Study finds revenues of DRAM module makers in 2022 declined by 4.6%
Date: 25/10/2023
The global sales of DRAM modules in 2022 experienced a 4.6% YoY decline, amounting to US$17.3 billion, due to high inflation affecting consumer demand for electronic products, as per the finding by TrendForce. The revenue performance of module makers varied depending on the domains they supplied.
TrendForce's data revealed that the top five memory suppliers accounted for 90% of total sales, with the top ten collectively capturing 96% of global market revenue. Kingston maintained its dominant market share of 78%, despite a slight revenue dip, and remained the global leader due to its robust brand scale and comprehensive product supply chain. Despite poor end-market demand, Kingston limited its revenue decline to a modest 5.3%, firmly securing its position at the top of market share rankings.
Module manufacturers experienced divergent revenue performances as a result of varying brand strategies.
Raxamel, ranked second, achieved an impressive feat with nearly 90% growth in 2022. However, upon closer examination, this surge can largely be attributed to a significant decline in 2021, creating a low comparison base. When excluding 2021, Raxamel's revenue trends reasonably compared to previous years. Last year, Raxamel experienced substantial gains in the server domain and received validation from server OEM clients. Additionally, it exhibited steady supply growth in the PC OEM segment. These factors contributed to its revenue growth in 2022, aligning with the company's operational achievements.
ADATA, primarily focused on consumer products, also ventured into high-margin products in industrial control, automotive, and e-sports last year. However, due to their current low proportion, they struggled to withstand the impacts of global demand shrinkage, resulting in a 10% revenue decline and placing them in third position.
POWEV, buoyed by the success of its brand in the e-sports market and a diverse channel sales model, experienced a 12.7% growth in revenue, securing the fourth spot. Despite Kimtigo's proactive product development and global expansion efforts, they were unable to overcome the decline in consumer electronics spending. As a result, their revenue declined, causing their ranking to slightly rise to fifth in 2022.
SMART Modular, primarily serving the industrial control market, faced challenges due to inflation. This led to constrained corporate procurement budgets and decreased demand, resulting in a 16.1% decline in revenue and placing them in sixth position. On the other hand, Patriot Memory made a comeback on the list by aggressively expanding into new ventures and responding to national project demands in 2022. This pushed their revenue up by 15.1% and secured them the seventh rank.
New applications have limited revenue impact initially and experience a subsequent decline of over 15% due to the global economic downturn.
Innodisk moved up to the eighth spot by leveraging its expertise in industrial application development and expanding into industrial AIoT-related applications. However, the company faced challenges due to the nascent nature of this field and a decline in demand for its core industrial control products, leading to a 17.8% drop in revenue.
Team Group experienced a 21.4% decrease in revenue and dropped to ninth place due to channel inventory depletion and a decline in demand in 2H22. Despite this, the company's active promotion of its e-sports brand targeting niche markets suggests potential for revenue growth if computer-related demands rebound. Apacer, positioned at tenth, faced a 16.6% revenue downturn due to the global economic slump and conservative customer orders.
Source: TrendForce
