“Global DRAM Market to reach a market value of USD 163.5 Billion by 2031 growing at a CAGR of 6.3%”
The Global DRAM Market size is expected to reach $163.5 billion by 2031, rising at a market growth of 6.3% CAGR during the forecast period.
Modern vehicles increasingly rely on electronic systems for infotainment, advanced driver assistance systems (ADAS), navigation, telematics, and connectivity features. These systems require robust memory solutions like DRAM to ensure smooth operation and quick data access. Consequently, the automotive segment would acquire nearly 11% of the total market share by 2031. According to the International Trade Administration (ITA), the gross domestic product (GDP) of South Africa's automotive industry as a whole was 4.3% in 2021 (2.4% manufacturing and 1.9% retail). Thus, owing to these factors, there will be enhanced demand in the segment.
Cloud computing services have completely changed how companies handle, store, and use data. As infrastructure moves more and more toward the cloud, servers and data centers are becoming increasingly essential to managing the large amounts of data that users create as they access apps, store files, and perform activities on the cloud. Big data analytics also includes handling and examining huge datasets to find insightful patterns and information that can guide corporate choices and spur innovation. Because this RAM provides the high-speed memory needed to quickly access and manipulate massive datasets, it is essential to developing real-time data processing and analytics applications. Therefore, these factors will assist in the expansion of the market. Additionally, The infotainment systems found in modern cars are very advanced and provide many capabilities, including internet access, smartphone integration, multimedia playing, and navigation. Additionally, connected vehicles rely on in-vehicle networking technologies, such as Controller Area Network (CAN), Ethernet, and FlexRay, to facilitate communication between various vehicle systems and components, including sensors, ECUs (electronic control units), and infotainment systems. Therefore, these aspects will pose lucrative growth prospects for the market.
However, establishing a DRAM fabrication facility (fab) requires a massive initial investment, often running into billions of dollars. Moreover, manufacturing benefits significantly from economies of scale, wherein larger production volumes help spread fixed costs over a greater number of units, leading to lower per-unit costs. Hence, owing to these factors, there will be reduced demand in the upcoming years.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Acquisitions, and Partnerships & Collaborations.
On the basis of technology, the market is divided into DDR4, DDR5, and others. In 2023, the DDR5 segment witnessed a 20% revenue share in the market. DDR5 offers several enhancements over DDR4, including increased bandwidth, higher densities, and improved power efficiency. These improvements are particularly significant in high-performance computing applications, such as data centers, where faster memory access can translate into tangible performance gains. Hence, these aspects will pose lucrative growth prospects for the segment.
Based on type, the market is segmented into double data rate SDRAM, Rambus DRAM, fast page mode DRAM, extended data out DRAM, and others. In 2023, the rambus DRAM segment garnered a 12.2% revenue share in the market. Despite its decline in the mainstream market, RDRAM still finds niche applications in specialized industries where its unique characteristics, such as high bandwidth and low latency, are particularly advantageous. These include areas like high-performance computing, networking equipment, and certain types of graphics processing. Hence, these factors can assist in the growth of the segment.
Based on application, the market is divided into gaming console, PCs/laptops, automotive, mobile phones, and others. In 2023, the PCs/laptops segment witnessed 26.5% revenue share in the market. PCs and laptops are increasingly used for high-performance computing tasks such as video editing, 3D rendering, software development, and data analysis. These tasks require substantial amounts of memory bandwidth and capacity to process large datasets and perform complex computations efficiently. This RAM enables PCs and laptops to handle these demanding workloads with ease, improving productivity and reducing time-to-completion for critical tasks.
Free Valuable Insights: Global DRAM Market size to reach USD 163.5 Billion by 2031
By region, the market is segmented into North America, Europe, Asia Pacific, and LAMEA. The Asia Pacific segment procured 43.5% revenue share in the market in 2023. The demand for chips is rising rapidly in the Asia Pacific region, mostly due to growth in the data center, consumer electronics, automotive, and telecommunications sectors. With the proliferation of smartphones, tablets, and other electronic devices, there's a constant need for memory solutions, which boosts the demand. Hence, these factors can help in the growth of the segment.
| Report Attribute | Details |
|---|---|
| Market size value in 2023 | USD 101.5 Billion |
| Market size forecast in 2031 | USD 163.5 Billion |
| Base Year | 2023 |
| Historical Period | 2020 to 2022 |
| Forecast Period | 2024 to 2031 |
| Revenue Growth Rate | CAGR of 6.3% from 2024 to 2031 |
| Number of Pages | 260 |
| Number of Tables | 390 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Market Share Analysis, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives |
| Segments covered | Technology, Type, Application, Region |
| Country scope |
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| Companies Included | Samsung Electronics Co., Ltd. (Samsung Group), Micron Technology, Inc., SK hynix, Inc., Transcend Information, Inc., Nanya Technology Corporation, Powerchip Technology Corporation, Winbond Electronics Corporation, Infineon Technologies AG, Kingston Technology Company, Inc. and Intel Corporation |
By Technology
By Type
By Application
By Geography
This Market size is expected to reach $163.5 billion by 2031.
Increasing demand for data centers and cloud computing services are driving the Market in coming years, however, Capital-intensive nature and high barrier to entry restraints the growth of the Market.
Samsung Electronics Co., Ltd. (Samsung Group), Micron Technology, Inc., SK hynix, Inc., Transcend Information, Inc., Nanya Technology Corporation, Powerchip Technology Corporation, Winbond Electronics Corporation, Infineon Technologies AG, Kingston Technology Company, Inc. and Intel Corporation
The expected CAGR of this Market is 6.3% from 2023 to 2031.
The Double Data Rate SDRAM segment led the Market by Type in 2023; thereby, achieving a market value of $101.8 billion by 2031.
The Asia Pacific region dominated the Market by Region in 2023, and would continue to be a dominant market till 2031; thereby, achieving a market value of $73 billion by 2031.
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