China Dynamic Random Access Memory (DRAM) Market Size

China Dynamic Random Access Memory (DRAM) Market Analysis

The Chinese dynamic random access memory (DRAM) market is valued at USD 20.99 billion in the current year. It is expected to register a CAGR of about 3.95%, reaching USD 26.46 billion by the end of the forecast period. As consumers nowadays require safe data storage systems with increasing capacities due to the growing adoption of modern communication and advanced digital technologies, the demand for advanced memory solutions such as DRAM is growing.

• DRAM, or dynamic random access memory, is a specific type of RAM (random access memory) that is widely adopted in modern desktops, laptops, and other computing systems. DRAM acts as a temporary memory bank for a computer where data is stored for quick, short-term access as they are significantly faster than storage devices such as SSDs.
• China is among the major consumer of DRAMs as the country has witnessed rapid infrastructural growth in recent years, which has significantly enhanced the penetration of advanced digital technologies and computing devices. According to the National Bureau of Statistics of China, the share of e-commerce in total retail sales of consumer goods in China reached 27.2% in 2022. The growth of e-commerce has positively impacted the adoption of computing devices.
• The growing urbanization rate is also positively influencing the growth of the market in China as it has significantly enhanced the demand for mobile computing devices such as smartphones, tablets, and laptops. With the government focusing on further increasing the rate of urbanization, the demand for such products is anticipated to grow, creating demand for DRAMs. For instance, according to the National Bureau of Statistics of China, approximately 65.2% of the total population in China lived in cities in 2022.
• The IT and data center industry is also flourishing in the country amid the growing amount of data generated each year. For instance, China's National Development and Reform Commission (NDRC) has recently unveiled its plans to establish four more data center mega clusters across the country. Such trends also favor the studied market's growth in the country.
• However, technical limitations of DRAM, such as a higher power than SRAM because its capacitors need to be recharged often to maintain their charge, is among the major factor challenging the studied market's growth in the country. Additionally, the US-China trade dispute is creating barriers to the development of the DRAM market in China.
• A notable impact of the outbreak of COVID-19 was observed in the market. In contrast, the initial outbreak had a detrimental impact on growth due to supply chain and production disruptions caused by lockdowns across various regions. However, the market is expected to grow in the post-COVID period due to a growth in demand across major end-user industries and the emergence of local players in the DRAM manufacturing landscape.