The FRAM Market is expected to be worth USD 343.2 million in 2025, at a CAGR of 3,78%
Global FRAM Market size is set to grow at a CAGR of 3.78%, estimated to reach USD 343.2 million by 2025 driven by growing demand for FRAM in automotive and electronic applications.FRAM is otherwise known as ferroelectric random-access memory. It is a low-power, non-volatile and high-performance memory that stores all the data on ferroelectric film. The high-speed RAM and conventional non-volatile memory are mixed in FRAM. It provides quick writing and reading access and the ability to save data even when the power source is turned off. The few advantages of FRAM are the access to speedier read, lower power consumption, quicker write operations, and a large number of write and erase cycles. The increase in demand for FRAM in automotive and electronic applications is the primary operator of market expansion.
All the modules of FRAM used in any electrical type of equipment are generally produced in China. But the spread of coronavirus from China had a substantial effect on both industries. The fastest spreading of the virus has resulted in lockdowns and shutdowns in several regions, which caused industrial factories to close and supply chain operations to be interrupted. The decrease in the production of new auto products, cars, and electronic gadgets has had a substantial effect on the growth of industry and, as a result, the development of market demand.
Moreover, the increase in the adoption of FRAM-based smart meters has determined the growth of the FRAM market. However, the decrease in energy use in commercial and industrial sectors and cancellation or rescheduling of international events and concerts has resulted in a crucial reduction in electricity use, which had a negative effect on demand for smart meters and, as a result, on the industry. The COVID-19 has interrupted the smart meter installation, which is overdue the intelligent meter adoption and, as a result, hampered the growth of the market.
COVID-19 was a major global pandemic in 2020 mainly because it was a dangerous virus. It made some people who got it extremely sick. Governments around the world responded by imposing lockdowns and quarantines for at least a few months, these had limited effect.
The FRAM market was one of the markets that were negatively affected. Manufacturers in this market found the raw materials needed to make these memory recording devices expensive and difficult to source. They had to pay much more for these materials. Their costs of production and manufacturing increased. End customers ended up paying the final price in the form of higher prices.
Also, many industries that were customers of FRAM devices were forced to either temporarily halt production or dramatically slow operations down. Some of these industries included the automotive and electronics industries. This was all because of COVID-19.
Many companies in markets and industries want devices that use little energy while doing a good job of recording various activities. This is one of the main drivers of growth in the FRAM Market. A growing number of industries are adopting FRAM recording technologies. These include Automotive, IT, and telecommunications.
Many companies are viewing FRAM devices as a viable alternative to memory recording devices that are very sensitive and reactive to slight changes in electrical voltage. FRAM recording memory devices are also able to store more data and information while using less energy. This results in real economic savings for the companies that use them. In fact, it’s the second driving factor of growth that is expected to drive real growth in the FRAM market for the next few years.
Most of the companies that need to use FRAM memory recording devices are in the automotive and electronics industries.
COVID-19 slowed production for these memory devices. This also leads to a lag in terms of many industries adopting smart meters, this is one of the factors that held growth back in FRAM Market. Many companies also canceled large events and concerts that rely on FRAM memory recording devices. The main reason for this was that governments and public organizations wanted to avoid public gatherings as much as possible since it was believed that this promoted a lack of social distancing and encouraged the spread of the COVID-19 virus.
COVID-19 also made it harder for manufacturers to make FRAM devices. These difficulties still exist even though public places and businesses are starting to open up and resume operations. One of the key factors that are holding back growth of FRAM Market is the fact that FRAM chips are expensive and difficult to source.
Perhaps the greatest challenge that FRAM memory device manufacturers will face going forward lies in keeping the price point in the affordable range while continuing to develop more efficient and productive memory devices. They have to keep into account that the raw materials needed to produce these devices will be expensive and difficult to procure.
As growth picks up in the FRAM market more manufacturers of these devices are realizing that customers are willing to pay a premium for devices that are quick and efficient in terms of recording information. They also want devices that have more innovative and useful applications.
Cumulative Growth Analysis
The CAGR for the FRAM market is 3.78%. This is expected to continue until 2025. The market should be worth USD 343.2 million in 2025.
