- Summary
- Table Of Content
- Methodology
Semiconductor Memory IP Market Size :
Semiconductor Memory IP Market size is estimated to reach over USD 15,691.47 Million by 2031 from a value of USD 4,792.09 Million in 2022 and is projected to grow by USD 5,368.39 Million in 2023, growing at a CAGR of 14.3% from 2023 to 2031.
Semiconductor Memory IP Market Scope & Overview:
Semiconductor memory IP is designed for storing data in electronic devices and helps in storing large volumes of data while providing quick access. It primarily consists of designs for random-access memory (RAM), read-only memory (ROM), non-volatile memory (NVM), and other particular memory types, which enables it to save time and resources on design and testing while providing a reliable memory solution. Additionally, they are used in various industries including automotive, consumer electronics, IT & telecommunication, medical, and other sectors.
Semiconductor Memory IP Market Insights :
Semiconductor Memory IP Market Dynamics - (DRO) :
Key Drivers :
The rising utilization in the automotive sector is driving the market
Semiconductor memory IP is used in the automotive sector, particularly for application in various automobile electronic systems including Advanced Driver Assistance Systems (ADAS), infotainment systems, engine control units, and other related safety-critical systems. In advanced automobile infotainment systems, it is used for storage and access to media files, operating system software, and other data. Moreover, it offers high bandwidth and capacity for processing large amounts of input data in ADAS systems for removing noise, adjusting various lighting conditions, and identifying objects and obstacles. The aforementioned characteristics are prime determinants for increasing its deployment in the automotive sector.
Factors including the advancements in autonomous driving systems, the rising demand for enhanced automobile storage solutions, and the increasing production of automobiles are key prospects fostering the automotive sector. For instance, according to the International Organization of Motor Vehicle Manufacturers, the total automotive production across the world reached 85.01 million in 2022, representing a rise of approximately 6% in comparison to 80.14 million in 2021.
Furthermore, according to the European Automobile Manufacturers Association, the production of passenger cars in the European Union reached 10.9 million in 2022, depicting an increase of 8.3% as compared to 2021. Hence, analysis of market trends depicts that the rising automotive production is increasing their adoption for application in various automobile electronic systems, in turn driving the Semiconductor memory IP market growth.
Growing demand in the consumer electronics sector is spurring the market
Semiconductor memory IP is primarily used in consumer electronics, particularly for applications in laptops, smartphones, gaming devices, digital cameras, and other consumer devices. It is utilized for storage and data transfer applications in consumer electronic devices. The benefits including reliability, high-speed transfer rates, and efficiency are key determinants for increasing its utilization in the consumer electronic sector.
Factors including rising penetration of smartphones, laptops, and other consumer devices, increasing demand for smart wearable devices, and growing integration of semiconductors in consumer electronic devices are vital aspects driving the Semiconductor memory IP market growth. For instance, according to the Association of German Banks, the electronics sector in Germany attained significant growth in 2021. The production and nominal sales of the electronics sector witnessed a surge of 10% in 2021 as compared to 2020.
Further, according to Japan Electronics and Information Technology, the overall production by the electronics industry in Japan reached USD 95.2 billion in 2021, witnessing a rise of 9.9% in comparison to 2020. Hence, analysis of market trends shows that the growing consumer electronics sector is driving their adoption of applications in smartphones, laptops, and other related consumer devices, in turn proliferating the Semiconductor memory IP market demand.
Key Restraints :
The prevalence of stringent standards is restraining the market
Semiconductor memory IPs are used in a wide range of industries including automotive, consumer electronics, IT & telecommunication, and others. However, manufacturers have to compulsorily comply with various stringent standards associated with the production of memory IP, which is a prime factor restricting the semiconductor memory IP market demand.
For instance, memory IPs designed for automotive applications must comply with certain reliability standards such as AEC-Q100 and ISO 26262 among others. Hardened IP for implementation of DRAM interface can meet AEC-Q100 requirements with careful characterization and design of reliability and temperature components.
Meanwhile, the ISO 26262 standard comprises various requirements related to components of design, process, and certification. Therefore, the market analysis shows that the prevalence of several standards and regulations associated is constraining the Semiconductor memory IP market trends.
Future Opportunities :
Rising government initiatives for the adoption of electric vehicles are expected to open new doors for the market
The rising government initiatives for manufacturing and adoption of electric vehicles (EVs) are expected to present potential opportunities for the semiconductor memory IP market. Moreover, it plays a crucial role in electronic systems of electric vehicles including infotainment systems, advanced driver assistance systems (ADAS), and other safety-critical systems.
