Turnover in the global flash market is set to drop 4.7% this year, to $24.3 billion, from $25.5 billion in 2011.
According to an IHS iSuppli Mobile & Embedded Market Tracker Report, by information and analytics provider IHS, the NAND sector will make up the bulk of sales, at $20.8 billion, while NOR will account for the balance.
NAND flash is typically used for memory cards, USB flash drives, solid-state drives, and similar products, for general storage and transfer of data, explains Wikipedia. NOR, which allows true random access and direct code execution, is used as a replacement for the older EPROM and as an alternative to certain kinds of ROM applications, explains the site.
Although 2012's numbers are slightly down from 2011, because of a larger-than-expected erosion in NAND prices, the market will bounce back next year with growth of 11.4%, and then continue to expand at a steady clip, says IHS.
By 2016, total flash memory revenue will amount to $33.3 billion, equivalent to a five-year compound growth rate of 5.3%, says the research firm.
Changing fast
IHS notes that the "NAND and NOR flash memory market landscape is shifting rapidly, with increasingly sophisticated mobile handsets playing a leading role in driving industry trends and determining which suppliers will be successful".
Michael Yang, senior principal analyst for memory and storage at IHS, explains that "phones today are constantly being refreshed with the latest features and processors - requiring more powerful memory products, in turn".
World Wide Worx MD Arthur Goldstuck explains that the cost of flash memory has come down dramatically, which will affect revenue. "I'm astonished at the extent to which prices have plunged."
In addition, says Goldstuck, the shift to cloud is reducing the need for portable storage, especially in connected markets such as the US, Europe and East Asia.
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