Automotive Memory Chip Market Size, Share, Growth, and Industry Analysis, By Type (DRAM, NOR, NAND, SRAM, and EEPROM), By Application (Car Infotainment System, Advanced Driver Assistance System, Remote Information Control Unit, and Digital Instrument Panel) Regional Forecast to 2032

Updated On: 22 April 2024

REPORT OVERVIEW

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The global automotive memory chip market size was in USD 5130.5 million 2022. As per our research, the automotive memory chip market is expected to reach USD 10720 million by 2028, exhibiting a CAGR of 13.1% during the forecast period. The COVID-19 pandemic has been unprecedented and staggering, with experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden decline in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The automotive memory chip market encompasses a division of the semiconductor industry that focuses on creating automotive memory chips or integrated circuits intended for vehicle use. These automotive memory chips have a vital function in storing and overseeing data across diverse automotive systems and parts. They constitute a fundamental element of contemporary vehicles, significantly enhancing their overall functionality, efficiency, and safety.

COVID-19 Impact: Increasing Demand for Connected Cars among Population to Fuel Market Growth

The COVID-19 pandemic expedited the desire for connected vehicles and electric cars, driven by a preference for personalized and touchless transportation solutions. This surge in demand further amplified the requirement for sophisticated automotive memory chips, essential for meeting the elevated connectivity and data processing needs. Global manufacturing processes experienced disturbances due to lockdowns, restrictions, and labor shortages, which subsequently impacted the manufacturing of automotive memory chips. As a result, there were shortages in supply and delays in meeting the demands of the automotive memory chip market.

LATEST TRENDS

"Increasing Demand for AI and ADAS, and Transition to Electric Vehicles to Fuel Market Growth "

The surging demand for AI (Artificial Intelligence) and ADAS (Advanced Driver Assistance Systems) in the automotive sector stems from the drive to achieve safer, more efficient, and progressively autonomous vehicles. ADAS encompasses technologies like adaptive cruise control, lane departure warning, and automatic emergency braking, among others. These systems depend on sensors, including cameras, LiDAR, and radar, to gather real-time data about the vehicle's environment. AI algorithms then analyze this data to make well-informed decisions regarding vehicle control, enhancing safety and the driving experience. The pursuit of autonomous driving heavily relies on AI. To facilitate real-time decision-making in autonomous systems, automotive memory chips are indispensable for swiftly storing and accessing extensive data volumes. These automotive memory chips empower vehicles to process information concerning factors like road conditions, traffic flow, and pedestrian movement, enabling them to navigate securely without human intervention. The transition to electric vehicles introduces fresh demands for automotive memory chips, essential for tasks like overseeing battery management, regulating power distribution, and managing charging systems. Additionally, sophisticated memory solutions are vital in optimizing performance and controlling energy consumption in EVs.

SEGMENTATION

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• By Type

Based on Type automotive memory chip market is classified as DRAM, NOR, NAND, SRAM, and EEPROM.

• By Application

Based on Application automotive memory chip market is classified as Car Infotainment System, Advanced Driver Assistance System, Remote Information Control Unit, and Digital Instrument Panel.

DRIVING FACTORS

"Advancements in Vehicle Technologies to Fuel Market Growth "

The ongoing advancement of vehicle technologies, encompassing electric vehicles (EVs), autonomous driving, and connected cars, drives the demand for increasingly advanced memory chips to accommodate improved features and heightened performance, contributing to the substantial automotive memory chip market growth. This progress in vehicle technologies serves as a significant catalyst for automotive memory chip market expansion, owing to its substantial influence on the capabilities and functionalities of vehicles.

"Growing Connectivity to Stimulate Market Progress"

The substantial growth of connectivity plays a pivotal role in propelling the automotive memory chip market, owing to its revolutionary influence on vehicle communication, entertainment, safety, and the exchange of data. The shift towards augmented connectivity among vehicles, infrastructure, and the wider digital ecosystem bears significant consequences for the demand and advancement of automotive memory chips.

RESTRAINING FACTORS

"Supply Chain Disruptions to Harm Market Growth "

The global semiconductor shortage, disruptions in the supply chain encompassing scarcities of essential materials, manufacturing complexities, and geopolitical uncertainties, can result in diminished production capacities and postpone the delivery of automotive memory chips to the automotive memory chip market.

REGIONAL INSIGHTS

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"North America emerged as a prominent participant due to its advanced automotive technologies to Drive Market Share"

The automotive memory chip market represents a crucial sector within the larger automotive electronics industry, providing essential support for a range of applications such as infotainment systems, advanced driver assistance systems (ADAS), and navigation systems. Memory chips play a pivotal role in facilitating data storage and processing to enable these functions. Noteworthy is North America's emergence as a prominent contender in this market, driven by its advanced automotive technologies and the robust presence of both automobile manufacturers and technology firms. This region's pronounced focus on ADAS, autonomous driving capabilities, and interconnected vehicles has led to an increased demand for high-performance automotive memory chips.

When considering the automotive memory chip market share, it becomes evident that North America has carved out a substantial portion due to its emphasis on technological advancements and innovation. Companies headquartered in the United States and Canada have proactively directed investments into research and development to uphold their competitiveness within this dynamic landscape. This strategic approach has enabled them to gain a considerable share of the automotive memory chip market, capitalizing on the evolving requirements of modern vehicles and their intricate electronic systems.

KEY INDUSTRY PLAYERS

"Multitude of companies played a pivotal role in providing memory solutions"

Several prominent industry participants have been actively engaged in the automotive memory chip market. Samsung, a significant figure in the semiconductor sector, has been instrumental in manufacturing a diverse array of automotive memory chips, including those tailored for automotive use. Their memory solutions find widespread application across different automotive systems, encompassing functions like infotainment, ADAS, and more.

List of Market Players Profiled

• Micron (U.S.)
• Samsung (South Korea)
• SK hynix (South Korea)

REPORT COVERAGE

The future demand for the automotive memory chip market is covered in this study. The Research report includes the Impact of Increasing Demand for Connected Cars due to the Covid-19 Impact. The report covers the latest trends in Increasing Demand for AI and ADAS. The paper includes a segmentation of the automotive memory chip market. The research paper includes the driving factors that are Advancements in Vehicle Technologies to Fuel Market Growth. The report also covers information on Regional Insights where the region which has emerged leading market for automotive memory chips.