According to the Market Statsville Group (MSG), the global high bandwidth memory market size is expected to grow at a CAGR of 26.1% from 2023 to 2033. The growing demand for high-bandwidth, low-power consumption, and highly scalable memories, as well as the increasing adoption of artificial intelligence, are the factors responsible for the growth of the high bandwidth memory (HBM) market. With the growth of graphics applications, so has the demand for fast information delivery (bandwidth). As a result, HBM memory outperforms GDDR5, which was previously used, in terms of power and performance efficiency, creating a lucrative growth opportunity for the high bandwidth memory market. The rapid advancement of technology in automobiles and the increasing use of edge technologies in automobiles will boost the sector's sales of High Bandwidth Memory and DDRAM.

Definition of the Global High Bandwidth Memory Market

High bandwidth Memory (HBM) is a high-speed computer memory interface for 3D-stacked SDRAM that is commonly used for high-performance graphics accelerators, supercomputers, and network devices. HBM stacks memory chips vertically, like floors in a skyscraper. HBM provides significantly higher bandwidth while using less power in a relatively smaller form factor by stacking up to 8 DRAM dies on the circuit and interlinking them via TSVs. Furthermore, the HBM provides a 1024-bit interface with 128-bit channels and a total of 8 channels; a GPU with four HBM stacks would thus provide a memory bus with 4096 bits.. 

COVID-19 Impact on the Global High Bandwidth Memory Market

The global market demand witnessed a significant decline in market revenue during COVID-19 due to the reduced investments by private companies and government in bandwidth memory manufacturing, results in cutbacks in such business lines. Thus, it can be defined as the recent outbreak of the novel COVID-19 disease having dropped the consumption of high bandwidth memory, thereby hampering the market growth considering the global scenario.

However, the demand for strong network infrastructure coupled with the rise in data centers, especially cloud-based data centers, increased during April-May 2020. Working from home has burgeoned the demand for the internet of things, high bandwidth memory as well as cloud solutions, especially Software as a Service (SaaS), which in turn, has increased the traffic to data centers. Therefore, amidst the COVID-19 pandemic, the high bandwidth memory is being classified as one of the essential services in IT firms. The emergence and acceptance of the new normal, with the continuous rise in cloud adoption and acceleration of digitization, have now gradually become the pillars of the business continuity strategies for the post-Covid-19 world.

Global High Bandwidth Memory Market Dynamics

Drivers: Rising Need for Better Speed and Greater Bandwidth Among Industries

End-users including automotive, consumer electronics, and commercial sector are augmenting the demand for greater interconnection which allow them and their customers to get a new efficiencies by enhancing the digital capabilities of their IT infrastructure at minimized costs. Additionally, the need for higher speed and bandwidth is observed in the telecom industry. Fiber optics technology is gaining traction and running VoIP over the fiber network is preferred for most small businesses. The reliability and bandwidth of a private fiber-optic network is much higher than standard broadband internet connections. A private fiber-optic network allows the data to travel securely unobstructed, avoiding public internet traffic. Also, fiber optics technology has been steadily growing in popularity, and the adoption of the technology has grown to replace traditional and cellular networks to improve flexibility and high data volume exchange capabilities. Thus, the high adoption of fiber optic technology in the telecom sector would propel the demand for higher bandwidth memory.

In addition, there is a significant demand for high bandwidth in the oil & gas industry. The sector is known to heavily use secure, reliable, and resilient networks for seamless communication. The industry's new mission-critical applications are developed on robust computing platforms. These are also bandwidth-intensive and deliver information to the control center. Also, VPNs and MPLS were deployed in climate-controlled operations in environmentally challenging locations. WiFi, LTE , and LAN-based Ethernet technologies are now being leveraged for industrial applications, thereby providing a starting point for increasingly demanding, transformative automation using 5G networks. Thus, the rising demand for high speed and greater bandwidth among industries boost the growth of the market during the forecast period.

Restraints: Complications Associated with Error Solving Process

Network issues are already frustrating to handle, but they can spell out disaster when they happen on a commercial or industrial network. As a result, a complication associated with error solving process is a restraining factor influencing the market's growth over the forecast period. Loose connections are present in every network. With the millions of connectors installed, there are ways they can become loose to cause performance issues. As per the PPC online Organization, most technicians report finding that more than 25% of indoor connectors are loose and more than 6% of outdoor connectors are sound to be loose. Also, establishing electrical connections in harsh environments can cause serious issues and create an open circuit. For instance: moisture trapped inside a connector can cause issues ranging from unnoticed to serious, depending on the demand of the systems, like high bandwidth memory, this can also reduce efficiency, thus making the work harder to keep the demand.

In addition, most systems are limited by memory bandwidth. Computer systems with increased memory interface performance barely match the gains in compute performance, meaning that memory transfer rates are the bottleneck in most systems. This, in turn, limits the amount of computation that can be performed usefully. Thus, a complication associated with error solving process as well as problems while computing with memory bandwidth, will hamper the growth of the high bandwidth memory market.

