Normal hard drive capital spending won't level out until 2014: report

Summary:We're going to see approximately 169 percent growth in HDD capital spending from 2011 to 2016, according to data storage consulting firm Coughlin Associates.

Although the hard drive industry is going to have a tough time of it throughout most of this year, the 2012 Hard Disk Drive Capital Equipment and Technology Report is predicting big growth numbers for the next few years.

Specifically, those big numbers are focused on growth in capital equipment spending.

Total spending on capital equipment in 2012 for the HDD market is expected to reach approximately $2.4 billion.

We're going to see approximately 169 percent growth in HDD capital spending from 2011 to 2016, according to data storage consulting firm Coughlin Associates.

That comes down to three contributing factors:

  • Expected unit shipment increases by 167 percent
  • The introduction of new and more advanced HDD technologies
  • Repair and replacement of units damaged from the flooding in Thailand last year, which is the force behind the current global HDD shortage

Additionally, the report concurs with several others from analysts as well as HDD manufacturers that we're going to see higher prices until at least 2014.

Additionally, the Coughlin Associates study argues that normal capital spending won't be re-established until that year either.

HDD unit prices are expected to climb by roughly 10 to 15 percent higher than the average costs in 2011.

Related:

Topics: Hardware

About

Rachel King is a staff writer for CBS Interactive based in San Francisco, covering business and enterprise technology for ZDNet, CNET and SmartPlanet. She has previously worked for The Business Insider, FastCompany.com, CNN's San Francisco bureau and the U.S. Department of State. Rachel has also written for MainStreet.com, Irish Americ... Full Bio

zdnet_core.socialButton.googleLabel Contact Disclosure

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Related Stories

The best of ZDNet, delivered

You have been successfully signed up. To sign up for more newsletters or to manage your account, visit the Newsletter Subscription Center.
Subscription failed.