Global Dynamic Random Access Memory (DRAM) Market size is projected to grow at a CAGR of 5.0% from 2022 to 2030, reaching USD 10.3 billion.
Dynamic Random Access Memory, or DRAM, is a type of semiconductor memory that stores the program code that a computer processor needs to run. It is a common type of random access memory used in personal computers, servers, and workstations. Random access allows a PC processor to freely access any part of memory directly, rather than sequentially from a starting location. Located close to your computer's processor, RAM allows faster access to data than any other storage medium, such as a solid-state drive or hard drive.
The main advantage of DRAM is that it is simple in design and requires only one transistor. It is also cost-effective and offers high density levels compared to SRAM. Its memory can be refreshed or deleted to store more data. The downside of DRAM is that its memory is volatile; power consumption is also high relative to other options. The product manufacturing is complicated, the data in the storage unit needs to be refreshed, and the speed is slower than SRAM. Demand for low power consumption and high performance DRAM in mobile devices presents a significant growth opportunity for the DRAM market.
The global Dynamic Random Access Memory (DRAM) market is the professional and accurate study of various business perspectives such as major key players, key geographies, divers, restraints, opportunities, and challenges. This global research report has been aggregated on the basis of various market segments and sub-segments associated with the global market.
Increasing Adoption of Premium Smartphones
With global urbanization and technological advancements, the use of consumer electronics such as laptops/tablets, smartphones, and digital cameras has skyrocketed.
Mobile devices will account for 73% of global internet consumption by 2019, as predicted by Zenith's Mobile Advertising Predictions. Increasing population, rising per-capita disposable income, and the simple availability of high-speed internet and inexpensive end-use products are the primary contributors to the rising demand.
The increasing use of smartphones has increased the demand for handsets with powerful processing capabilities, minimal power consumption, and large storage capacities. Consequently, this has increased the demand for DRAM. Consequently, the increasing production of smartphones with powerful processing and memory capabilities is anticipated to propel the market during the forecast period.
A Increasing Quantity of Data Centers and Servers
The proliferation of social networking platforms, Internet of Things (IoT) devices, and other devices has resulted in the production of vast quantities of data, which has led to an increase in the number of data center facilities worldwide. In addition, the increasing demand for cloud computing has expanded the scale and economic impact of data centers. Several major service providers, including Google, Amazon, Microsoft, and Facebook, are heavily investing in the construction of data centers in the United States. According to the Washington State Department of Commerce, the market for data centers in the United States is expanding in terms of both new construction and absorption. North Virginia has the greatest market for data centers in the country.
The proliferation of new mobile computing devices has increased the value of data centers to numerous organizations. Therefore, major active companies are seeking to invest in the construction of new data centers. According to the Washington State Department of Commerce, companies such as Facebook have spent approximately $1 billion to construct a data center in Richmond, Virginia, United States. Similarly, Apple Inc. announced a USD 1.3 billion investment in the construction of data centers across the United States. Multiple other companies, including Amazon and Microsoft, have also announced their intentions to build new data center facilities.
During the forecast period, the expansion of data centers and servers is anticipated to drive demand for DRAM chips.
1. Cyclical Nature of the Semiconductor Industry: The DRAM market is highly cyclical and subject to fluctuations in demand and supply. The industry experiences periodic downturns characterized by oversupply, resulting in price declines and reduced profitability for DRAM manufacturers. These cyclicality and price volatility can pose challenges for companies operating in the DRAM market.
2. Price Erosion and Profit Margin Pressure: DRAM is a commodity product, and intense competition among manufacturers often leads to price erosion over time. Continuous technological advancements and increasing production capacity contribute to price reductions. As a result, DRAM manufacturers face profit margin pressure, especially during periods of oversupply and price wars.
3. Capital-Intensive Industry: The DRAM market requires significant capital investments for production facilities, research and development, and equipment. The constant need for upgrading manufacturing processes and technologies adds to the capital requirements. The capital-intensive nature of the industry can be a barrier to entry for new players and can limit the expansion or investment opportunities for existing manufacturers.
4. Technological Complexity and Rapid Advancements: DRAM technology is highly complex and continuously evolving. Manufacturers need to invest in research and development to stay competitive and keep up with technological advancements. The pace of innovation and the need to constantly introduce higher-density and higher-speed memory solutions pose challenges for DRAM manufacturers in terms of product development and maintaining a competitive edge.
5. Market Consolidation: The DRAM market is characterized by a small number of major players who dominate the industry. This consolidation can limit competition and pricing dynamics. It also increases the challenges for smaller players to enter the market or compete effectively, leading to a concentration of market power.
6. Memory Oversupply and Demand Fluctuations: The DRAM market is susceptible to periods of oversupply and demand fluctuations. Changes in consumer demand for electronic devices, economic conditions, and industry-specific factors can impact the demand for DRAM products. Oversupply situations can result in inventory build-up, price declines, and reduced profitability for manufacturers.
