Last year SSD sales fell but theyre only going to
Hardware

Last year, SSD sales fell, but they’re only going to increase from now on — 2.3x by 2028

In recent quarters, there has been a downward trend in the average selling price (ASP) of NAND chips, and consequently solid state drives made from them, due to low demand and oversupply. However, as SSDs become more widespread, their sales in units and in money will increase. In five years, in 2028, global SSD sales will reach $67 billion, analysts say Yole group.

    Image source: Yolegroup.com

Image source: Yolegroup.com

Long-term, the SSD market is expected to grow from $29 billion and 352 million units in 2022 to $67 billion and 472 million units in 2028 (by 2.31- and 1.3- compartments); the compound annual growth rate for this period is 15%. Of the 352 million SSDs shipped in 2022, only 55 million were targeted at enterprise systems (data centers, servers, and storage systems), with the rest being client devices (PCs, laptops, and workstations). In the enterprise SSD market, 55% or 30 million units are NVMe models, which will increase to 71% or 79 million units by 2028. In the consumer segment, NVMe’s share will grow from 85% in 2021 to 96% in 2028, or from 252 million to 347 million units.

Servers and storage also promise a faster transition to new standards: in 2028, 69% of models in this segment will run on PCIe 5.0, compared to 12% of models in the consumer segment. The planned trend continues: in 2028, 16% of SSDs for the data center will use PCIe 6.0, while in the consumer segment it will only be 3%.

In 2021, more than 400 million SSDs were sold for $34 billion, and in 2022 both numbers dropped to $352 million and $29 billion, respectively. Yole Group believes that the negative dynamics are temporary and are unlikely to set a new trend, but analysts are still afraid to make a forecast for 2023 – this is hampered by a slow decline in inventories and an insufficiently strong global economy, that is, the supply remains redundant. In the coming years, demand is unlikely to increase – the growth of the SSD market is mainly driven by the corporate segment, which requires components for artificial intelligence systems.

Finally, Yole Group found that in 2022, 82% of the SSD market came from makers of their own memory chips: Samsung, Kioxia, Western Digital, Micron, SK Hynix, and Solidigm; When it comes to buying memory chips and controllers, brands like Kingston, Seagate and Adata limited themselves to an 18% share.

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About the author

Dylan Harris

Dylan Harris is fascinated by tests and reviews of computer hardware.

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