High Bandwidth Memory Market
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The global high bandwidth memory market currently accounts for USD 2.3 billion in 2024, with a volume of 1.4 billion GB and is projected to grow at a CAGR of 26.2% from 2024 to 2034, driven by the expansion of data-intensive applications, rapid growth of high-performance computing and expansion of the data center and cloud services.
The global demand for high bandwidth memory (HBM) is being driven substantially by the growth of data-heavy applications within AI, IoT, and real-time analytics. These applications require high-speed data processing capabilities to deliver optimal performance. For example, self-driving cars depend on significant real-time analysis of sensor data to navigate safely, whereas AI models that operate remotely need super-fast memory for computations. The increase in data generation is also reflected in the figure given by ITU, global mobile data traffic surpassed 913 exabytes in 2023. The accelerated adoption of AI solutions along with edge computing across industries fuels the demand for high-performing memory architectures. The HBM market is greatly benefiting from the growing dependence on real-time, high-speed data processing. The developing infrastructure of next generation computing systems is going to make HBM a pivotal component.
| Report Attribute | Details |
|---|---|
| Base Year: | 2024 |
| High Bandwidth Memory Market size in 2024: | USD 2.3 Billion |
| Forecast Period: | 2025 – 2034 |
| Forecast Period 2023 - 2032 CAGR: | 26.2 |
| 2023 Value Projection: | USD 25.9 Billion |
| Historical Data for: | 2021 – 2024 |
| No of Pages: | 180 |
| Tables, Charts & Figures: | 254 |
| Segments Covered: | Memory Capacity, Technology Node, Application, End-User Industry, End Use Industry |
| Growth Drivers: |
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| Pitfalls Challenges: |
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Recent advancements in simulations and Artificial Intelligence have driven a revolution in high-performance computing (HPC) at research centers and laboratories. The supercomputing systems of the next decade must meet demanding performance standards in areas like vegetation modeling and genome analysis, as well as national defense. For instance, weather prediction simulations require extremely fast data transfer, making high bandwidth memory (HBM) essential for HPC architectures. The latest report indicates that next-generation supercomputers have boosted their performance by about 35% over the past year. This ongoing growth is leading to innovations in memory technologies essential for scientific research. The rapid increase in supercomputer processing power and the needs of emerging scientific fields are establishing new benchmarks for high bandwidth memory.
Consequently, industry stakeholders are investing heavily to enhance HBM technology for cutting-edge supercomputers and data-intensive applications. For example, advanced simulation projects in weather prediction require systems that can transfer data at blistering speeds, placing HBM at the core of HPC architectures. According to Statista, the high-performance computing (HPC) server market, particularly the supercomputer segment, is projected to generate over USD 11 billion in revenue by 2028. The sustained growth and demand for high-performance computers are, therefore, spurring innovations in memory technologies for scientific research. The combination of extreme expansion in the processing power of supercomputers and the top-tier requirements of emerging scientific fields has set new benchmarks in the development of high-bandwidth memory agriculture. This is especially true since industry stakeholders are pouring funds and coming up with new ideas to improve HBM technology to be used in next-level supercomputers and other important applications that use a lot of data.
Based on technology node, the high bandwidth memory market is segmented into below 10nm, 10nm to 20nm, and above 20nm. The 10nm to 20nm node market accounts for the highest market share of 44.46% in 2024, and the below 10nm segment is the fastest growing segment with a CAGR of 28%.
The 10nm to 20nm node market currently accounts for USD 1 billion and is projected to grow with a compound annual growth rate of 26.7%. The 10nm to 20nm range strikes a superb balance in performance and value that is particularly appealing for automotive electronics, IoT devices, and consumables within the middle-level tier. These technological node levels have matured over time and currently provide sufficient production yields and cost-effectiveness while meeting the basic requirements of many under the surface. To illustrate, several automotive advanced driver-assistance systems (ADAS) together with IoT chipsets are constructed on 14nm technology and can perform safety-critical functions at a reasonable price. Therefore, this range of nodes continues to be relevant in everyday applications. Their well-defined processes ensure a robust portion of the market that will always be crucial even when advanced cutting-edge nodes take the spotlight.
