Memory Market for Autonomous and Connected Vehicles Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

The memory market for autonomous and connected vehicles generated revenue of USD 4,596.9 million in 2023, which is expected to witness a CAGR of 24.4% during 2024–2030, to reach USD 21,088.4 million by 2030.

The key factors aiding in the advancement of the industry are the rising requirement for an enhanced driving experience, increasing security and safety concerns among people, rapid adoption of the internet of things (IoT) in automobiles, and surging popularity of electric vehicles (EVs).

The demand for a better driving experience is rising around the world, as concerns regarding the safety and security of vehicles, passengers, and pedestrians are increasing.

Similarly, the rates of transition to electric vehicles (EVs) and usage of IoT in automobiles are also high. As a combined effect of all these factors, the global market is predicted to rise.

Product launches are shaping the competition in the market, as companies providing such solutions are increasing their efforts to gain a larger customer pool and revenue share.

For instance, HARMAN International introduced the HARMAN ExP Integrated Solution Suite. This suit incorporates numerous connected audio, car, and service technologies that enhance the experience of the drivers as well as the passengers.

Memory Market for Autonomous and Connected Vehicles - Trends & Drivers

Integration of Artificial Intelligence (AI) Is Trending in the Market

• The most significant trend being witnessed in the memory market for autonomous and connected vehicles is the integration of artificial intelligence (AI) in automobiles.
• AI is being used in infotainment systems, which have now begun serving as virtual personal assistants, responding to voice commands and helping drivers by providing efficient navigational support.
• To cater to the increasing demand for an enhanced and safe driver experience, automakers are partnering with technology vendors, to arm automobiles with AI.

Increased Demand for Better Driving Experience Is Driving the Market

• The key factor behind the growth of the market is the rising preference for a better driving experience. With a surge in the number of passenger and commercial vehicles, problems such as traffic jams, accidents, and limited availability of parking space have become graver, especially in emerging economies, including India, China, and Indonesia.
• For instance, of the 1.35 million people who die in road accidents each year, 93% die in low- and middle-income countries, which only account for 60% of the global automobile fleet, as per the World Health Organization (WHO).
• Vehicle-to-infrastructure (V2I) and vehicle-to-vehicle (V2V) connectivity features are proving useful in tackling these problems and improving the driving experience, which is why OEMs are swiftly integrating them into automobiles.
• Thus, with the growing adoption of such data-intensive features, the demand for automotive memory chips and devices will also rise.

Developing Countries Are Offering Vast Growth Potential

• In developing countries, there are lucrative opportunities for players in the memory market for autonomous and connected vehicles. With the increase in disposable income, people in China, India, and Japan are witnessing augmentation in their standards of living.
• This is being reflected in the surging preference for technologically advanced products, including connected and autonomous automobiles. As the connected and autonomous vehicle domain is largely unexplored in these nations, opportunities for the market are plenty here.
• In China, presently 14 million automobiles have in-vehicle internet access, and by 2023, 45 million people are expected to have such automobiles, thereby driving the demand for automotive memory.
• Thus, with more such automobiles in operation in developing countries, companies offering memory can hope to make a fortune here in the years to come.

Lack of infrastructure

• For the automotive memory market to grow, the growth of the connected car market is essential, which will open a whole new potential in its application.
• To date, only a few developed economies of the world have the infrastructure to sustain the growth of the connected car market.
• However, the developing and other developed economies lack the proper infrastructure for functioning the technologies incorporated in the connected cars.
• The V2I and V2V connectivity solutions require fast, seamless, and uninterrupted network connection throughout the journey, which seems difficult to achieve for developing economies.
• Despite the growing share of 4G around the globe, still more than one billion people are excluded from the digital economy and are inaccessible by e-services.
• Thus, the lack of infrastructure is the major restraint to the growth of the global memory market for autonomous and connected vehicles.

In-Depth Segmentation Analysis

Application Insights

• The navigation category holds the largest market share, of around 55%, in 2023. This is ascribed to the increasing adoption of navigation features in vehicles, which generate huge amounts of data, related to the traffic or chokepoints on the road, shortest route, and alternative routes, which need an efficient storage mechanism.
• Whereas, the telematics category is projected to witness the highest CAGR, of 24.7%, during 2024–2030 in the market. This growth is associated with the rising preference for autonomous vehicles.
• The important role telematics play in connected vehicles would give a push to the development efforts for autonomous vehicles. The telematics system of such vehicles captures data via radars, sensors, and cameras, which needs ample data storage capacity.