Factors including the progressions in electromobility, accessibility to subsidies and tax rebates, availability of a broad range of models, and eco-friendliness are driving the adoption of electric vehicles. For instance, according to the European Automobile Manufacturers' Association (ACEA) tax benefits and purchase incentives for electric vehicles are available in 21 countries listed in the European Union including Austria, Netherlands, Belgium, Spain, Ireland, Poland, and other countries as of 2022.
Furthermore, governments worldwide are framing policies and initiatives for reducing pollution and increasing the deployment of electric vehicles, which is anticipated to stimulate the adoption of EVs. Therefore, analysis of market trends shows that the rising government initiatives for the adoption of electric vehicles are projected to increase their integration in electronic systems of EVs, in turn facilitating the semiconductor memory IP market opportunities during the forecast period.
Semiconductor Memory IP Market Report Insights :
| Report Attributes | Report Details |
| Study Timeline | 2017-2031 |
| Market Size in 2031 | USD 15,691.47 Million |
| CAGR (2023-2031) | 14.3% |
| By Sales Channel | Direct Sales and Distributor Sales |
| By End-User | Automotive, Consumer Electronics, IT & Telecommunication, Medical, and Others |
| By Region | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
| Key Players | Arm Limited, Rambus Inc., Synopsys Inc., Cadence Design Systems Inc., SK Hynix Inc., Dolphin Design SAS, Lattice Semiconductor, eMemory Technology Inc., Samsung, Micron Technology Inc. |
Semiconductor Memory IP Market Segmental Analysis :
By Sales Channel :
Based on the sales channel, the market is bifurcated into direct sales and distributor sales. The direct sales segment accounted for the largest revenue share in the year 2022 of the global Semiconductor memory IP market. In direct sales channels, products are sold directly to customers through physical outlets including company outlets, and others. The direct sales channel also consists of an online mode, in which the manufacturers sell the products through company-owned websites. Additionally, purchasing from direct sales channels offers several benefits including competitive pricing, higher product quality, faster response time, and higher return on investments, which are key factors increasing the purchase from direct sales channels.
For instance, Rambus Inc. is among the few manufacturers that offer a broad range of memory IP solutions for direct purchase through the company website. Therefore, the increasing availability of direct sales channels, attributed to the above benefits, is a vital factor boosting the segment.
The distributor sales channel segment is anticipated to register the fastest CAGR during the forecast period. The distributor sales channel comprises of indirect level of distribution from manufacturers to end users. In the distribution sales channel, the distribution is performed through a range of regional distributors through online or offline mode. Moreover, buying from a distributor benefits the consumer in selecting the best product available in the market.
For instance, Lattice Semiconductors is among a few of the manufacturers that offer a range of memory IP through regional distributors including DigiKey, Mouser Electronics Inc., and others. Thus, the availability of distributor sales channels is a key factor projected to drive the Semiconductor memory IP market opportunities during the forecast period.
By End-User :
Based on the end-user, the market is segregated into automotive, consumer electronics, IT & telecommunication, medical, and others. The consumer electronics segment accounted for the largest revenue share of 35.72% in 2022 of the total Semiconductor memory IP market share. Factors including progressions in consumer electronics, increasing penetration of smartphones, tablets, and other consumer devices, and rising popularity of smart wearable devices are driving the consumer electronics segment.
For instance, according to the GSM Association, the adoption of smartphones in Germany is projected to reach 84% by 2025, witnessing an increase from 80% in 2021. Additionally, according to the Brazilian Electrical and Electronics Industry Association (ABINEE), the value of the electrical and electronics industry in Brazil reached up to USD 42.2 billion in 2022, representing an incline of 8% in contrast to USD 39.2 billion in 2021. Hence, the growing consumer electronics sector is driving their adoption in applications in smartphones, laptops, tablets, and other related consumer devices, in turn proliferating the Semiconductor memory IP market.
The automotive segment is expected to witness the fastest CAGR during the forecast period. The rising automotive segment is attributed to several factors including growing investments in the expansion of automotive manufacturing facilities, increasing production of automobiles, rising integration of advanced driver assistance systems in modern automobiles, and advancements in autonomous driving systems.
