Dynamic Random Access Memory (DRAM) Market Size, Share & Trends Analysis Report By Architecture (DDR3, DDR4, DDR5, DDR2/Others), By Applications (Smartphone/Tablets, PC/Laptop, Data Centers, Graphics, Consumer Products, Automotive, Other Applications) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Dynamic Random Access Memory (DRAM) Market Size

The global dynamic random access memory (DRAM) market size was valued at USD  110.57  billion in 2023 and is projected to reach from USD 114.43 billion in 2024 to USD 193.97 billion by 2032, growing at a CAGR of 6.44% during the forecast period (2024-2032).

The dynamic random access memory (DRAM) market share increase during the forecast period is related to the growing construction of smart cities and rising demand for consumer electronics.

DRAM is a type of semiconductor memory that stores data in capacitors, making it a key component in various electronic devices. Unlike Static RAM (SRAM), DRAM requires periodic refreshes to maintain data. Still, its simple architecture involving a single transistor per memory cell allows for higher density and lower cost, making it the preferred choice for large-scale memory applications. DRAM is crucial in various sectors, including consumer electronics, telecommunications, IT infrastructure, and emerging smart technologies. The global DRAM market is rapidly growing, driven by the increasing need for high-speed data processing, storage, and computational power across smart cities, IoT devices, and AI applications. 

Highlights

• The DDR4 segment dominates the global market by architecture.

Dynamic Random Access Memory (DRAM) Market Growth Factors

Growing construction of smart cities

The rapid expansion of smart cities worldwide is a crucial driver for the DRAM market. As urban areas integrate advanced technologies such as the Internet of Things (IoT) and artificial intelligence (AI) into their infrastructure, the demand for high-performance memory solutions is rising. By 2024, over 200 smart city projects will be underway globally, with countries like China, the United States, and India leading. The construction of these smart cities involves using IoT devices that require reliable memory, such as DRAM, to store and process large volumes of data efficiently. For example, smart grids, automated traffic management systems, and surveillance infrastructures depend on fast, scalable memory. As global investment in smart cities is expected to exceed USD 1 trillion by 2026, the demand for DRAM in these applications will grow significantly. This trend is anticipated to contribute substantially to the market’s expansion over the forecast period.

Rising demand for consumer electronics

Consumer electronics, particularly smartphones, tablets, laptops, and gaming consoles, continue to be a significant growth driver for DRAM. According to 2024 estimates, global smartphone shipments are expected to cross 1.5 billion units, contributing to increased demand for DRAM in high-performance, multi-tasking devices. The shift towards 5G technology, augmented reality (AR), and virtual reality (VR) also fuel the need for faster and larger memory solutions in these devices. Smartphones, for instance, now feature up to 18GB of DRAM, a trend driven by consumer demand for seamless multitasking, gaming, and high-resolution video processing. With the global urban population expected to reach 60% by 2030 and disposable incomes rising in emerging markets, the demand for consumer electronics with robust memory capabilities will further boost the DRAM market's growth.

Restraining Factors

Slowdown in mobile device demand

Despite the overall growth in demand for electronics, the DRAM market faces challenges from the slowdown in mobile device sales, particularly in the high-end smartphone segment. According to 2024 data, global smartphone sales have plateaued, with growth slowing to just 1% year-over-year in mature markets like North America and Europe. The rising cost of premium smartphones and increasing product longevity prompts consumers to delay upgrades. For instance, the average smartphone replacement cycle has extended from 24 to 36 months, reducing the frequency of new purchases. This slowdown impacts the demand for high-capacity DRAM modules as manufacturers scale back production in response to lower consumer demand. Economic uncertainties and inflation in critical markets also drive consumers to prioritize essential spending, further restraining the market's growth.

Volatile pricing in the dram market

The DRAM market is susceptible to supply and demand fluctuations, leading to volatile pricing. In 2023, the average selling price of DRAM declined by nearly 20% due to excess inventory and a slower-than-expected recovery in consumer electronics demand post-pandemic. Manufacturers like Samsung and SK Hynix have faced challenges balancing production levels with market demand, which could persist into 2024. This price volatility poses risks for smaller suppliers and impacts the overall profitability of the DRAM market.

