities temporarily shut, leading to a significant slowdown in the production. The outbreak could result in disruption across the ecosystem with several supply chain participants shifting their production facilities outside China, thereby reducing their over-reliance on China. Lockdowns imposed by the governments in the wake of the Covid-19 outbreak has not only affected manufacturing but also hauled consumer demand for semiconductor devices. Our analysts predict a decline in semiconductor revenue by over 1% in 2020 as compared to that in 2019. The report will account for Covid19 as a key market contributor.
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