NVMe Over FC Market at $30 Billion in 2020, Up 22% in 2021

As per the survey conducted by Future Market Insights, the global NVMe over the FC market is predicted to top $30.36 billion in 2020.

In response to the increasing adoption of NVMe over FC by data centers, telecom service providers, and enterprises, the market is estimated to surpass $255.64 billion by the end of 2031.

Historically, the market registered growth at 20.8% from 2016 to 2020. It is expected to register growth at an accelerated pace as end users exhibit higher inclination for the SSD, as it offers better encryption and faster data transfer speed than traditional SSDs, which is in turn, spurring the sales of NVMe devices. The market is expected to grow at a CAGR of 23.7% during 2021-2031.

Rising integration of advanced technologies such as the IoT, ML, and cloud computing across organizations has increased the overall volume of data created, captured, consumed, and copied across the world.

Steered by the staggering volume of data generated across enterprises, the demand for efficient data processing technologies and optimized storage solutions such as NVMe is predicted to increase significantly. Driven by this, the sales of NVMe over the FC are expected to increase by Y/Y growth of 22% in 2021.

In terms of enterprise size, the SMEs segment is anticipated to register the fastest growth, expanding at a CAGR of 24.9% over the forecast period. This can be attributed to the increasing number of small and medium-size data processing and networking companies, especially, across North America and AsiaPac.

“Rapidly changing computing dynamics for developers of laptops, computers, and tablets along with increasing demand for secured intellectual data storage devices across IT & telecom and banking, financial services and insurance industries are expected to accelerate the market growth in the coming year,” says a FMI analyst.

Key Takeaways from the NVMe over FC Market Analysis
Sales for NVMe over FC in USA is expected to total $5.19 billion in 2021, rising at a CAGR of CAGR of 21.8% between 2021 and 2031.
The market in China is estimated to reach $2,211.7 million, surging at a CAGR of 25.3% through 2031.
Germany is projected to emerge as the most lucrative market in Europe, reaching a valuation of $17.5 billion by the end of 2031.
Japan and South Korea markets are forecast to account for 33.5% and 25.2% of the value share, respectively, in East Asia by 2021.
Based on end user, the data center vendor is anticipated to lead the segment, accounting for early 37.4% of the overall sales in 2021.

Future Market Insights Nvme Over Fc Market 2o21

Key Drivers:

Increasing adoption of NVMe for big data analytics, blockchain, AI across data-driven organizations owing to its lower latency and faster data movement is driving the market growth.
Growing data generation, spurred by the rising smartphone penetration and growing number of Internet users across the world is expected to propel the demand for NVMe over FC.

Key Restraints:

High cost of NVMe devices compared to traditional ones is hampering the growth of the market.
Lack of compatibility of NVMe in smartphones and computers & laptops with older motherboards is hindering the market growth.

Competitive Landscape
Leading companies in the market are Intel Corporation, Samsung Electronics Co., Ltd., Western Digital Corporation, Dell EMC, Hewlett Packard Enterprise, and IBM, are the top NVMe over FC vendors. These players are anticipated to account for more than 60% of the total sales in the landscape.

Leading players are extensively investing in R&D activities for the optimization of novel devices and technologies. Besides this, some of the key companies are focusing of new product launching to expand their product portfolio.

For instance:

In 2020, Intel announced investing $13.6 billion in R&D initiatives for optimization of the process technology, advancement in 5G technology, and PC and data-centric businesses.
In February 2018, it announced launching its two 2 products, Intel SSD DC P4510 Series and P4511 Series. The products launch is aimed to assist the company in expanding its product portfolio in data center applications.

Leading players operating in the market are: