HDD Market Anticipated to Grow at 11.2% CAGR from 2022 to 2029

The HDD market is reaching a valuation of $ 38,489.9 million in 2022 to $ 80,873.0 million by 2029 and is expected to exhibit an 11.2% CAGR over the forecast period, 2022-2029. With multiplying data volumes encouraging enterprises to procure upgraded storage technologies, the HDD market is set for steady growth during the next decade, reports Future Market Insights, Inc.

HDD manufacturers launch upgraded HDD capacity formats at intervals of every 2 to 3 years. This would be a continuing trend in the global HDD market over the forecast period (2022-2029).

As storage capacities of HDDs continue to increase, manufacturers such as Toshiba are frequently rolling out HDD technology upgrades. Consequently, magnetic storage remains highly preferred option for long-term high-capacity backup and archiving, which would further push HDD drive sales.

Key Takeaways – HDD Drive Market Study
• NAS HDDs that currently hold a market share of over 2/5th, would remain top selling in the global market for HDD. With the highest estimated incremental opportunity to be attained through 2029, NAS HDDs will continue to see double-digit growth over the period of projection.
• Sales of HDDs with storage capacities of up to 1TB and above will collectively account for 3/4th of total HDD sales. Low storage capacity, though relatively less preferred, continues to witness sustained traction.
• USB port HDD drives that currently make up for over a 3rd of total sales will see steady adoption in the near future. Whereas, plug-in power sources of HDDs are set to gain popularity.
• Geographic expansion and collaborations with other HDD providers would be the preferred developmental strategies of key players in HDD market.

How Will US Sales of HDD Drive Market Shape Up?
Currently, the US market anticipate for the largest consumption of HDDs in North America region, and is expected to grow at 7.5% CAGR during 2022-29. Sales is expected reach 1.7x by 2029.

US market witness higher growth in HDD market, which attributes to rising investments in upgraded HDD storage capacity formats by HDD manufacturers every 2 to 3 years. Thus increasing investment in HDD technologies is expected to drive the demand for the US HDD drive market.

Why China Prominent Market for HDD Market in Coming Years?
China is set to register exponential growth of HDDs with a CAGR of 8.7% during 2022-29. This market is anticipated to create an absolute dollar opportunity of $1,412 million during 2022-29.

For instance, in April 2021, Chia cryptocurrency caused HDD and SSD shortages. It relies on free storage space than processing performance for mining. Many miners in China purchased as many SSDs and HDDs which resulted in high demand of all 4TB to 18TB drives in China. Therefore, such development in the country ultimately fuels the demand for the HDD drive market.

Why UK Among Prominent Counties in Global HDD Market?
The UK market is set to report the one of the largest consumption of HDDs in Europe region, and market size is expected reach 1.6x by 2029.

The country has developed infrastructure for a majority of IT infrastructure developers and related service providers. A rapid shift from traditional to converged infrastructure solutions by many enterprises creates potential opportunity for enterprise-grade HDD storage vendors. Therefore, presence of developed infrastructure for storage management within enterprises in the country to witness huge growth for the HDD market.

Germany market is anticipated to create an absolute dollar opportunity of $1,326.6  million during 2022-29.

Why Demand for NAS HDDs Segment Rising?
NAS HDDs segment by drive type will dominate the HDD market, and expected to reach 2.0x by 2029. Moreover, desktop HDDs segment is set to witness highest growth rate of 12.3% CAGR during 2022-29.

NAS HDDs are storage devices enables multiple users and varied clients to store and retrieve data from a centralized location in an enterprise. It also provides infrastructure to consolidate storage in one place and to support tasks, such as data archival and backup. Thus rising adoption of NAS HDDs by many enterprises to make easy distributed work environments using wireless router, is driving the demand for the network-attached storage HDDs segment.

Why Demand Rising in USB 3.0 Segment?
The demand for the USB 3.0 HDD segment by drive interface will dominate the HDD market. USB 3.1 Gen2 HDD segment is expected to grow at highest CAGR around 18.0% over the forecasted time period. However, USB 3.0 segment is estimated to grow almost 1.8x market by 2029.

USB 3.0 provides 5Gb/s transfer speed and about 10 times more theoretical speed than USB 2.0. USB 3.0 provide higher nominal current 900mA compare to USB 2.0. 500mA. Moreover, USB 3.1 Gen2 offers features such as high capacity storage capability of 12TB (6TB per drive), 10Gb/s communication rates, and others. This rising adoption of USB 3.1 Gen2 over other segment is set to fuel the demand for the USB 3.0 segment over the forecasted period.

Why Communication Infrastructure Segment Exhibit High Demand During Forecast Period?
On the basis of storage capacity, 250GB-1TB HDD segment will be a dominating segment. This market sizesegment is expected to expand up to 2.1x of by 2029. Moreover, above 1TB segment is set to register the highest growth at the rate of CAGR 13.6% during 2022-29.

HDD manufacturers launches upgraded HDD storage capacity formats every 2 to 3 years. HDDs majorly used in various aspects such as big data management, tiered storage, improved utilization, virtualization, data classification, HA, data security and various storage-related priorities. Thus to store huge amount of data enterprises needs large storage systems. Therefore, 250GB-1TB segment witness lucrative growth over forecasted period.

Offline Functionality of HDD Storage Technology Remains USP
Owing to persistent ransomware attacks on networks of various organizations, customers have started procuring efficient magnetic storage technologies. Presence of an air gap acts as a security measure that isolates HDDs and prevents them from establishing external network connections.

This prevents the information stored on these tapes from falling prey to cyberattacks, as they are not connected to the enterprise network, at least when switched off. HDD storage technology also trumps cloud infrastructure in this condition. Offline functionality of HDD storage technology will thus bolster growth of the global HDD market during the forecast period.

Insufficient Storage Capacities Continue to Limit Market Growth
HDD manufacturers are focusing on enhancing storage capacities to efficiently cater to massive digital data volumes. The relatively low availability of digital storage capacities will however continue to create a sizeable digital gap throughout the forecast period. The insatiable demand for enhanced storage capacities in HDDs would thus restrict the market growth to a large extent in the near future.