Market Opportunities

Continuous evolution of mega trends like cloud computing, ai, and iot

Megatrends such as cloud computing, artificial intelligence (AI), and the Internet of Things (IoT) present significant growth opportunities for the DRAM market. In 2024, global cloud computing spending is expected to surpass USD 500 billion, with data centers expanding rapidly to meet growing storage and processing needs. DRAM is crucial for these applications, as it offers the speed and scalability required for real-time data analysis and machine learning processes. AI-powered applications, particularly in healthcare, finance, and automotive sectors, are projected to drive the demand for high-performance DRAM.

Additionally, the advent of 5G networks is expected to increase the adoption of AI-driven smartphone apps, requiring robust memory solutions. IoT adoption is also accelerating, with over 50 billion connected devices projected by 2025. This will create substantial demand for low-power, high-efficiency DRAM in smart homes, autonomous vehicles, and industrial automation. These technological advancements represent a significant opportunity for DRAM manufacturers to expand their market share by catering to the evolving needs of these high-growth sectors.

Ai and automotive industry demand

The automotive sector's shift towards electric and autonomous vehicles is another critical opportunity for DRAM market expansion. The automotive DRAM market is projected to grow at a CAGR of 13% from 2024 to 2030, driven by increased demand for advanced driver assistance systems (ADAS) and in-vehicle infotainment systems. With significant automakers like Tesla, General Motors, and BMW integrating AI and machine learning into their vehicles, the need for high-capacity DRAM will continue to rise.

Regional Insights

North america dominates the global market

North America, dominantly the United States, is the most significant global dynamic random access memory (DRAM) market shareholder and is predicted to exhibit a CAGR of 3.43% during the forecast period. The United States heavily relies on South Korea to produce DRAM chips, with approximately half of the worldwide DRAM chip production capacity maintained by South Korea. China and Taiwan account for almost half of the world's manufacturing. The nation requires more effective data processing systems, rapidly evolving technologies, and high data production across all industries. With the development of mobile and low-power devices, large on-chip caches, and high-end data centers, a new high-priority demand has emerged for non-volatile, dense, and energy-efficient memories, thereby fueling regional market development.

Additionally, numerous investments in semiconductors and electronics are occurring in the country, bolstering the market. For instance, GlobalFoundries (GF), the industry leader in producing semiconductors with a wealth of features, announced expansion plans for its most cutting-edge manufacturing facility in upstate New York over the coming years in July 2021. A new fab will be built on the same campus, doubling the site's capacity, and immediate investments will be made to address the global chip shortage at Fab 8 (existing facility).

Asia pacific is the fastest growing region

Asia-Pacific, mainly China, is predicted to exhibit a CAGR of 3.72% over the forecast period. The two predominant classifications of advanced microchips are memory and logic chips, with China making substantial investments in developing its semiconductor sector, amounting to billions of dollars. With governmental support, the regional market players have been increasing their production capacities to meet the increasing global demand for DRAM.

• For instance, ChangXin Memory Technology (CXMT) announced its plan to manufacture DDR5 in the Chinese market. CXMT's ambitions ramped up recently due to significant investment from its parent company, Ruili Integration. The company aims to invest in more R&D and boost production facilities/capacity. After successful trials of DDR5 production, CXMT will be setting up its mass production units by the end of this year. The company plans to launch more advanced 17nm (LP) DDR5 and other advanced process memory chips in China, thereby boosting the regional market expansion.

The European government is developing various initiatives to drive greater self-reliance in the semiconductor market. For instance, the European Commission announced the European Chips Act with an initial investment of EUR 11 billion to strengthen research and development. The act aims to build strength in chip manufacturing and design. The act will help the European Union reach its digital transformation and environmental sustainability goals. In addition, regional companies focus on continuous product development to strengthen their market presence.

• For instance, Samsung announced a new memory technology called LPDDR5X DRAM, designed to drive growth throughout high-speed data service applications. As per the Ericsson Mobility Report by Ericsson, 404.47 million smartphone subscribers in Western Europe grew from 342.9 million smartphone subscribers in Western Europe in 2015. The increase in smartphone subscribers would contribute to the demand for DRAM in the market.

