Get ready for higher prices: the demand for DRAM and NAND flash memory is skyrocketing, resulting in significant revenue increases and price hikes. According to TrendForce, both industries have been experiencing rapid growth in recent years, and this trend is expected to continue. DRAM revenue is projected to surge by 75% this year, reaching a staggering $90.7 billion in 2024. The upward trend is anticipated to continue into 2025, with DRAM revenue estimated to hit $136.5 billion, representing a 51% year-over-year increase.
NAND flash, commonly found in SSDs, is also experiencing booming growth. The market is projected to reach $67.4 billion in 2024, with a 77% year-over-year increase. While there may be some slowing down in 2025, with a total of $87 billion and a 29% increase, the market will still exhibit substantial growth.
Several factors contribute to the success of both industries. In the case of DRAM, the rise of high-bandwidth memory (HBM) is a significant driver. HBM is not just used for standard RAM, but also for high-performance GPUs, which are crucial during the current AI boom. Average DRAM prices are another contributing factor, having already increased by 53% in 2024 and expected to rise an additional 35% throughout 2025.
Beyond HBM, the increasing adoption of DDR5 and LPDDR5/5X plays a crucial role. Compared to DDR4, even with DDR5 prices stabilizing over the past couple of years, some of the best RAM kits available today are slightly more expensive on average. And it’s not just gaming RAM; DDR5 memory is widely used in servers, accounting for up to 40% of server DRAM bit shipments in 2024. This figure is set to rise by up to 65% in 2025.
The growth in NAND flash revenue can be attributed to similar factors. Enterprise SSDs are increasingly adopting quad-level cell (QLC) technology, which stores four bits of data per memory cell, compared to three in triple-level cell (TLC) technology. With the enormous demand for fast and dense storage, the thriving industry makes perfect sense.
However, while the soaring prices may benefit tech companies, consumers may face a different reality. TrendForce suggests that these price increases may not fully translate to retail prices. The report states, “Conversely, rising memory prices will increase the cost of electronic products. [original design manufacturer/original equipment manufacturer] companies will find it challenging to fully pass on these costs to retail prices, leading to compressed profit margins. This cost increase may also dampen end-user sales, potentially causing a decline in demand.”
While there’s still hope for consumers, it’s wise to capitalize on any good SSD deals you encounter now. After all, you never know when prices might increase further.
