eSATA Relegated to Niche Interface

External Serial Advanced Technology Attachment (eSATA), the dedicated storage interface found in PCs, external hard disk drives, and set-top boxes, will experience flat growth, at less than 1% annually through 2013 according to market researcher In-Stat.

The current eSATA standard offers data rates of 3Gbps, while the next version, which will be available in the second half of 2010, will offer 6Gbps.

In-Stat also believes eSATA offers efficiency and cost advantages over the competition. Since eSATA simply extends an internal interface to a box-to-box interface, it requires no electrical conversions when taken outside the box. Compare this to USB or 1394, which require bridge or conversion chips to translate back and forth from SATA to transport the signal to another device. This efficiency advantage translates to a cost advantage for eSATA since less silicon is needed.

eSATA also offers speed advantages over competing technologies, but it is shrinking. eSATA’s bandwidth lead over previous generation technologies, such as high-speed USB and 1394a, was nearly an order of magnitude, or 3Gbps compared to 480Mbps or 400Mbps, respectively. However, the introduction of SuperSpeed USB in 2009 has changed this dramatically, with the availability of up to 5Gbps bandwidth. Even taking into account USB’s overhead, which reduces its data rate, SuperSpeed will still offer data rates roughly comparable to the current generation of eSATA. Even eSATA’s 6Gbps standard will offer only a limited upgrade over SuperSpeed USB.

Another issue In-Stat identifies for eSATA is its relative lack of penetration compared to competitive technologies, especially USB. eSATA is exclusively a storage interface, and so it can be found only on standalone or integrated external storage and PCs. Compare this to USB, which can be found in several dozen different applications, including in PCs, PC peripherals, consumer electronics and mobile phones. If a cost-conscious PC or external storage manufacturer were to be forced to choose between the two, USB would make the most sense. In-Stat expects to see this transition in the external hard disk drive market this year, where the attach rate of eSATA will decline from 8.5% of the market in 2009 to 7% in 2010.

Brian O’Rourke, an In-Stat analyst sums it up: “Ultimately, while eSATA offers some efficiency and bandwidth advantages over competing technologies, it will remain a niche technology with very limited growth prospects.”

Price at $1,495, The research, eSATA: A Niche Interface Comes Under Pressure from USB 3.0 (#IN0904454MI), analyzes and forecasts the market for eSATA in PCs, external storage, and set-top boxes. Worldwide annual forecasts for both 3Gbps and 6Gbps eSATA through 2013 are offered in the following markets: desktop PCs, mobile PCs, external hard drives, cable, satellite, and total set-top boxes.