The Global Semiconductor Memory Market, is expected to be valued at US$ 157.1 Billion by 2027, exhibiting a CAGR of 6.5% during the forecast period (2020-2027), as highlighted in a report published by Coherent Market Insights.
Increasing data center establishments in Asia and Europe is expected to propel the global semiconductor memory market growth over the forecast period
A data center is a facility dedicated to housing computer systems and related components such as telecommunications and storage systems. Data centers play a major role in telecommunications and storage systems where they host websites, manage e-mails, and handle instant messaging services. Furthermore, they support cloud storage applications. In the recent past, Europe and Asia have witnessed rapid establishments of data centers. For instance, in August 2020, TikTok announced to invest US$ 500 million in the first EU data center in Ireland. Furthermore, in July 2020, Hiranandani Group inaugurated Asia’s largest data center in Navi Mumbai, India. As a result of this, the demand for semiconductor memory has increased significantly. Thus, these factors are expected to drive growth of the global semiconductor memory market during the forecast period.
Rising adoption of wearable devices can provide major growth opportunities in the global semiconductor memory market
Smart wearable devices have become popular in the recent past in various sectors such as healthcare applications, hospitality services, and travels. In fact, airline companies are using wearable devices to ease the boarding procedures of passengers. Furthermore, healthcare organizations are using wearable devices as fitness monitoring, chronic disease management, and heart care. As a result of this, the demand for semiconductor memory has increased massively.
Stringent regulatory scenario is expected to hamper the global semiconductor memory market growth over the forecast period
Although there is a high demand for semiconductor memory from various sectors, stringent government regulations are hindering their adoption. Many countries have imposed strict regulations on the trade and export of semiconductors. Thus, these factors are expected to hamper the global semiconductor memory market growth over the forecast period.
Rising use in the automotive sector
The semiconductor memory is being increasingly used in the automotive sector, especially in vehicular architecture. These memory devices are used for the infotainment systems where it requires large amounts of data that are part of the boot sequence. The infotainment system displays high-quality graphics and thus a large amount of data is stored and read from external non-volatile memory. Furthermore, for the driver assistance system, it is crucial to capture data of certain sensors in real-time and store it permanently. Thus, the demand for semiconductor memory is increasing rapidly.
Companies in the telecommunication sector require data centers with high bandwidth. This can be efficiently fulfilled with semiconductor memory solutions namely NAND and DRAM flash. This, in turn, increases emphasis on research and development activities by key players insemiconductor memory production.
Key players operating in the global semiconductor memory market are Microchip Technology, Inc., SK Hynix, Inc., NXP Semiconductors, Samsung Electronics Co., Ltd., Intel Corporation, Infineon Technologies AG, Cypress Semiconductor Corporation, Renesas Electronics Corporation, Semiconductor Manufacturing International Corporation (SMIC), Taiwan Semiconductor Manufacturing Company Limited (TSMC), Texas Instruments Incorporated, Toshiba Corporation, and Western Digital Corporation
Major market players are focused on mergers and acquisitions, in order to enhance the market presence. For instance, in April 2020, Infineon Technologies acquired Cypress Semiconductor Corporation.