The below 10nm node market is currently accounts for USD 856.4 million and is growing rapidly with a compound annual growth rate of 28%. The advanced nodes below 10nm are straining the boundaries of performance and power efficiency in high-performance computing, AI, and flagship mobile devices. With the new TSMC's 3nm and Samsung’s 4nm came ultra-dense transistor integration with faster speeds and lower energy consumption. TSMC’s 3nm technology is now a standard in next-generation AI processors and flagship smartphones, leading the market in performance. Demand for TSMC's sub 10nm flagship elite chips is skyrocketing due to HPC and AI applications, and according to estimates, the AI and IoT integration demand will grow more in the coming years. The market will continue to grow with emerging applications and increased semiconductor performance.
By Memory Capacity, the market is segmented into Less than 4 GB, 4 GB to 8 GB, 8 GB to 16 GB and Above 16 GB. The above 16GB memory type segment accounts for the highest market share of 32% in 2024, and the 8GB to 16GB segment is the fastest growing segment with a CAGR of 28.1%.
Currently, the above 16GB memory type market accounts for USD 757.8 million in 2024 and is expected to grow with a CAGR of 25.5%. The need for 8GB to 16GB HBM modules to meet consumer and professional requirements for real-time rendering, simulation, and AI training is increasing by the day. These systems’ advanced GPUs combine higher-level computing and virtual reality to maximize energy efficiency and bandwidth, ease of use, and productivity. As an example, advanced graphics solutions in professional design workstations and virtual reality headsets are progressively incorporating 8 to 16GB of HBM for large data flow processing. According to an IDC survey conducted in early 2024, systems having high-performance memory components reported a twenty percent annual growth, which further accelerates the development of sophisticated computing systems and thus drives the HBM market expansion.
The 8GB to 16GB memory market is currently accounting for USD 685.8 million in 2024, and is the fastest-growing segment in the market, compounding at an annual growth rate of 28.1%. For deep learning and AI applications, as well as cloud computing workloads, the expected demand for extremely high-capacity HBM memory, which exceeds 16GB, is shifting towards 32GB per server GPU and accelerator card. Enterprise applications are leveraging next-generation server GPUs and accelerator cards that facilitate extensive parallel processing using large amounts of HBM memory. For example, many MNCs like Micron, Marvell and Samsung Electronics have recently proposed plans to add high-capacity HBM module integration into data center designs to improve high-speed data processing while reducing delay. According to Statista 2024, there is an expected close to 30% increase in high-capacity memory demand for data centers, which further confirms the dominant growth rate of the HBM market.
Based on application, the high bandwidth memory market is segmented into Graphics Processing Units (GPUs), central processing units (CPUs), field-programmable gate arrays (FPGAs), application-specific integrated circuits (ASICs), artificial intelligence (AI) and machine learning (ML), high-performance computing (HPC), networking and data centers, and others. The GPU segment accounts for the highest market share of 21.3% in 2024, and the AI/ ML segment is the fastest growing segment with a CAGR of 29.6%.
The graphics processing units (GPUs) segment is growing rapidly with a compound annual growth rate of 26.8% and is currently valued at USD 497 million in 2024. To keep pace with the ultra-bandwidth requirements for ultra-high definition rendering and immersive gaming, the GPU domain is progressively adopting cutting-edge advanced high bandwidth memory (AHBM) technologies, and HBM3E is a prime example. This is corroborated by the next-generation GPUs from NVIDIA and AMD, which boast these modules for optimizing latency and data throughput in gaming and professional visualization. The increasing adoption of professional and gaming VR and the explosive growth in professional graphics is generating vast investments in high-end GPUs, and consequently, the HBM-assisted technology advancement is expected to boost graphic processing while driving the HBM market further.
