High Bandwidth Memory Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The High Bandwidth Memory Market is Segmented by Application (Servers, Networking, Consumer and Automotive) and Geography.

High Bandwidth Memory Market Snapshot

High Bandwidth Memory Market Forecast
Study Period: 2020-2027
Base Year: 2021
Fastest Growing Market: Asia Pacific
Largest Market: North America
CAGR: 25.4 %

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Market Overview

The high bandwidth memory market is expected to reach a CAGR of 25.4% over the forecast period 2022-2027. 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.

  • High Bandwidth Memory (HBM) is a high-speed computer memory interface for 3D-stacked SDRAM, usually used with high-performance graphics accelerators, network devices, and supercomputers.
  • By stacking up to 8 DRAM dies on the circuit and interconnecting them by TSVs, HBM offers a substantially higher bandwidth while using less power in a relatively more minor form factor. Also, with 128-bit channels and a total of 8 channels, the HBM offers a 1024-bit interface; a GPU with four HBM stacks would therefore provide a memory bus with 4096 bits.
  • 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.
  • Moreover, the major semiconductor vendors are working with reduced capacity owing to the spread of COVID-19 worldwide. Additionally, due to the shortage of laborers, many packages and testing plants in China reduced or even stopped operations. This created a bottleneck for chip companies that rely on such back-end packages and testing capacity.
  • However, some factors driving the market's growth include the increasing adoption of artificial intelligence, increasing demand for low power consumption, high bandwidth, highly scalable memories, and a rising trend of miniaturization of electronic devices.

Scope of the Report

High Bandwidth Memory (HBM) is a high-speed computer memory interface for 3D stack synchronous dynamic random access memory (SDRAM), first developed by Samsung, AMD, and SK Hynix. HBM delivers higher bandwidth while using less power with a significantly smaller form factor than DDR4 or GDDR5. This is achieved by stacking up to eight DRAM dies, and an optional base die containing buffer circuits and test logic. The stack is often connected to the memory controller of the GPU or CPU via a board such as a silicon interposer.

The High Bandwidth Memory Market is Segmented by Applications (Servers, Networking, Consumer, and Automotive) and Geography.

By Application
Servers
Networking
Consumer
Automotive and Other Applications
Geography
North America
Japan
China
Europe
Rest of the World

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Key Market Trends

Automotive and Other Applications Segment is Expected to Grow Significantly

  • The applications of high bandwidth memory are spanning in the automotive sector due to the rise of self-driving cars and ADAS integration, among others. The advancement in the automotive industry has driven the adoption of high-performance memory, which supports the growth of high bandwidth memory.
  • The evolution of HBM by taking it up a notch from the traditional DRAM with 2.5D technology has helped it move closer to the processor reducing the power consumption required to drive a signal and cutting RC delay. Autonomous driving is a booming part of the automotive sector, which leverages large data sets to process and analyze the surroundings. Data processing happens at a very high speed to avoid accidents and imminent incidents. The need for fast and powerful GPUs has developed the need to integrate high bandwidth memory in the systems.
  • Alongside autonomous driving, advanced driver-assistance systems have gained significant traction in the automotive sector. Due to their availability, the earlier versions of ADAS designs include the earlier proponents of memory chips, like DDR4 and LPDDR4. However, the shift from cost-effectiveness to higher performance metrics in the automotive sector urges ADAS manufacturers to integrate systems with HBM technology in the design architecture.
  • The rapid advancement of technology in automobiles and increasing usage of edge technologies in automobiles will boost the sales of High Bandwidth Memory and DDRAM in the sector.
High Bandwidth Memory Market

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 industries create a need for more efficient processing systems. These are also some of the factors driving the demand for the 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 of building hyper-scale data centers and shut-off the underperforming ones. According to Cloudscene, the country has around 2,751 data centers as of January 2022.
  • Moreover, memory manufacturing companies in North America are seeking opportunities for production expansions. For instance, In July 2021, Intel announced the launch of the next generation Sapphire Rapids (SPR) Xeon Scalable processor with high-bandwidth memory (HBM). DDR5, supported by Sapphire Rapids, is expected to replace DDR4, the current trend in server memory, with high-bandwidth memory (HBM) support that significantly expands the memory bandwidth available to the CPU.
High Bandwidth Memory Market

Competitive Landscape

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 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 -

  • February 2022 - Advanced Micro Devices Inc. announced the acquisition of Xilinx. The company expects the purchase to boost non-GAAP margins, non-GAAP EPS, and free cash flow generation in the first year. Furthermore, AMD claims that the Xilinx acquisition brings together a highly complementary collection of products, customers, and markets, as well as differentiated IP and world-class personnel, to build the industry's high-performance and adaptive computing organization.
  • October 2021 - SK Hynix launched Gen.4 HBM product for data centers – HBM3. HBM3 can process up to 819 gigabytes per second, indicating that 163 full-HD movies could be transmitted in a single second. This represents a 78% increase in the data-processing speed compared to the company's HBM2E.​
  • October 2021 - Intel Corporation announced that High-Bandwidth Memory (HBM) will be available on select Sapphire Rapids Xeon SP processors and will provide the CPU backbone for the "Aurora" exascale supercomputer to be sited at Argonne National Laboratory. Coupled with HBM for AI and data-intensive applications, the processors are expected to leverage the 64-bit programming paradigm of AMX to speed tile operations.

