Global Dynamic Random Access Memory (DRAM) Market – Growth, Trends, Impact of COVID-19 and Forecast (2022)


Dynamic Random Access Memory (DRAM) Market was valued at USD 94.19 Billion in 2021 and is projected to reach USD 135.66 Billion by the end of 2027 growing at a CAGR of roughly 3.18% for the period 2022-2027.

New York, June 21, 2022 (GLOBE NEWSWIRE) — announces the publication of the report “Global Dynamic Random Access Memory (DRAM) Market – Growth, Trends, COVID-19 Impact, and Forecast (2022-2027) –
Semi-autonomous vehicles integrating IoT make real-time decisions while partially controlling vehicle operations to avoid accidents and reduce driver burden. In addition to proximity sensors and cameras, cars are integrated with IoT systems to minimize human error and make driving more comfortable and safer. Thus, increasing demand for DRAM in mobility solutions and trends like AI cloud computing, IoT and mobility combined are expected to drive huge demand for DRAM during the forecast.

Rising adoption of microcontrollers and memory ICs in automotive electronics and growing application of memory storage chips in electronic devices is one of the significant factors driving the demand for DRAM products. Additionally, the growing demand for consumer electronics has made DRAM a considerably low-cost and high-performance option. As DRAM is used in wearable gadgets, such as smartwatches, allied production capabilities are expected to continue to grow.
DRAM has seen significant developments moving its applications beyond personal computers and mobile devices to servers, automotive and cloud applications. Such diversification is expected to boost the studied market over the forecast period.?
According to Tesla, the GDDR5 DRAM series has the highest bandwidth complement for its processors, and the content of DRAM has reached at least 8 GB for many model series under Tesla. The company aims to integrate its next-generation vehicles with 20 GB of DRAM. Today, Micron Technologies is considered a pioneer in automotive DRAM manufacturing. For example, in January 2021, Micron Technology announced volume shipment of 1? Node (1-alpha) DRAM products designed with DRAM process technology to deliver improvements in bit density, power and performance for the automotive industries.
Similarly, in December 2021, Sk Hynix announced the release of 24GB DDR5, which is designed with 1anm technology that uses EUV process and offers up to 33% increased speed and improved production efficiency through the 24 GB density offered per chip. The chips are designed for PC and server applications.
Smaller suppliers like Windbond originally started construction of a new factory in Kaohsiung, southern Taiwan, before the pandemic and were expected to complete construction in 2020. However, with the impact of the pandemic, completion has been delayed. pushed back to 2021, and it was further scheduled for 2022 due to different waves of the pandemic.

Main market trends

Smartphones and tablets hold the largest market share

Emerging memory technologies have enhanced the potential of memory by allowing the storage of more data at a lower cost than the expensive-to-build silicon chips used by popular consumer electronic gadgets, including cell phones and tablets. Moreover, the use of mobile and tablet segments is increasing every day, which further boosts the market studied.
In November 2021, Micron Technology, Inc. announced that its Low-Power Double Data Rate 5X DRAM (LPDDR5X) for MediaTek’s new flagship Dimensity 9000 5G chipset for smartphones has been validated by MediaTek Inc. It is designed for smartphones top of the range and headlights; Micron announced that LPDDR5X enables the smartphone ecosystem to unlock the next wave of data-intensive applications powered by artificial intelligence (AI) and 5G innovation.
Additionally, in November 2021, Samsung announced the launch of LPDDR5X DRAM chips for smartphones and other devices. This launch brings efficiency and performance improvements to the company’s portfolio of high-performance DRAM chips. According to the company, the new LPDDR5X DRAM would achieve 1.3 times faster processing speeds while consuming almost 20% less power than the older LPDDR5 standard.
Additionally, many vendors in the market are expanding their production facilities, which is boosting the market studied. For example, in June 2021, Samsung announced the mass production of its new UFS-based LPDDR5 memory module (uMCP). It combines the fastest LPDDR5 DRAM with the latest UFS 3.1 NAND flash in a single chassis, delivering flagship performance for mid-range mobile devices.
In October 2020, Micron Technology announced the launch of uMCP5, the first universal flash storage (UFS) multi-chip package with low-power DDR5 DRAM (LPDDR5). Micron’s uMCP5 combines high-performance, high-density, low-power memory and storage in a compact package, equipping smartphones to handle data-intensive 5G workloads with dramatically increased speed and power efficiency. The multi-chip package uses Micron’s LPDDR5 memory to power advanced mobile features previously only seen in expensive flagship devices using discrete products, such as standalone memory and storage.
In addition, the amount of data that users use daily through the cameras of their smartphones is increasing. The size of smartphone photos has increased exponentially as the number of pixels has increased. The growth of high-capacity smartphone applications, including mobile games, is another reason for the increase in storage capacity. This trend will continue with the launch of 5G, as high-capacity storage is essential to support high-speed communication, augmented reality/virtual reality, AI technology, and high-definition/4K content.