The artificial intelligence (AI) and machine learning (ML) segment is currently estimated to account for USD 463 million in 2024 and a compound annual growth rate of 29.6%. High bandwidth memory (HBM) is set to become the next centrepiece technology for AI and ML, due to its ability to handle unprecedented rates of data processing, as well as its low latency for the training of complex neural networks and other real-time inferring tasks. This is made possible by SK Hynix’s introduction of 12-high HBM3E devices and the ongoing work of HBM4, while Micron and Samsung are also pouring resources into new HBM integration into AI processors to alleviate memory shortages. Adoption of HBM in supportive infrastructures, like AI-centered data centers, illustrates the increasing market demand and gives reason to expect further innovation in HBM technology fuelling growth in AI and ML.
Based on end-user industry, the high bandwidth memory market is segmented into IT & telecom, gaming & entertainment, healthcare & life sciences, automotive, military & defense, and others. The IT & telecom segment accounts for the highest market share of 26.3% in 2024, while the gaming & entertainment segment is the fastest growing with a CAGR of 29.7%.
The IT & telecom market has been expanding steadily achieving a CAGR of 26.7% and reaching a valuation of USD 613.8 million in 2024. Faster digital changes, more IoT networks and cloud services, and wider adoption of 5G have compelled most telcos and IT companies to incorporate more sophisticated HBM technologies to meet the growing data demands from next-generation networks, cloud services, and edge analytics. For instance, AT&T’s recent experiments with using HBM-enabled accelerator cards to optimize traffic for their 5G networks and improve cloud services. HBM, at an ultra-high speed, can process data so that telecom infrastructure can utilize the 5G and future 6G networks along with real-time analytics, and HBM will need to aid in devising strategies for automation to ensure optimal business outcomes. As the industry moves towards more intelligent and flexible networks, hyper-bridging memory solutions are going to be key in reinforcing the effectiveness of future networks and the entire market.
The gaming and entertainment segment is growing with a compound annual growth rate of 29.7%, reaching a valuation of USD 567.3 million in 2024. The segment that adopts HBM the most is the gaming consoles, PCs, and even VR devices due to their need for superior performance in graphics rendering and real-time content processing. For example, NVIDIA's flagship GPUs utilize cutting-edge HBM modules that have facilitated high frame rates and ultra-low latency, critical to next-gen AAA titles and VR. Cloud gaming, e-sports, and streaming entertainment are on the rise, which increases the adoption of HBM. As the gaming and entertainment industries aim for higher video quality and immersive interaction, it will simultaneously give rise to the developments made in advanced HBM technology, which guarantees innovation down this path.
Based on region industry the market is segmented into North America, Europe, Asia Pacific, Latin America and MEA. In 2024, the Asia-Pacific segment accounted for the largest market share with over 32.2% of the total market share, and North America is the fastest-growing region, growing at a CAGR of 27.8%.
The high bandwidth memory market has been expanding rapidly in the United States, achieving a CAGR of 28.3% and reaching a valuation of USD 523 million in 2024. The U.S HBM market is growing at an exponential rate owing to the digital modernization of data centers and cloud infrastructures. For example, scaling analytics across the US in real time is being made possible by primary US cloud providers implementing HBM enabled accelerators. The United States has the highest number of reported data centers at 5,426, which considerably sets the pace for other countries. This shift strengthens the U.S. position as an innovator of AI, IT, and other emerging technologies, making it a central player in the growth of the global HBM market.
In Germany high bandwidth memory market has been expanding steadily, achieving a CAGR of 27.6% and reaching a valuation of USD 112 million in 2024. The HBM market in Germany is on the rise due to modern industrial automation and innovations within the automotive sector. In Germany, automakers are quickly using HBM for ADAS and smart factory systems. For instance, sensor fusion with real-time analytics is provided with HBM enabled by German automobile companies. Germany has approximately 529 data centers at the moment, which displays that there is concentrated adoption drives performance and productivity, which guarantees Germany's important role in supporting the development of the HBM market.
