- Summary
- Table Of Content
- Methodology
Semiconductor Memory IP Market Introduction :
Semiconductor Memory IP Market 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 Definition & Overview:
Semiconductor memory IP is designed for storing data in electronic devices and helps in storing large volumes of data while providing quick access. Semiconductor memory IP 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, semiconductor memory IP 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 :
Rising utilization of semiconductor memory IP in automotive industry is driving the market growth
Semiconductor memory IP is used in the automotive industry, particularly for application in various automobile electronic systems including Advanced Driver Assistance Systems (ADAS), infotainment system, engine control units, and other related safety-critical systems. In advanced automobile infotainment system semiconductor memory IP is used for storage and access of media files, operating system software, and other data. Moreover, semiconductor memory IP offers high bandwidth and capacity for processing large amount of input data in ADAS system for removing noise, adjusting various lighting conditions, and identifying objects and obstacles. The aforementioned characteristics of semiconductor memory IP are prime determinants for increasing its deployment in the automotive industry.
Factors including the advancements in autonomous driving systems, rising need for enhanced automobile storage solutions, and increasing production of automobiles are key prospects fostering the growth of the automotive industry. 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 growth 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 Europe Union reached 10.9 million in 2022, depicting an increase of 8.3% as compared to 2021. Hence, the rising automotive production is increasing the adoption of semiconductor memory IP for application in various automobile electronic systems, in turn driving the market growth.
Growing consumer electronics sector is spurring the market growth
Semiconductors memory IP is primarily used in consumer electronics, particularly for application in laptops, smartphones, gaming devices, digital cameras, and other consumer devices. Semiconductor memory IP is utilized for storage and data transfer applications in consumer electronic devices. The benefits of semiconductor memory IP including reliability, high speed transfer rates, and efficiency are key determinants for increasing its utilization in 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 growth of the market. For instance, according to the Association of German Banks, the electronics industry in Germany attained a significant growth in 2021. The production and nominal sales of electronics industry witnessed a growth of 10% in 2021 as compared to 2020.
Further, according to Japan Electronics and Information Technology, the overall production by electronics industry in Japan reached USD 95.2 billion in 2021, witnessing a growth of 9.9% in comparison to 2020. Hence, the growth of consumer electronics sector is driving the adoption of semiconductor memory IP for application in smartphones, laptops, and other related consumer devices, in turn proliferating the market growth.
Key Restraints :
Prevalence of stringent standards associated with semiconductor memory IP is restraining the market growth
Semiconductor memory IP are used in a wide range of industries including automotive, consumer electronics, IT & telecommunication, and others. However, semiconductor IP memory manufacturers have to compulsorily comply with various stringent standards associated with the production of semiconductor memory IP, which is a prime factor restricting the market growth.
For instance, semiconductor memory IP 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, ISO 26262 standard comprises of various requirements related to components of design, process, and certification. Therefore, the prevalence of the several standards and regulations associated with the semiconductor memory IP is constraining the growth of the market.
Future Opportunities :
Rising government initiatives for adoption of electric vehicles is expected to promote potential opportunities for market growth
The rising government initiatives for manufacturing and adoption of electric vehicles (EVs) are expected to present potential opportunities for the growth of the semiconductor memory IP market. Moreover, semiconductor memory IP plays a crucial role in electronic systems of electric vehicles including infotainment system, advanced driver assistance systems (ADAS), and other safety-critical systems.
Factors including the progressions in electro mobility, 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 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 initiative for reducing pollution and increasing the deployment of electric vehicles, which is anticipated to stimulate the adoption of EVs. Therefore, rising government initiatives for adoption of electric vehicles are projected to increase the integration of semiconductor memory IP in electronic systems of EVs, in turn facilitating opportunities for market growth 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 :
Based on the 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. In direct sales channel, products are sold directly to customers through physical outlets including company outlets, and others. The direct sales channel also consists of online mode, in which the manufacturers sell the products through company owned websites. Additionally, purchasing semiconductor memory IP from direct sales channel offers several benefits including competitive pricing, higher product quality, faster response time, and higher return on investments, which are key factors increasing the purchase of semiconductor memory IP from direct sales channel.
For instance, Rambus Inc. is among the few semiconductor memory IP manufacturers that offer a broad range of semiconductor memory IP solutions for direct purchase through company website. Therefore, the increasing availability of semiconductor memory IP in direct sales channel, attributing to its above benefits, is a vital factor boosting the growth of the segment.
The distributor sales channel segment is anticipated to register fastest CAGR growth during the forecast period. The distributor sales channel of semiconductor memory IP comprises of indirect level of distribution from manufacturers to end users. In distribution sales channel, the distribution of semiconductor memory IP is performed through a range of regional distributors through online or offline mode. Moreover, buying from a distributor benefits the consumer to select the best product available in the market.
For instance, Lattice Semiconductors is among few of the semiconductor memory IP manufacturers that offers a range of semiconductor memory IP through the regional distributors including DigiKey, Mouser Electronics Inc. and others. Thus, the availability of semiconductor memory IP in distributor sales channels is a key factor projected to drive the growth of the segment during the forecast period.
Based on the 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 the year 2022. 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 growth of the consumer electronics segment.
For instance, according to 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 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 growth of consumer electronics sector is driving the adoption of semiconductor memory IP for application in smartphones, laptops, tablets, and other related consumer devices, in turn proliferating the growth of the market.
Automotive segment is expected to witness fastest CAGR growth during the forecast period. The growth of automotive segment is attributed to several factors including growing investments in expansion of automotive manufacturing facilities, increasing production of automobiles, rising integration of advanced driver assistance system 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%. Semiconductor memory IP is used in automobile electronic systems including infotainment system, advanced driver assistance system, and others. Thus, rising automotive production is anticipated to drive the adoption of semiconductor memory IP, in turn fostering market growth during the forecast period.
Based on the 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 and is projected to grow by USD 1,942.28 Million in 2023.
The growth of semiconductor memory IP market in the North American region is primarily driven by its increasing adoption in automotive, medical, IT & telecommunication and other sectors. Additionally, North America has been a primary hub for companies associated with autonomous vehicle manufacturing. The advent of autonomous driving and the rising adoption of semiconductor memory IP in various automotive electronic components has been significant factors for market growth 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, 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 opportunities for market growth in North America during the forecast period.
Asia-Pacific is expected to grow with the highest CAGR growth 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, the China accounted for the maximum revenue share of 27.9% 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 growth for semiconductor memory IP 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 growing consumer electronics sector is anticipated to drive the utilization of semiconductor memory IP for integration in smartphones, laptops, and other consumer devices, thereby, proliferating the market growth 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 semiconductor memory IP market. Key players in the semiconductor memory IP market 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 acquisition of IP assets from eSilicon. The acquisition aims at expanding Synopsys Interface IP portfolio with 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.
