IC Insights has raised its IC market growth forecast for 2018 to 15% from 8% estimated previously. The revision was made due to higher-than-expected output value of the DRAM segment.

DRAM ASPs for 2018 are set to rise 36% on year boosting the market growth to 37%, according to IC Insights, which estimated previously 13% growth. The DRAM market is forecast to reach US$99.6 billion in value in 2018, and will become the largest single product category in the IC industry this year, said IC Insights.

DRAM ASPs already surged 81% on year in 2017, when the overall IC market increased 25% in value on year, IC Insights indicated. Excluding the DRAM segment, the IC market growth came to 16% in 2017 and is estimated at 10% for 2018.

The DRAM market dropped by 8% in 2016, spurred by a 12% decline in ASPs, IC Insights noted. The DRAM market shaved 2pp off of total IC industry growth in 2016.

IC Insights also raised its NAND flash market growth outlook for 2018 to 17% from 10%. NAND flash ASPs are forecast to rise 10% in 2018 after jumping by 45% in 2017, according to IC Insights.

In contrast to strong DRAM and NAND flash ASP increases, 2018 unit volume growth for these product segments is expected to be up only 1% and 6%, respectively, IC Insights said.