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Tape Cartridge Market Back to (Small) Growth – Santa Clara Consulting Group

Sales up 1% from 3Q1 to 4Q12, +3% expected in 1Q13

Back-up tape cartridge sales amounted to $154.84 million in 4Q12, according to Back-Up Tape Tracker Executive Summary Q4 2012 from the Santa Clara Consulting Group.

LTO accounted for 92.9% of total with sales of $143.84 million. The media market is expected to grow to $158.95 million in the next quarter.

Total LTO sales were slightly up at 5.6 million units in Q4. LTO-6 was launched but its numbers represent an introductory phase. LTO-5 was up in the quarter. It accounted for 33% of unit sales and 42% of dollars. LTO-4 grew 2% and represented 44% of units and 37% of dollars. LTO-3 sales declined 12%. They accounted for 18% of volume and 14% of dollars. LTO-2 and LTO-1 were both down. Combined, they accounted for 5% of units and 5% of dollars. HP led the LTO market with a 29% share. IBM was the second largest supplier and Fuji was third. In Q1 LTO sales are expected to rise slightly. They will be supported by growth of LTO-5 and the increased presence of LTO-6.

The DDS/DAT cartridge volume was up 7% to 0.4 million units in Q4. DAT-72 accounted for 38% of unit sales and 39% of the value of the segment. DAT-160 accounted for 36% of the value of the segment and DAT-320 took 3%. HP led the DDS/DAT market with a 71% share. Segment dollar sales amounted to $5.61 million.

DLT-S cartridge sales amounted to 0.04 million units. HP led the segment. It was followed by Quantum and Maxell. DLT-S dollar sales are expected to be off to $1.77 million in Q1. DLT-V sales were off at 0.02 million units. Their value was $0.64 million. Quantum led the segment with a 52% share. Imation was second at 20%. DLTtape IV cartridges accounted for 57% of units. Sales of DLT-V are expected to be lower in Q1.

AIT media supports its respective installed bases of drives. Total AIT cartridge volume in the quarter amounted to 0.02 million units. Sony was the sole source for the product.

Shipments of QIC cartridges in the quarter totaled 0.02 million units. Their value was $1.25 million. Imation dominated the segment with a market share of 98%.

The 8mm metal particle cartridge amounted to 0.01 million units worth $0.05 million. Imation led the segment with a 50% market share. Tandberg supplied 8 million metal evaporated cartridges for its VXA and Mammoth drives. Sales were 0.01 million units in the quarter.

Comments

The worldwide tape cartridge market decreased without interruption since at least 2008. LTO, representing 92% of the total in 2012, also was down during the same period, but with a smaller percentage.

In 1Q08, global sales record $348 million, more than twice more than in 4Q12.

There is a slight increase from 3Q12 to 4Q12, 1% for the global market and for LTO, to be confirmed this year by SCCG expecting revenue up 3% from 4Q12 to 1Q13.

     Tape Cartridge Market Quarterly Revenue From 2008
                                     (in $ million)

Year     LTO      Y/Y 
  growth
      All
    tapes
     Y/Y
   growth
  % for
   LTO
2008     966       NA     1,255      -2,7%   77,0%
2009     761    -21,2%       942    -24,9%   80,8%
2010     687     -9,7%       822    -12,7%   83,6%
2011     682     -0,7%       771      -6,2%   88,5%
2012     609   -10,7%       665    -13,7%   91,6%


         Tape Cartridge Market Quarterly Revenue in 2012
                                  (in $ million)             
sccg_2012_tape_quarterly_540

                    Tape Cartridge Market Yearly Revenue

                                     (in $ million)
sccg_tape_2012
 (Source: Figures of Santa Clara Consulting Group)

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