DRAM market to grow despite the rapid decline of prices Posted: June 6, 2014 |
Mumbai, India – June 3, 2014 - With the sudden decline in PC sales, and increased adaptation of mobile devices, the manufacturers of DRAM devices are also noticing a shift in their manufacturing capacities from desktops towards the handheld devices such as mobile sets, servers, automation and networking and tablets. This DRAM market shift from the traditional desktops to embedded computing systems and mobile handsets will also see less allocation fabrication facilities to DRAM manufacturing.
This report: Global DRAM Market 2014-2018 discusses how using DRAM allows access to any part of the system memory in an instant and direct manner and how the preference of handheld devices has accentuated its growth over the last few years. Study of the market further reveals that with such trends, the market will grow at a CAGR of 4% during the period of 2013-2018.
Increasing consolidation in DRAM industry Analysts predict that DRAM market share will continue to grow and the industry will see increased consolidation even in the forecast period especially as existing vendors and new entrants both take acquisitive routes to broaden their offerings and provide affordable rates. To cite an instance, in 2013, Micron Technology, Inc., the fourth biggest manufacturer of DRAM acquired Elpida Inc. to strengthen its foothold in the market.
Key drivers of the market The DRAM market size is increasing because it is fuelled by factors like the increased adoption of DRAM in smartphones. After computers, the smartphones remain the major application device for DRAMs which is further appending the development of smartphones with high memory capacities.
Factors disrupting its growth Despite the growth prospects of the market, the report also talks about the major challenges including the declining ASP of DRAMs that can have an adverse effect on the overall profitability of the market, decreasing the overall DRAM market size.
Market overview The DRAM business is cyclical in nature that is ruled by the undersupply and oversupply cycles. Currently, the industry is moving from an undersupply to an oversupply curve fuelled by the influx of demand of the market. One of the major players of the market, Micron is also claiming that with the supply dynamics of the industry improving, this higher demand will also see a decline in the overall costs of the device triggering further growth of the market.
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