The global memory semiconductor market for automotive industry is projected to grow at a CAGR of 7.15% to reach US$7.391 billion by 2030, from US$5.233 billion in 2025.
Semiconductors are used in the manufacture of chips for electronic devices. In the semiconductor chip, every bit of binary data is stored in a tiny circuit known as a memory cell, which consists of several transistors. It is used in computer memory as digital data storage. A commonality among semiconductors is the property of random access, which means that they take the same amount of time to access any memory location, allowing data to be efficiently accessed in any random order. Due to increasing disposable income, rapid urbanization, and modernization, the audience is upgrading its standard of living. Therefore, vehicles have become a status symbol, and a surge in demand for vehicles has been witnessed. Furthermore, the production of cars is expanding. The growing trend of vehicle electrification and better safety features is likely to increase semiconductor demand in this market. As the demand for hybrid and electric vehicles grows, semiconductors will see increased utilization in this industry throughout the anticipated time.
Memory semiconductors are in demand across various industries such as consumer electronics, automation, telecommunication, and information technology. The memory semiconductor market can be classified into two main categories broadly-ROM (read-only memory) and RAM (random-access memory). For temporary data storage, mainly RAM is used, and for more semi-permanent storage, ROM is recommended to be used. ROM is classified into EPROM (erasable programmable ROM), PROM (programmable ROM), and flash memory. RAM is further segmented into SRAM (static RAM), DRAM (dynamic RAM), SDRAM (synchronous dynamic RAM), and MRAM (magnetic RAM). The era of advanced technology and increasing usage of Artificial Intelligence has been positively impacting the demand for the memory semiconductor market for the automotive industry.
This is bolstered further by an increase in demand for feature-rich automobiles that are pleasant and safe. Demand for semiconductor wafers was driven by 3D mapping applications, the introduction of electric cars, electrification, and automobile automation. They require the newest technology-featured semiconductors for navigation control, entertainment systems, and collision detection, which is increasing market demand. Advanced technologies employed in matrix-led lighting, upgraded LiDAR sensors, Advanced Driver Assistance Systems, and augmented reality technology, such as head-up display, are all contributing to the increase.
The growing demand for error-free software that runs on efficient hardware is leading the automobile sector to reinvent automobile solutions from a semiconductor standpoint. Furthermore, rising customer demand for connected and automated automobiles to provide a better experience drives industry growth. The increase in middle-class family income is driving demand for passenger autos and private cars. Intelligent recent versions of semiconductor devices include blind-spot detection systems, backup cameras, accident sensors, intelligent traffic controls, lane-change aid, airbag deployment sensors, and emergency stop systems. In the automobile sector, semiconductors are used to operate the fail-safe mechanism, manage electrical control unit operations, and automotive fault-tolerant technologies, which handle vehicle defects such as anti-lock brake control, accelerator, and damaged starting motor.
Memory Semiconductor Market for Automotive Industry Segmentation: