Solid-State Drive Market Set for Remarkable Growth, $67 Billion Revenue by 2028

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Despite a recent dip in demand and oversupply issues for NAND memory and solid-state drives (SSDs), their market prospects look promising. Yole Group forecasts that SSD revenues will soar from $29 billion in 2022 to $67 billion by 2028, with a compound annual growth rate of roughly 15% during this period.

Yole Group also anticipates that the SSD market will expand from 352 million units and $29 billion in 2022 to 472 million units and $67 billion in 2028. Among the 352 million SSDs sold in 2022, 55 million were enterprise drives, while the remainder were client SSDs. The market research firm projects that by 2028, PCIe client SSDs will grow from 85% to 96%, corresponding to an increase from 252 million to 347 million units.

Enterprise drives are expected to adopt new PCIe interfaces more quickly than client SSDs, with the demand for enterprise SSDs driven by the low-latency storage requirements of advanced data center workloads. However, Yole Group cautions that SSD suppliers may not equally capitalize on this market growth, as client SSD products may face weaker demand in the near future.

In 2022, major integrated device manufacturers (IDMs) such as Samsung, Kioxia, Western Digital, Micron, SK Hynix, and Solidigm held 82% of the total SSD market share, leaving only 18% for third-party SSD makers. Yole Group identifies two categories of SSD suppliers: NAND IDMs and third-party SSD manufacturers who purchase flash memory from IDMs and controllers from other sources.

While the current downturn in SSD sales is considered a temporary event, Yole Group refrains from providing a 2023 outlook due to persistent slow inventory depletion and a weak economy resulting in significant oversupply. Regardless, the firm's projections indicate considerable growth opportunities for SSDs, particularly in the enterprise segment, in the coming years.

Solid-State Drive Market Set for Remarkable Growth, $67 Billion Revenue by 2028

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