Memory Industry Revenue Expected to Reach Record High in 2025 Due to Increasing Average Prices and the Rise of HBM and QLC
July 22, 2024 | TrendForceEstimated reading time: 2 minutes
TrendForce’s latest report on the memory industry reveals that DRAM and NAND Flash revenues are expected to see significant increases of 75% and 77%, respectively, in 2024, driven by increased bit demand, an improved supply-demand structure, and the rise of high-value products like HBM.
Furthermore, industry revenues are projected to continue growing in 2025, with DRAM expected to increase by 51% and NAND Flash by 29%, reaching record highs. This growth is anticipated to revive capital expenditures and boost demand for upstream raw materials, although it will also increase cost pressure for memory buyers.
Rise of HBM boosts DRAM revenue
TrendForce estimates that benefiting from an increase in average DRAM prices by 53% in 2024 and 35% in 2025, DRAM revenue will reach US$90.7 billion in 2024—a 75% YoY increase—and $136.5 billion in 2025—a 51% YoY increase.
TrendForce identifies four key factors driving the revenue growth of DRAM: the rise of HBM, the generational evolution of general DRAM products, restrained capital expenditures by manufacturers limiting supply, and the recovery in server demand. Compared to general DRAM, HBM not only boosts bit demand but also raises the industry’s average price. HBM is expected to contribute 5% of DRAM bit shipments and 20% of revenue in 2024.
Additionally, the penetration of high-value products like DDR5 and LPDDR5/5X will help raise the industry’s average price. TrendForce estimates that DDR5 will account for 40% of server DRAM bit shipments in 2024, increasing to 60–65% in 2025. LPDDR5/5X is expected to contribute 50% and 60% of mobile DRAM bit shipments in 2024 and 2025, respectively.
High-capacity QLC enterprise SSDs and UFS to drive record NAND flash revenue in 2025
TrendForce projects that NAND Flash revenue will reach $67.4 billion in 2024, a 77% YoY increase. In 2025, driven by the rise of high-capacity QLC enterprise SSDs, the adoption of QLC UFS in smartphones, restrained capital expenditures by manufacturers limiting supply, and the recovery in server demand, NAND Flash revenue is expected to reach $87 billion—a 29% YoY increase. North American CSPs have already begun extensively adopting QLC enterprise SSDs in inference AI servers, especially those with high-capacity specifications.
TrendForce estimates that QLC will contribute 20% of NAND Flash bit shipments in 2024, with this share expected to increase in 2025. In smartphone applications, QLC is expected to gradually penetrate the UFS market, with some Chinese smartphone manufacturers planning to adopt QLC UFS solutions starting in Q4 2024. Apple is anticipated to begin incorporating QLC into iPhones by 2026.
Rising DRAM and NAND Flash revenues set to impact industry ecosystem
TrendForce reports that with record-breaking revenues in the memory industry, manufacturers will have sufficient cash flow to accelerate investments. Capital expenditures in DRAM and NAND Flash industries are expected to increase by 25% and 10%, respectively, in 2025, with the potential for further upward revisions.
The expansion of memory production will boost demand for upstream raw materials such as silicon wafers and chemicals. Conversely, rising memory prices will increase the cost of electronic products. ODM/OEM 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.
Suggested Items
Elma Electronic Bolsters Quality Management Company-wide with Added AS9100:D and ISO9001:2015 Certifications
06/02/2025 | Elma ElectronicElma Electronic now includes AS9100:D and ISO 9001:2015 certifications at its Horsham, Pa. manufacturing facility, earning the company a multiple site accreditation designation.
Maxar Space Systems Selected to Build High-Power EchoStar XXVI Satellite Share
06/02/2025 | BUSINESS WIREMaxar Space Systems, a trusted partner in satellite design and manufacturing, today announced it has been awarded a contract by EchoStar Corporation to manufacture EchoStar XXVI, a high-power geostationary communications satellite based on the Maxar 1300™ platform.
ispace Completes Success 8 of Mission 2 Milestones
06/02/2025 | ispaceispace, inc. (ispace) (TOKYO: 9348), a global lunar exploration company, announced that the RESILIENCE lunar lander has successfully completed all orbital maneuvers while in lunar orbit and is now being prepared for its landing attempt on June 6, 2025.
Strategic Materials Conference 2025 Spotlights Materials Innovation to Advance Semiconductor Manufacturing
06/02/2025 | SEMIWith materials innovation at the core of next-generation semiconductor technologies, the Strategic Materials Conference (SMC) 2025 brings together top executives and technology leaders from the semiconductor manufacturing industry for exclusive insights into the latest trends and advancements.
IDC Increases its PC and Tablet Forecasts Despite Tariff Uncertainty
06/02/2025 | IDCAfter recording strong results in the first quarter of 2025, IDC is increasing its traditional PC forecast for 2025 — this comes despite the significant impact that US tariffs have had on its trading partners’ market sentiment.