The semiconductor memory market is expected to witness significant growth by 2027 driven by surging utilization of semiconductor chips in electronic devices and increasing demand for electronics across the globe.
Semiconductor memory refers to a type of semiconductor device that stores data and is a key element in nearly every electronic device. It offers several beneficial electrical properties, which also make it pivotal for electronics manufacturing.
Following the COVID-19 pandemic, there was a proliferation in the usage of electronic devices. As a result, semiconductor memory became crucial during the pandemic due to its importance in objects ranging from smartphones to ventilators.
Due to the accelerating demand for semiconductor memory, industry players have also been directing more resources towards technological advancements with the aim of gaining a robust footing in the semiconductor memory market. For instance, in May 2021, electronics giant Samsung announced its plans to invest 171 trillion won (USD 151.10 billion) into non-memory chips by the year 2030.
With this move Samsung augmented its earlier investment target of 133 trillion won, which the South Korean company had announced back in 2019. The firm also added that its 3rd chip production line in Pyeongtaek, a city in the Gyeonggi Province of South Korea, is scheduled to be completed in the latter half of 2022.
For in-depth assessment, the semiconductor memory market has been segmented on the basis of type, application, and region. In terms of type, the market has been divided into static random-access memory (SRAM), flash read-only memory (ROM), dynamic random-access memory (DRAM), magneto-resistive random-access memory (MRAM), and others.
The static random-access memory (SRAM) revenue share is expected to drop to less than 1% of the semiconductor memory market by 2027. Memory types of the SRAM are extensively integrated into L2 and L3 CPU cache units in various computing hardware, which is projected to boost market adoption through the forecast period.
From the application perspective, the semiconductor memory market has further been divided into aerospace & defense, telecommunications, consumer electronics, automotive, medical, industrial, and others. Aerospace & defense application is projected to expand at a CAGR of 3% over the analysis period due to increasing demand for memory and storage devices across the aerospace & defense sector.
Several defense equipment, such as mission data-recorders, field computers, telemetry & guidance systems, military robotics, and avionics cockpit systems are extensively incorporating semiconductor memory devices like SSDs, DRAM, and flash memory modules. This is expected to create several growth opportunities for the market over the assessment timeframe.
In the regional landscape, the Latin America semiconductor memory market is anticipated to observe significant growth at a CAGR of 4% over the projected timeline. Increasing penetration of cloud and hyperscale datacenters across Latin America is expected to contribute substantially to the regional market growth by the end of 2027.