automotive memory Market

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.

Automotive memory has become a crucial component in modern vehicles, as they are equipped with various electronic devices, including those for telematics. The automotive market is currently experiencing a surge in demand for on-board telematics, partly driven by several government regulations requiring their implementation. This increased demand for telematics also promotes the adoption of IoT-enabled devices in vehicles. To keep up with these advancements, automotive manufacturers equip their vehicles with cutting-edge technologies such as advanced driver assistance systems (ADAS) and predictive and self-intelligence systems, which require the use of an automotive microcontroller. Memory is integrated into automotive microcontrollers for data storage and transport, and the growing demand for such features contributes to an increase in the need for automotive memory. All of these factors collectively contribute to the growth of the global automotive memory market size.

Impact of COVID-19 Pandemic on Automotive Memory Market Growth
The COVID-19 pandemic has had a significant impact on the automotive memory market, as with many other industries. The temporary lockdowns and travel restrictions imposed by various countries worldwide strongly affected the manufacturing and sales of automobiles globally. As a result, the demand for automotive memory decreased proportionally. The closure of production sites decrease in car showroom footfall, and temporary trade restrictions all contributed to a major decline in automobile sales, which also impacted the business of automotive memory market players. Additionally, economic turmoil and layoffs aggravated the decreasing purchasing power of consumers. Vendors and logistic businesses predict further delays that may drive up the cost of sourcing components and shipping, causing concern for automotive memory manufacturers who are already dealing with a severe shortage of components, including semiconductors. This has led to production limitations despite the rising demand for automobiles. Nevertheless, the connected car industry is expected to witness good growth rates due to its advantages, including secure driving, remote control, auto fault diagnosis, and other advanced technological features.

China is the leading market for automotive memory in the Asia Pacific region due to its position as the largest consumer of electronics and automobiles. The country's automobile market is growing due to increased investment in infrastructure and rising ownership of private vehicles. India is also experiencing rapid growth in the automotive memory market. By 2025, the electric vehicle (EV) industry in India is expected to be valued at US$ 7.09 million, according to the Indian Brand Equity Foundation (IBEF). Between January and July 2021, EV component manufacturers, commercial electric vehicles, and last-mile delivery companies invested a total of US$ 3.67 million in electric vehicles. Additionally, Power Global, a US-based renewable energy and mobility products start-up, announced plans to invest US$ 25 million in India over the next 2-3 years to establish a lithium-ion battery manufacturing unit and battery swapping infrastructure. In South Korea, the total domestic EV sales up to the end of September 2021 was 71,006 units, up from 36,268 units sold during the same period in 2020, according to the Korea Automotive Technology Institute. The growing electric vehicle industry in the region is expected to drive demand for automotive memory, promoting the market's growth in the region.

The automotive memory market is experiencing growth due to the increasing popularity of fully electric vehicles (EVs) and hybrid vehicles. This trend is accompanied by the emergence of advanced driver assistance systems (ADAS), graphic instrument clusters (GIC), infotainment systems, and fully autonomous driving solutions. These developments created a need for Electronic Control Units (ECUs), which are automotive computer controllers used to receive and process signals from sensors and export control commands to the actuator to execute. Companies in the automotive memory market are now developing new technologies for the next generation of autonomous electric vehicles. For example, Samsung Electronics, a global leader in advanced memory technology, announced a range of cutting-edge automotive memory solutions in 2021 for next-generation autonomous electric vehicles. Such developments are expected to further boost the growth of the automotive memory market.

Micron Technology, Inc., Sk Hynix, Toshiba Memory Corporation, Samsung Electronics Co., Ltd., and Western Digital Technologies, Inc. are a few key automotive memory market players. Some players operate in a fabless model, and hence semiconductor foundries are contracted to manufacture their memory modules.

The automotive memory market size has been determined through a combination of primary and secondary research. The research process commenced with extensive secondary research utilizing both internal and external sources to collect qualitative and quantitative information pertaining to the market. The collected data was used to provide an overview and forecast of the market size for all market segments. Additionally, industry experts and commentators were interviewed through multiple primary interviews to validate the data and gather further analytical insights. The primary interviewees consisted of VPs, business development managers, market intelligence managers, national sales managers, external consultants such as valuation experts, research analysts, and key opinion leaders with specialized knowledge in the automotive memory market.