In 2023Q2, Global Enterprise SSD Revenue Reaches $1.5 Billion

According to a recent survey report released by research institute TrendForce, influenced by inflationary pressures from Qualcomm and broader economic conditions, cloud service providers have adopted a conservative stance on capital expenditure, persistently diminishing their annual server demand forecasts. Coupled with certain clients postponing server deployment and redirecting resources towards AI servers, the global revenue for Enterprise SSDs in the second quarter of 2023 stood at a mere $1.5 billion, marking a substantial quarter-on-quarter decline of 24.9%.

In stark contrast to the robust demand for AI servers, orders and shipments for conventional servers have been sluggish in staging a recovery. As a result, Enterprise SSD procurement volumes have been constrained, with the annual procurement volume projected to fall short of the previous year. Suppliers have been compelled to recalibrate their production capacities in a bid to mitigate inventory escalation. Yet, with client inventories still considerably high, purchasing momentum remains lackluster. It is anticipated that the average global price for Enterprise SSDs will see a quarter-on-quarter dip of approximately 15% in the third quarter of 2023, potentially heralding a peak season devoid of its characteristic buoyancy.

Samsung, being the paramount supplier of Enterprise SSDs, has been conspicuously affected by the decline in demand for conventional servers. In Q2 2023, its Enterprise SSD revenue approximated $530 million, witnessing a quarter-on-quarter contraction of 34.1% and commanding a market share of 35.2%. SK Hynix, encompassing Solidigm, reported a revenue decline of 18.3% quarter-on-quarter, amounting to $370 million, holding a market share of 24.9%. They are strategically leveraging price advantages to amplify their market presence. Micron, buoyed by steady orders for SATA SSDs and bolstered by the mass supply of SSDs featuring 176-layer NAND flash, has endured a relatively modest slide compared to its counterparts, recording only a 1.8% quarter-on-quarter decrease and securing a market share of 14.3%. ADATA, having embarked on mass supplying PCIe 4.0 SSDs, reported revenue approximating $200 million, experiencing a quarter-on-quarter dip of 34.1% and a market share of 13.6%. Western Digital, meanwhile, registered a 20% quarter-on-quarter reduction, with revenue around $180 million and a market slice of 12%.