The memory chip industry is evolving rapidly in 2024, with DRAM and NAND pricing, demand, and supply trends shaping the future of computing. With AI workloads, cloud computing, and mobile advancements driving the market, businesses and investors must stay ahead of critical shifts.
This article breaks down the major statistics influencing DRAM and NAND markets in 2024 and provides actionable insights on how businesses can leverage these changes.
1. Global Memory Market Size (2024) is Estimated to Exceed $150 Billion
The memory market is experiencing a strong rebound, crossing the $150 billion mark in 2024. AI, data centers, and high-performance computing are pushing demand to new heights. The previous market downturn forced suppliers to cut production, but with demand rebounding, companies are now increasing output cautiously.
For businesses, this means strategic investments in high-performance memory products will be essential. Whether in manufacturing, distribution, or procurement, keeping track of supply chain trends is necessary to avoid shortages and price spikes.
2. DRAM Market Size (2024) is Projected to Reach $90 Billion
DRAM remains the most sought-after memory technology, and in 2024, it is on track to hit $90 billion. Servers, AI workloads, and gaming PCs are driving this growth. The push for higher-density DRAM modules is increasing, and DDR5 adoption is becoming widespread in both consumer and enterprise markets.
Tech firms should consider upgrading infrastructure early in the year before demand further tightens supply. System integrators and OEMs should secure long-term contracts with suppliers to mitigate price hikes.
3. NAND Flash Market Size (2024) Expected to Surpass $60 Billion
NAND flash memory continues to grow due to increased SSD adoption and higher smartphone storage requirements. With 3D NAND reaching 200+ layers, the market is expected to exceed $60 billion this year.
Enterprises investing in cloud storage, SSD providers, and data center operators should focus on higher-density NAND solutions to optimize costs. Businesses relying on flash storage should secure inventories before mid-year price increases.
4. DRAM ASP (Average Selling Price) Growth Forecasted to Rise 15-20% YoY
DRAM prices are rebounding strongly, with an expected 15-20% YoY increase. Supply chain cuts in 2023 led to a limited inventory, and with demand surging, prices are climbing fast.
Companies looking to purchase DRAM should act quickly before price hikes accelerate in the second half of the year. Locking in supplier contracts or exploring alternative memory configurations can help optimize costs.
5. NAND ASP Trend: Prices Projected to Increase 10-15% YoY
NAND prices are also on the rise, with a 10-15% YoY increase expected. Inventory levels are normalizing, but demand is exceeding supply, especially for higher-layer NAND technologies.
Storage-heavy applications, such as cloud services and AI-driven workloads, will feel the pinch. Businesses should optimize their purchasing strategy by evaluating cost-effective storage solutions and diversifying suppliers to reduce risks.
6. Global Memory Chip Revenue Growth Estimated at 18-22% YoY
The entire memory chip industry is experiencing a major revenue rebound, with growth projected at 18-22% YoY.
For businesses in the semiconductor ecosystem, this means a strong year for investment, whether in production, R&D, or supply chain optimization. Investors should watch for stock opportunities in key memory manufacturers, as the industry is poised for expansion.
7. DRAM Supply Growth (2024) Estimated at 12-16% YoY
Even with higher demand, DRAM supply is growing at a controlled rate of 12-16% YoY. Manufacturers are still cautious about overproducing after the last downturn.
For PC builders, enterprise IT teams, and memory-dependent industries, this means availability will remain tight. Long-term contracts with memory suppliers will be crucial in securing stable pricing.
8. NAND Supply Growth (2024) Forecasted at 20-25% YoY
NAND supply growth is expected to outpace DRAM at 20-25% YoY, mainly due to advancements in production techniques and more layers per chip.
This will provide some relief for SSD manufacturers and cloud storage companies. However, businesses should still plan purchases early, as demand continues to rise faster than supply.
9. DRAM Demand Growth Expected at 18-22% YoY
With AI models requiring vast amounts of memory, DRAM demand is projected to grow by 18-22% YoY.
