According to the new research report on "Automotive Memory Market Forecast to 2028 - COVID-19 Impact and Global Analysis," published by The Insight Partners, the market is expected to reach US$ 14,652.8 million by 2028, registering a CAGR of 24.0% from 2022 to 2028.
Europe comprises of established economies like France, Germany, Russia, the UK, and Italy, among others. Leading global automotive manufacturers, such as Germany, France, and Italy, are situated in these countries. They are significant consumers of automotive memory and have been increasingly incorporating such memory into vehicles. The integration of automotive telematics in electric vehicles in Europe is projected to fuel the growth of the automotive memory market in the future. For instance, Continental announced in July 2020 that two major European vehicle manufacturers had chosen the company to provide innovative telematics and antenna systems. These initiatives are based on the company's 5G Hybrid V2X platform, which offers scalability and flexibility. Therefore, with the continued advancement of automotive technology, the automotive memory market is expected to expand.
The COVID-19 pandemic had a severe impact on the automotive memory market, causing a significant decrease in demand. Most players in the industry reported a substantial decline in revenue due to the temporary closure of manufacturing facilities, which hindered regular business operations. Additionally, the situation was aggravated by higher semiconductor prices and disrupted supply chains. Other factors that contributed to the diminished growth of the automotive memory market included a shortage of labor, risk of contamination, and lack of funds. Most European governments focused on combating the pandemic, with citizens advised to stay indoors, resulting in a significant decline in automotive production, sales, registration, and the sale of aftermarket parts. These factors negatively affected the automotive memory market size in Europe.
The COVID-19 pandemic had varying impacts on different European countries, with some experiencing a surge in recorded cases, resulting in extended periods of strict lockdown or social isolation measures. Germany, Italy, the UK, Russia, France, and Turkey were among the most affected by various restrictions and limitations. However, since the fourth quarter of 2020, automotive manufacturing has been gradually resuming, and there is an increasing use of automotive memory products. Therefore, it is expected that in the next few years, the growth of the automotive memory market will recover to pre-COVID levels.
The segmentation of the automotive memory market is based on three factors, namely product, vehicle type, and application. The product category includes DRAM, NAND, SRAM, and other types of memory. Within the NAND category, the Low Density SLC NAND Flash Memory Type is further divided into four sub-segments, namely 8Gbit, 4Gbit, 2Gbit, and others. The vehicle type segment includes passenger and commercial vehicles. Lastly, the application segment is divided into three sub-categories, namely infotainment & activity, ADAS, and others.
The top five global automotive memory market players include Micron Technology, Inc., Sk Hynix, Toshiba Memory Corporation, Samsung Electronics Co., Ltd., and Western Digital Technologies, Inc. in 2021. The positioning of these "Five Key Players" is derived by giving weightage to the following key performance parameters: overall revenue, segment revenue, geographical reach, customer base, new product launches, market initiatives, investment in technology up-gradation, R&D investments, mergers & acquisitions, and other market-related activities. Other notable automotive memory market players profiled in the global automotive memory market are Infineon Technologies AG; Macronix International Co.; Integrated silicon Solution, Inc.; Renesas Corporation; Qualcomm Technologies, Inc.; MediaTek, Inc.; STMicroelectronics; Nanya Technology; Texas Instruments Inc. and Windbond Electronics Corp. amongst others.
Key Findings of Market Study:
The global automotive memory market value chain comprises stakeholders such as R&D, manufacturing, marketing & sales, and end-users. R&D expenses are dependent on factors such as the extent of research and pre-qualification wafer processing, labor costs, and investment in advanced equipment for product and process development, such as EUV lithography equipment. A product is considered finished once it has passed internal reviews and tests for performance, functionality, and reliability. The cost of R&D can vary greatly depending on when a product is qualified. Multiple sources are typically used to obtain materials and services, but only a small number of suppliers can produce standards-compliant materials and services. In some cases, materials, components, or services may be offered by a single or sole source. Wafer fabrication, assembly, and testing are complex phases involved in automotive memory manufacturing, and wafer fabrication is carried out in a controlled, clean environment to avoid yield loss due to impurities. Automotive memories are sold to end-users through various channels, including direct sales channels such as websites, broad sales and applications teams, and distributors.
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