HMC and HBM Market Size, Share, Growth, and Industry Analysis, By Type (Hybrid Memory Cube (HMC) and High-bandwidth Memory (HBM)), By Application (Graphics, High-performance Computing, Networking and Data Centres) and Regional Forecast to 2032

Updated On: 21 October 2024

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HMC AND HBM MARKET REPORT OVERVIEW

The HMC and HBM Market Size is Projected to be worth US$ 2415 Million in 2023. The Market is likely to Surpass US$ 21285.25 Million by 2032 at a CAGR of 24.2% During the Forecast period [2024-2032].

Below is an advanced memory solution known as hybrid memory cube or in short HMC which has been developed with an intention of eliminating the shortcomings of DRAM. Its principle consists of through-silicon vias (TSVs) that establish the connection between stacked DRAM layers, offering even greater bandwidth and lower latency compared to standard memory modules. HMC is more relevant in High Performance Computing (HPC), data-center and enterprise server platforms. Another subsequent development in the memory technologies is the High Bandwidth Memory or HBM which is also aimed for speedy data transfer with low power consumption. In contarast to HMC, HBM utilizes wide-interface and is implemented with help of stacking with logic die on an interposer. It is used in graphics processing units, field-programmable gate arrays, and network devices where the engineers prefer to make many small alterations.

COVID-19 Impact: Market Growth restrained by the Pandemic due to Supply Chain Disruptions

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

The outbreak of the COVID-19 pandemic resulted in disruptions of the global supply chain hence having an impact on the production of HMC. There were plant closures or diminished production, resulting in slower turnover at manufacturing plants. Lead-times are also shortened due to competitive pressures and unexpected events, and this created sharp fluctuations in the availability of key components and materials needed to build HMCs.

LATEST TRENDS

"Increased Adoption in High-Performance Computing (HPC) to Propel Market Growth"

HMC technology has been gaining popularity in HPC and its application since it presents high bandwidth and low latency parameter. Most of the fields like scientific research, financial analysis, and extensive simulation rely on HMC. The HPC applications encompass areas such as, scientific computation, meteorology, computational modeling and others and these applications demand very high data transfer and availability of applications in shorter time. These characteristicspose a significant demand on the infrastructure, which HMC’s architecture with its high bandwidth and low latency is designed to fulfill. HMC technology provides memory scalability and balances the ability of the HPC system to accommodate more applications and data with the throughput loss. To maintain efficiency, such scalability is paramount in HPC environments that steadily become larger and more intricate. These super computing systems have been reported to congregate a lot of energy. Essentially, HMC delivers higher performance-per-watt versus DRAM and therefore will be more efficient for massive, data-intensive computing architectures.

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HMC AND HBM MARKET SEGMENTATION

By Type

Based on type the market can be categorized into Hybrid Memory Cube (HMC) and High-bandwidth Memory (HBM).

• Hybrid Memory Cube (HMC)- The structure of the market that comprises the Hybrid Memory Cube (HMC) is defined more by its ability to provide RAM for high performance computing. HMC technology interconnects multiple DRAM layers by using Techniques, such as 3D stacking and Through-Silicon Via or TSV, resulting in improved bandwidth and low latency compared with conventional DRAM modules.

• High-bandwidth Memory (HBM)- High Bandwidth Memory mainly served as the yet another segment of the high-performance memory market with a wide interface design and 3D stacking on an interposer. This architecture enables HBM to deliver extremely high per-pin bandwidths, concurrently occupy a minimal amount of space and utilize a low amount of power.

By Application

Based on application the market can be categorized into Graphics, High-performance Computing, Networking and Data Centres.

• Graphics- HBM is used extensively in GPUs for consumer GPU and professional workstation GPUs. It offers the high Bw required for realistic 3D graphics – game graphics – virtual environments, and professional computer graphics applications, including video editing and animation.

• High-performance Computing- HBM is important in AI and ML applications as utilized in the HPC Settings. It gives the required space for the processing of huge amounts of data, as well as computationally heavy tasks like training an AI model and making inference.

• Networking- It is applied in switches and routers specifically in networking equipment; handling large amounts of data, low latency characteristic is important in 5G networks. It has high bandwidth to support the data rate necessary for networks traffic control and data processing in real-time or near real-time.

• Data Centers- In data centers then it is used in servers and accelerators to improve its effectiveness in cloud computing services. Its high bandwidth also seamlessly facilitates data processing and storage hence quick access to resources in the cloud and better service provision.