Companies in the AI and data center space should prepare for higher memory costs and potential shortages. Investing in memory-efficient computing solutions and hybrid cloud architectures can help manage expenses.
10. NAND Demand Growth Projected at 25-30% YoY
NAND flash demand is outpacing DRAM, with an estimated 25-30% YoY increase.
Businesses should expect SSD prices to rise and plan their infrastructure budgets accordingly. IT teams should also explore tiered storage options to balance performance and cost.
11. Data Center DRAM Demand Share Accounts for 45-50% of Total DRAM Shipments
Data centers consume nearly half of all DRAM production, and this trend will continue in 2024.
For businesses investing in cloud solutions, this means keeping an eye on memory supply chain disruptions. Strategic planning in procurement will be necessary to avoid cost spikes.
12. AI-driven DRAM Demand Growth Surging at >50% YoY
AI workloads are consuming more DRAM than ever before, with demand skyrocketing over 50% YoY.
For AI-focused businesses, early investment in memory resources is critical to maintaining competitive performance. Optimizing software to use memory efficiently will also help control costs.
13. HBM Market Size (2024) Expected to Exceed $10 Billion
High Bandwidth Memory (HBM) is seeing explosive growth, with the market surpassing $10 billion.
AI and HPC applications should prioritize partnerships with suppliers offering HBM solutions. As demand increases, securing supply early will be crucial.
14. PC DRAM Demand Growth Estimated at 8-12% YoY
PC DRAM demand is growing steadily at 8-12% YoY, driven by gaming, productivity, and Windows 11 adoption.
For businesses in the PC market, balancing DDR5 adoption while managing cost constraints will be key.
15. Mobile DRAM Demand Growth Projected at 15-18% YoY
Smartphones continue to push DRAM requirements higher, with demand growing at 15-18% YoY.
OEMs should plan for higher mobile memory costs and optimize device designs to use memory more efficiently.
16. Server DRAM ASP Premium Estimated at 40-50% Over PC DRAM
Server DRAM commands a premium, costing 40-50% more than PC DRAM.
Data center operators must budget carefully for these cost differences, ensuring efficiency in resource allocation.
17. NAND Bit Growth per Device Expected to Increase 25-30%
Devices are storing more data than ever, with NAND bit growth rising by 25-30%.
Enterprises should prioritize high-capacity SSDs to improve data efficiency and future-proof infrastructure.
18. Enterprise SSD Share in NAND Market Accounts for 35-40% of Total NAND Demand
Enterprise SSDs are dominating NAND demand, comprising 35-40% of shipments.
For businesses, investing in durable and high-capacity SSD solutions will be crucial for long-term efficiency.
19. Client SSD Penetration Projected to Exceed 85% of New PCs and Laptops
SSD adoption in consumer devices is almost universal, surpassing 85%.
Retailers and PC manufacturers should focus on SSD-only offerings to stay competitive.
20. Average NAND Layers in Production Expected to Surpass 200
With NAND layers exceeding 200, efficiency and storage density are improving.
Businesses should look for high-layer SSDs to get the best cost-per-bit performance.
21. Capex Reduction by Major Memory Players Down 30-40% YoY
Memory manufacturers have significantly cut capital expenditures (capex) by 30-40% YoY to prevent oversupply and stabilize pricing. In 2023, excessive inventory levels caused severe pricing declines, forcing companies like Samsung, SK Hynix, and Micron to reduce their investment in new capacity.
For businesses relying on memory chips, this capex reduction means supply will remain tight, potentially leading to further price increases. Companies should lock in supply contracts early and diversify sourcing strategies to avoid sudden cost escalations.
22. Samsung’s DRAM Market Share Estimated at 40-45%, Retaining Leadership
Samsung remains the undisputed leader in the DRAM market, controlling around 40-45% of global supply. Its dominance allows it to influence pricing trends, especially during periods of tight supply.
Companies sourcing DRAM should monitor Samsung’s production strategies, as any shift in its output plans can significantly impact global pricing. Investing in alternative suppliers such as SK Hynix and Micron can help mitigate risks.