7. Intellectual Property and Patent Issues: Intellectual property and patent disputes are common in the semiconductor industry, including the DRAM market. Legal battles over patent infringements and licensing agreements can create uncertainty and legal expenses for companies. Intellectual property challenges can also disrupt the market and impact the development and commercialization of new DRAM technologies.
8. Dependency on End-Use Industries: The DRAM market's growth is closely tied to the demand from end-use industries such as consumer electronics, automotive, and data centers. Economic downturns or changes in consumer preferences within these industries can impact the demand for DRAM products. Dependency on specific industries increases market vulnerability and risks associated with market fluctuations.
Industry News and Key Developments
- In October 2020 Micron Technology will release uMCP5, the first universal flash storage (UFS) multichip package with low-power DDR5 (LPDDR5) DRAM, Micron’s uMCP5 combines high-performance, high-density, and low-power memory and storage in a compact package, enabling smartphones to manage data-intensive 5G workloads with significantly improved speed and power efficiency. The multichip package uses Micron's LPDDR5 memory to enable advanced mobile features that were previously exclusive to expensive flagship devices with discrete memory and storage.
- In November 2021, Micron Technology Inc. announced that MediaTek Inc. had validated its low power double data rate DRAM 5X (LPDDR5X) for MediaTek's new flagship Dimensity 9000 5G chipset for smartphones. It is designed for flagship and high-end smartphones; Micron announced that LPDDR5X enables the smartphone ecosystem to unlock the next wave of data-intensive applications driven by artificial intelligence (AI) and 5G innovation.
- In November 2021, Samsung announced the release of LPDDR5X DRAM chips for smartphones and other devices. The release could bring 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 and consume nearly 20% less power than the older LPDDR5 standard.
- 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 July 2021, Micron Technology developed 176-layer NAND memory, which it incorporates into products such as DRAM and PCIe 4.0 SSDs. It announced that it is also ready to ship new UFS 3.1 storage modules with this property. Its new offerings are meant to be used like the internal storage found in smartphones, and judging by their specs, they could be targeted for high-end models in the near future. Micron claims that its sequential write and random read speeds are 75% faster than its predecessor, and its overall mixed workload performance is increased by 15% compared to it.
On the Basis of Type:
Module DRAM is a specific form of DRAM used in modules. Module DRAM is available in single-sided and double-sided configurations. In single-sided module DRAM, the chip is affixed on only one side of the printed circuit board. (printed circuit board). In double-sided module DRAM, the integrated circuit is affixed on both sides of the printed circuit board. Typically, the yield of single-sided module DRAM is greater than that of double-sided module DRAM. The primary advantage of module DRAM over other DRAM varieties is that it is easier to integrate into larger systems. For instance, if you are constructing a computer system with four memory ports, you will need four memory modules.
Component DRAM is a form of DRAM used within components. Component DRAM typically comes in the form of SDRAM, DDR SDRAM, or DDRII SDRAM. The primary advantage of component DRAM over other DRAM varieties is its low cost. The report provides forecasts and analyses for the global and regional markets for dynamic random access memory (DRAM).
On the Basis of Application:
- Consumer Products
- Other Applications
On the Basis of Technology
Based on technology, the market is divided into DDR4, DDR3, DDR5/GDDR5, and DDR2 segments. DDR4 represented the largest proportion of worldwide Dynamic RAM (DRAM) revenue. 2014 marked the debut of DDR4 with bus clock speeds ranging from 800 to 1600 MHz. Their storage capacity per DIMM ranges from 4 to 128 GB. DDR4 operates efficiently at 1.2 V, whereas DDR3 operates between 1.5 and 1.65 V. DDR4 memory supports data transfer rates between 1,600 and 3,200 Mbps. DIMM and SO-DIMM form factors are available for DDR4 memory components. SO-DIMM is designed for laptops and desktop all-in-ones. The curved edge technology of DDR4 DIMMs makes it simpler to insert and remove them from slots.
On the Basis of Region:
Geographically, the global Dynamic Random Access Memory (DRAM) market has been analyzed in various regions such as North America, Latin America, Middle East, Asia-Pacific, Africa, Europe, and India. The global Dynamic Random Access Memory (DRAM) region is dominating this market in the upcoming future.
The market for Dynamic Random Access Memory (DRAM) in the United States is anticipated to reach $22.8 billion by 2022. China, the second largest economy in the world, is anticipated to achieve a market size of $31.8 billion by 2030, growing at a CAGR of 9.2% between 2022 and 2030. Japan and Canada are also noteworthy geographic markets, with projected growth rates of 3.1% and 5.4%, respectively, between 2022 and 2030. Germany's projected growth rate within Europe is approximately 3.6% CAGR.
Asia Pacific holds a larger share of the dynamic random access memory market during the forecast period. The demand for semiconductors in the region is driven by product strengths. The dynamic random access memory market in the region is being indirectly driven by the rapid adoption of mobile devices in emerging countries such as India. South Korea maintains nearly half of the world's DRAM chip production capacity, and is the country most dependent on U.S. DRAM chips. Furthermore, approximately half of the world's manufacturing is produced in China and Taiwan.