Opportunities: Growing Number of Smart Data Centers

Data centers are evolving to minimize the challenges of storing, moving, and analyzing data speedliy and efficiently. The high bandwidth memory plays a significant role in data centers, as it enhances the analytics engines and help train the next wave of AI algorithms. Thus, the growing number of data centers worldwide is likely to increase in the future to create diversity and offer innovative solutions. For instance: In January 2019, Huawei introduced its initial data center switch assembled for the Artificial Intelligence (AI) era - “Cloud Engine 16800”. The company defines three attributes of data center switches in the AI era: 48-port 400GE line card per slot, embedded AI chip, and the capability to advance the autonomous driving network and innovative incorporate AI technologies into data center switches. In September 2018, Hitachi Vantara - a wholly-owned subsidiary of Hitachi Ltd., announced its enhancements towards the Smart Data Center Solution that elevates the use of AI and real-time analytics to further its vision of optimizing all aspects of IT operations across data centers. These developments of smart data centers will require more advanced technologies that handle the AI and machine learning algorithms, thereby driving the high bandwidth memory market growth.

Scope of the Global High Bandwidth Memory Market

The study categorizes the high bandwidth memory market based on product and application area at the regional and global levels.

By Product Outlook (Sales, USD Billion, 2019-2033)

• Central Processing Unit
• Field-programmable Gate Array
• Graphics Processing Unit
• Application-specific Integrated Circuit
• Others

By Application Outlook (Sales, USD Billion, 2019-2033)

• High-Performance Computing (HPC)
• Networking and Client Space
• Data Centers
• Others

By Region Outlook (Sales, USD Billion, 2019-2033)

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • Italy
  • France
  • UK
  • Spain
  • Poland
  • Russia
  • The Netherlands
  • Norway
  • Czech Republic
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Indonesia
  • Malaysia
  • Thailand
  • Singapore
  • Australia & New Zealand
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Colombia
  • Rest of South America
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • South Africa
  • Northern Africa
  • Rest of MEA

Central Processing Unit segment accounts for the largest market share by type

Based on the type, the market is divided into central processing units, field-programmable gate arrays, graphics processing units, application-specific integrated circuits and others. The central processing unit segment is expected to dominate the market share in 2022 in the global high bandwidth memory market. The growing demand for high-performance graphics applications enables the widespread use of high-bandwidth memory technology in supercomputers, robotics, and gaming, creating significant opportunities for the business in many developed and emerging economies.

North America is expected to witness the largest market share by Region

Based on the regions, the global high bandwidth memory market has been segmented across Europe, North America, the Middle East & Africa, Asia-Pacific, and South America. North America is projected to account for the highest market share in 2022. The high selection of HMC and HBM recollections in North America is largely owing to the rise in the development of superior figuring (HPC) applications that require high-transmission capacity memory answers for quick information preparation. Further, the region is at the forefront of the 5G networking technology revolution due to the evolving rolling out of smart solutions like AI, machine learning, internet edge, and the continual growth of high bandwidth memory across North America.

Key Market Players in the Global High Bandwidth Memory Market

The high bandwidth memory market is a significant competitor, and extremely cutthroat in the sector are using strategies including product launches, partnerships, acquisitions, agreements, and growth to enhance their market positions. Most sector businesses focus on increasing their operations worldwide and cultivating long-lasting partnerships.

Major key players in the global high bandwidth memory market are:

• Advanced Micro Devices, Inc.
• SK Hynix Inc.
• Micron Technology, Inc.
• Rambus Inc.
• Xilinx, Inc.
• Open-Silicon, Inc. (SiFive)
• NEC Corporation
• Cadence Design Systems, Inc.
• Intel Corporation
• Samsung Electronics Co., Ltd.

Recent Development

• In October 2021, SK Hynix Inc. introduced the High Bandwidth Memory 3, the fourth generation of the HBM technology. The product launch offers the fastest DRAM across the globe as it can process up to 819GB (Gigabyte) per second and can be transmitted in a single second.
• In January 2023, Intel launched 4th Gen Intel Xeon Scalable processors (code-named Sapphire Rapids), the Intel Data Center GPU Max Series (code-named Ponte Vecchio), and the Intel Xeon CPU Max Series (code-named Sapphire Rapids HBM). The launch of 4th Gen Xeon Scalable processors and the Max Series product family will enhance the company’s product offerings and grow its footprint in new arenas of the IT sector.

Key Issues Addressed

• What is the market size by various segmentation of the high bandwidth memory by region and its respective countries?
• What are the customer buying behavior, key takeaways, and Porter's 5 forces of the high bandwidth memory market?
• What are the key opportunities and trends for manufacturers involved in the high bandwidth memory supply chain?
• What are the fundamental dynamics (drivers, restraints, opportunities, and challenges) of the market?
• What and how regulations, schemes, patents, and policies are impacting the growth of the market?
• What are the upcoming technological solutions influencing market trends? How will existing companies adapt to the new change in technology?
• The market player positioning, top winning strategies by years, company product developments, and launches will be?
• How has COVID-19 impacted the demand and sales of high bandwidth memory in the global market? Also, the expected BPS drop or rise count of the market and market predicted recovery period. 
• Detailed analysis of the competitors and their latest launch, and what are the prominent startups introduced in the target market? Also, detailed company profiling of 25+ leading and prominent companies in the market.