Embedded Non-Volatile Memory Market Assessment By Product Type [Flash Memory, Electrically Erasable Programmable Read-only Memory, Ferroelectric Random Access Memory, Resistive Random Access Memory, Phase Change Memory, Others], By Application [Smartphone

Embedded Non-Volatile Memory Market Assessment By Product Type [Flash Memory, Electrically Erasable Programmable Read-only Memory, Ferroelectric Random Access Memory, Resistive Random Access Memory, Phase Change Memory, Others], By Application [Smartphones, Wearables, Smart TVs, Advanced Driver Assistance System, Infotainment System, Networking, Smart Home Devices, Industrial Sensors, Medical Appliances, Others], By End-use Industry [Consumer Electronics, Automotive, Industrial, Healthcare, Aerospace & Defense, Communication, Others], By Region, Opportunities and Forecast, 2017-2031F

Global embedded non-volatile memory market size was valued at USD 1.53 billion in 2023, expected to reach USD 5.91 billion in 2031, with a CAGR of 18.4% for the forecast period between 2024 and 2031. The embedded non-volatile memory market is witnessing substantial growth, propelled by escalating demand in sectors like consumer electronics, automotive, and industrial. The increasing need for more compact and energy-efficient devices is a key driver, boosting the adoption of advanced embedded non-volatile memory (eNVM) technologies with improved speed, endurance, and scalability. The embedded non-volatile memory market expands as the number of connected devices continues to rise, along with the surge in data-centric applications. Moreover, the automotive industry's increasing reliance on eNVM for crucial functions, including advanced driver-assistance systems, adds momentum to this growth trajectory. Overall, a convergence of factors is creating a favorable environment for the ongoing expansion of the embedded non-volatile memory market.

According to “State of IoT—Spring 2023” report, the growth of the embedded non-volatile memory market aligns with the burgeoning IoT landscape, which is projected to reach 16.7 billion active endpoints in 2023. Despite a slight dip in growth compared to 2022, the trajectory remains upward, with an anticipated 29 billion IoT connections by 2027. The embedded non-volatile memory market benefits from IoT's expansion due to its integral role in providing reliable, energy-efficient memory solutions for connected devices. Furthermore, the embedded non-volatile memory market is sustained by technological advancements in eNVM, addressing the demands of IoT applications. The chip supply constraints persist due to global uncertainties and geopolitical factors; the embedded non-volatile memory market's sustained growth is supported by its critical role in the evolving IoT ecosystem.

For instance, in April 2023, eMemory revealed that its NeoFuse security-enhanced one-time programmable (OTP) was validated on the TSMC N5 process. NeoFuse OTP is an embedded one-time programmable NVM IP solution with low power consumption, high reliability, and strong security.

Surge in the Demand of Consumer Electronics Promoting the Market’s Growth

The embedded non-volatile memory market experiences substantial growth due to heightened demand in consumer electronics, such as smartphones and wearables. This surge is underpinned by the necessity for compact, high-performing memory solutions that deliver both reliability and energy efficiency. The requirement for eNVM, offering faster access times and expanded storage capacity, becomes pivotal as consumer electronic devices advance in complexity and features. Its seamless integration not only enhances user experience but also positions eNVM as a fundamental element driving innovation and technological advancement in the consumer electronics industry. The increasing reliance on eNVM underscores its critical role in shaping the landscape of contemporary electronic devices.

For instance, in March 2023, eMemory and UMC qualified eMemory’s 8Mb Resistive Random Access Memory (RRAM) IP on UMC’s 22nm ultra-low-power process, strengthening UMC’s embedded memory offerings for IoT and mobile applications. The two companies were collaboratively working on innovative RRAM solutions tailored for the automotive sector, leveraging UMC's 22nm 0.8V/2.5V RRAM platform.

Proliferation of Connected Devices Fueling to Embedded Non-Volatile Memory Market

The growing prevalence of connected devices is a pivotal driver behind the expanding embedded non-volatile memory market. This trend intensifies the demand for trustworthy and high-performance non-volatile memory solutions. With a rising number of interconnected devices across diverse sectors, from IoT applications to industrial automation, the significance of eNVM becomes crucial for effective data storage and retrieval. eNVM, known for its reliability and efficient data management, ensures seamless communication and optimal functionality within these connected ecosystems. The embedded non-volatile memory market is experiencing significant growth, highlighting the critical role of eNVM in ensuring the resilient functioning of interconnected devices, which is representative of the developing landscape of modern technology.

For example, in November 2022, eMemory Technology Inc. partnered with Renesas Electronics Corporation to create a 5V OTP IP utilizing TSMC’s 130nm BCD Plus process tailored for automotive applications. This collaboration extends their previous work on diverse IPs for TSMC’s BCD platforms, particularly in power management ICs.

Exigency of Compact and Power-efficient Devices Drives the Embedded Non-Volatile Memory Market

The increasing demand for smaller, energy-efficient devices is a key catalyst for expanding the embedded non-volatile memory market. In response to the prevailing emphasis on compact and power-efficient solutions, there is a notable surge in the adoption of eNVM solutions. These memory solutions effectively balance reduced form factors and dependable data storage, aligning with the evolving requirements of modern electronic devices. The pursuit of enhanced portability and extended battery life, particularly in wearables, IoT devices, and mobile gadgets, underscores the essential nature of eNVM. Consequently, the embedded non-volatile memory market gains prominence, driven by the pivotal role that compact eNVM solutions play in satisfying the demands of the energy-conscious landscape for consumer electronics.

