Published on: November 14, 2019
Falling under the volatile computer memory category, DRAM is used in personal computers, workstations, and servers. DRAM basically stores volatile data, which is used by the computer in the background for the smooth processing and functioning of the computer. The most popular technology found in DRAM memory in current applications is double data rate (DDR) DRAM. DDR DRAM is a revised and updated form for synchronous DRAM (SDRAM). Currently, there are four main types of DDR DRAM, namely, DDR2, DDR3, DDR4, and DDR5. DDR5 is an upcoming technology, and the products based on this technology are scheduled to be released in 2020. We categorize the DRAM market as a part of the semiconductor market. The semiconductor market covers manufacturers of semiconductors and related products, including manufacturers of solar modules and cells. We define semiconductor manufacturers as the companies that are involved in the production of integrated circuits (ICs) such as memory, logic, analog, and micro components; optoelectronics; sensors; and discrete semiconductors. Our report on the DRAM market provides a holistic analysis, market size and forecast, trends, growth drivers, and challenges, as well as vendor analysis of around 30 vendors.
The DRAM is one of the major components in any computing device, and the increasing demand and rapid growth in the smartphones and PC segments over the last few years had been driving the demand from the consumer end. Historically, the continuous increase in the server real estate amongst enterprise and service provider data centers has provided a sustainable growth to the DRAM market. However, the primary end-product for DRAM, the PC, is witnessing a decline in sales, and there is also a dip in server unit shipments, which is affecting the OEM demand for DRAMs.
The global DRAM market will witness an incremental growth of USD 46 billion between 2017 and 2021. The growth opportunities for market participants will be limited during the initial years of the forecast period, but the long-term outlook of the market remains bright. DDR3 DRAM segment will remain the largest segment constituting more than half of the total DRAM sales in 2018. DRAM application in mobile devices will comprise around three fourth of the total DRAM sales. Meanwhile, DRAM sales in APAC are expected to grow the fastest, at a CAGR of 2.7% during the forecast period.
Many factors are expected to drive growth in the DRAM market during the forecast period. Our analysis identifies the following factors to be driving the growth in the DRAM market:
The development of small and compact DRAM is driving the global DRAM market. The rapid change in technology has resulted in high demand for small and compact electronic devices. To target these end products, DRAM is being developed in smaller form factors.
The replacement cycles of electronic products such as smartphones, tablets, and PCs have reduced to months from years. This is due to the rapid introduction of new and upgraded technology by electronic goods manufacturers in order to retain their market share. This also requires the component suppliers such as DRAM manufacturers to come up with upgraded components at a very short span of time and increases the demand for new and upgraded versions of DRAM components.
Smartphones are one of the major applications of mobile DRAM. The use of mobile DRAM in smartphones is rising rapidly, due to the increased demand for high memory density in smartphones. The mobile DRAM is available as an integrated component for smartphones, and its demand is set to rise as the worldwide mobile shipments increase.
Meanwhile, the vendors operating in the market face numerous challenges in increasing their sales and improving profitability. Some of those challenges are:
While DRAM is the prevalent memory technology used in devices currently, it faces a major challenge in terms of getting substituted by alternative memory technologies, such as phase-change memory, resistive RAM, magneto-resistive RAM, and 3D Xpoint. These technologies may have one or more of the following advantages over DRAM – less power consumption, faster processing, higher density, or lower cost.
The ASP of mobile DRAM is declining rapidly, and the trend is expected to continue in the coming years. Because of the declining ASP, the revenue growth of the leading vendors and their profit margins are expected to reduce over a period.
As the trend of miniaturization continues, every component, including DRAM, must be scaled down to fit in more components. DRAM has now entered the sub-20 mm technology node, which opens several challenges, such as leakier cells, slower access, severe process variations.
The global DRAM market can be segmented into the following:
We provide a detailed analysis of around 30 vendors operating in the DRAM market, including some of the prominent vendors such as Samsung Electronics, SK Hynix, Micron Technology, Nanya, Windbond. Research and development, product innovation, and capacity planning are some of the strategies adopted the manufacturers in the global DRAM market.
Some of the key developments mentioned in our DRAM market report include:
Backed with competitive intelligence and benchmarking, our DRAM market research is designed to provide entry support, customer and M&A assessment, as well as go-to-market strategy support.
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