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The NAND flash market size is estimated to increase by USD 24 billion and grow at a CAGR of 6.51% between 2022 and 2027. Market expansion hinges on various factors, notably the surge in investments in fabrication facilities, the burgeoning market driven by edge storage, and the increasing demand for high-density storage to bolster smartphone functionalities. However, the market contends with challenges such as the volatility in demand and supply, the soaring appeal of online streaming platforms, and the presence of viable substitutes. Despite these hurdles, the landscape continues to evolve, propelled by the relentless pursuit of innovation and the persistent demand for cutting-edge storage solutions. As technology advances and consumer needs evolve, the industry must navigate these challenges adeptly to capitalize on emerging opportunities and sustain its upward trajectory in the dynamic marketplace.
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This market report extensively covers market segmentation by application (smartphones, SSDs, memory cards, and others), type (3D NAND and 2D NAND), technology (TLC, MLC, and SLC), and geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
The market share growth by the smartphones segment will be significant during the forecast period. The proliferation of low-cost smartphones and rising investments in telecommunication network infrastructure are increasing the penetration of the Internet across the world.
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The smartphones segment was valued at USD 22.48 billion in 2017 and continued to grow until 2021. In April 2023, the number of global smartphone users reached 5.48 billion, according to the GSM Association (GSMA). The rising penetration of smartphones and the availability of high-speed Internet connectivity worldwide are increasing the volume of generated data significantly, including audio, video, text, and encrypted data blocks. Therefore, the demand for high-capacity memory modules is rising.
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APAC is estimated to contribute 59% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The increasing penetration of smartphones in the region is leading to the emergence of several smartphone manufacturers. China, which is the largest smartphone market in APAC, is witnessing the increasing penetration of smartphones. The high penetration of the Internet in APAC and the focus on the development of telecommunication network infrastructure are encouraging domestic companies to launch innovative products such as these memory cards.
As a result, domestic companies in China, such as Xiaomi, are competing intensely with major smartphone companies, such as Apple. Domestic smartphone manufacturers, such as Huawei Technologies and Xiaomi, manufacture smartphones that provide almost the same specifications and memory capacity as Apple and Samsung Electronics in their smartphones. However, they offer their products at a much lower cost, which attracts price-sensitive customers in the region. To capitalize on the high growth opportunities in the smartphone market in APAC, smartphone OEMs are expanding their production capacity in the region.
The market experiences robust growth driven by high demand from modern consumers and edge storage requirements. NAND flash consumption surges across various sectors, including consumer electronics, tablets, and cameras. With 3D NAND technology leading innovation, NAND Flash emerges as a pivotal component, supported by memory packaging advancements and increased production capacity utilization. However, challenges like low supply persist, urging NAND manufacturers to invest in fabrication facilities. Amidst technological advancements, the industry witnesses collaborations between chip makers and equipment manufacturers to meet the growing market needs. As NAND flash memory continues to evolve, it remains an essential element in powering the digital age's ever-growing appetite for data storage. The market landscape depends on high-performance AI workloads, balanced hardware ecosystems, 120-layer NAND flash memory, semiconductor memory market, TrendForce, industry chain, and reliance. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
One of the key factors driving the global industry growth is the growing investments in fabrication facilities. The rising demand for 3D NAND has created an opportunity for supply chain members such as chip makers, equipment manufacturers, and material suppliers. This is driving investments in 3D NAND fabrication facilities. For instance, in October 2021, Micron Technology announced that it plans to invest more than USD 150 billion worldwide in its global manufacturing operations and research and development (R&D) outlays over the next decade to expand its fabrication capabilities.
Memory manufacturers such as Samsung Electronics, Western Digital, Micron Technology, Toshiba, SK Hynix, and Intel are investing in new fabrication facilities to increase their production capacity for staying competitive in the market. These factors will drive the growth of the market in the forecast period.
A rise in the number of strategic partnerships and acquisitions is one of the key market trends that is expected to impact the market positively in the forecast period. For instance, in February 2020, Micron Technology partnered with seven industrial companies to deliver robust and innovative solutions. Similarly, in October 2020, SK HYNIX Inc and Intel Corp announced that they had signed an agreement under which SK HYNIX Inc would acquire Intel's NAND memory and storage business for USD 9 billion.
This will result in the production of efficient and high-performance NAND flash memory compatible with advanced technologies and components integrated into smartphones, tablet PCs, and other computing devices. Therefore, a rise in the number of strategic partnerships and acquisitions will fuel the market growth during the forecast period.
One of the key challenges to global market growth is the fluctuations in demand and supply. The widening demand-supply gap is a major challenge faced by the global market. One of the factors responsible for the supply-demand mismatch is the cyclical nature of the semiconductor industry in general and, thus, the market. The market depends on the demand for smartphones, data centers, servers, cloud storage devices, and other consumer electronic devices that require memory devices. Vendors try to align their production with the sales in these industries, but any unforeseen change in demand can lead to an oversupply or shortage.
The dynamic nature of the semiconductor industry, due to fluctuations in demand for consumer electronic devices, the emergence of advanced technologies, and changes in manufacturing processes, results in a supply-demand imbalance. All these factors impact the sales and prices of products such as smartphones, data centers, servers, and cloud storage devices. It becomes difficult for manufacturers to reduce their prices without avoiding losses. Thus, uncertainty in the price of NAND flash memory modules due to the supply-demand imbalance is one of the challenges in the market during the forecast period.
The market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
ADATA Technology Co. Ltd.: The company offers NAND flash such as 112 layer BiCS5 3D NAND solid state drives. Also, they offer various products, including LED lighting solutions, axial flow high-speed motor, motor controllers, air-cooled motor, gaming solutions, and other products.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2023 to 2027, as well as historical data from 2017 to 2021 for the following segments.
The market is driven by the exponential increase in NAND flash consumption across diverse sectors such as consumer electronics, automotive systems, and medical devices. With the proliferation of tablets, cameras, and sensors, the demand for memory packaging and flash memory storage is soaring. The advent of 5G wireless communication and cloud computing services further amplifies the need for fast data storage and scalable storage capacities. However, challenges like low supply, supply shortages, and rising costs persist. To thrive in this dynamic landscape, NAND manufacturers are focusing on technological advancements such as 8K video recording and wearable devices while prioritizing innovation and development for a sustainable future.
NAND Flash Market Scope |
|
Report Coverage |
Details |
Page number |
181 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.51% |
Market growth 2023-2027 |
USD 24 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
4.56 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 59% |
Key countries |
US, China, Japan, South Korea, and Taiwan |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
ADATA Technology Co. Ltd., Berkshire Hathaway Inc., Flexxon Pte Ltd., Greenliant Systems, Hyperstone GmbH, Infineon Technologies AG, Innodisk Corp., Kingston Technology Co. Inc., Kioxia Corp., Macronix International Co. Ltd., Micron Technology Inc., Renesas Electronics Corp., Samsung Electronics Co. Ltd., Semiconductor Manufacturing International Corp., Shenzhen Longsys Electronics Co. Ltd., Silicon Motion Technology Corp, SK hynix Co. Ltd., Toshiba Corp., Transcend Information Inc., and UDISYS Ltd |
Market dynamics |
Parent market analysis, market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the market forecast period. |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Market Segmentation by Technology
9 Customer Landscape
10 Geographic Landscape
11 Drivers, Challenges, and Trends
12 Vendor Landscape
13 Vendor Analysis
14 Appendix
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