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 an important aspect of any modern-day vehicle.Most modern vehicles are fitted with various electronic devices, including those for telematics.
The automotive market is witnessing a surging demand for on-board telematics.It is partly fuelled by several government regulations requiring the same.
Such demand for telematics also promotes the adoption of IoT-enabled devices in vehicles.Automotive manufacturers fit their vehicles with cutting-edge technologies such as advanced driver assistance systems (ADAS) and predictive and self-intelligence systems.
All of these functions necessitate the use of an automotive microcontroller. Memory is built 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. These factors collectively drive the growth of the automotive memory market size globally.
Impact of COVID-19 Pandemic on Automotive Memory Market Growth
The pandemic has wreaked havoc on various industry verticals regarding business and operational factors, including the worldwide automotive memory market players.Countries worldwide announced temporary lockdown and travel restrictions when the World Health Organization (WHO) labeled the coronavirus outbreak pandemic.
Such restrictions, while hindering the movement of people, strongly affected the manufacturing and sales of automobiles globally.As a result of the lower vehicle demand in 2020, the demand for automotive memory decreased proportionally.
Automobile and components production sites had to be closed worldwide, footfall in car showrooms plummeted, and governments in various regions started placing temporary trade restrictions.Such factors also resulted in a major decline in high growth countries’ automobile sales.
Economic turmoil and layoffs aggravated the decreasing purchasing power of consumers, which also impacted automobile sales globally. Collectively, all such factors strongly hampered the business of automotive memory market players. Further delays are expected, according to vendors and logistic businesses, which might drive up the cost of sourcing components and shipping. While some companies have good stock in hand or have increased their sourcing, automotive memory manufacturers are concerned about avoiding further disruptions to the supply chain since they are already dealing with a severe shortage of components, including semiconductors. This has forced them to limit production despite the rising demand for automobiles. Even after the COVID-19 pandemic, the connected car industry is expected to witness good growth rates because of its advantages. It includes secure driving, remote control, auto fault diagnosis, and other more advanced technological features.
China accounts for the largest automotive memory market in Asia Pacific.The country is the largest consumer of electronics and automobiles.
Growing investment in infrastructure coupled with rising ownership of private vehicles is some of the factors driving the automobile market in the country.India is witnessing one of the fastest growth rates in the automotive memory market.
By 2025, India’s electric vehicle (EV) industry is expected to be worth US$ 7.09 Million, according to the Indian Brand Equity Foundation (IBEF) data. EV component manufacturers, commercial vehicles, and last-mile delivery companies invested a total of US$ 3.67 Million in electric vehicles. EV component manufacturers, commercial electric vehicles, and last-mile delivery companies invested a total of US$ 3.67 Million in electric vehicles between January and July 2021. Furthermore, 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, total domestic EV sales up to the end of September 2021 totaled 71,006 units, up from 36,268 units sold during the same period in 2020, according to the Korea Automotive Technology Institute. With the rising electric vehicle industry in the region, demand for automotive is expected to expand. Such factors promote the growth of the automotive memory market size in the region.
The surge in fully electric vehicles (EV) and hybrid vehicles, accompanied by the emergence of ADAS, Graphic Instrument Cluster (GIC), infotainment systems, and fully autonomous driving solutions, created a need for Electronic Control Units (ECU) – 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 coming up with new technologies for next-generation autonomous electric vehicles.
For instance, in 2021, Samsung Electronics, a global pioneer in advanced memory technology, announced a broad range of cutting-edge automotive memory solutions for next-generation autonomous electric vehicles. Such developments are expected to boost the automotive memory market growth.
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 overall automotive memory market size has been derived using both primary and secondary sources.To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market.
The process also obtains an overview and forecast of the Automotive Memory market size with respect to all market segments.Also, industry participants and commentators have conducted multiple primary interviews to validate the data and gain more analytical insights.
Participants in this process include VPs, business development managers, market intelligence managers, national sales managers, external consultants such as valuation experts, research analysts, and key opinion leaders, specializing in the automotive memory market.
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