Below are the major applications in which memory for autonomous and connected vehicles play an important role:

• Navigation (Largest Application Category)
• Infotainment
• Telematics (Fastest Application Category)

Autonomy Insights

The level 3 category is projected to grow at the highest CAGR, of 24.9%, during 2024–2030. This is due to the increasing driving autonomy in vehicles, rising purchase of such automobiles by the masses, deployment of level 3 autonomous vehicles in shared mobility fleets such as cabs and taxis, and surging demand for automobiles with higher driving autonomy in developing countries of the world, like Japan, China, among others.

During the study, we have analyzed six autonomy types in the report:

• Level 0 (Largest Category)
• Level 1
• Level 2
• Level 3 (Fastest-Growing Category)
• Level 4
• Level 5

Memory Analysis

• The dynamic random-access memory (DRAM) category holds the largest market share, of around 40%, in 2023. The high preference for this type of component has been due to their efficient storage of data and lower costs than other variants.
• Whereas, the NOT-AND (NAND) Flash category is projected to witness the highest CAGR, of 25.0%, during 2024–2030 in the market. This growth is associated with its lesser physical size and faster data transmission.

Below are the major memory types that were studied in the report:

• Dynamic Random-Access Memory (DRAM) (Largest Memory Category)
• Static Random-Access Memory (SRAM)
• NOT-AND (NAND) Flash (Fastest Memory Category)
• Others

Vehicle Insights

• The passenger vehicle category dominates the market and is expected to continue the same trend in the forecast period as well. This is due to the increase in applications like ADAS, security features, and connected car features.
• On the other hand, the commercial category is expected to witness faster growth in the forecast period, owing to the increased application of fleet management and vehicle tracking features in commercial vehicles.

During the study, we have analyzed two types of vehicles in the report:

• Passenger (Larger Vehicle Category)
• Commercial (Faster-Growing Vehicle Category)

Regional Insights

• Geographically, APAC is the fastest-growing market, advancing at a CAGR of 24.8% during 2024–2030. This can be due to an increase in disposable income and higher economic growth in the region as compared to other parts of the world.
• On the other hand, North America held the largest market share, of around 55%, in 2023 and it will continue on this path throughout the forecast period. This is attributed to the high number of automotive technology companies and the rising sales of autonomous and connected vehicles in the continent.
• Moreover, disposable income is also surging fast here, which is enabling people to purchase more expensive vehicles with advanced safety, connectivity, and autonomous features.
• The U.S. leads the North American memory market and is expected to continue doing so in the forecast period. This is majorly due to the presence of major automotive players involved in the development of connected and autonomous vehicles in the country.

Further, regions and countries analyzed for this report include:

• North America (Largest Regional Market)
  • U.S. (Larger Country Market)
  • Canada (Faster-Growing Country Market)
• Europe
  • Germany (Largest Country Market)
  • U.K. (Fastest-Growing Country Market)
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific (APAC) (Fastest-Growing Regional Market)
  • China (Largest Country Market)
  • Japan
  • India (Fastest-Growing Country Market)
  • South Korea
  • Australia
  • Rest of APAC
• Latin America (LATAM)
  • Brazil (Largest and Fastest-Growing Country Market)
  • Mexico
  • Rest of LATAM
• Middle East and Africa (MEA)
  • Saudi Arabia (Largest Country Market)
  • South Africa
  • U.A.E. (Fastest-Growing Country Market)
  • Rest of MEA

Competitive Analysis

There are various key players in the global automotive memory market on the basis of competitive pricing. In order to reach a large number of consumers globally, vendors are being encouraged to expand their product portfolios.

There are global as well as domestic OEMs that continuously compete with each other on prices and product differentiation, which, in turn, intensify market rivalry. Many prominent manufacturers are escalating their presence in emerging markets to access a large number of customers and increase their profits.

Memory Market Companies News

• Samsung Electronics has announced a comprehensive lineup of advanced automotive memory solutions tailored for next-generation autonomous EVs. This new lineup comprises a 2GB GDDR6 DRAM, 256-gigabyte (GB) PCIe Gen3 NVMe BGA SSD, 2GB DDR4 DRAM for great-performance infotainment devices, along with 128GB UFS, and 2GB GDDR6 DRAM for autonomous driving systems.
• Momenta and Toyota Motor Corporation partnered to develop a high-definition (HD) mapping platform for autonomous vehicles. The automated mapping platform (AMP) being developed by Toyota, for creating data for accurate maps, will be available for industry players as well.