Dynamic Random Access Memory (DRAM) Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 61.21 Billion |
| Market Size (2029) | USD 170.08 Billion |
| CAGR (2024 - 2029) | 22.68 % |
| Fastest Growing Market | North America |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Dynamic Random Access Memory (DRAM) Market Analysis
The Dynamic Random Access Memory Market size is estimated at USD 61.21 billion in 2024, and is expected to reach USD 170.08 billion by 2029, growing at a CAGR of 22.68% during the forecast period (2024-2029). In terms of shipment volume, the market is expected to grow from 17.49 billion units in 2024 to 31.03 billion units by 2029, at a CAGR of 12.16% during the forecast period (2024-2029).
- Semiconductor memory, called dynamic random access memory (DRAM), stores and processes data or program code necessary for a computer processor's functioning. This type of RAM is commonly found in personal computers, smartphones, ADAS systems, smartwatches, workstations, and servers.
- The growing adoption of generative AI boosts the demand for fast processing and highly efficient DRAM solutions. For instance, Micron Technology partnered with Qualcomm Technologies Inc. to accelerate generative AI at the edge for smartphones. The company shipped production samples of the low-power double data rate 5X (LPDDR5X) memory to Qualcomm in October 2023. The LPDDR5X memory operates at a 9.6 Gbps speed grade, delivering the speed and performance the mobile ecosystem needs to unleash the power of AI at the edge.
- Micron LPDDR5X provides advanced power-saving capabilities for mobile users using its innovative, 1β process node technology. Also, in September 2023, SK Hynix presented a prototype of AI accelerator card, AiMX1, based on the high-speed, low-power, and high-density memory solution GDDR6-AiM at the AI hardware & edge AI Summit 2023 in California. AiMX1 is expected to significantly contribute to developing high-performance, data-intensive, and AI-based systems.
- Datacenter demand for DRAM is projected to grow significantly, which will lift overall DRAM demand annually. Artificial intelligence and other cutting-edge technologies like streaming, gaming, and autonomous vehicles will continue to drive robust demand for data centers. This will drive innovation in data center architecture and technology as operators strive to provide the capacity that supports the increased power density required by high-performance computing. Integrating artificial intelligence, the Internet of Things, and 5G will be a massive tailwind to the demand for computing and DRAM.
- Worldwide smartphone shipments declined significantly in FY 2023 compared to FY 2022 due to decreased consumer spending, economic downturn, and increased inflation. Smartphone vendors such as Samsung, Apple, Xiaomi, and Oppo (including One Plus) witnessed declining smartphone sales. Following smartphones, tablets, and PCs/laptops, demand fell in FY 2023 due to weakened consumer spending, interest rates, and increasing uncertainty due to ongoing geopolitical tensions. These factors will restrict the growth of the DRAM market.
- The COVID-19 pandemic had a significant impact on the DRAM market, both on the demand side and the supply side. Lockdowns and factory shutdowns worldwide contributed to the supply shortage, but many of these impacts are expected to be temporary. Governments worldwide are taking steps to support the semiconductor industries, which could lead to a recovery.
Dynamic Random Access Memory (DRAM) Market Trends
The Data Center Application Segment is Expected to Hold Significant Market Share
- The pandemic accelerated the use of digital platforms and cloud services, boosting data center development. As DRAM is an essential component for the proper functioning of modern enterprise and data center applications, the growth in data centers has significantly fueled the demand in the market. According to Cloudscene, as of September 2023, there were over 9,380 data centers worldwide.
- DRAM suppliers have been working toward adjusting their product mixes to assign more wafer input to server DRAM products while minimizing the wafer input for mobile DRAM products. Two reasons have driven this trend. Firstly, the demand outlook is bright for the server DRAM segment. The latest server platforms from AMD and Intel finally shipped to OEMs in 2022 but are expected to need ~six months for qualifying, facilitating a headwind to near-term server shipments and associated memory demand. Simultaneously, DRAM suppliers are building up significant inventory positions as production surges continue to outpace demand.
- In the second position, the reason lies that the mobile DRAM segment faced a significant oversupply in 2022. In 2023, the projections on the development of smartphone shipments and the surge in the average DRAM content of smartphones remained pretty conservative. As a result, DRAM suppliers intend to keep expanding the share of server DRAM in their product mixes, thus providing significant growth in the data center segment.
- Semiconductor manufacturers are likely to respond to changes in demand by producing more dynamic RAM (DRAM) for servers than for mobile devices this year, a milestone highlighting increasing enterprise use of emerging technology related to cloud computing, AI, and high-performance computing (HPC) applications. To handle the emerging-tech workloads, the average DRAM content of servers is expected to increase significantly.
- Moreover, in the data center segment, the buyer inventory of DDR5 has been gaining popularity. For instance, Micron Technology unveiled its DDR5 chip, which it stated found the most demand from data center applications before popping up in client devices. Renesas has led the data center segment due to new chipsets for high-performance memory modules based on DDR5 multiplexer combined ranks (MCR) dual in-line memory modules. Meanwhile, Samsung's intensified production cutbacks have notably shrunk DDR4 wafer inputs, causing a supply crunch in server DDR4 stocks. This scenario leaves no leeway for further server DDR4 price reductions.