With the cost of importing almost all of its needs so high, China has begun working on becoming self-sufficient in semiconductors. If the domestic semiconductor business is expanded by taking advantage of the benefits of international trade, it will save money and develop into a prosperous country in the long run. By 2025, China will produce 70% of chips. Given the current ratio (thought to be between 10% and 30%), Chinese companies rely on and have access to foreign chipmakers.
Market Key Players
SK Hynix(Korea), Micron Technology(US), Samsung(Korea), Nanya Technology Corporation (Taiwan), Winbond Electronics Corporation (Taiwan), Powerchip Technology Corporation (Taiwan), Intel Corporation (US), Texas Instruments (US), and others.
Micron Technology, Inc. is an American company that makes computer memory and storage devices like USB flash drives, dynamic random-access memory, and flash memory. Its main office is in Boise, Idaho. The Crucial brand is used to sell its consumer goods, such as the Ballistix line of memory modules.
Samsung Group, or just Samsung (Korean: [sams]), is a South Korean global manufacturing conglomerate with its headquarters in Samsung Town, Seoul, South Korea. It is the biggest South Korean chaebol and is made up of many related businesses, most of which are united under the Samsung brand. (Business conglomerate). As of 2020, the value of Samsung's brand is the eighth biggest in the world.
Lee Byung-chul started the business in 1938 as a selling company. Over the next 30 years, the group expanded into food processing, textiles, insurance, stocks, and retail, among other things. In the late 1960s, Samsung got into the electronics business. In the mid-1970s, it got into the construction and shipbuilding businesses, which drove its growth in the years that followed. After Lee died in 1987, Samsung was split into five business groups: Samsung Group, Shinsegae Group, CJ Group, Hansol Group, and JoongAng Group.
- Nanya Technology Corporation
Nanya Technology Corporation and its subsidiaries conduct research, development, design, manufacture, and sale of semiconductor products. It provides dynamic random access memory processors and modules used to store data while processing data. Computers, telecommunications, and consumer goods are the primary applications for the company's products. In addition, it distributes semiconductors and related accessories. Nanya Technology maintains operations in Taiwan, the United States, Europe, Japan, and China.
- Winbond Electronics Corporation
Winbond Electronics Corporation, headquartered in Taichung, Taiwan, is a prominent global provider of semiconductor memory solutions. Winbond's primary products include Specialty DRAM, Mobile DRAM, and Code Storage Flash Memory, and its memory division generated close to $1.25 billion in revenue in 2017. With offices in Taiwan, Hong Kong, China, Japan, Israel, and the United States, Winbond employs roughly 2,800 people worldwide.
Intel corporation, also known as Intel, is an American multinational business and technology company with its headquarters in Santa Clara, California. It has the most income of any company that makes semiconductor chips and was one of the people who came up with the x86 instruction sets that are used in most personal computers. (PCs). Intel was founded in Delaware, and from 2007 to 2016, it was No. 45 on the Fortune 500 list of the biggest companies in the United States based on total income.
Intel sells microprocessors to companies like Acer, Lenovo, HP, and Dell that make computers. Intel also makes motherboard chipsets, network interface controllers and integrated circuits, flash memory, graphics chips, embedded processors, and other devices linked to communications and computing.
The Dynamic Random Access Memory (DRAM) market research report is categorized based on type, applications and region.
On the Basis of Type:
- Module DRAM
- Component DRAM
On the Basis of Application:
- Consumer Products
- Other Applications
On the Basis of Technology
Further the regions are divided into countries as follows
- North America
- Rest of North America
- Nordic Countries
- Benelux Union
- The Netherlands
- Rest of Europe
- South Korea
- Southeast Asia
- Rest of Southeast Asia
- Rest of Asia-Pacific
- The Middle East & Africa
- Saudi Arabia
- South Africa
- Rest of the Middle East & Africa
- Latin America
- Rest of Latin America
Dynamic random access memory, or DRAM, is a type of semiconductor memory that a computer's processor uses to store the program code it needs to run. It is a popular type of random access memory that is used in PCs, servers, and workstations. Random access lets the PC engine jump to any part of the memory without having to start at the beginning and work backwards. RAM is close to the computer's brain and lets you get to data faster than any other type of storage, like solid-state drives or hard disk drives. Dynamic RAMs are used in the computer, infrastructure, information, and entertainment businesses. They are used in mobile phones, personal computers, workspaces, portable gaming devices, personal digital assistants (PDAs), and tablets. These gadgets use dynamic RAM to make them work faster. Due to their growing popularity and falling prices, mobile phones are expected to make up a big part of the DRAM industry, which will lead to more people buying them. Dynamic RAM is used in infrastructure devices like computers, networking gear, and storage systems. DRAMs are used in a lot of devices for fun, like camcorders, game consoles, and video game systems. From 2022 to 2030, the size of the global Dynamic Random Access Memory (DRAM) Market is expected to grow at a CAGR of 5%, reaching USD 10.3 billion.