Semiconductor Memory Market size to hit $250bn by 2026
Published Date: February 25, 2020 Authors: Ankita Bhutani, Preeti Wadhwani
Semiconductor Memory Market size is poised to reach USD 250 billion by 2026, according to a new research report by Global Market Insights, Inc.
The Internet of Things (IoT) is one of the major factors driving the demand for semiconductor memory across all industry verticals. Technological advancements in connectivity solutions have resulted in rising demand for components, such as memory storage devices, sensors, microcontrollers, and power sources, to run devices, driving the semiconductor memory market growth.
The increasing network of interconnected devices will generate more and more data, which will require an efficient storage to process, store, and address IoT-based data. The applications of IoT-based devices in the industrial, automotive, consumer, telecommunication sectors will further boost the demand for semiconductor memory solutions. Companies are investing heavily in research & development activities and integrating advance technologies in the memory solution, to gain high market opportunities among the competitors.
The rising demand for consumer wearables will also add as a growth opportunity to the semiconductor memory market. The increasing acceptance of fit-bands, smartwatches, and wearable cameras will help in increasing the market share for semiconductor memory solutions.
The Serial Peripheral Interface (SPI) NOR and NAND flash memory are widely used in wearable devices. Owing to technological advancements, smartwatches are getting sleeker and smarter, which has resulted in memory shift toward more compact and low-power consumption solutions.
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Surging demand for flash memory to ensure high-speed data transfer in embedded systems
The flash memory segment holds a major market share and is set to witness a growth rate of nearly 15.9% till 2026. Flash memory devices can store data even after the power is turned off. This will result in the rapid development of semiconductor memory to handle massive data correctly to improve the smartphone capacity.
The market players are investing extensively in research & development, creating high growth opportunities in the global semiconductor memory market. For instance, in March 2018, Toshiba Corporation announced its plan to invest USD 1.23 billion in its Flash memory production facility in Yokkaichi, Japan.
The growing demand for power-efficient, high-performance, and high-speed data transfer memory products is growing in various embedded applications. These factors have led market players to launch new products in the embedded applications segment to gain a competitive edge in the industry.
Browse key industry insights spread across 213 pages with 292 market data tables and 25 figures & charts from the report, “Semiconductor Memory Market Size By Type (RAM [SRAM, SDRAM, MRAM, DRAM], ROM [EEPROM, EPROM, Flash Memory, PROM]), By Application (Aerospace & Defense, Automotive, Consumer Electronics, Industrial, Medical, Telecommunications), Industry Analysis Report, Regional Outlook, Application Potential, Competitive Market Share & Forecast, 2020 – 2026”in detail along with the table of contents:
Growing demand for high bandwidth data centers will propel the market share of telecommunication industry
The telecommunication segment held a market share of around 30.48% in 2020 and is predicted to expand at 14.2% CAGR through 2026. This is attributed to its increasing adoption of smartphones, tablets, and personal computers worldwide and growing demand for internet connections.
The rise in mobile traffic due to upcoming 5G will have a significant impact on the semiconductor memory market demand. 5G offers numerous possibilities to gain multimedia experience on mobile devices, driving the expansion of memory storage on devices in the coming years.
5G networks are ten times more responsive than 4G, which will enable autonomous drones and cars to operate seamlessly. These autonomous carriers require large amounts of storage memory, driving growth opportunities for semiconductor memory solutions.
The increasing demand for data centers in IT & telecommunication sectors to store a large amount of data and information is one of the major factors propelling the market share for semiconductor memory. Companies in the telecommunication sector require data centers with high bandwidth, which can be fulfilled by efficient memory solutions such as DRAM and NAND flash. This leads to a continuous focus on research & development activities by major players in semiconductor memory production.
Increasing adoption of industrial automation is laying significant impact on North America semiconductor memory market
North America accounted for over 31% market share in 2019, growing at over 13.5% during the forecast period owing to increasing number of data centers in the U.S. The demand for DRAMs in data centers has seen a significant growth owing to its high efficiency in data processing. Modern IT infrastructure is largely dependent on data centers to store their data. Data centers require high storage capacity and high processing speed with low-cost memory storage drive, increasing the demand for DRAM in the region.
The industrial automation and intelligent command & control in many industries in North America is creating high market opportunities for many semiconductor memory manufacturers. The rising adoption of Human-Machine Interface (HMI) and Programmable Logic Controller (PLC) in industrial automation for operating complex machinery will drive the market in North America region.
Some of the major market players in the semiconductor memory market include Microchip Technology, Inc., GlobalFoundries, SK Hynix, Intel Corporation, Micron Technology, Inc., NXP Semiconductors, Samsung Electronics Co. Ltd., Texas Instruments Incorporated, Toshiba Corporation, and Western Digital Corporation, among others.
Market players are focusing on applying business strategies such as collaborations, agreements, acquisitions, and mergers to gain a competitive advantage in the market. For instance, in May 2018, Microchip Technology, Inc. announced the acquisition of Microsemi Corporation, which will lead to further expand semiconductor and system solutions for data centers, industrial, aerospace & defense, and communication sectors.
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