TrendForce Findings: Enterprise SSDs Strong 3Q24 Growth

TrendForce Corp. announces that its latest investigations found that the enterprise SSD market experienced significant growth in 3Q24, driven by robust demand from AI-related applications.

Prices surged as suppliers struggled to keep pace with market needs, pushing overall industry revenue up by an impressive 28.6% Q/Q. Demand for high-capacity models was especially strong, fueled by the arrival of NVIDIA’s H-series products and sustained orders for AI training servers. As a result, the total procurement volume for enterprise SSDs rose 15% compared to the previous quarter.

Looking ahead to 4Q24, TrendForce forecasts a slowdown in enterprise SSD revenue as procurement demand begins to cool. Total procurement volume is expected to dip, with the peak buying period behind and server OEM orders being slightly revised downward. As shipment volume declines, overall industry revenue is also projected to decrease in the fourth quarter.

Despite strong market growth, the revenue rankings of enterprise SSD suppliers remained unchanged in Q3. However, differences in order composition for high-capacity products led to varied growth rates among suppliers.

Samsung maintained its position as the top enterprise SSD supplier with Q3 revenue reaching $3.2 billion. The company’s growth exceeded expectations thanks to a surge in demand for high-capacity models, although some shipments were delayed due to production adjustments. Enterprise SSDs now account for an increasing share of Samsung’s overall revenue. Looking ahead, Samsung is expected to sustain revenue growth in Q4, driven by strong shipments of sub-8TB SSD products.

SK Group (SK hynix & Solidigm) retained its position as the second-largest enterprise SSD supplier, with Q3 revenue climbing to $2.058 billion. The company achieved record-high shipments for its lineup of AI storage products. In Q4, SK Group’s revenue is expected to remain stable, bolstered by the mass production of its next-gen PCIe 5.0 SSDs, which uses 176-layer TLC NAND. These new products-coupled with existing Solidigm PCIe 4.0 SSDs based on 144-layer TLC and large-capacity QLC SSDs-are expected to sustain revenue.

Micron secured the third spot, posting Q3 revenue of $1.153 billion thanks to stable growth in shipments of high-capacity enterprise SSDs. The increased output of large-capacity products contributed to a rise in Micron’s supply bits. However, Q4 may pose challenges, as some orders have shifted toward 60TB SSDs, a product that Micron is still in the process of validating with multiple clients. This delay could impact the company’s Q4 revenue growth.

Kioxia saw its Q3 revenue climb to $636 million, ranking fourth among suppliers. While Kioxia’s shipment volume increased, its growth in high-capacity product sales lagged behind competitors. To counterbalance this, the company capitalized on tight supply for sub-8TB SSDs, strengthening partnerships with key North American clients and filling growth gaps in its large-capacity product segment.

Western Digital/SanDisk underwent a strategic restructuring by splitting its HDD and NAND/SSD businesses into 2 separately listed companies. This move aimed to increase operational agility and deepen collaborations with key North American customers. In Q3, Western Digital’s enterprise SSD business saw revenue surge over 100% Q/Q to $332 million, driven by strong orders from North American clients.