Global High Bandwidth Memory Market Grows Tremendously at a CAGR of 25.60%

Introduction

High bandwidth memory (HBM) is the name of a fast computer memory interface for 3D-stacked SDRAM. It frequently works with high-performance graphics accelerators, supercomputers, and network devices. Stacked SDRAM was utilized with the brand-new memory interface HBM, which was initially announced in 2013 and connected to the processor via a silicon interposer. The interposer's metal layers are in charge of coupling the memory to the SoC. To be compared to a large chip or a PCB within the package, the other die is flipped over and linked by tiny bumps. This is sometimes referred to as 2.5D integration. By stacking up to 8 DRAM dies on the circuit and connecting them with TSVs, HBM offers a noticeably better bandwidth while using less power and having a comparably smaller form factor.

Market Dynamics

Growing Need for High-bandwidth, Low Power Consuming, and Highly Scalable Memories Drives the Global Market

In the ten years since the HBM standard was first introduced, 2.5 generations have reached the market. The creation, capture, copying, and consumption of data increased dramatically over that period, going from 2 zettabytes in 2010 to 64.2 ZB in 2020, claims Synopsys. According to Synopsys, that amount will nearly triple 181 ZB in 2025. In 2016, HBM2 improved its performance to 256 GB/s and the signaling rate to 2 Gbps. Two years after its release, HBM2E eventually achieved data rates of about 3.6 Gbps and 460 GB/s. Greater memory bandwidth is and will remain a key enabler of computing performance. Consequently, the demand for performance is increasing, as are the advanced applications' constant bandwidth requirements.

To meet the growing demand for high bandwidth, businesses are debating whether to upgrade from 10GbE to 40GbE for servers. While 25GbE offers a more cost-effective throughput, 40GbE requires more power and expensive cables. In addition, 25GbE is quickly emerging as the best next-generation Ethernet speed for connecting servers because it strikes a better balance between the cost/performance tradeoffs.

Rising Trend of Miniaturization of Electronic Devices Creates Tremendous Opportunities

One of the current trends in the consumer electronics industry is a growing desire and need for smaller, lighter, and higher-performing electronics, commonly known as the shrinking of electronics and components. Rapid technology development has enabled consumers to purchase goods with various functionalities on a single platform. Another innovation that necessitates smaller electrical components is the development of memory chips, which require smaller and thinner form factors to conserve space and be more compact. High-speed, highly integrated applications for autonomous vehicles make it evident that higher electrical performance and less space usage are needed. Due to these aspects of the final products' design, high bandwidth memory significantly impacts the development of modern electronic systems.

ADAS and other automatic driving systems have evolved recently, and different electronic devices have been included in automobiles. However, components must be shrunk and have more bandwidth available because they typically need to fit into small locations. With HBM's vertical stacking technique and 2.5D interposer technology's connectivity to the host system-on-chip, the memory chip can reach smaller form factors without sacrificing performance. Businesses are developing HBM technology to address high computational needs, which need to be improved by form factor limits.

Regional Analysis 

North America is the most significant revenue contributor and is anticipated to grow at a CAGR of 24.80% over the forecast period. The considerable adoption of HBM in North America is primarily due to the increasing growth of high-performance computing (HPC) applications, which require high-bandwidth memory solutions for speedy data processing. The need for HPC in North America is rising due to the developing markets for cloud computing, AI, and machine learning. The HPC sector also directly boosts the American economy. The HPC industry produces a favorable net trade balance. Most of the microprocessors utilized in the top HPC machines in the world were produced in the United States, regardless of which firms constructed the HPC systems. The US is also home to Microsoft, Amazon, and other important IT companies.

Asia-Pacific is anticipated to grow at a CAGR of 25.60% over the forecast period. In Japan, the total growth of computing power is increasing during the projection period. There were 34 supercomputers between June 2019 and June 2021, up from 29, according to TOP500. Although HPC systems in Japan are often spread throughout data centers, the HPC Asia 2020 initiative has strongly emphasized the development of HPC-specific systems, particularly for social and scientific objectives. The major issues, including the need for sustainable clean energy production, aging, healthcare issues, and natural issues like earthquakes and climate change, have served as the inspiration for this goal. All three of China's exascale systems are built around CPUs that were made in the country.

Key Highlights

• The global high bandwidth memory market was valued at USD 1,641.10 million in 2022. It is projected to reach USD 12,765.62 million by 2031, growing at a CAGR of 25.60% during the forecast period (2023-2031).
• Based on application, the global high bandwidth memory market is bifurcated into servers, networking, consumer, automotive, and others. The server segment is the highest contributor to the market and is estimated to grow at a CAGR of 25.30% during the forecast period.
• North America is the major revenue contributor and is expected to grow at a CAGR of 24.80% during the forecast period.

Competitive Players

Competitive Players

The global high bandwidth memory companies are Micron Technology Inc., Samsung Electronics Co. Ltd, SK Hynix Inc., Intel Corporation, Fujitsu Limited, Advanced Micro Devices Inc., Xilinx Inc., Nvidia Corporation, and Open Silicon Inc.

Recent Developments

Market News

• In January 2022, the High Bandwidth Memory (HBM) DRAM standard, available for download from the JEDEC website, was updated to JESD238 HBM3 by the JEDEC Solid State Technology Association. HBM3 is a cutting-edge method of speeding up data processing for applications like graphics processing, high-performance computing, and servers where higher bandwidth, lower power consumption, and capacity per area are essential for a solution's commercial success.

Segmentation

Global High Bandwidth Memory Market: Segmentation

By Applications

• Servers
• Networking
• Consumer
• Automotive 
• Others

By Regions

• North America
• Europe
• Asia-Pacific
• LAMEA