Automotive Memory Market Size, Growth, Trend and Analysis

The automotive memory market is projected to reach US$ 14,652.8 million by 2028 from US$ 2,937.7 million in 2021; it is expected to grow at a CAGR of 24.0% from 2022 to 2028.

Vehicles currently have a variety of distributed memory options, including Static Random Access Memory (SRAM), Dynamic Random Access Memory (DRAM), Read-only memory (ROM), FLASH, and, in some cases, Magnetoresistive Random Access Memory (MRAM) testing. In function, automotive memories are comparable to commercial memories, although they operate differently. Distributed DRAM local to the signal, information processing, and SRAM or FLASH storage memory is being utilized to convey information between functions in the car as more microprocessors are used. The new automotive architecture includes a centralized primary central processing unit (CPU) with a huge memory arrangement comparable to a normal computer. Infotainment systems, Advanced driver-assistance systems (ADAS), and cloud connectivity are among the applications available in next-generation vehicles. Machine learning and deep learning calculations would be aided by the Cloud data stored in a peripheral component interconnect express-based nonvolatile memory express (NVMe).

Strategic Insights

Impact of COVID-19 Pandemic on Automotive Memory Market Growth

The COVID-19 outbreak disrupted various industry verticals such as automotive, manufacturing, energy & power, aerospace & defense, construction, and many others in 2020. The continuous growth in the number of novel coronavirus-infected patients compelled government authorities to impose stringent lockdowns across the US and other regions in the first three quarters of 2020. This led to a significant decline in automotive sales across all countries. Implementing containment measures such as trade bans, travel restrictions, and workforce limitations at workplaces has impacted various businesses' manufacturing, supply, and sales, including automotive memory. Automotive memory manufacturing witnessed severe losses due to temporary factory shutdowns and low production volumes, which also hindered the supply. Thus the automotive memory market size decreased. In the US, automotive sales recorded new lows, while similar low volume automotive production was recorded in Germany and Japan. The global automotive memory market was severely hit since manufacturing was severely disrupted. Higher semiconductor prices, stringent restrictions, and disrupted supply chain further aggravated the situation. However, the market experienced a positive impact since Q4 of 2020, when manufacturing and sales of automotive resumed. Hence, the pandemic had negatively impacted the automotive memory market growth.

Lucrative Regions for Automotive Memory Market

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Market Insights – Automotive Memory Market

The demand for automotive sensors is expanding due to the rising demand and adoption of new technology. Automotive manufacturers are promoting using non-contact 3D magnetic sensors to replace optical systems or potentiometers that employ traditional position sensing techniques. These sensors aid in decreasing mistakes caused by wear or contamination, ensure stable measurements and save space in high-temperature environments. The government's move to make the installation of some automotive sensors mandatory would aid the increased usage and demand for automotive sensors. For instance, the European Commission has agreed that all new vehicles sold in Europe would be fitted with a speed limiter as a legal requirement from 6 July 2022. The 2019/2044 regulation also mandates that all new cars launched be fitted with an Intelligent Speed Assist (ISA) by 7 July 2024. Hence, such differentiated applications of automotive sensors can be expected to provide ample growth opportunities for automotive memory market players.

Product-Based Insights

The automotive memory market, by product, is segmented into DRAM, NAND, SRAM, and others. DRAMs are memory chips that are only used to store data. NAND flash memory is a non-volatile storage technology aiming to lower the cost per bit while increasing chip capacity. Since NAND memory has a fixed amount of writing and erasing cycles, any operation failure is usually slow, with individual cells collapsing and overall performance deteriorating. Smaller chips and improved reading and writing cycles are among the latest NAND flash memory technology advancements. NAND, supported by SD standards, has witnessed an exponential increase in memory capacity. SRAM (static random access memory) is a type of random access memory (RAM) that keeps data bits in its memory as long as power is available. Modern automobiles use a substantial quantity of DRAM, NAND, SRAM, and SSD storage to improve memory usage. Every day, vehicles become smarter, collecting a variety of gadgets in the process.

The automotive memory market is segmented on the basis of product, vehicle type, and application. Based on product, the market is segmented into DRAM, NAND, SRAM, and others. Low Density SLC NAND Flash Memory Type, the type of NAND considered, is further segmented into 8Gbit, 4Gbit, 2Gbit, and others. On the basis of vehicle type, the automotive memory market is segmented into passenger and commercial vehicles. By application, the automotive memory market is segmented into infotainment & activity, ADAS and others. Based on geography, the Automotive Memory market is primarily segmented into North America, Europe, Asia Pacific (APAC), Middle East and Africa (MEA), and South America (SAM). Micron Technology, Inc., Sk Hynix, Toshiba Memory Corporation, Samsung Electronics Co., Ltd., and Western Digital Technologies, Inc. are among the key automotive memory market players.

Automotive memory market players mainly focus on developing advanced and efficient products.

• In 2022, Phison Electronics, a specialist in NAND flash device controllers, has had its solutions certified by ISO 26262 for the automotive functional safety and development process. It is hoping to grow its footprint in the worldwide vehicle storage industry.
• In 2021, Micron Technology started sampling its automotive DDR5 DRAM (LPDDR5) memory. Micron's new portfolio of memory and storage technologies based on the International Organization for Standardization (ISO) 26262 standard for functional vehicle safety includes LPDDR5. Many of today's advanced safety technologies, including intelligent cruise control, blind-spot recognition, and automatic emergency braking, are compatible with Micron's functional safety-evaluated DRAM. The LPDDR5 memory from Micron is designed to meet the growing bandwidth demands of this and other next-generation automotive systems.