The global automotive memory market is estimated to generate around $11 billion by 2024, growing at a CAGR of approximately 24% during 2018-2024. The installation of hybrid and electric drivetrains controlled by multiple sensors and computer systems is propelling the growth of the global automotive memory market. These systems are designed to control engine temperature, suspension, steering control, acceleration/deceleration of the vehicle, and automotive lighting systems. The increasing number of technological advancements in automotive electronics and wireless technologies is fueling the development of the automotive industry. The growing demand for connectivity and rapid data transfers propels the advances in communication networks for vehicles in the global market. The rapid changes in consumer preferences encourage the OEMs to introduce systems that will offer a better driving experience to the end-users.
The expansion of automotive telematics services and the development of next-generation communication systems such as vehicle-to-infrastructure communication (V2I) and vehicle-to-vehicle communication (V2V) will attribute to the revenues in the global market. The expanding portfolio of the software-driven features in cars contributes to the demand for innovative products in the worldwide market. The exponential use of microprocessors, DSPs, and flash storage in vehicles is augmenting the growth of the market. The integration of technology such as ADAS, telematics, and the autonomous driving platform drives the demand for DRAM, NAND flash, NOR flash, and SSD storage solutions across the automotive industry. The need for embedded telematics systems that promote personalization, maintenance, and in-car entertainment for consumers will positively impact the growth of the global automotive memory market.
The increasing requirement of fast booting in modern vehicles through the use of infotainment systems and engine control is leading to the popularity of NOR flash in the global market. The introduction of next-generation instrument clusters that enable the display HD content and stream music/video will contribute to the need for DRAM, NAND, and NOR memory in the market.
AUTOMOTIVE MEMORY MARKET DYNAMICS
The growing use of advanced sensors and cloud technology in vehicles augments the transformation of the global automotive memory market. The increasing number of road accidents and fatal injuries leads to the establishment of stringent safety regulations in the worldwide market. The integration of safety electronics, including passive safety features such as seatbelts, airbags, more robust chassis, and electronic and sensor-guided features such as rearview displays, blind-spot displays, braking systems, traction control, and obstacle identifiers will boost the development of the automotive industry. The growing demand for integrating more sensors in automobiles to make them intelligent and automated will create lucrative opportunities for leading vendors operating globally. The use of sensor-based technologies will enable recognition of road signs, collision avoiding maneuvers, driver face-expression detection, pre-crash deployment of airbags and seatbelts, automated space detection and parking, and obstacle detection and automated response. The development of sensor-enabled safety electronics will revolutionize the global automotive memory market.
AUTOMOTIVE MEMORY MARKET – BY PRODUCT
The use of DRAM enables the smooth functioning of HD displays and heads-up displays in the global automotive memory market.
The global automotive memory market by product is segmented into DRAM, NAND, NOR, and others. The DRAM segment dominated more than half of the total market share in 2018, growing at a CAGR of around 24% during the forecast period. The introduction of ADAS, infotainment, multi-camera vision processing, and self-driving cars driving the computing needs drive the demand for DRAM in the global market. The shift from mechanical components to electronics to reduce emissions will transform the automotive industry during the forecast period. The introduction of stringent safety regulations that play a crucial role in driver safety will boost the demand for innovative software solutions. The development of DRAM enables HD displays for instrumentation and head-up displays, driving efficient and quick decision making in the global automotive memory market. The increasing number of OEMs investing in R&D activities will contribute to the development of the market.
The development of 3D NAND storage is expected to meet the stringent requirements demanded by next-generation vehicles in the global market. NOR flash can operate in extreme conditions and are more rugged than other storage solutions in the market. The introduction of MCP (multichip package) and HDD will revolutionize the global automotive memory market over the next few years.
AUTOMOTIVE MEMORY MARKET – BY APPLICATION
The introduction of cameras, night vision devices, and LiDAR will drive the demand for ADAS in the global automotive memory market.