Texas Instruments is a major American company that has managed to create a sustainable competitive advantage through research and development. This has allowed it to create a new generation of more efficient FRAM recording devices.
By Product Type
The FRAM market can be separated into the following types of by-products:
The FRAM market can be separated into the following subsegments based on the interface:
Many companies in a variety of industries are finding that they can substitute parallel FRAM devices for SRAM memory recording devices. The main reason for this is that, unlike SRAM memory recording devices, FRAM devices don’t need batteries to operate.
The FRAM market can be separated into the following subsegments based on application:
The telecoms subsegment had the largest market share and value of all of the subsegments in the application segment. That said, the high demand for FRAM devices in the automotive segment translates into this subsegment having a high CAGR for the time period being analyzed.
The main regional markets for FRAM devices are the Asia-Pacific region. That said, FRAM devices are sold and used in North America, the European Union, the Middle East and North Africa, and South America. The FRAM market value in 2018 for the Asia-Pacific region 2018 was USD 114.5 million. The Asia-Pacific region is also expected to register the highest regional CAGR for the time period studied.
China is a heavyweight in terms of economic growth and power and population size. China is moving into higher-end smart electronic manufacturing. That is the reason why China is expected to be a key producer and exporter of FRAM memory recording devices.
There is a lot of competition in the global FRAM market. An important reason for this is that there are few barriers to entry into this market. This means that any company that has the resources, know-how, and manpower can enter FRAM Market. Another important reason for stiff competition is that many companies are drawn to enter into this industry. They are motivated by the fact that the market is lucrative and has high rates of return (ROI.)
Companies find that they must do one or more of the following if they want to create the sustainable competitive advantage that will allow them to be profitable and hence remains in business.
Companies that do adequate research and development extend their product horizons. Engaging in intensive and extensive research and development allows these companies to develop and market a new generation of FRAM memory recording devices that are more efficient and have more innovative applications than the previous generation of memory recording devices did. They can market these products more aggressively. Finally, constantly developing and marketing new products allows these companies to justify charging the end-user what can seem to be exorbitant prices (for these products.)
These companies also find that they can increase their presence and penetrate deeper into existing markets by aggressively marketing their new products. They can also enter into new markets and acquire more new customers. These companies also find that they can aggressively expand their market base in existing markets.
Forging strategic partnerships with other companies allows the new companies to increase their pools in terms of financial and human resources. They have the ability to create new and more effective products by investing much more in research and development. They also are able to increase their marketing budgets. This allows them to have a further and deeper reach in new and existing markets. These companies find that this allows them to sell many more products at much higher prices.
Mergers and acquisitions do the same thing as companies that entering into joint ventures do.
Cypress Semiconductors Corporation is a major American player in the FRAM market. It has managed to create a sustainable competitive advantage that has allowed it to become one of the most profitable and visible companies in the industry by investing heavily in research and development.
It has developed a new generation of FRAM recording devices that are useful for use as Programmable Logic controllers.
Fujitsu Ltd had announced the launch of a new FRAM recording device that is denser and has more excellent memory recording capabilities.
The CAGR for the FRAM market is 3.78% until 2025. The market is expected to be worth USD 343.2 million by then. The Asia-Pacific region has the largest market share and CAGR of all of the regions in the world.
|Market Size||USD 343.2 Million|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Product Type, Interface, Application|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Texas Instruments (US), Fujitsu Ltd (Japan), Rohm Co., Ltd (Japan), and Cypress Semiconductor Corp (US)|
|Key Market Opportunities||
|Key Market Drivers||
Global FRAM market is projected to grow at a CAGR of 3.78%, during forecast period
Fujitsu Ltd, Rohm Co., Ltd, Texas Instruments, and Cypress Semiconductor Corp are a few of the contenders in the market.
The increasing popularity of personal digital assistants is expected to impact the market positively.
The market can be deterred by the limited application scope of the products in the coming years.
The revenue levels are expected to rise from USD 265.4 Million in 2018 to USD 343.2 Million by the end of the forecast period.
A CAGR of 3.11% is projected to bolster the APAC region to the topmost place in the global region.
The segments of Interface, product type, region, and application are created for better market scenario comprehension.