February 24, 2024

Growing Adoption of Cloud Computing platforms to boost the growth of Solid State Drive (SSD) Market

 

The global Solid State Drive (SSD) Market is estimated to be valued at US$ 47.6 Mn in 2023 and is expected to exhibit a CAGR of 16% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Solid State Drives (SSDs) are storage devices that use flash memory instead of spinning magnetic disks used in traditional Hard Disk Drives (HDDs). Solid State Drive (SSD) Market offer high data transfer speeds, low power consumption, shock resistance and noiseless operations. They provide faster boot times, application loading, file transfers and overall better system performance. SSDs are increasingly being adopted by consumers looking for quicker devices and businesses integrating flash storage in servers and cloud computing platforms.

Market key trends:
The increasing adoption of cloud computing platforms globally is a major trend fueling the demand for SSDs. As enterprises migrate more workloads and applications to cloud infrastructure consisting of large data centers, the requirement for high-performance flash storage increases tremendously. SSDs enable quicker I/O operations and data access required by cloud platforms. Other trends include growing popularity of ultra-thin notebooks, tablets and smartphones driving demand for internal and external SSD solutions. Surging demand for data center infrastructure worldwide and new technologies like NVMe bringing disruption are also expected to support SSD market growth over the forecast period.
Porter’s Analysis

Threat of new entrants: The threat of new entrants is moderate in the solid state drive (SSD) market due to the presence of established global players and high research and development cost associated with bringing new SSDs to the market. However, low bargaining power of buyers and suppliers provide opportunities for new entrants.

Bargaining power of buyers: The bargaining power of buyers is low in the SSD market. There are numerous global and regional SSD manufacturers providing a variety of options to buyers. Switching costs are also low for buyers.

Bargaining power of suppliers: The bargaining power of suppliers is low due to the presence of multiple memory chip manufacturers and limited differentiation in chips. Suppliers do not have control over prices in the SSD market.

Threat of new substitutes: Threat of substitutes is moderate as hard disk drives continue to offer substitute storage solution at lower costs for bulk storage. However, SSDs offer advantages such as faster read/write speeds.

Competitive rivalry: The competitive rivalry is high among the key global players operating in the SSD market. Players compete based on pricing, product portfolio, storage capacity, brand recognition and customer relationships.

Key Takeaways

The global solid state drive (SSD) market size is expected to reach US$ 147.6 billion by 2030, exhibiting a CAGR of 16% over the forecast period. Increasing demand for higher performance storage devices from data centers and growing adoption of cloud computing are driving the market.

The Asia Pacific region dominates the global SSD market, accounting for around 35% of the total share in 2023 due to strong manufacturing base in China and availability of raw materials. Rapid digitalization and growth of hyperscale data centers propel the demand for SSDs in the region.

Key players operating in the SSD market are Teclast Electronics Co. Limited, Intel Corporation, Transcend Information Inc., Samsung Group, Kingston Technology Corporation, Micron Technology Inc., ADATA Technology Co. Ltd., Western Digital Corporation, SK Hynix Inc., and Seagate Technology LLC. Players focus on developing new storage solutions with higher speeds and capacities to leverage growth opportunities.