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Market size increases to $12.5 billion! Automotive Memory Market Rapid Growth Main Factors and Challenges

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Update time : 2022-12-06 14:46:25
        According to the latest data from market research firm Yole Intelligence, the automotive memory market is expected to increase from US$4.3 billion in 2021 to US$12.5 billion in 2027. Compared to the server, PC and smartphone markets, the automotive memory market share is relatively small, but its growth rate will be very fast, with the automotive memory market growing at over 20% per annum compared to the 8% CAGR of the overall memory market.
 
 
        Data shows that in 2021, the standalone memory market will be as large as US$167 billion, accounting for 28% of the overall semiconductor market. In comparison, the automotive memory market (US$4.3 billion in 2021) represents 2.6% of the global memory market revenue and 10% of automotive semiconductors - indicating the popularity of non-memory electronics in current vehicles.
        The aforementioned organisations predict that memory revenues will triple by 2027, accounting for 17 per cent of the automotive semiconductor market. 
        Currently, the overall automotive memory market is currently dominated by Micron with an estimated 45% market share (by revenue), followed by Samsung with a 13% market share. Infineon, Armor Man, SK Hynix and ISSI all rank behind Samsung with a market share of ≤7%. 
        The main reasons for the rapid growth of the automotive memory market are said to be the buoyancy of the electric vehicle market and the introduction of in-car infotainment and autonomous driving systems. As functions process more and more data, the demand for high-capacity, high-performance memory is also increasing. The replacement cycle for automotive semiconductors has also been shortened from 7-8 years to 3-4 years due to the development of the automotive industry. The adoption of memory is expected to play a role in autonomous driving systems, including Advanced Driver Assistance Systems (ADAS).
        Data shows that in the global memory market, NAND and DRAM together account for 96% of revenues in 2021, while NOR flash accounts for just over 2% (approximately US$3.5 billion.) NAND and DRAM also dominate the automotive memory market with a combined share of 80% (41% for DRAM and 39% for NAND.) NOR flash has a much higher share in the automotive sector, with with a market share of 15% (approx. USD 660 million).
        
The cockpit, with its main infotainment unit, dashboard and connectivity, is currently the main memory user. NOR flash is still in use, but managed NAND and DRAM account for the majority of revenue.
        ADAS & AD becomes the second in-car memory user, accounting for 24% of revenue in 2021. Memory consumption is dominated by DRAM and high density NOR flash, and possibly SLC NAND for smart sensors, which is the fastest growing application area for memory.
The "other" areas (powertrain, chassis and safety, and body and comfort) are estimated to account for around 5% of demand. These areas require the most constraints and mainly use robust memory technologies such as EEPROM and NOR flash.
        By 2027, cockpits are expected to remain the main application area memory consumers, but the revenue share of ADAS & AD will increase to 36%. In terms of technology, DRAM and NAND are expected to account for nearly 90% of automotive memory revenues.
        Overall, the automotive market has specific requirements in terms of quality, qualification, reliability, functional safety and supply life, requiring extra effort and dedication from the players addressing this market.

 
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