Data Center SSD Market Size, Share, and Industry Analysis, By Type (SATA, SAS, and PCIe), By Form Factor (1.8”/2.5”, 3.5”, M.2, U.2 (SFF 8639), and FHHL and HHHL), By Technology (SLC, MLC Planar, MLC 3D, TLC Planar, and TLC 3D), By Storage (Under 500 GB, 500 GB – 1 TB, 1 TB – 2 TB, and Above 2 TB), By End-User (Enterprise, Industrial, Automotive, and Others), and Regional Forecast till 2032

The global data center SSD market is anticipated to exhibit significant growth owing to rising product deployment on account of excellent endurance, dependability, and performance. Unlike conventional hard disk drives (HDD), SSDs store records in flash memory, allowing rapid data access and transfer rates. The commonly owned characteristics of data center SSDs help sustain their integrity and hinder any chances of erasure. They are ideal for cloud computing, large-scale analytical computation, and virtualization applications, as they are made to bear intensive workloads subjected to continuous usage. Due to their high speed and long-life span, DC SSDs enhance the overall performance of systems while improving reliability and productivity in data center operations.

Impact of Generative AI on Data Centre SSD Market

Support for generative AI necessities and expansion of market size highly depend on SSD technological advancements. NVMe and 3-D NAND technologies enhance SSD performance through faster transfer rates and denser storage. These developments are essential in cases where AI models require massive read/write operations and large amounts of data processing.

Additionally, energy-efficient SSDs have been helpful to data centers by minimizing power usage and costs incurred in maintaining operations. Therefore, edge computing is positively influenced by the smaller size of SSDs, which increase space for other purposes. In line with generative AI advancements across various sectors, it is expected that the dependence on advanced SSD solutions will grow significantly, stimulating innovation and driving the market growth. 

Data Center SSD Market Driver

Increased Popularity of High-End Cloud Computing

Cloud computing is gradually becoming one of the most popular ways for organizations and people to backup and preserve their data. The expanding array of cloud platforms, ranging from classic corporate and new open-source clouds to personalized clouds in the home, has increased the demand for SSDs. SSDs with new interfaces such as PCIe, NVMe, and others have appeared as a result of technological improvements in solid-state storage. Improved features, such as fast data access and high speed, encourage the use of PCIe SSDs in cloud computing. New PCIe SSDs offer great performance, frequency, and minimal latency.

• In May 2022, Samsung Electronics announced a comprehensive agreement on next-generation storage software developments. The cooperation aims to develop and test open-source applications for both existing and emerging memory and storage technologies, such as NVMe SSDs, computational storage devices

Data Center SSD Market Restraint

Issues Associated with Capacity Limitation May Hinder Industry Expansion

Capacity limits in the data center SSD market allude to SSDs' reduced storage capacity compared to traditional HDDs. Despite their increased performance, SSDs frequently offer less storage space per unit of cost. This constraint is especially obvious in data centers that require large storage capabilities at low costs. While SSD capacities have risen over time, they may still be insufficient for some data-intensive applications or enterprises with tight budgets.

As a result, data center operators may have issues fully switching to SSD-based storage solutions, preferring a hybrid strategy or counting on HDDs for large storage needs, which can have an impact on overall performance and operational efficiency. This is projected to limit market expansion.

• In July 2024, Micron launched the 9550 Gen5 SSD, the world's fastest data center SSD. This SSD exemplifies Micron's extensive knowledge and creativity by incorporating an in-house Gen5 SSD controller, NAND flash memory, DRAM, and firmware into a tightly integrated device. The 9550 Gen5 SSD has been claimed to offer best-in-class performance with read speeds of 14 GB/sec, making it excellent for demanding workloads such as AI applications.

Data Center SSD Market Opportunity

Technological Advancements and Increasing Data Demands

The data center SSD market is rapidly expanding due to the growing demand for high-performance and efficient storage solutions driven by a surge in data generation, cloud computing, and real-time data analytics. SSD technology advancements, including NVMe and enhanced NAND flash, are characterized by increased speeds and more dependable capabilities, indicating that they are useful for dealing with large amounts of information found in contemporary data centers.

In light of the unfolding trends in the evolution and expansion of data centers that cater to industries that rely heavily on big data and artificial intelligence (AI), it is anticipated that there will be increased adoption of SSDs. This would present opportunities for manufacturers and service providers within this ever-changing marketplace.

• The global datasphere is expected to grow to 175 zettabytes by 2025, fueled by IoT devices, social media, and enterprise applications. Real-time analytics, artificial intelligence, and machine learning necessitate speedy data processing, finding SSDs critical for managing large datasets. 

Segmentation

Key Insights

The report covers the following key insights:

• Micro Macro Economic Indicators


• Drivers, Restraints, Trends, and Opportunities


• Business Strategies Adopted by Key Players


• Impact of Generative AI on Data Centre SSD Market


• Consolidated SWOT Analysis of Key Players

Analysis by Type: 

The PCIe segment holds a significant share in the global market. PCIe SSD refers to a solid-state drive that employs the PCIe (Peripheral Component Interconnect Express) interface to connect with the computer motherboard. In comparison to traditional SATA SSDs, PCIe SSDs have higher speed data transfer rates due to the higher bandwidth PCIe interface. Hence, they are suitable for performance-demanding storage applications such as gaming, multimedia editing, and data center operations.

• In October 2023, Micron debuted the Micron 7500 NVMe SSD, it was created especially for data-intensive applications including cloud computing, virtualization, and artificial intelligence. It has over 200 layers of 3D NAND for increased speed and endurance, making it a strong contender in the data center SSD market.

