Automotive Memory Market Size, Share & Trends Growth [2031]

Report Description

The global automotive memory market size was USD 3.7 Bn in 2022 and is likely to reach USD 25.1 Bn by 2031, expanding at a CAGR of 23.7% during 2023–2031. The market growth is attributed to the ­­increasing adoption of advanced driver assistant systems (ADAS) and increasing demand for electrical vehicles (EVs).

Automotive memory is used for data storage, accessing, and transferring solutions which are similar to commercial memory in function but perform different operations in vehicles. It is used in smart vehicles for improved transportation experience and also for personal purposes including accessing entertainment or infotainment.

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The surging popularity of advanced technology-enabled vehicles and concern about the environmental damage caused by fossil fuel-based automobiles are resulting in the purchase of electric vehicles worldwide. EVs 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) such factors create opportunities for market players. For instance, Samsung Electronics, a renowned global leader in advanced memory technology unveiled a diverse array of cutting-edge automotive memory solutions for next-generation autonomous EVs in 2021.

Microcontrollers in automotive memory systems enable real-time data processing. They are responsible for safety and data factors such as error checking, data storage, and transfer. Microcontrollers perform calculations, execute algorithms, and process sensor data directly within the memory subsystem.

• For instance, In March 2022, Phison Electronics, a leading provider of NAND flash device controllers, achieved ISO 26262 certification for automotive functional safety and development processes. This certification has positioned the company to expand its presence in the global vehicle storage industry.

Such technologies have significantly contributed to the growing demand for automotive memory solutions. As the automotive industry continues to embrace autonomous and electric vehicle technologies, the need for advanced memory solutions plays a pivotal role in shaping the future of the automotive industry. 

The COVID-19 pandemic negatively impacted the automotive memory market. The pandemic has disrupted the global supply chain of raw materials required for automotive memory production. Automotive memory manufacturers faced challenges in maintaining production levels, leading to a slowdown in the supply chain and a delay in deliveries. This affected the availability of memory components for automotive manufacturers. Automotive sales declined due to economic uncertainties and the lockdown measures; consumer spending was also limited.

Automotive Memory Market Dynamics

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Key Trends

Increasing popularity of electrical vehicles (EVs) and hybrid electric vehicles (HEVs) is one of the key trends in the automotive memory market. EVs require memory for managing battery systems, powertrain control, electric motor control, and other functions. According to International Energy Agency, in 2022, more than 10 million electric car units were sold. EV sales are expected to reach 14 million in 2023, a 35% rise over last year’s numbers.

Major Drivers

Growing data storage requirements in automobiles is one of the major factors driving the automotive memory market. The proliferation of connected cars is increasing the volume of data generated and processed by vehicles. Automotive memory applications are several in modern vehicles including driving assistance, infotainment, instrument cluster, and others.

The rising development of autonomous driving technologies depends on memory solutions, which are expected to propel the market in the coming years. Autonomous vehicles generate and process a massive amount of data, including sensor inputs, mapping data, real-time analysis, and decision-making algorithms. Memory is essential for storing and accessing this data quickly and efficiently.

Existing Restraints

Increasing costs constrain restrains the automotive memory market. The cost of manufacturing memory components and modules is rising due to factors such as increasing prices of raw materials and production processes.

Automotive manufacturers typically require long-term support and warranty for memory solutions used in their vehicles. This includes maintaining a consistent supply of memory components over an extended period and providing warranty coverage. These are some of the factors likely to hamper the market.

Emerging Opportunities

Increasing connectivity and the data-driven nature of vehicles and the need for ensuring data security and privacy are expected to create lucrative opportunities for the market. Automotive memory solution which offers robust security features, such as hardware encryption, ensures rapid boot, and secure storage. Increasing their development and manufacture is projected to create opportunities for the market players.

Increasing use of cloud technology and advanced sensors in vehicles is anticipated to create opportunities for the automotive memory market. Modern Vehicles are prepared with advanced sensors including those used in ADAS. These sensors generate vast amounts of data related to the vehicle's surroundings, including proximity, lane detection, and object recognition.

With cloud technology, vehicles are able to effectively process and analyze data in real-time, vehicles involve memory solutions with high speed and bandwidth. Cloud technology allows for seamless data transfer between the vehicle and the cloud and helps to enable real-time access to services and information. Cloud data storage also helps in machine learning enabling intelligent decision-making in vehicles.

Scope of the Automotive Memory Market Report

The market report includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Automotive Memory Market Segment Insights

Based on vehicle, the automotive memory market is divided into passenger cars and commercial vehicles. The passenger cars segment is expected to expand at a major growth rate during the projection period due to increasing demand for advanced new technologies such as automotive telematics.

Automotive telematics technology includes the integration of telecommunication and information technologies in vehicles. The telematics system allows real-time tracking of passenger cars and provides accurate location information.

In modern passenger vehicles, telematics plays a crucial role in enhancing vehicle safety and security. It enables features such as automatic crash notification, emergency assistance for stolen vehicle tracking, and immobilization of vehicles.

On the basis of type, the global market is segregated into Flash, SRAM, NAND, and NOR. The NOR segment is projected to register a considerable CAGR during the forecast period due to increasing requirements for fast-boosting solutions in modern vehicles.  It is required for the efficient use of automotive infotainment systems and engine control units.

NOR flash memory offers fast boosting and quick response time which is ideal for the engine control unit. The ability to quickly access and retrieve data is essential for these systems to provide seamless user experience and efficient performance.

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On the basis of application, the automotive memory market is segmented into ADAS and infotainment. The ADAS segment is expected to register a robust growth rate during the forecast period due to the increasing number of road accidents that are leading to the implementation of stringent safety regulations.

ADAS technologies such as lane departure warning, forward collision warning, and blind detection, are designed to prevent accidents. These systems use sensors and cameras to monitor the vehicle’s surroundings.

ADAS technologies result in improving road safety, studies showed a reduction in the severity of accidents when vehicles are equipped with ADAS features. Advanced driver assistant systems instantly save the data for misplaced events or system failures.

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Regional Outlook

In terms of region, the global automotive memory market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to dominate the market during the projection period due to significant automotive industry presence and increasing adoption of technological innovation in automobiles.

North America has a robust automotive industry with major manufacturers, suppliers, and technology companies operating in the region. There is significant innovation in electric and autonomous vehicle technologies. Companies based in the region, including Tesla, have played a pivotal role in propelling the adoption of advanced electric vehicle technology.

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