North America is Expected to Hold Significant Market Share
- The market for DRAM is expected to register significant growth in the region owing to its increasing adoption in data centers, automotive, and consumer electronics.
- In the United States, the growth of DRAM is projected to extend beyond personal devices and find increased utilization in cloud computing, servers, and automotive applications. Smartphones are increasingly incorporating DRAM, and mobile phones are anticipated to hold a significant portion of the DRAM market due to their expanding market penetration and declining prices, resulting in greater consumer acceptance. As the range of use cases and mobile phone adoption continues to diversify and expand, the demand for the DRAM market is expected to rise.
- The mobile phone industry in the United States is one of the largest industries, significantly impacting the market's growth positively. Rising investments and growing production rates across the region are significant market drivers.
- Data center operators must optimize platform performance by leveraging advanced memory capabilities and processor advancements, fueling the demand for DDR5 DRAMs in the market. The United States is consistently experiencing substantial investments in data centers, which is anticipated to stimulate the requirement for DRAMs.
- Another significant factor influencing the market is implementing 5G technology. Despite its recent introduction, 5G technology and wireless communication as a whole are projected to have a substantial effect on the market. As per Accenture's analysis, the adoption of 5G is anticipated to contribute more than USD 1.5 trillion to the gross domestic product (GDP) of the United States between 2021 and 2025.
Dynamic Random Access Memory (DRAM) Industry Overview
The dynamic random access memory (DRAM) market is semi-consolidated, with the major players in the market, like Samsung Electronics, SK Hynix, and Micron, holding a significant market share. Geographical expansion and product innovation play a vital role in the competitive strategy of market players. Vendors need enhanced fabrication and processing capabilities in line with the increasing data center, mobile, and consumer applications that require improved speed and performance. The prominent vendors in the DRAM market are investing heavily in the next generation of chips, like 24GB, DDR5, and HBM, and have moved into the next phase of making FRAMs for AI and 5G. This is helping them stay ahead of the competition, but it also means they need to be able to pay for their research and development.
- September 2023: Samsung Electronics unveiled the pioneering low-power compression attached memory module (LPCAMM) form factor, marking a significant breakthrough in the DRAM market for personal computers, laptops, and data centers. This cutting-edge development has successfully passed rigorous system verification on Intel's platform, achieving a remarkable speed of 7.5 Gbps.
- June 2023: Micron Technology Inc. revealed its intention to construct a new assembly and test facility in Gujarat, India. The facility will cater to manufacturing DRAM and NAND products in domestic and international markets. The construction of the new facility was to commence in 2023 and will be carried out in phases. The first phase will include 500,000 square feet of cleanroom space and is expected to become operational in late 2024.
Dynamic Random Access Memory (DRAM) Market Leaders
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Samsung Electronics Co. Ltd.
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Micron Technology Inc.
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SK Hynix Inc.
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Nanya Technology Corporation
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Winbond Electronics Corporation
*Disclaimer: Major Players sorted in no particular order
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Dynamic Random Access Memory (DRAM) Market News
- August 2023: Winbond Electronics Corporation and Mobiveil partnered to develop a cutting-edge IP controller for various applications, including automotive, smart IoT, industrial, wearables, TWS, wireless headsets, smart speakers, and connectivity. In this collaboration, Mobiveil successfully integrated its HYPERRAM Controller with Winbond's innovative HYPERRAM device, which boasts impressive capabilities such as speeds of up to 250MHz and support for densities ranging from 32 Mb to 512 Mb in x8/x16 modes. This collaboration aims to deliver enhanced performance and functionality to meet the evolving needs of various industries.
- May 2023: SK Hynix Inc. announced the completion of the industry's most advanced 1bnm, the fifth generation of the 10nm process technology. The company and Intel also initiated a joint evaluation of 1bnm and validation in the Intel Data Center Certified memory program for DDR5 products targeted at Intel Xeon Scalable platforms. This development follows SK Hynix's achievement of 1anm readiness and successful completion of Intel's system validation of the 1anm DDR5, the fourth generation of the 10nm technology.