For instance, in September 2023, GlobalFoundries revealed developments to its industry-leading 22FDX (22nm FD-SOI) platform, including introducing several new features and enhancements. These improvements are a strategic response to the increased need for improved power economy and top-tier performance in IoT and automotive applications.

Asia-Pacific Dominates Embedded Non-Volatile Memory Market

Asia-Pacific's dominance in the embedded non-volatile memory market stems from its status as a semiconductor manufacturing hub, hosting major industry players and cutting-edge fabrication facilities. The region's rapid technological advancements and significant investments in research and development position it as a leader in eNVM innovation. Robust demand for consumer electronics, automotive applications, and the widespread adoption of IoT devices further drive the embedded non-volatile memory market's growth. Supported by favorable government initiatives, a skilled labor pool, and a dynamic market ecosystem, Asia-Pacific solidifies its dominant role in the ever-evolving landscape of embedded non-volatile memory.

For instance, in August 2023, Fujitsu Semiconductor Memory Solution Limited, headquartered in Japan, unveiled the release of ""MB85RC512LY,"" an I2C-interface 512Kbit FeRAM with the highest density among Fujitsu's automotive-grade FeRAM products with an I2C interface.

Government Initiatives are Driving Growth for the Embedded Non-Volatile Memory Market

Government initiatives drive revenue growth in the embedded non-volatile memory market. Governments are making substantial investments in semiconductor research and development across the globe. Programs like the United States Chip and Science Act (2022) and the European Union Chips Act (2022) serve as catalysts, fostering innovation and supporting domestic semiconductor manufacturing. These initiatives provide financial incentives for companies like TSMC and Samsung, encouraging substantial investments in new chip production capacity. By aligning policies with the needs of the semiconductor industry, governments create a conducive environment for technological progress. This proactive approach ensures that the embedded non-volatile memory market thrives within a robust and forward-looking ecosystem, ultimately leading to significant revenue growth.

For instance, in December 2023, The CHIPS and Science Act sought to restore United States semiconductor prominence. After dwindling to over 10% of global production, the Act propels planned investments exceeding USD 230 billion. This initiative fortifies national security, secures supply chains, and elevates American competitiveness in semiconductors and electronics.

Impact of COVID-19

The embedded non-volatile memory market witnessed distinct phases of impact during the COVID-19 pandemic. Initially, disruptions in the semiconductor supply chain caused shortages and production delays. However, the industry adapted to remote work, fostering increased digitization and heightened demand for eNVM in devices like IoT applications. In the post-pandemic era, the embedded non-volatile memory experienced a rebound, driven by accelerated digital transformation initiatives. The focus on smart devices and technologies in the aftermath of COVID-19 amplified the need for reliable eNVM solutions, establishing the embedded non-volatile memory market as a crucial player in the evolving semiconductor landscape, poised for substantial growth.

Impact of Russia-Ukraine War

The Russia-Ukraine war introduced complexities to the embedded non-volatile memory market. Geopolitical tensions disrupt the semiconductor industry and eNVM production, leading to supply chain challenges. Rising costs of raw materials and logistics, coupled with geopolitical uncertainties, impact manufacturing, and embedded non-volatile memory market stability. Companies may reconsider production locations and logistics strategies, influencing embedded non-volatile memory market dynamics. Economic repercussions and currency fluctuations add to the challenges. Indirectly, affected regions may experience fluctuations in demand, contributing to embedded non-volatile memory market instability. In navigating these uncertainties, stakeholders in the embedded non-volatile memory market must prioritize strategic adaptation and contingency planning to mitigate the impacts of this geopolitical conflict on production and market dynamics.

Key Players Landscape and Outlook

In the competitive landscape of the embedded non-volatile memory market, key players such as GLOBALFOUNDRIES Inc., Samsung Electronics Co., Ltd., Semiconductor Manufacturing International Corporation, Taiwan Semiconductor Manufacturing Company Limited, and United Microelectronics Corporation stand out as leaders. These companies which are renowned for their technological expertise and extensive market presence, drive innovation in advanced eNVM solutions to meet evolving industry demands. The market outlook indicates that growth will continue, fueled by increased consumer electronics, automotive, and IoT demand. Strategic collaboration, partnerships, and continuous research and development efforts are anticipated to be crucial strategies for these players, ensuring their competitiveness in the rapidly evolving semiconductor sector.

In September 2023, GlobalFoundries officially opened its USD 4 billion expansion fabrication plant (""fab"") in Singapore. The 23,000-square-meter fab will create 1,000 high-wage positions in Singapore, with 95% of them being equipment technicians, process technicians, and engineers.

In September 2023, GlobalFoundries and Microchip Technology unveiled the availability of the SST ESF3 third-generation embedded SuperFlash technology NVM solution in the GF 28SLPe foundry process via Microchip's Silicon Storage Technology (SST) subsidiary.