DRIVING FACTORS

"Digital transformation and the emergence of 5G and edge computing to Drive Market Advancement"

One of the key driving factors in the HMC and HBM Market growth is the Digital transformation and the emergence of 5G and edge computing. As organizations continue to adapt to the digital landscape in nearly every sector, there is a demand for enhanced and faster computational platforms for storing vast amounts of data as well as facilitating the execution of sophisticated analytical tools, deep learning algorithms, and AI-based systems. These digital initiatives require high bandwidth, low latency and power from a server, and both HMC and HBM offer this kind of power. Regardless of whether it is used in large, centralized data centers, or as part of a high-performance, distributed computing platform in the cloud, or real-time data processing of IoT devices, HMC and HBM are essential subroutines for supporting the underlying structures needed for Digital Transformation programs. Now let’s discuss one of the chief trends that are already shaping the future of modern enterprises – the transition to 5G and the growth of edge computing. 5G offers double the speed, half the latency and enough connections to support the growing influx of smart devices and the Internet of Things. While, on the other hand, edge computing implies that data should be analyzed closer to its source since this will reduce the time taken in responding to the data source hence improving on decision making. As they both bring enhanced throughput and computing figures, technologies such as 5G and edge computing demand more effective memory solutions as HMC and HBM. HMC and HBM are beneficial to increase the speed of data access, processing, and storage as they are hardware blocks concatenated with the infrastructure of 5G networks and edge computing solutions.

"Technological Advancements to Expand the Market"

Another key factor influencing the need to integrate both HMC and HBM is that they offer up to five times the memory bandwidth than the conventional types of memory. The inherent architectures like advanced DRAM, three dimensional DRAM Stacking, Through-Silicon Via (TSV) provides enormous data transfer rate to HMC as well as HBM. These networks provide higher bandwidths than 3G networks which are essential for applications which have demand for high data processing speed and real time execution such as HPC, AI, graphics intensive applications.

RESTRAINING FACTOR

"High Manufacturing Costs Poses Potential Impediments to Market Growth "

Manufacturing HMC and HBM required high-level manufacturing techniques like 3-D stacking, Through-Silicon Via (TSV), and advanced packaging. These processes can be very elaborate hence the high costs of producing HMC and HBM modules to HMB. Some of the major strategic factors influencing the competitive outlook in the global airless technology include manufacturing facilities and equipment need high capital investments and are beyond the access of many entrants in the industry. High-mix costs are attributable to the high level of technology used in manufacturing HMC and HBM modules including 3D stacking and Through-Silicon Via (TSV) thus calling for a significant capital outlay in equipment to support these processes. One potential downside of this is that it may act as a barrier for new and small scale businesses to enter an environment or market.

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HMC AND HBM MARKET REGIONAL INSIGHTS

The market is primarily segregated into Europe, Latin America, Asia Pacific, North America, and Middle East & Africa.

"North America to Dominate the Market due to Technological Innovation and Market Presence"

North America has emerged as the most dominant region in the HMC and HBM Market share due to a convergence of factors that propel its leadership in this dynamic industry. North America, followed by the United States remains as the region with technology organizations and research centers focused on memory technology solutions. Due to the focus on high-quality architecture in Silicon Valley and other technology centers, there will be development in such aspects as 3D stacking, TSV technology and memory architecture design, all of which contribute to furthering HMC and HBM technologies. Currently, there are several large semiconductor companies with operations located and developed in countries in North America and they are the key players in the HMC and HBM industry. Highly specialized in designing and manufacturing memory solutions, these companies bring next-generation HMC and HBM products for compute-intensive applications such as the HPC, data center, and graphics markets.

KEY INDUSTRY PLAYERS

"Key Players Transforming the HMC and HBM Landscape through Innovation and Global Strategy"

Major industry players are pivotal in shaping the HMC and HBM market, driving change through a dual strategy of continuous innovation and a well-thought-out global presence. By consistently introducing inventive solutions and staying at the forefront of technological progress, these key players redefine the industry's standards. Simultaneously, their expansive global reach enables effective market penetration, addressing diverse needs across borders. The seamless blend of groundbreaking innovation and a strategic international footprint positions these players as not only market leaders but also as architects of transformative shifts within the dynamic domain of HMC and HBM.

LIST OF MARKET PLAYERS PROFILED

• Samsung (South Korea)
• SK Hynix (South Korea)
• Advanced Micro Devices (U.S.)
• Intel (U.S.)
• Micron (U.S.)

INDUSTRIAL DEVELOPMENT

April 2024: SK Hynix Inc. (South Korea) became the industry’s first to develop a 12-layer HBM 31 product with a 24 gigabet (GB) Memory capacity, currently the largest in the industry.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.