Dynamic Random-Access Memory (DRAM) Market Analysis by Architecture (DDR3, DDR4, DDR5, DDR2, and Others); and by Application (Smartphones, PC/Laptops, Consumer Products, Automotive, Datacenter, and Graphics) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2035
Buy Now Report ID: 3460 | Published Date: Mar 24, 2023
The global dynamic random-access memory (DRAM) market is estimated to garner a revenue of ~ USD 10 Billion by the end of 2035 by growing at a CAGR of ~4% over the forecast period, i.e., 2023 – 2035. Further, the market generated a revenue of ~ USD 5 Billion in the year 2022. The growth of the market can be attributed to the increasing demand for dynamic random-access memory over other options owing to faster and more dynamic performance. Dynamic random-access memory is highly utilized in several applications such as smartphones, personal computers, and others which are estimated to hike the production volume of DRAM at a higher scale. For instance, in Taiwan alone, approximately 4 billion dynamic random-access memory were produced in 2021, up from 3 billion in 2018.
In addition to these, a dynamic random-access memory requires only one transistor. It also has a larger storage capacity compared to other options where it can store more data. Hence, increasing data traffic owing to several digital activities in each sector backed by the higher penetration of Internet services is expected to influence the market growth over the forecast period. For instance, in 2019, approximately 20 exabytes of data were generated per month across the globe. Additionally, increasing digitalization worldwide coupled with higher investment by the government and private organizations is also expected to expand the market size over the forecast period. As of 2023, global spending on services to support digitalization is expected to be around USD 2 trillion over the forecast period.
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~4% |
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Base Year Market Size (2022) |
~ USD 5 Billion |
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Forecast Year Market Size (2035) |
~ USD 10 Billion |
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Regional Scope |
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Growth Drivers
Growing Manufacturing of Smartphones – the RAM provided in smartphones is called DRAM which is generally used as the main memory. Dynamic random-access memory is a vital part of modern smartphones. Hence, the growing utilization of smartphones is expected to drive market growth over the forecast period. For instance, in 2023, approximately 6 billion people were noticed to be using smartphones which was an increase from nearly 3 billion in 2016.
Rising Trend of Working from Home to Boost Market Growth – a surge in the work-from-home facility is noticed to hike the demand for personal laptops or computers since each employee requires a single device to work with. For instance, the process of working from home in America was observed to rise from approximately 4% in early 2019 to nearly 60% in 2020. Additionally, it was also observed that around 40% of employees across the globe can work from home.
Increasing Inclination of the Global Population towards Online Gaming – owing to the increment in online gaming, the demand for smartphones and laptops with high performance is estimated to drive the growth of the market over the forecast period. for instance, as of 2019, there nearly 3 billion online gamers were estimated to live across the globe who has spent more than USD 140 billion on these games.
Growing Prevalence of E-Leaning- during the COVID-19 pandemic, the trend of e-learning was at its peak which is still growing owing to its countless benefits. For a better e-learning process, students and teachers are required to have at least a laptop or smartphone. Hence, the growing online classes are expected to hike the market growth over the forecast period. For instance, it was found that more than 80% of companies and 55% of students have used some type of e-learning platform.
Challenges
The designing process of DRAM is quite expensive since the manufacturing of dynamic random-access memory is quite complex. It consists of several tiny transistors and capacitors. To enhance its functionality, manufacturers are observed to require higher investment which is further expected to hamper the market growth over the forecast period.
The global dynamic random-access memory (DRAM) market is segmented and analyzed for demand and supply by application into smartphones, PC/laptops, consumer products, automotive, datacenter, and graphics. Out of these types of applications, the PC/laptops segment is estimated to gain the largest market share in the year 2035. The growth of the segment can be attributed to the increasing utilization of dynamic random-access memory (DRAM) in PC and laptops since it is faster than RAM backed by the upsurged demand for these electronics among the global population. Dynamic random-access memory (DRAM) is used in the main memory of the computer and each cell is made of a transistor and a capacitor within an integrated circuit. The demand for DRAM is escalated by the upsurged sales volume of personal computers since millionths of PCs are shipped globally every year. For instance, in 2022, more than 300 million units of personal computers were shipped worldwide backed by the higher IT device spending in a similar year which was expected to be around USD 700 billion in the similar year.
The smartphone segment of the global dynamic random-access memory (DRAM) market is expected to garner the second-largest share during the forecast period. the growth of the segment can be accounted to the growing penetration of smartphones across the globe. There are several factors that are estimated to support the long-term growth of smartphones such as convenience to use for consumers. People use smartphones for several purposes from daily household work to financial activities, hence, a mobile phone is required to be fast which is possible through the utilization of dynamic random-access memory (DRAM). Furthermore, DRAM is an affordable option compared to others. Smartphones are one of the major applications of dynamic random-access memory since every type of query can be answered within seconds which is expected to boost the sales and manufacturing of smartphones over the forecast period.
Our in-depth analysis of the global dynamic random-access memory (DRAM) market includes the following segments:
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By Architecture |
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By Application |
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The Asia Pacific dynamic random-access memory (DRAM) market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2035. The growth of the market can be attributed majorly to the rapid growth of the semiconductor industry in China and Japan, and the rising production capacities of memory IC companies in the region. In addition, higher manufacturing of chip and electronic components and governmental support to regional vendors in countries namely China, India, Japan, South Korea, and Taiwan, is also expected to boost the growth of this region’s market in the future. For instance, it was estimated that in India, the electronics hardware manufacturing industry reached approximately USD 100 billion in 2020.
The North American dynamic random-access memory (DRAM) market, amongst the market in all the other regions, is projected to hold the second largest share during the forecast period. The growth of the market can be attributed majorly to the increasing manufacturing of DRAM chips in the region backed by the spiking demand for smartphones and personal laptops in the region. In North America, a higher number of adults are involved in online gaming which is one of the major factors hiking the demand for personal computers in the region. For instance, in the United States, the video games segment was projected to reach approximately USD 100 billion by the year 2027.
The European dynamic random-access memory (DRAM) market, amongst the market in all the other regions, is projected to hold a notable share during the forecast period. Factors such as the presence of the major manufacturers of dynamic random-access memory (DRAM) and higher demand for laptops and PCs in the region owing to the rising trend of working from home are anticipated to hike the growth of the market over the forecast period.
Intel Corporation launched 4th Gen Intel Xeon Scalable processors that contain built-in accelerators. The processor is designed to enhance the performance of the fastest-growing workloads. It also has built-in accelerators of the CPU to improve the performance of artificial intelligence.
United Microelectronics Corporation merged its path with Infineon Technologies AG for the production of a 40nm eNVM Microcontroller. The production is expected to be accelerated to serve the rapidly expanding automotive industry.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Abhishek Verma, Hetal Singh
Ans: The increasing inclination of the global population towards online gaming and the growing prevalence of e-learning are the major factors driving the market growth.
Ans: The market is anticipated to attain a CAGR of ~4% over the forecast period, i.e., 2023 – 2035.
Ans: Higher power consumption compared to others and slower performance than SRAM is estimated to be the growth-hindering factors for market expansion.
Ans: The market in the Asia Pacific region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Ans: The major players in the market are Intel Corporation, Winbond Electronics Corporation, Nanya Technology Corp (NTC), United Microelectronics Corporation, Samsung Electronics Co., Ltd., Kingston Technology Company, Inc., Elpida Memory, Inc., and others.
Ans: The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by architecture, application, and by region.
Ans: The PC/Laptops segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
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