SSD Revenue Doubles in 2011 over 2010, No Letup in Sight

By Chris Preimesberger  |  Posted 2012-01-12 Print this article Print

Global solid-state storage industry revenue reached a record $5 billion in 2011--a 105 percent increase from the previous record of $2.4 billion in 2010.

A convergence of factors that include shortages of spinning hard disk drives due to floods in Thailand, profound media-quality advancements and a sea change in the personal computer business is causing solid-state NAND flash drives to shoot up in demand for device manufacturers.

As a result of all this market activity, worldwide solid-state storage industry revenue reached a record $5 billion in 2011--a 105 percent increase from the previous record of $2.4 billion in 2010, according to a report issued Jan. 11 by industry researcher International Data Corp.

That's not all. IDC expects the NAND flash SSD market to continue to expand in 2012--in fact, all the way through 2015.

"2011 was a record year for the worldwide SSD market, with revenue more than doubling year over year due to strong SSD shipment growth in the enterprise and client segments," IDC Research Director Jeff Janukowicz said.

"The increasing use of flash in enterprise solutions, explosive growth of mobile client devices, and lower SSD pricing is creating a perfect storm for increased SSD shipments and revenue over our forecast."

Record rainstorms and flooding in Thailand--a region that assembles about 70 percent of the world's HDDs--caused a flooding disaster that hit the world IT supply chain harder than the March 2011 Japanese tsunami. As a result, there are now massive shortages of spinning-disk drives in the first quarter of 2012, opening the door for more SSD demand.

Other relevant research highlights, according to IDC's Janukowicz, include:

  • Worldwide SSD shipments are expected to increase at a 51.5 percent rate from 2010 to 2015.
  • Pricing remains a key metric for SSD adoption in both the client and enterprise markets. IDC expects client SSD prices to fall below $1 per gigabyte in the second half of 2012, which will boost adoption in the PC market.
  • Key factors are impacting the PC market, including fast growth in sales of media tablets and ultrabooks to the upcoming introduction of Windows 8 and increased use of caching solutions, such as dual drives (systems containing both an SSD and an HDD).
  • The adoption of solid state storage as a complementary solution to HDD storage for enterprise applications is also driving SSD market growth.
Chris Preimesberger Chris Preimesberger was named Editor-in-Chief of Features & Analysis at eWEEK in November 2011. Previously he served eWEEK as Senior Writer, covering a range of IT sectors that include data center systems, cloud computing, storage, virtualization, green IT, e-discovery and IT governance. His blog, Storage Station, is considered a go-to information source. Chris won a national Folio Award for magazine writing in November 2011 for a cover story on and CEO-founder Marc Benioff, and he has served as a judge for the SIIA Codie Awards since 2005. In previous IT journalism, Chris was a founding editor of both IT Manager's Journal and and was managing editor of Software Development magazine. His diverse resume also includes: sportswriter for the Los Angeles Daily News, covering NCAA and NBA basketball, television critic for the Palo Alto Times Tribune, and Sports Information Director at Stanford University. He has served as a correspondent for The Associated Press, covering Stanford and NCAA tournament basketball, since 1983. He has covered a number of major events, including the 1984 Democratic National Convention, a Presidential press conference at the White House in 1993, the Emmy Awards (three times), two Rose Bowls, the Fiesta Bowl, several NCAA men's and women's basketball tournaments, a Formula One Grand Prix auto race, a heavyweight boxing championship bout (Ali vs. Spinks, 1978), and the 1985 Super Bowl. A 1975 graduate of Pepperdine University in Malibu, Calif., Chris has won more than a dozen regional and national awards for his work. He and his wife, Rebecca, have four children and reside in Redwood City, Calif.Follow on Twitter: editingwhiz

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