The application segment in the global automotive memory market is divided into infotainment & connectivity, instrument cluster, powertrain, ADAS, and others. ADAS is the fastest-growing application segment globally, at a CAGR of around 25% during the forecast period. The increasing number of road accidents led to the introduction of stringent safety regulations and propelled the demand for ADAS in the global market. The growing use of passive safety systems and driver-assist systems to minimize damages in the case of unavoidable collisions will attribute to the demand for innovative storage solutions in the global market. For instance, a combination of radar and video camera in the windshield can sense that a collision is unavoidable and pre-condition the passive systems. The exponential developments in the autonomous driving platform will encourage the vendors to introduce new products in the market. The integration of various sensors such as cameras, night vision devices, and LiDAR will contribute to the growth of this segment in the global automotive memory market.
The growing demand for in-vehicle entertainment and telematics services will boost the need for infotainment and connectivity solutions in the global market. The installation of next-generation instrument clusters displaying information graphical gauge readouts on large, high-resolution color displays results in increasing the demand for onboard storage and data processing in the market. The integration of the powertrain will ensure fuel efficiency and improve the average fuel economy in the global automotive memory market.
AUTOMOTIVE MEMORY MARKET – BY VEHICLE
Stringent safety regulations will drive the demand for storage solutions for passenger cars in the global automotive memory market.
The global automotive memory market by vehicle is classified into passenger cars and commercial vehicles. The passenger car segment occupied the largest market share in 2018, growing at a CAGR of more than 22% during the forecast period. The establishment of stringent safety regulations leads to the integration of next-generation electronics sensors that are developed in sync with ADAS technology in the passenger car segment in the global market. The technological advancements in ADASare creating lucrative opportunities for the leading vendors operating in the market. Regulatory mandates encourage the OEMs to install electronic stability control (ESC), tire pressure monitoring systems (TPMS), driver seat belt indicators, and gear shift indicators in passenger cars in the global market. The electrification of automotive components will contribute to the revenues in the global automotive memory market.
Powertrain and chassis systems, body electronics, safety and security systems, telematics, and infotainment systems are emerging as the most critical components in the commercial vehicle segment. The popularity of electric and hybrid vehicles will drive DRAM and NAND based memory modules in the global automotive memory market.
AUTOMOTIVE MEMORY MARKET – BY GEOGRAPHY
US, Canada, and Mexico contribute the maximum revenues across the North American region in the global automotive memory market.
The geographical segment in the global automotive memory market is categorized into APAC, Europe, North America, Latin America, and MEA. North America is the fastest-growing region globally, at a CAGR of over 24% during the forecast period. The presence of innovative companies such as Waymo, Nvidia, Deepscale, Nauto, and drive.ai drives the growth of the North American region in the global market. Mexico has emerged as the new manufacturing center and has attracted a massive influx of investments for capacity expansion of existing facilities or new facility set-up. Leading vendors such as Volkswagen, Mazda, Honda, Audi, and Nissan are investing billions of dollars in developing the Mexican region in the North American market. The growing demand for electric and connected vehicles and the increasing popularity of autonomous vehicle platforms will propel the development of the North American region. The US, Canada, and Mexico are the largest revenue generators in North America and is boosting the region’s share in the global automotive memory market.
The increasing demand from the passenger and commercial vehicle sector drive the adoption of storage solutions in the APAC market. European regulations mandating ADAS features such as lane departure warning systems (LDWS), autonomous emergency braking systems (AEBS), electronic stability control (ESC), and telematics features such as eCall will drive the growth of the global automotive memory market.
KEY VENDOR ANALYSIS
The global automotive memory market is witnessing the presence of several players that compete on a price basis. The stringent safety and emission norms encourage vendors to diversify their product portfolio to reach the maximum number of consumers in the global market. The presence of international and domestic OEMs that often compete in terms of prices and product differentiation intensifies the competition in the market. The leading manufacturers are expanding their businesses to emerging nations to reach the maximum number of consumers and boost their profitability in the global automotive memory market.
The major vendors in the global market are:
- Micron Technology
- Cypress Semiconductor
- Integrated Silicon Solution
The automotive memory market research report includes in-depth coverage of the industry analysis with revenue and forecast insights for the following segments:
- Infotainment & Connectivity
- Instrument Cluster
- Passenger Cars
- Commercial Vehicles
- North America
- Latin America
- Middle East & Africa