The high bandwidth memory market was valued at USD 1068. 2 million in 2020, and it is expected to reach a value of USD 4088. 5 million by 2026, registering a CAGR of 25. 4% over the forecast period 2021-2026.
New York, Dec. 01, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "High Bandwidth Memory Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" - https://www.reportlinker.com/p06187426/?utm_source=GNW
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.
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.
For instance, AMD provides high bandwidth memory that uses vertically stacked memory chips interconnected by microscopic wires called through-silicon vias or TSVs. These break the processing bottleneck due to its benefits, such as 94% less space than GDDR5, lower power consumption, lightweight, and higher processing speed performance. The above factors increase their industry-wide applications.
In August 2020, Micron announced the successor of HBM2e: HBMnext. HBMnext is expected to enter the market toward the end of 2022. Micron plans to produce JEDEC-compatible HBMnext memory in 4-stack 8 Gb and 8-stack 16 Gb densities. The company also stated that the data rate is expected to be 3.2 Gb/s. For comparison, the NVIDIA A100 Tensor Core Accelerator based on HBM2e technology comes with a bandwidth of 2.4 Gbps.
Amid the COVID-19 pandemic, the impact of the crisis on the global economy is only beginning to be appreciated, with profound implications for the world’s technology supply chain. The market studied has witnessed the halt of production and disruption in the supply chain, leading to weakened industrial output growth and the decline in device manufacturing across significant manufacturing hubs.
Since May 2020, many manufacturing enterprises resumed their operations post lockdown. However, the disruptions caused in starting four months of 2020 resulted in order delays and led time across the supply chain during 2020. However, such impacts are only short-lived and have no significant impact in the long term.
Key Market Trends
Accelerated Processing Units to Have the Largest Growth
APUs integrate both GPU and CPU capabilities on a single SoC. It improves the overall energy efficiency of the APUs by eliminating connections between chips and the processing speed owing to improved data transfer rate. Hence this boosts the growth of the market due to increased applicability in various industries.
AMD (US), one of the leading manufacturers of APUs, demonstrated an APU with integrated HBM and stacked non-volatile memory cells. This will also serve to drive the adoption of APUs in computing applications. Moreover, increasing demand for low power consumption, high-bandwidth, and highly scalable memories and a rising trend of miniaturization of electronic devices also influence this market’s growth.
The complete application of high bandwidth memory technology in supercomputers, robotics, and gaming opens significant opportunities for the industry in many developed and emerging economies. For instance, NVIDIA powers the US-based Summit, the world’s fastest supercomputer, and the most rapid systems in Europe and Japan. More than 130 supercomputers on the TOP500 list are accelerated by NVIDIA, including five of the top 10.
The intensifying need for heavy graphic applications enables the broad application of high bandwidth memory technology in supercomputers, robotics, and gaming and provides significant opportunities for the industry in many developed and emerging economies. However, thermal issues caused by the high level of integration and high initial cost are the key restraining factor for market growth.
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 the industries create a need for more efficient processing systems. These are also some of the factors driving the demand for 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 for building hyper-scale data centers and shut-off the underperforming ones. To date, the government has closed over 3,215 data centers in the country.
Moreover, the memory manufacturing companies in North America are seeking opportunities for production expansions. For instance, Intel has already started its new fabrication plant in Arizona to manufacture next-generation memory and storage solutions. For this project, the company spent USD 1 billion as the first investment phase-out of USD 7 billion. Investments such as these will boost the growth of HBM in the region.
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 the 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 -
August 2020 - Micron announced the successor of HBM2e: HBMnext. HBMnext is expected to enter the market toward the end of 2022. Micron plans to produce JEDEC-compatible HBMnext memory in 4-stack 8 Gb and 8-stack 16 Gb densities. The company also stated that the data rate is expected to be 3.2 Gb/s. For comparison, the NVIDIA A100 Tensor Core Accelerator based on HBM2e technology comes with a bandwidth of 2.4 Gbps.?
April 2020 - Advanced Micro Devices launched new AMD Radeon Pro 5000 series Graphics Processing Units (GPU) for the iMAC platform. These new GPUs are built on 7nm process technology and consist of 16GB of high-speed GDDR6 memory, which can run a wide range of graphically intensive applications and workloads.
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