According to a newly published forecast of the market, the International Data Corporation is expecting an increase in worldwide solid-state drive (SSD) revenue and shipments over the next four years.
The IDC said SSD unit shipments are expected to grow with a compound annual growth rate (CAGR) of 7.8%, and revenues are slated to increase at a CAGR of 9.2% from now until 2025. As a result, the market will reach $51.5 billion in revenue by 2025, according to IDC.
IDC also predicted that SSD capacity shipments worldwide will expand further at a 2020 - 2025 CAGR of 33.0%.
Jeff Janukowicz, research vice president at IDC, explained that the worldwide demand for SSDs has increased because the pandemic has accelerated the need for transformation.
The steep increases are driven by growing demands for storage that expanded throughout the COVID-19 pandemic as millions increasingly worked and schooled from home, using their own devices in many instances.
Demand for PCs has skyrocketed, and the IDC said higher SSD demand is also reflected in the enterprise market, where companies are making investments in both cloud and traditional IT.
"IDC believes that most of the long-term trends remain intact, enabling broader SSD adoption over the forecast period, and worldwide SSD units and capacity shipped are higher than the prior forecast thanks to increasing demand from client devices, enterprise storage customers, and cloud service providers," Janukowicz said.
The IDC added that there had been some key developments in the SSD market globally, including:
The pricing of SSDs is still volatile and elevated because of the increased demand.
Technological advancements, like NAND flash, will emerge in the next few years and "will continue to enable more cost-effective solutions helping to increase demand for SSDs further."
Client SSDs are in higher demand because of permanent moves toward remote work and remote schooling.
Demand for SSDs among cloud and traditional IT market segments has continued to hold strong.
IDC believes lower prices will help "drive demand elasticity and system optimization around flash."
The report also predicts similar growth in the HDD industry because of how COVID-19 has affected the markets for enterprise storage systems, PCs, personal and entry-level storage devices, video surveillance systems, and consumer electronics products. As a result, worldwide HDD industry petabyte shipments are slated to see a compound annual growth rate of 18.5% through 2025, according to IDC.
Edward Burns, research director for IDC, noted that the client HDD market had had a long-term secular decline due to rising SSD attach rates. But the COVID-19 pandemic has over the near term increased the demand for certain types of HDDs, particularly mobile HDDs as well as capacity-optimized HDDs, Burns added.