Automotive Memory Market Research Report and Outlook by 2028

The automotive memory sector is anticipated to grow significantly, reaching a value of US$ 14,652.8 million by 2028, up from US$ 2,937.7 million in 2021, reflecting a compound annual growth rate (CAGR) of 24.0% from 2022 to 2028.

In contemporary vehicles, automotive memory plays an essential role, particularly as vehicles are increasingly outfitted with various electronic systems, including telematics. The current automotive landscape is witnessing a heightened demand for on-board telematics, largely influenced by government regulations mandating their use. This surge in telematics demand is also fostering the integration of IoT-enabled devices within vehicles. To adapt to these technological advancements, automotive manufacturers are incorporating state-of-the-art technologies such as advanced driver assistance systems (ADAS) and predictive intelligence systems, which necessitate the use of automotive microcontrollers. These microcontrollers rely on integrated memory for data storage and transfer, and the rising demand for these functionalities is driving the need for automotive memory. Collectively, these elements are propelling the expansion of the global automotive memory market size.

Effects of the COVID-19 Pandemic on Automotive Memory Market Expansion
The COVID-19 pandemic has profoundly affected the automotive memory market, similar to many other sectors. The imposition of temporary lockdowns and travel restrictions across various nations significantly disrupted the manufacturing and sales of vehicles worldwide. Consequently, the demand for automotive memory saw a corresponding decline. Factors such as the closure of production facilities, reduced foot traffic in car showrooms, and temporary trade barriers led to a substantial drop in automobile sales, adversely impacting the automotive memory market participants. Furthermore, economic instability and workforce reductions worsened the decline in consumer purchasing power. Vendors and logistics companies anticipated further delays, potentially increasing the costs associated with sourcing components and shipping, which raised concerns for automotive memory manufacturers already grappling with a critical shortage of components, particularly semiconductors. This situation has resulted in production constraints despite the growing demand for vehicles. Nonetheless, the connected car sector is projected to experience robust growth due to its benefits, including enhanced safety, remote control capabilities, auto fault diagnosis, and other advanced technological features.

In the Asia Pacific region, China stands out as the leading market for automotive memory, being the largest consumer of electronics and automobiles. The growth of the automobile market in China is fueled by increased infrastructure investments and a rise in private vehicle ownership. India is also witnessing rapid advancements in the automotive memory sector. By 2025, the electric vehicle (EV) market in India is projected to reach a valuation of US$ 7.09 million, as reported by the Indian Brand Equity Foundation (IBEF). Between January and July 2021, investments in electric vehicles by manufacturers of EV components, commercial electric vehicles, and last-mile delivery services totaled US$ 3.67 million. Additionally, Power Global, a US-based startup focused on renewable energy and mobility products, announced plans to invest US$ 25 million in India over the next 2-3 years to establish a lithium-ion battery manufacturing facility and battery swapping infrastructure. In South Korea, domestic EV sales reached 71,006 units by the end of September 2021, a significant increase from 36,268 units sold during the same timeframe in 2020, according to the Korea Automotive Technology Institute. The burgeoning electric vehicle market in this region is expected to further stimulate the demand for automotive memory, thereby enhancing market growth.

The automotive memory market is on an upward trajectory, driven by the increasing adoption of fully electric and hybrid vehicles. This trend is accompanied by the rise of advanced driver assistance systems (ADAS), graphic instrument clusters (GIC), infotainment systems, and fully autonomous driving technologies. These innovations have created a demand for Electronic Control Units (ECUs), which are automotive computer controllers that process signals from sensors and send control commands to actuators. Companies within the automotive memory sector are actively developing new technologies tailored for the next generation of autonomous electric vehicles. For instance, Samsung Electronics, a leader in advanced memory technology, unveiled a series of innovative automotive memory solutions in 2021 aimed at next-generation autonomous electric vehicles. Such advancements are expected to further accelerate the growth of the automotive memory market.

Key players in the automotive memory market include Micron Technology, Inc., Sk Hynix, Toshiba Memory Corporation, Samsung Electronics Co., Ltd., and Western Digital Technologies, Inc. Some of these companies operate on a fabless model, outsourcing the manufacturing of their memory modules to semiconductor foundries.

The size of the automotive memory market has been determined through a blend of primary and secondary research methodologies. The research process began with comprehensive secondary research, utilizing both internal and external sources to gather qualitative and quantitative data relevant to the market. This data was then analyzed to provide an overview and forecast of the market size across all segments. Additionally, industry experts and commentators were consulted through multiple primary interviews to validate the findings and obtain further analytical insights. The primary interviewees included VPs, business development managers, market intelligence managers, national sales managers, external consultants such as valuation experts, research analysts, and key opinion leaders with specialized knowledge in the automotive memory sector.