Despite the resolution of previous supply and demand issues in the SSD sector, the drop in shipments remained substantial. The research does not project shipment volumes for 2023, as it is focused on the entirety of the previous year.
The research refers to a range of macroeconomic factors, including the aftereffects of a surge in IT hardware sales during the pandemic, which led to a contraction in PC sales in 2022. Economic headwinds such as inflation and workforce reductions, as well as the ongoing conflict between Russia and Ukraine, are identified as contributing to the challenging economic landscape.
The competitive environment among SSD manufacturers is also dissected, noting that the market share for the top five brands rose from 53% to 59% between 2021 and 2022. Kingston, in particular, has increased its market presence, nearing a one-third share of the market, thanks in part to its expansion into the industrial control and OEM sectors. Despite the overall downturn, Kingston and Adata have successfully fortified their market leadership.
For 2023, TrendForce forecasts persistent economic difficulties and a further concentration of market power among the leading firms. In response to the market conditions, NAND suppliers have reduced production to support prices. Nevertheless, new entrants from China in the NAND and controller segments are expected to challenge the status quo, attempting to capitalize on opportunities presented by the retreat of established firms. The strategy of inducing scarcity to bolster prices is predicted to be ineffective in this competitive context. There are signs of expansion from Chinese companies such as Longsys, which is extending its international reach with acquisitions in markets like Brazil.
Despite these shifts, SSDs continue to be a relevant option for system enhancements. Current indicators suggest a potential stabilization or increase in consumer SSD prices.