In China, the high bandwidth memory market has been expanding at a CAGR of 28% and reaching a valuation of USD 321 million in 2024. With the ban on global export, the market is striving to make domestic breakthroughs, particularly in HBM2 development. ChangXin Memory Technologies and other local firms are spearheading the AI-based HBM competition. Fueled by robust mainland government support, the strategic relationships with Korean and Japanese vendors enable China to step up HBM investment and scaling while lessening the dependency on foreign imports.
The high bandwidth memory market in Japan has been experiencing significant expansion, achieving a compound annual growth rate of 23.9% and attaining a valuation of USD 93 million in 2024. The advancements in HBM technology are driven by the increasing demand for GPUs and the adoption of AI in semiconductor manufacturing equipment. According to SEAJ, Japanese manufacturers are vigorously utilizing AI servers and mobile device forms for HBM due to AI-supported domestic expenditures as well as unprecedented chip apparatus sales. This in turn development strengthens Japan’s commanding position while stimulating continual expansion in the HBM industry.
In South Korea, high bandwidth memory market is expanding, achieving a CAGR of 28.3% and reaching a value of USD 79 million in 2024. Domestic frontrunners such as SK Hynix and Samsung blazing the trail on HBM3E and 16-layer chip fabrication. South Korea continues to be a global leader for HBM innovation. The recent declarations of starting mass production also strengthen the opportunities for high-performance HBM usage in AI, GPUs, and data centers. This fervent effort not only cements South Korea's commanding market position, but also greatly enhances the growth of the HBM industry worldwide.
The high bandwidth memory industry is highly competitive with frontrunners like Samsung Electronics, SK Hynix, and Micron Technology. Samsung is furthering its HBM3E and looking into next-gen HBM4 while locking in important supply contracts to meet AI and HPC needs. SK Hynix is leading the pack alongside other competitors by mass-producing 12-layer HBM3E devices and expanding production capacity.
On the other hand, Micron is stepping up its HBM portfolio R&D to mitigate the cyclical headwinds of conventional memory. These strategies reveal an innovative context with deepening collaborations for capacity enhancements, which result in the competitive landscape and continuous growth.
List of prominent players operating in high bandwidth memory industry includes:
AMD is incorporating high HBM bandwidth memory, especially HBM3 into its GPUs’ and compute accelerators’ architecture developed for AI and HPC tasks. In 2024, AMD plans to upgrade Radeon products designed for HBM integration to improve data transmission rates, operational power effectiveness, and increase power responsiveness in gaming and processing performance. This develops competition for NVIDIA, as AMD seeks to satisfy growing data center and AI workload requirements, also increasing the reach of the HBM market.
Alongside existing networking products, Broadcom is venturing into AI and cloud computing HBM solutions for data center and cloud computing accelerators. In 2024, the company solicited key partnerships to add HBM functionality to AI accelerators with the aim at ultrahigh throughput and low latency performance. First claims suggest adept Broadcom’s AI processor designs implementing HBM to alleviate memory bandwidth limitation suggest his advances in contemporary cloud infrastructure enablement, which means growth of the HBM market.
Market, By Memory Capacity
Market, By Technology Node
Market, By Application
Market, By End Use Industry
The above information is provided for the following regions and countries:
The market was valued at USD 2.3 billion in 2024 and is projected to reach approximately USD 25.9 billion by 2034, growing at a CAGR of 26.2% during the forecast period.
The 10nm to 20nm node segment currently accounts for USD 1 billion and is projected to grow at a CAGR of 26.7% during the forecast period.
North America is the fastest-growing region, with a CAGR of 27.8% during the forecast period
Prominent participants in the industry include Advanced Micro Devices, Inc. (AMD), Broadcom Inc., Cadence Design Systems, Inc., Fujitsu Limited, GlobalFoundries Inc., IBM Corporation, and Infineon Technologies AG.