Dynamic Random Access Memory (DRAM) Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Impact of Macroeconomic Factors on the DRAM Industry
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Continuous Evolution of Mega Trends Such As Cloud Computing, IoT, 5G, AI, and Mobility are Expected to Create Demand in the Future
5.2 Market Restraints
5.2.1 Slowdown in the Mobile Device, Tablet, Laptop/PC Demand
6. PRICING ANALYSIS
6.1 DRAM Spot Price (Per GB)
6.2 Pricing Trends Analysis
7. MARKET SEGMENTATION
7.1 By Architecture
7.1.1 DDR3
7.1.2 DDR4
7.1.3 DDR5
7.1.4 DDR2/Others Architectures
7.2 By Application
7.2.1 Smartphones/Tablets
7.2.2 PC/Laptop
7.2.3 Datacenter
7.2.4 Graphics
7.2.5 Consumer Products
7.2.6 Automotive
7.2.7 Other Applications
7.3 By Geography
7.3.1 United States
7.3.2 Europe
7.3.3 Korea
7.3.4 China
7.3.5 Taiwan
7.3.6 Rest of Asia-Pacific
7.3.7 Rest of the World
8. COMPETITIVE LANDSCAPE
8.1 Company Profiles
8.1.1 Samsung Electronics Co. Ltd
8.1.2 Micron Technology Inc.
8.1.3 SK Hynix Inc.
8.1.4 Nanya Technology Corporation
8.1.5 Winbond Electronics Corporation
8.1.6 Powerchip Semiconductor Manufacturing Corp.
8.1.7 Transcend Information Inc.
- *List Not Exhaustive
9. VENDOR MARKET SHARE ANALYSIS
10. INVESTMENT ANALYSIS
11. FUTURE OF THE MARKET
Dynamic Random Access Memory (DRAM) Industry Segmentation
Dynamic random access memory, called DRAM, is used in various computing and electronic devices like PCs, smartphones, music players, laptops, netbooks, and tablet computers. The scope of the study focuses on the market analysis of DRAM semiconductors sold across the globe, and market sizing encompasses the revenue generated through DRAM sold by various market players to end-user industries. The study also tracks the key market parameters, underlying growth influencers, and major vendors operating in the industry, which will support the market estimations and growth rates during the forecast period. The study further analyzes the overall impact of COVID-19 on the ecosystem.
The DRAM market is segmented by architecture (DDR3, DDR4, DDR5, and DDR2), applications (smartphones/tablets, PC/laptops, data centers, graphics, consumer products, and automotive), and geography (the United States, Europe, Korea, China, Taiwan, the Rest of Asia-Pacific, and the Rest of the World). The report offers market forecasts and sizes in value (USD) for all the above segments.
| By Architecture | |
| DDR3 | |
| DDR4 | |
| DDR5 | |
| DDR2/Others Architectures |
| By Application | |
| Smartphones/Tablets | |
| PC/Laptop | |
| Datacenter | |
| Graphics | |
| Consumer Products | |
| Automotive | |
| Other Applications |
| By Geography | |
| United States | |
| Europe | |
| Korea | |
| China | |
| Taiwan | |
| Rest of Asia-Pacific | |
| Rest of the World |
Dynamic Random Access Memory (DRAM) Market Research Faqs
How big is the Dynamic Random Access Memory Market?
The Dynamic Random Access Memory Market size is expected to reach USD 61.21 billion in 2024 and grow at a CAGR of 22.68% to reach USD 170.08 billion by 2029.
What is the current Dynamic Random Access Memory Market size?
In 2024, the Dynamic Random Access Memory Market size is expected to reach USD 61.21 billion.
Who are the key players in Dynamic Random Access Memory Market?
Samsung Electronics Co. Ltd., Micron Technology Inc., SK Hynix Inc., Nanya Technology Corporation and Winbond Electronics Corporation are the major companies operating in the Dynamic Random Access Memory Market.
Which is the fastest growing region in Dynamic Random Access Memory Market?
North America is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Dynamic Random Access Memory Market?
In 2024, the North America accounts for the largest market share in Dynamic Random Access Memory Market.
What years does this Dynamic Random Access Memory Market cover, and what was the market size in 2023?
In 2023, the Dynamic Random Access Memory Market size was estimated at USD 47.33 billion. The report covers the Dynamic Random Access Memory Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Dynamic Random Access Memory Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Dynamic Random Access Memory (DRAM) Industry Report
The Dynamic Random Access Memory (DRAM) market report provides an extensive market overview, detailing the segmentation by architecture, including DDR3, DDR4, DDR5, and DDR2, and applications such as smartphones/tablets, PC/laptops, data centers, graphics, consumer products, and automotive. The market forecast covers key geographies like the United States, Europe, Korea, China, Taiwan, the rest of Asia-Pacific, and the rest of the world.
The report includes a detailed industry analysis, highlighting the market size and market value in terms of volume and USD. The market growth is projected with a comprehensive market forecast outlook, offering insights into the market trends and growth rate. Additionally, the report provides industry statistics and market data, essential for understanding the market segmentation and market predictions.
Industry reports and industry research are integral parts of this analysis, offering a thorough market review and industry information. The market leaders and their contributions are also discussed, providing a complete market overview. Market trends and industry trends are explored to give a clear picture of the current and future market outlook.
The report example and report PDF available for download serve as valuable resources for further industry research. Research companies can utilize this information to gain insights into the industry size, industry sales, and market segmentation. The industry outlook and market predictions are crucial for understanding the market dynamics and planning future strategies.
Overall, the DRAM market report is a comprehensive resource, providing detailed market data, industry statistics, and market analysis to support informed decision-making and strategic planning in the DRAM industry.
