WELLESLEY, Mass., Oct. 23, 2018 (GLOBE NEWSWIRE) -- Due to the growth of transactional data, cloud computing and data analytics, next-generation workloads will require higher-performance storage, thus contributing to global market growth for dynamic random access memory (DRAM), according to a new report from BCC Research.
In 2018, the global market for DRAM was worth $94.5 billion. BCC Research estimates that it will reach a value of $136.9 billion by 2022, indicating a compound annual growth rate (CAGR) of 9.7%, according to Dynamic Random Access Memory (DRAM): Global Markets to 2022.
The industry has seen significant diversification of demand in the last few years, and a higher portion of DRAM demand now comes from various applications, including mobile handsets and automotive, industrial and networking applications. Requirements for more complicated features, including dual cameras, artificial intelligence applications for smartphones and robust demand for data center servers, are the key driving factors for DRAM industry growth in next five years.
Research Highlights
- The largest segment within the DRAM market is servers which are expected to be valued at $48.6 billion by 2022 (having a CAGR of 12.2%).
- IBM Corp. (IBM) pioneered the DRAM market; however Samsung, SK Hynix and Micron (MU) were the only three companies to enjoy the higher profits of the industry’s consolidation.
- The DRAM product lifecycle is short (two to three years) due to the speed of technology innovation, thus being one the industry’s main hurdles.
“DRAM suppliers are mostly investing in technology transition and process optimization, as opposed to the expansion of production capacity,” said report author, Arpita Mukherjee. “This is likely to keep the 2018 prices similar to those of the second half of 2017. In 2018, DRAM manufacturers will mainly focus on continuing their flexibility in product mix strategy and strengthening cost competitiveness through the expansion of 1X-nanometer process migration.”
About BCC Research
BCC Research is a publisher of market research reports that provide organizations with intelligence to drive smart business decisions. By partnering with industry experts worldwide, BCC Research provides unbiased measurements and assessments of global markets covering major industrial and technology sectors, including emerging markets. For more information about BCC Research, please visit bccresearch.com. Follow BCC Research on Twitter at @BCCResearch.