EL SEGUNDO, CA – The market for dynamic random access memory is expected to partially reverse the drastic losses it incurred in 2011 and achieve revenue growth this year, the result of balanced supply and demand following the exit of major manufacturer Elpida Memory, says IHS iSuppli.

Global DRAM industry revenue this year is forecast to reach $30.6 billion, up 3.3% year-over-year. The expansion is a welcome development given the stunning 25% last year, the firm says.

The overall picture will continue to brighten during the next few years, with DRAM revenue exceeding $30 billion each year for the next five years and reaching $40.2 billion in 2016.

DRAM prospects started looking better after the bankruptcy filing in February of Japan’s Elpida. Elpida was part of the elite echelon of DRAM manufacturers that includes Samsung Electronics and Hynix Semiconductor of South Korea, as well as US-based Micron Technology. The industry is expected to benefit from Elpida’s exit, with the market lifting on signs of supply rebalance, says the research firm.

The DRAM space can look forward to continued strong expansion in the next few years because of three growth drivers: ultrathin PCs, smartphones and tablets, according to IHS iSuppli.

Ultrathin PCs, including Intel’s ultrabooks, the MacBook Air from Apple and ARM-based lightweight PCs – will present plenty of new opportunities for low-power DRAM, especially when ultrathins comprise the majority of shipments by 2016.

For high-end ultrabooks in particular, PC manufacturers are projected to have enough margin to afford the installation of low-power double data rate 3 DRAM in their products, adding to overall DRAM industry revenue. LPDDR3 will account for as much as 19% of the total DRAM market in 2014.

In the case of smartphones, increasing shipments during the next five years, coupled with growing memory content per phone, suggest rosy prospects as well for DRAM. Average DRAM content in smartphones this year will amount to 5.1Gb, up from 3.5Gb last year and from 2.3Gb in 2010.