For instance, according to the China Association of Automobile Manufacturers, the total production of passenger cars in China reached up to 14.8 million units in January-August 2022, witnessing a YoY growth of 14.7%. It is used in automobile electronic systems including infotainment systems, advanced driver assistance systems, and others. Thus, the analysis of segment trends shows that the rising automotive production is anticipated to drive semiconductor memory IP market trends during the forecast period.
By Region :
The regional segment includes North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
North America is estimated to reach over USD 5,677.17 Million by 2031 from a value of USD 1,733.78 Million in 2022 of the total Semiconductor memory IP market share and is projected to grow by USD 1,942.28 Million in 2023.
As per the Semiconductor memory IP market analysis, the rising adoption in automotive, medical, IT & telecommunication, and other sectors in the region are contributing to the market progression. Additionally, North America has been a primary hub for companies associated with autonomous vehicle manufacturing. The advent of autonomous driving and the rising use of various automotive electronic components have been significant factors for the growing market in the region.
For instance, according to the International Organization of Motor Vehicle Manufacturers, the overall automotive production in North America reached 14,798,146 units in 2022, witnessing a growth of 10% from 13,467,065 units in 2021. Hence, regional trends analysis shows that the growing automotive industry is propelling the adoption of semiconductors, in turn fostering market growth in the North American region. Additionally, factors including rising investments in electric vehicles and IT & telecommunication sectors are anticipated to foster lucrative Semiconductor memory IP market expansion in North America during the forecast period.
Asia-Pacific is expected to grow with the highest CAGR of 14.8% and is estimated to reach over USD 3,805.18 Million by 2031 from a value of USD 1,118.95 Million in 2022 and is projected to grow by USD 1,257.54 Million in 2023. In addition, in the region, China accounted for the maximum revenue share of 27.9% of the total region's share in the same year. The growing pace of industrialization and development is creating lucrative growth prospects for the market in the region. Additionally, factors including the growth of multiple industries such as telecommunication, consumer electronics, automotive, and others are fostering the market in the Asia-Pacific region.
For instance, according to the India Brand Equity Foundation, the consumer electronics sector in India was valued at USD 9.84 billion in 2021, and it is projected to grow at a considerable rate to reach USD 21.18 billion by 2025. Hence, the analysis of regional trends shows that the growing consumer electronics sector is anticipated to drive their utilization for integration in smartphones, laptops, and other consumer devices, thereby, proliferating the Semiconductor memory IP market expansion in the Asia-Pacific region during the forecast period.
Top Key Players & Market Share Insights:
The semiconductor memory IP market is highly competitive with major players providing semiconductor memory IP to the national and international markets. Key players are adopting several strategies in research and development (R&D), product innovation, and application launches to hold a strong position in the semiconductor memory IP market. Key players in the semiconductor memory IP industry include-
- Arm Limited
- Rambus Inc.
- eMemory Technology Inc.
- Samsung
- Micron Technology Inc.
- Synopsys Inc.
- Cadence Design Systems Inc.
- SK Hynix Inc.
- Dolphin Design SAS
- Lattice Semiconductor
Recent Industry Developments :
- In January 2020, Synopsys Inc. completed the acquisition of IP assets from eSilicon. The acquisition aims at expanding Synopsys Interface IP portfolio with the addition of high-bandwidth interface IP and its DesignWare embedded memory IP portfolio with integration of multi-port memory compilers.
Key Questions Answered in the Report
What is semiconductor memory IP? +
Semiconductor memory IP is designed for storing data in electronic devices due to its ability to store large volumes of data while providing quick access.
What specific segmentation details are covered in the semiconductor memory IP report, and how is the dominating segment impacting the market growth? +
For instance, by sales channel segment has witnessed direct sales channel as the dominating segment in the year 2022, owing to its range of benefits including competitive pricing, higher product quality, faster response time, and higher return on investments.
What specific segmentation details are covered in the semiconductor memory IP market report, and how is the fastest segment anticipated to impact the market growth? +
For instance, by end-user segment has witnessed automotive as the fastest-growing segment during the forecast period due to the rising adoption of semiconductor memory IP in various automobile electronic systems including infotainment system, ADAS, and others.
Which region/country is anticipated to witness the highest CAGR during the forecast period, 2023-2031? +
Asia-Pacific is anticipated to register fastest CAGR growth during the forecast period due to rapid pace of industrialization and growth of multiple industries such as telecommunication, consumer electronics, automotive, and others.
