Next-Generation Memory Market Size, Share and Growth Analysis

Updated on : October 22, 2024

Next-Generation Memory Market Size & Growth

The next-generation memory market size was valued at USD 6.2 billion in 2023 and is estimated to reach USD 17.7 billion by 2028, growing at a CAGR of 23.2% between 2023 to 2028.

The growth of the next-generation memory market is driven by increasing demand for memory devices that provide fast access and consume minimal power, rising adoption of next-generation memory technologies for enterprise storage applications, and suring adoption of next-generation memories in smartphones and smart wearables.

Next-Generation Memory Market Forecast to 2028

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Next-Generation Memory Market Trends and Dynamics:

Drivers: Increasing demand for memory devices that provide fast access and consume minimal power

With the increasing amount of data in businesses and the popularity of cloud storage solutions, there is a growing demand for high-capacity, fast storage memory. The performance of advanced products is continually improving, driving much of the semiconductor industry. To meet the requirement for memory devices with high speed, low power consumption, and high scalability, various emerging non-volatile memories such as RRAM, MRAM, FeRAM, and NRAM have been developed. Compared to traditional technologies, these technologies offer higher scalability, density, speed, and endurance. Most emerging memory technologies take between 1 and 10 ns for their output to meet the specified requirements after a command request. The switching time is the time taken by the memory to meet the specified requirements after a command request. The lower the switching time, the faster the read/write data operations of the memory.

Restraint: High manufacturing cost of next-generation memories

The production costs of high-density DRAM and SRAM are comparatively high, and the manufacturing costs of high-bit-density next-generation memories are also high at present. Next-generation memory technologies often involve more complex manufacturing processes than traditional memory technologies. These processes may require specialized equipment, materials, and expertise, leading to higher costs. In the early stages of development and production, next-generation memory technologies may experience lower production yields due to issues like defects, process variations, or materials challenges. Low yields result in a higher cost per functional chip. Some next-generation memory technologies may rely on advanced and expensive materials that contribute to the overall manufacturing costs. Also, the more complex manufacturing processes for next-generation memory technologies may lead to longer manufacturing cycles and slower throughput, increasing manufacturing costs.

Opportunities: Increasing adoption of next-generation memory technologies in embedded systems and IoT devices

The increasing replacement of traditional memories with next-generation memories offers a significant opportunity for market players. Next-generation memory like MRAM and ReRAM offer fast read and write speeds, low power consumption, and non-volatility, making them suitable for use in embedded systems and IoT devices. These memories can enable instant-on capabilities, improve energy efficiency, and enhance data retention in smart devices. These memories have high endurance, allowing them to endure a large number of read and write cycles without degradation. This feature is essential in applications where data is frequently updated, ensuring long-term reliability and longevity of IoT and embedded devices. The low-latency and high-speed access of next-generation memory like MRAM and ReRAM enable in-memory computing, where data can be processed directly in memory without the need for frequent data transfers to the processor. This can enhance the efficiency of certain IoT and embedded applications. The compact size of MRAM and ReRAM memory cells allows for high-density memory storage in a small footprint, making them suitable for space-constrained embedded systems. MRAM and ReRAM's fast write speeds make them ideal for data logging and edge analytics applications, where real-time data processing and storage are crucial. AI and IoT integrated solutions are major users of such technologies. A non-volatile memory that supports fast writes and can be shut down fully but quickly restarted. MRAM is a good fit for IoT and AI use cases since it has better capacity, density, low power requirements, quick writing performance, and extremely low read latency.

Challenge: Higher design costs due to lack of standardized manufacturing processes

The next-generation memory market includes advanced non-volatile memory technologies such as 3D XPoint, MRAM, FRAM, and ReRAM. Most of these memories are in the stage of development or early commercialization and are expected to be produced in bulk in the next few years. Thus, unless these non-volatile memories are produced using standard manufacturing processes, the cost of designing them would be much higher compared to that of existing memories. On the other hand, the cost of competing memories such as DRAM, SRAM, and Flash is declining year-on-year. This poses a challenge for the growth of the market to some extent. Hence, to overcome this, standardized processes and advanced system designs are required to streamline production and reduce cost.

Next-Generation Memory Market Ecosystem

Next-Generation Memory Market Segmentation

Non-volatile memory segment to hold larger market share during the forecast period.