In Korea, the companies have been increasing the production of DRAM. In June 2022, SK Hynix will supply the Industry's First HBM3 DRAM to Nvidia Corporation. The company has begun the mass production of HBM3, the world's best-performing DRAM. With accelerating advancements in cutting-edge technologies like artificial intelligence and big data, major global technology companies are seeking ways to rapidly process increasing volumes of data. In response to the launch of new CPUs by Intel Corporation and AMD that support DDR5 DRAM solutions for PCs and servers, South Korean suppliers are developing solutions to complement the arrival of the latest CPUs. All these factors drive the regional market growth.

Segmentation Analysis

 by architecture 

The DDR4 segment dominates the global market and is expected to grow significantly over the forecast period. The segment is projected to develop owing to increased demand for high-speed memory modules over the forecast period. Increased data traffic and storage requirements across various applications, such as computers, smartphones, servers, and so on, are some drivers driving the DDR4 Memory Module market forward. Computers employ DDR memory to store data temporarily. The larger the volume and pace of processes, the higher the frequency. DDR DRAMs are far more energy-efficient than previous generations, consuming less power and space.

Additionally, the companies are developing new products to cater to many customers. For instance, in February 2022, Lexar, a provider of flash memory solutions, is thrilled to announce the release of the Lexar ARES DDR4 Desktop Memory, which adds colorful RGB illumination and blazing-fast DDR4 overclocked performance to customer PC for an enhanced gaming experience. It's perfect for gamers looking to improve their gaming performance using overclocked memory.

The DDR5 era has arrived. Fast-performance computing pushes server environments' limits to process enormous volumes of data at extremely high speeds, from 5G and artificial intelligence (AI) to metaverse and augmented reality (AR). Similarly, following the arrival of DDR5-compatible CPUs, the computing landscape will likely transform, with growth expected to include gaming and mainstream PCs. Companies are developing new products to capture a vast market share and increase their customer base. For instance, in May 2022, Lexar announced the release of its Lexar Ares DDR5 OC desktop memory. According to the manufacturer, the new RAM was created with PC gamers and enthusiasts in mind. The Lexar Ares DDR5 OC desktop memory supports Intel XMP 3.02 and DDR5 technology, suited for the latest Intel Core processors platform. The memory is said to have a maximum clock speed of 5200MHz and a bandwidth of 1.63x that of DDR4 RAM.

By applications

The smartphone/tablet segment owns the highest dynamic random access memory market share and is projected to exhibit a CAGR of 3.12% during the forecast period. The potential of memory has been enhanced by emerging technologies, which allow for larger data storage capacity at a comparatively cheaper cost than the silicon chips commonly employed in popular consumer electronic products like cell phones and tablets. Moreover, there is a growing trend in the accumulation of users' daily data through the utilization of smartphone cameras. The size of smartphone photos has grown exponentially as the number of pixels has increased. The growth in high-capacity smartphone applications, including mobile games, is another reason driving higher storage capacity.

Furthermore, the utilization of mobile and tablet segments is soaring daily, boosting the studied market. Many market players are also expanding their production facilities, which drives the studied market. For example, Samsung announced the mass production of its new UFS-based LPDDR5 memory module in June 2021. (uMCP). It provides mid-range mobile devices with flagship performance by combining the newest UFS 3.1 NAND flash with the fastest LPDDR5 DRAM in a single chassis.

The consumer products include SSDs, Video cards, digital cameras, portable media players, gaming consoles, etc. Numerous business applications require constant uptime, high-performance storage devices, high reliability, and low power consumption. SSDs satisfy all of these business requirements. In addition, SSDs in enterprises temporarily store data persistently or cache data in volatile semiconductor memory and are intended for use in storage systems, servers, and direct-attached storage (DAS) devices. Clients who need fast and efficient solutions are increasingly adopting SSDs. Many premium computers and notebook manufacturers utilize this technology as the primary device memory, making them popular amongst clients. The growing adoption of SSDs in client systems is expected to spur the market's growth over the forecast period.

Recent Development

• April 2024 - SK Hynix allocated KRW 5.3T to establish a new DRAM manufacturing unit.
• April 2024 - Samsung, a renowned consumer technology brand, has announced the development of the industry's first low-power, double-data rate 5X (LPDDR5X) DRAM processor. This memory solution is a substantial advancement in the field, specifically designed for artificial intelligence (AI) applications.