LONDON -- Worldwide memory sales, aggregating DRAM, SRAM and flash, are going to be lower in 2006 than in 2004, according to a Korea IT News report of market forecasts from a Gartner Group conference held in Seoul, South Korea, Thursday (May 27).
At the event market survey company Gartner predicted that the world market for memory chips would grow with a compound annual growth rate (CAGR) of 13 percent through 2008 but would suffer a setback in 2006 due to a lack of PC demand and a general oversupply in chip production, the report said.
By sector and in CAGR terms for the period to 2008 Gartner forecast that the market for DRAMs would rise 11 percent annually along with SRAMs, while flash memory would have a growth rate twice as high, the report said.
In financial terms Gartner predicted the overall memory would rise from US$47.4 billion in 2004 to US$54.6 billion in 2005, before falling back to US$46.3 billion in 2006.
"While flash memory market is expected to keep rising trends despite a drop in price, the market for DRAMs will increase from $26.1 billion this year to $29.4 billion next year. But it is forecast to decline by 31 percent to $20.1 billion in 2006," the report quoted Richard Gordon, a senior executive with Gartner, as saying. The DRAM market is expected to rebound in 2007 to reach the level of 2004, the report added.
Gartner also predicted that the market for memory chips of all types would grow to $135 billion in the Asia-Pacific region by 2008, the report said.