23. Micron’s HBM Market Share Expected to Grow to 30-35%, Competing with SK Hynix
High Bandwidth Memory (HBM) is one of the fastest-growing segments, and Micron is making aggressive moves to capture 30-35% of the market, challenging SK Hynix’s dominance.
For AI and HPC companies, securing HBM supply early is crucial, as demand is outstripping supply. Partnering with multiple suppliers and optimizing workloads to reduce memory bottlenecks can help manage costs effectively.
24. SK Hynix’s NAND Market Share Holding Steady at 25-30% After Kioxia-Western Digital Merger Discussions
SK Hynix continues to maintain a strong 25-30% share in the NAND market, despite ongoing industry consolidation efforts such as the proposed Kioxia-Western Digital merger.
Enterprises and OEMs sourcing NAND should keep a close eye on market consolidation trends, as mergers can impact pricing and availability. Diversifying NAND sourcing across multiple vendors is a smart approach to avoid supply chain disruptions.
25. China’s Share in Global DRAM Production Remains Below 10% Due to Technological Gaps
Despite heavy investments in semiconductor manufacturing, China’s DRAM production remains below 10% of the global market. Restrictions on advanced semiconductor equipment have hindered its ability to compete with Samsung, SK Hynix, and Micron.
For businesses sourcing memory, this means China will continue to rely on foreign DRAM suppliers, keeping the global market tight. Companies should prepare for potential geopolitical risks that could affect supply chains and explore local alternatives when possible.
26. YMTC’s NAND Market Share (2024) Projected at 5-7%, Constrained by U.S. Trade Restrictions
Yangtze Memory Technologies Corp (YMTC), China’s leading NAND flash manufacturer, is struggling to expand beyond 5-7% market share due to U.S. trade restrictions.
Businesses reliant on NAND from China should prepare for limited supply and potential geopolitical risks. Exploring alternative sources from non-restricted suppliers like Samsung, SK Hynix, and Micron will be essential for securing stable inventory.
27. SSD ASP Decline Trend Expected to Reverse, With Prices Rising 5-10% in H2 2024
SSD prices, which have been on a downward trend, are expected to rise by 5-10% in the second half of 2024 as NAND supply tightens and demand increases.
Enterprises and PC manufacturers should consider bulk purchasing SSDs before mid-year to lock in lower prices. IT teams should also explore storage efficiency technologies, such as deduplication and compression, to maximize their storage investments.
28. AI Server DRAM Capacity Per Unit Surging Beyond 1TB Per System
AI servers are demanding unprecedented levels of memory, with DRAM capacity exceeding 1TB per system. This trend is driven by large-scale AI model training, requiring massive parallel processing capabilities.
Businesses investing in AI should factor in the rising cost of high-density DRAM modules and plan their budgets accordingly. Considering alternative architectures like memory pooling or using hybrid memory solutions could help manage costs while maintaining performance.
29. Automotive DRAM & NAND Demand Growth Projected at 30-35% YoY, Driven by Autonomous Vehicles
The automotive sector is becoming a major consumer of DRAM and NAND, with demand growing at 30-35% YoY due to autonomous driving technology and connected car features.
Automakers should secure memory supply early to prevent potential shortages. As automotive memory requirements grow, partnering with semiconductor suppliers for long-term agreements can help maintain stable pricing and availability.
30. Global Memory Industry Profitability Returning to Double-Digit Margins After a Weak 2023
After a challenging 2023 marked by inventory corrections and price crashes, the memory industry is regaining profitability, with margins returning to double digits.
For investors, this signals a strong opportunity in memory-related stocks. For businesses, this means memory prices are likely to remain stable or increase gradually rather than experience extreme fluctuations. Companies should plan their procurement strategies accordingly to avoid unexpected cost hikes.
wrapping it up
The memory chip market in 2024 is defined by a strong recovery, rising prices, and evolving demand patterns. DRAM and NAND are at the core of nearly every technological advancement, from AI and cloud computing to mobile devices and autonomous vehicles.
While demand is soaring, supply remains tight due to capex reductions, geopolitical factors, and cautious production strategies by major manufacturers.
