Market Challenges And Opportunities

Global Solid State Drive (SSD) Market Drivers:

Increasing adoption in data center applications to fuel market growth

A single solid state drive is capable of outperforming multiple spinning disks and it consumes lesser power. Thus, using SSD allows consolidation of servers and reduction in overall physical footprint of a storage racks. SSD used in data center applications rely upon a different set of metrics that consumer PCs. The adoption of SSDs is increasing in these applications. Several data center players are focused on establishment of colocations and hyper-scale data centers to gain large capacities of storage and to manage bulk of business data. Thus, this factor is further expected to fuel growth of the global solid state drive (SSD) market over the forecast period.

Growing demand from the high-end cloud segment to boost market pace

With increasing amount of consumer data being stored in the cloud, the use of SSDs is now a desirable alternative to HDD storage. Due to this, the demand for PCI Express-based storage performance-sensitive applications as well as in in-memory workloads, which also includes machine learning and cloud. The lowest latency and fastest performance is now a popular option in data analytics and high-performance rendering, as PCI express-based SSDs are the go-to interface for such sections. Moreover, several businesses are shifting towards use of local cloud storage systems for accommodating multiple file-handling, archive, and backup strategies. Thus, demand for SSDs in high-end cloud segment is increasing, which in turn is expected to drive growth of the global solid state drive (SSD) market during the forecast period.

Global Solid State Drive (SSD) Market Opportunities:

Increase in adoption of enterprise SSDs is likely to generate growth opportunities in the global solid state drive (SSD) market during the forecast period. With increasing adoption of these SSDs, they will become more cost-effective in the coming years. Due to the rapid profits, companies are shifting to SSDs even though they are more expensive compared to HDDs on a dollar per gigabyte basis. Thus, the demand for enterprise SSDs is increasing across several industries, which in turn will benefit players in the global solid state drive (SSD) market.

Constantly growing investments by memory companies is anticipated to create lucrative environment for growth opportunities in the global solid state drive (SSD) market over the forecast period. Memory companies are continuously making investments to ensure economies of scale in support to the whole industry and a gradual decrease in cost in the future. This is further leading to cost reductions in enterprise SSDs. Thus, this factor is likely to bring in growth opportunities in the global market.

Global Solid State Drive (SSD) Market Restraints:

Concerns regarding total lifespan of SSDs to hinder the market pace

The popularity of solid state drives has increased in recent years, as they have become sleeker with an efficient drive using flash memory in the place of platters and other moving parts. Due to the speed and reliability of SSDs, it is widely being preferred by businesses, consumers, and institutions. However, the lifespan of an SSD is a concern, as it comes down to the age of the drive, number of TB written, and drive writes per day. Sometimes, this number may come out to several hundreds of years, however, the age limit for an SSD written to is nearly ten years, which can be a short span for some. This factor thus, is expected to hinder growth of the global solid state drive (SSD) market during the forecast period.

High cost of SSDs to obstruct the market pace

The cost of 1 GB SSD is higher compared to that of an HDD. 1 TB internal HDD can cost around US$ 0.07 per GB, while an SSD with the same capacity can cost US$ 0.30 per GB. Thus, implementation of SSDs can be an expensive expenditure for some businesses, and this factor is likely to hinder growth of the global solid state drive (SDD) market during the forecast period. However, market players are launching novel solutions with increased capacity and reduced price, which is expected to support the market growth.