Enterprise SSDs From 382,000 in 2011 to 3.9 Million Units in 2016 – Objective Analysis

CAGR of 59%
This is a Press Release edited by on 2013.03.11

AddThis Social Bookmark Button announces a new market research report: Enterprise SSDs: Technologies and Markets (104 pages, $5,000.)

This report covers the market for high-performance flash-based SSDs for enterprise applications.

The study has been assembled by Objective Analysis through research and interviews with participants held at various times over the past few years with participants from all sides of the market.

The market is forecast three ways: From the bottom up, analyzing the demand for enterprise SSDs from 22 end markets, from the top down, reviewing an enterprise HDD forecast and analyzing which parts of the market are threatened with replacement by SSDs, and finally by interface, a forecast that splits out the top-down forecast into markets for the three leading enterprise SSD interfaces.

Key findings are:

  • The market for enterprise SSDs will grow from 382,000 units in 2011 to 3.9 million units in 2016, representing an average annual growth of 59%.
  • Enterprise SSD revenues, which should reach $582 million in 2011, will grow at a 43% average annual rate $3.5 billion by 2016.
  • A significant share of this growth will be driven by steep price reductions in the SSD market supported by NAND price declines, a move from SLC to MLC flash, and other important price declines driven by a maturing of SSD controller technology.
  • Enterprise HDDs are threatened by SSDs, which initially replaced enterprise HDDs at a 10:1 ratio, but this drops to 3:1 by the end of the forecast period. This means that the enterprise HDD market will shrink faster than the enterprise SSD market can grow.
  • Enterprise SSD were initially adopted in transaction processing systems but this technology is now more widely used in large Internet systems. The Internet will drive the majority of enterprise SSD growth for the remainder of the forecast period.
  • Although significant resources are being committed to SSDs by a number of companies, the technology is still young, and many pitfalls still need to be addressed.

Companies mentioned in the report: Fusion-io, STEC, Intel, Texas Memory Systems, Pliant, SanDisk, LSI, Hitachi, Seagate, Western Digital.