High Bandwidth Memory Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

High Bandwidth Memory Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The high bandwidth memory market is expected to reach a CAGR of 25.4% over the forecast period 2022-2027. Major factors driving the growth of the high bandwidth memory (HBM) market include the growing need for high-bandwidth, low power consumption, and highly scalable memories, increasing adoption of artificial intelligence, and a rising trend of miniaturization of electronic devices.

Key Highlights

• High Bandwidth Memory (HBM) is a high-speed computer memory interface for 3D-stacked SDRAM, usually used with high-performance graphics accelerators, network devices, and supercomputers.
• By stacking up to 8 DRAM dies on the circuit and interconnecting them by TSVs, HBM offers a substantially higher bandwidth while using less power in a relatively more minor form factor. Also, with 128-bit channels and a total of 8 channels, the HBM offers a 1024-bit interface; a GPU with four HBM stacks would therefore provide a memory bus with 4096 bits.
• With the growing graphics application, the appetite for fast information delivery (bandwidth) has also increased. Therefore HBM memory performs better than a GDDR5, which was used earlier in terms of performance and power efficiency, resulting in growth opportunities for the high bandwidth memory market.
• Moreover, the major semiconductor vendors are working with reduced capacity owing to the spread of COVID-19 worldwide. Additionally, due to the shortage of laborers, many packages and testing plants in China reduced or even stopped operations. This created a bottleneck for chip companies that rely on such back-end packages and testing capacity.
• However, some factors driving the market's growth include the increasing adoption of artificial intelligence, increasing demand for low power consumption, high bandwidth, highly scalable memories, and a rising trend of miniaturization of electronic devices.

Key Market TrendsAutomotive and Other Applications Segment is Expected to Grow Significantly

• The applications of high bandwidth memory are spanning in the automotive sector due to the rise of self-driving cars and ADAS integration, among others. The advancement in the automotive industry has driven the adoption of high-performance memory, which supports the growth of high bandwidth memory.
• The evolution of HBM by taking it up a notch from the traditional DRAM with 2.5D technology has helped it move closer to the processor reducing the power consumption required to drive a signal and cutting RC delay. Autonomous driving is a booming part of the automotive sector, which leverages large data sets to process and analyze the surroundings. Data processing happens at a very high speed to avoid accidents and imminent incidents. The need for fast and powerful GPUs has developed the need to integrate high bandwidth memory in the systems.
• Alongside autonomous driving, advanced driver-assistance systems have gained significant traction in the automotive sector. Due to their availability, the earlier versions of ADAS designs include the earlier proponents of memory chips, like DDR4 and LPDDR4. However, the shift from cost-effectiveness to higher performance metrics in the automotive sector urges ADAS manufacturers to integrate systems with HBM technology in the design architecture.
• The rapid advancement of technology in automobiles and increasing usage of edge technologies in automobiles will boost the sales of High Bandwidth Memory and DDRAM in the sector.

North America to Hold the Largest Share in the Market

• The high adoption of HBM memories in North America is primarily due to the growth in high-performance computing (HPC) applications that require high-bandwidth memory solutions for fast data processing. HPC demand in North America is growing due to the increasing market for AI, machine learning, and cloud computing.
• The rapidly changing technologies and high data generation across industries create a need for more efficient processing systems. These are also some of the factors driving the demand for the high bandwidth memory market in the region.
• Additionally, the US government has started the Data Center Optimization Initiative (DCOI) to deliver better services to the public while increasing return on investment to taxpayers by consolidating many data centers in the country. The consolidation process includes the process of building hyper-scale data centers and shut-off the underperforming ones. According to Cloudscene, the country has around 2,751 data centers as of January 2022.
• Moreover, memory manufacturing companies in North America are seeking opportunities for production expansions. For instance, In July 2021, Intel announced the launch of the next generation Sapphire Rapids (SPR) Xeon Scalable processor with high-bandwidth memory (HBM). DDR5, supported by Sapphire Rapids, is expected to replace DDR4, the current trend in server memory, with high-bandwidth memory (HBM) support that significantly expands the memory bandwidth available to the CPU.

Competitive Landscape

The high bandwidth memory market is highly fragmented as the market is highly competitive and consists of several major players. The competitive rivalry in this industry is primarily dependent on sustainable competitive advantage through innovation, market penetration levels, and competitive strategy power. Since the market is capital intensive, the barriers to exit are high as well. Some of the key players in the market are Intel Corporation, Toshiba Corporation, Fujitsu Ltd, etc. Some of the key recent developments in the market are -

• February 2022 - Advanced Micro Devices Inc. announced the acquisition of Xilinx. The company expects the purchase to boost non-GAAP margins, non-GAAP EPS, and free cash flow generation in the first year. Furthermore, AMD claims that the Xilinx acquisition brings together a highly complementary collection of products, customers, and markets, as well as differentiated IP and world-class personnel, to build the industry's high-performance and adaptive computing organization.
• October 2021 - SK Hynix launched Gen.4 HBM product for data centers – HBM3. HBM3 can process up to 819 gigabytes per second, indicating that 163 full-HD movies could be transmitted in a single second. This represents a 78% increase in the data-processing speed compared to the company's HBM2E.​
• October 2021 - Intel Corporation announced that High-Bandwidth Memory (HBM) will be available on select Sapphire Rapids Xeon SP processors and will provide the CPU backbone for the "Aurora" exascale supercomputer to be sited at Argonne National Laboratory. Coupled with HBM for AI and data-intensive applications, the processors are expected to leverage the 64-bit programming paradigm of AMX to speed tile operations.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Please note: This publisher does offer titles that are created upon receipt of order. If you are purchasing a PDF Email Delivery option above, the report will take approximately 2 business days to prepare and deliver.