The SSD market size is expected to reach $67 billion in 2028
Over the past few months, due to insufficient demand and an oversupply, the average selling prices of NAND flash memory and SSDs have been consistently declining. The shift towards SSDs in the industry, replacing traditional HDDs, has resulted in an increase in both the volume and total sales of SSDs.
In 2022, the SSD market was valued at $29 billion, with sales reaching 352 million units. Research firm Yole Group forecasts that by 2028, the SSD market will grow to $67 billion, with sales increasing to 472 million units, representing a compound annual growth rate of approximately 15% from 2022 to 2028.
Of the 352 million SSDs sold in 2022, approximately 55 million were enterprise-grade SSDs, with the remainder being client SSDs. Enterprise-grade SSDs predominantly consist of PCIe SSDs, accounting for roughly 55%, or 30 million units. By 2028, the proportion of PCIe SSDs is expected to rise to 71%, corresponding to 79 million units. The share of PCIe SSDs among client SSDs will likewise increase, from 85% in 2022 to 96%, with the number of units growing from 252 million to 347 million.
Yole Group anticipates that by 2028, 69% of enterprise SSDs will utilize the PCIe 5.0 interface, while 16% will use the PCIe 6.0 interface. For client SSDs, a mere 3% will incorporate PCIe 6.0 SSDs by 2028.
The SSD market size dropped from $34 billion in 2021 to $29 billion in 2022, which Yole Group considers a one-time precipitous decline. Due to the numerous market uncertainties, Yole Group has not provided a comprehensive forecast for 2023 in terms of market outlook, quantity, and revenue. However, they believe that demand for client SSDs will remain relatively weak for several years, while enterprise SSDs will be driven by demand in the data center sector.
Leading manufacturers, such as Samsung, Kioxia, Western Digital, Micron, SK Hynix, and Solidigm, control 82% of the entire SSD market, while third-party SSD manufacturers, such as Kingston, Adata, and Seagate, hold a much smaller market share of only 18%.