The United States holds a large share of the market

In the United States, the reliance for DRAM chips is almost entirely placed on South Korea, which maintains about half of the world’s DRAM chip production capacity. Additionally, China and Taiwan account for nearly half of global manufacturing.
The country needs more efficient processing systems with rapidly evolving technologies and high data generation across all industries. With the advent of mobile and low-power devices, high-end data centers, and large on-chip caches, another priority demand has emerged: nonvolatile, dense, and low-power memory.
In 2022, according to Cloudscene, there will be approximately 2,751 data centers in the United States. The data center has become the new computing unit. DPUs (Data Processing Units) are an essential part of modern and secure accelerated data centers in which CPUs, GPUs and DPUs can combine into a single fully programmable computing unit. Additionally, Nvidia estimates that data management drains up to 30% of central data center processing cores.
Companies are trying to stand out from their rivals by adding more powerful AI to their DPUs. The Santa Clara (California-based company) introduced its line of data processing units, or DPUs, which can move more of the data center infrastructure to a chip. The DPU combines programmable Arm processor cores with its high-performance network interface on a single system-on-chip (SoC).
In addition, 5G will allow the transmission of a large amount of telecommunications data in a short time, which also means that the devices would need more storage. This would increase the adoption of DRAM. Additionally, service providers Verizon, AT&T, and T-Mobile Network in the country are actively exploring the commercial potential of 5G modems to deliver high-speed Internet access to premises without any cable or xDSL cabling.
Moreover, many investments in semiconductors and electronics are taking place in the country, further boosting the market studied. For example, in July 2021, GlobalFoundries (GF), the world’s leading manufacturer of feature-rich semiconductors, announced expansion plans for its most advanced manufacturing facility in upstate New York over the next few years. These plans include immediate investments to address the global shortage of chips at its existing Fab 8 factory and to build a new factory on the same campus that will double the site’s capacity.

Competitive landscape

The competitive rivalry in Dynamic Random Access Memory is moderately consolidated owing to the presence of numerous key players, continuously trying to grab maximum market share. Some of the major players are Samsung Electronics, SK Hynix, Winbond and many more. Their ability to continually innovate products by investing heavily in R&D has given them a competitive edge over their competitors.

April 2022 – Winbond Electronics Corporation, a global supplier of solid-state memory solutions, announced significant improvements to its super-fast performance DDR3 products. Winbond’s 1.35V DDR3 products support a transfer rate of 2133 Mbps in both x8 and x16 configurations and are 100% compatible with 1.5V DDR3. Winbond’s DRAM roadmap now includes 1 Gb- 4 Gb DDR3, 128 Mb-2 Gb DDR2, 512 Mb-2 Gb LP-DDR2, LP-DDR4x, LP-DDR3, LP-DDR, SDRAM interfaces for applications requiring 4 Gb DRAM products or lower densities, such as as AI accelerators, IoT, Automotive, Industry, Telecommunication, WiFi-6, WiFi-6e, xDSL, Fiber Optic Network, Smart TV, Set-Top-Box, IP camera, and many others.
November 2021 – Micron Technology, Inc. announced that its low-power 5X Double Data Rate DRAM (LPDDR5X) memory for MediaTek’s new flagship Dimensity 9000 5G chipset for smartphones has been validated by MediaTek Inc. It is designed for high-end smartphones and flagships; Micron announced that LPDDR5X enables the smartphone ecosystem to unlock the next wave of data-intensive applications powered by artificial intelligence (AI) and 5G innovation.

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