Recent Developments

  • January 2022 - The JEDEC Solid State Technology Association released JESD238 HBM3, the latest version of its High Bandwidth Memory (HBM) DRAM standard, which may be downloaded from the JEDEC website. HBM3 is an innovative approach to increasing the data processing rate used in applications such as graphics processing and high-performance computing and servers where higher bandwidth, lower power consumption, and capacity per area are critical to a solution's market success.
  • July 2021 - Samsung announced that it was developing 24 Gb DDR5 memory solutions at the request of its customers that operate cloud datacenters. Such ICs would allow Samsung to build memory modules of up to 768GB capacity for servers and high-capacity memory solutions for client PCs.​
  • July 2021 - Xilinx has upped its game in addressing performance bottlenecks in networking and data centers, with a new series in its Versal adaptive compute acceleration platform (ACAP) portfolio that integrates high bandwidth memory (HBM) to enable fast compute acceleration for massive, connected data sets with fewer and lower-cost servers. Its new Versal HBM series integrates advanced HBM2e DRAM, providing 820GB/s of throughput and 32GB of capacity for 8X more memory bandwidth and 63% lower power than DDR5 implementations (a comparison based on a typical system implementation of four DDR5-6400 components).
  • April 2021 - AMD and Xilinx, Inc. announced that stockholders voted to approve their respective proposals relating to the pending acquisition of Xilinx by AMD. This acquisition will bring together the complementary product portfolios and customers, combining CPUs, GPUs, FPGAs, Adaptive SoCs, and deep software expertise to enable advantages in computing platforms for cloud, edge, and end devices.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definitions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Industry Value Chain Analysis

    3. 4.3 Industry Attractiveness - Porter's Five Force Analysis

      1. 4.3.1 Bargaining Power of Suppliers

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Threat of New Entrants

      4. 4.3.4 Intensity of Competitive Rivalry

      5. 4.3.5 Threat of Substitute Products

    4. 4.4 An Assessment of the Impact of COVID-19 on the Industry

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Growing Need for High-bandwidth, Low Power Consuming, and Highly Scalable Memories

      2. 5.1.2 Increasing Adoption of Artificial Intelligence

      3. 5.1.3 Rising Trend of Miniaturization of Electronic Devices

    2. 5.2 Market Challenges

      1. 5.2.1 Exorbitant Costs and Design Complexities associated with HBM

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Application

      1. 6.1.1 Servers

      2. 6.1.2 Networking

      3. 6.1.3 Consumer

      4. 6.1.4 Automotive and Other Applications

    2. 6.2 Geography

      1. 6.2.1 North America

      2. 6.2.2 Japan

      3. 6.2.3 China

      4. 6.2.4 Europe

      5. 6.2.5 Rest of the World

  7. 7. DRAM MARKET

    1. 7.1 DRAM Revenue and Demand Forecast (2020-2027)

    2. 7.2 DRAM Revenue by Geography (Same geographical regions as in the HBM Market)

    3. 7.3 Current Pricing of DDR5 RAM Products

    4. 7.4 List of DDR5 Product Manufacturers

  8. 8. COMPETITIVE LANDSCAPE

    1. 8.1 Company Profiles

      1. 8.1.1 Key HBM Memory Die Suppliers

        1. 8.1.1.1 Micron Technology Inc.

        2. 8.1.1.2 Samsung Electronics Co. Ltd

        3. 8.1.1.3 SK Hynix Inc.

      2. 8.1.2 Key Stakeholders Profiles

        1. 8.1.2.1 Intel Corporation

        2. 8.1.2.2 Fujitsu Limited

        3. 8.1.2.3 Advanced Micro Devices Inc.

        4. 8.1.2.4 Xilinx Inc.

        5. 8.1.2.5 Nvidia Corporation

        6. 8.1.2.6 Open Silicon Inc.

    2. *List Not Exhaustive
  9. 9. INVESTMENT ANALYSIS

  10. 10. FUTURE OUTLOOK OF THE MARKET

**Subject to Availability

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Frequently Asked Questions

The High Bandwidth Memory Market market is studied from 2020 - 2027.

The High Bandwidth Memory Market is growing at a CAGR of 25.4% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2021.

Micron Technology, Inc., Samsung Electronics Co. Ltd., SK Hynix Inc., Intel Corporation, Fujitsu Limited are the major companies operating in High Bandwidth Memory Market.

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