The non-volatile memory segment held a larger share of the market in 2022 and is expected to retain its dominant position throughout the forecast period. This can be attributed to the rising demand for faster, more effective, and cost-efficient memory solutions. Emerging memory technologies also overcome the limitations of traditional non-volatile memory devices pertaining to scalability, endurance, and other parameters. A huge amount of data is generated globally daily, creating the need for more effective storage solutions with large storage capacity. Non-volatile memory, such as ReRAM and STT-MRAM PCM, offers speed and performance comparable to volatile memory technologies such as DRAM and SRAM, along with higher storage densities. Additionally, the increasing demand for wearable electronics, high-performance computing, and replacement of Flash memory storage is also fueling the demand for emerging non-volatile memory technologies.

Volatile Memory Technologies Drive Next-Generation Memory Market Growth During Forecast Period

The market is experiencing rapid growth, fueled by the increasing demand for advanced memory technologies that offer faster access, lower power consumption, and higher storage capacities. Volatile memory technologies such as Hybrid Memory Cube (HMC) and High-bandwidth Memory (HBM) are driving this growth, as they provide high-speed data access and processing capabilities essential for applications such as artificial intelligence, machine learning, and edge computing. With the volatile memory segment expected to witness significant growth during the forecast period, driven by the increasing demand for high-performance memory solutions and the growing adoption of these applications, it is crucial for memory manufacturers to invest in research and development to improve the performance and efficiency of volatile memory technologies.

Enterprise storage segment account for the largest share of the next-generation memory market for during the forecast period

In 2022, the enterprise storage segment held the largest share of the market. The increasing need for data storage in data centers is creating demand for NGM technologies. In recent years, cloud storage has grown with the increasing use of cloud platforms containing some public as well as private data. To store such huge amounts of data, emerging memory technologies are mostly used. Data centers are considering the implementation of emerging memory technologies to keep pace with constant data growth and user productivity. Emerging memory technologies help improve performance and reduce the total cost of ownership (TCO).

300 mm wafer size segment to exhibit highest growth in terms of next-generation memory market during the forecast period

The 300 mm wafer size segment is expected to account for the highest growth of the market. Currently, the market share of 300 mm wafer size is greater than that of the 200 mm wafer size. This is because 300 mm wafers can hold twice as many dies per wafer as 200 mm wafers, resulting in a 2-4% lower IC cost per cm per year. Key players such as Micron Technology, Inc, SAMSUNG, and SK Hynix, Inc. are currently designing most of the memory technologies on 300 mm wafers.

Regional Analysis - Next-Generation Memory Market

Next-generation memory industry in Asia Pacific estimated to grow at the fastest rate during the forecast period

The market, in Asia Pacific is expected to grow at high CAGR during the forecast period. The market growth is propelled by burgeoning consumer demand, dynamic technological landscape, and robust manufacturing ecosystem. With the presence of major economies such as China, Japan, South Korea, and India which are rapidly advancing their semiconductor capabilities the region is poised to leverage its extensive expertise and resources to lead the development and adoption of next-generation memory solutions.

Next-Generation Memory Market by Region

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Next-Generation Memory Market Key Players

Major vendors in the next-generation memory companies include

• SAMSUNG (South Korea),
• KIOXIA Holdings Corporation (Japan),
• Micron Technology, Inc. (US),
• Fujitsu (Japan),
• SK Hynix Inc (South Korea),
• Honeywell International, Inc. (US),
• Winbond (Taiwan),
• Microchip Technology Inc. (US),
• Nanya Technology (Taiwan),
• Everspin Technologies (US).
• Macronix International Co., Ltd. (Macronix),
• Kingston Technology (US),
• Infineon Technologies AG (Germany),
• ROHM CO., LTD. (Japan),
• Nantero, Inc. (US),
• Crossbar Inc. (US),
• Viking Technology (US),
• Avalanche Technology (US) are among a few emerging companies in the next-generation memory market.

Next-Generation Memory Market Report Scope

Next-Generation Memory Market Highlights

This research report categorizes the next-generation memory market based on technology, wafer size, application, and region.

Recent Developments in Next-Generation Memory Industry

• In April 2023, SK Hynix Inc. (South Korea) became the industry’s first to develop a 12-layer HBM31 product with a 24 gigabyte (GB)2 memory capacity, currently the largest in the industry. The company succeeded in developing the 24 GB package product that increased the memory capacity by 50% from the previous product, following the mass production of the world’s first HBM3 in June 2022
• In May 2022,  Everspin Technologies Inc. (US) announced the launch of the STT-MRAM EMxxLX xSPI Family with densities ranging from 8 Mbit up to 64 Mbit.
• In March 2022, Fujitsu Semiconductor Memory Solution Limited (Japan) announced the launch of a 12Mbit ReRAM (Resistive Random Access Memory), MB85AS12MT, which is the largest density in Fujitsu’s ReRAM product family. The MB85AS12MT is a non-volatile memory with 12Mbit memory density and operates at a wide range of power supply voltage from 1.6V to 3.6V.

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