Furthermore, PCIe SSDs may exist as expansion cards or M.2 drives, which are offered in diverse capacities and form factors aimed at meeting the needs of various systems. Therefore, when compared to conventional hard disk drives and SATA SSDs, these gadgets boost reading and writing speeds considerably, improving general system performance and responsiveness.

Analysis by Form Factor:

The term 1.8"/2.5" data center SSD describes a solid-state drive (SSD) with certain dimensions and form factor intended for use in data centers and enterprise settings. The width of the drive is indicated by the dimensions, which are either 1.8 inches or 2.5 inches, with the latter being more typical. These SSDs improve server performance and lower latency by providing fast data storage and retrieval. Due to their tiny size, they maximize the space in server racks.

• In August 2023, Seagate invested USD 600 million to expand its production of 2.5" enterprise SSDs in response to the rising demand from cloud service providers for larger storage density and quicker data processing.

Analysis by Technology:

MLC planar technology is the Multi-Level Cell (MLC) architecture that is employed in the production of NAND flash memory chips. MLC, on the other hand, holds two bits per memory cell, while SLC memory only retains a single bit per cell. Planar technology is the normal layout of cells in two dimensions on silicon wafers. In MLC-planar technology, every memory cell is arranged within a grid-like structure, which allows for higher data density and lower production costs compared to SLC. However, MLC Planar technology has slower speeds and less endurance than other types of NAND flash memory, such as 3D NAND.

• In August 2023, Samsung announced its 256TB QLC SSD with 3D NAND technology at the Flash Memory Summit. This SSD is designed specifically for hyperscale data centers, increasing storage density and energy efficiency by up to 70%.


• In July 2023, Intel committed USD 1.2 billion on 3D NAND development, with a focus on boosting storage capacity and lowering production costs for corporate applications.

Analysis by Storage:

Beyond 2 TB in the data center SSDs area, it still has a way to go toward defining the storage ecosystem with bigger capacity and speedier functionality. These gigantic solid-state drives that are usually between 4 TB and 16 TB or more have high storage densities devoid of low delay times and high-volume transfer rates, which makes it possible for reliable handling of huge datasets.

• In September 2023, Western Digital announced a USD 900 million investment, to ramp up manufacture of 4TB and 8TB SSDs for usage in AI-powered data centers, providing low power consumption and great reliability for large-scale operations.

In addition, the organizations in this field keep coming up with novel products, thus propelling the market ahead. For instance, in August 2023, Samsung’s semiconductor business launched a 256TB SSD at the Flash Memory Summit (FMS) 2023. The company asserts that such an SSD uses about seven times less energy than eight stacked 32 TB SSDs’ configuration. The SSD employs QLC technology and has an incredibly high level of integrated density, according to Samsung. Future drives are going to be specifically crafted for hyper-scale data centers and corporations.

Analysis by End-User:

In enterprises, the most important uses of data center SSDs are their ability to do what they do with great speed and are also known for their reliability and efficiency. By providing quick access to data, these devices have become suitable for use in online business that is related to financial trading or even during cloud computing due to their low latency features. With them, the systems can work faster than before, save some cash on running expenses while at the same time keeping the environment polluted to a minimum, hence becoming integral parts of current corporate data centers.

• In May 2023, Microsoft announced a USD 1.5 billion investment in SSD technology for its Azure cloud services, with an emphasis on increasing storage efficiency and lowering latency for real-time data processing.

Regional Analysis

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The data center SSD market is widely characterized by notable regional investments alongside cutting-edge technological developments that have been specifically aimed at addressing the escalating demand for storage solutions that are speedier, more dependable, and use a lesser amount of energy. To meet the greater requirements of AI and cloud computing applications worldwide, it is imperative to make further progress in SSD technology through the adoption of PCIe 5.0 and high-capacity 3D NAND, among others.

Big-time investment and development in solid state drive (SSD) technology ensures that North America remains on top.

• In July 2023, Google's USD 2 billion update of its data center infrastructure in the U.S. included PCIe 5.0 SSDs, which increased data throughput and energy efficiency. Companies such as Intel and Micron are driving PCIe SSD innovation, ensuring North America's supremacy in SSD technology.

The Asia Pacific remains the fastest-developing area in the world, with China, Japan, and South Korea taking the lead. For instance,

• Alibaba’s USD 3 billion funding into new data centers helped to enhance the growth of China’s data center market.

Moreover, innovations such as Samsung’s high-capacity 3D NAND SSDs provide better storage densities and performance, which is vital for AI and big data applications.

Distribution of Data Centre SSD Market, By Region of Origin:

• North America – 35%


• South America –5%


• Europe – 25%


• Middle East & Africa – 5%


• Asia Pacific – 30%

Key Players Covered

The key players in this market include:

• Kingston (U.S.)


• Western Digital (U.S.)


• Toshiba (Japan)


• Sandisk (U.S.)


• Intel Corporation (U.S.)


• Samsung Electronics Co., Ltd (South Korea)


• Micron (U.S.)


• Kioxia (Japan)


• Seagate (U.S.)


• OCZ (U.S.)


• IBM(U.S.)

Key Industry Developments

• November 2023: The ER3 SSD Series was unveiled by Solid State Storage Technology Corp. (SSSTC) at Supercomputing 2023 in Denver, Colorado. The first immersion cooling system ever created for data centers is incorporated into this ground-breaking series. The ER3 SATA SSD Series is intended for enterprise applications and boasts high reliability and endurance. It is designed to withstand severe workloads and intensive write operations in large data centers.


• October 2023: With nearly 200 layers, Micron revealed its first standard SSD, made especially for storage-intensive applications such as virtualization, artificial intelligence, and real-time analytics. The 7450 NVMe SSD has been replaced by the Micron 7500 NVMe SSD, which is intended for use in read-intensive or mainstream data center applications. It might not be the best option out there, but it does have high-performance PCIe flash capabilities.