NVMe Market to Reach $412 Billion by End of 2031

The global market stood at $54.1 billion in 2022 and the global market is projected to reach $412.1 billion in 2031. It is anticipated to expand at a CAGR of 25.8% between 2023 and 2031, according to a report (223 pages, $5,795) from Transparency Market Research, Inc.

Here is an abstract:

NVMe technology utilizes the high-speed PCIe interface, designed to take advantage of modern, high-performance SSDs. This results in significantly faster data transfer rates, lower latency, and improved overall system responsiveness, making it for data-intensive applications and workloads. Thus, increase in demand for high-speed telecommunication networks is propelling the NVMe market revenue.

Surge in demand for SSDs can be attributed to their fast speed, availability in various form factors, performance, lower power consumption, reduced space requirements, and lower probability of failures. As a result, both enterprises and consumers are increasingly opting for SSDs. Additionally, decline in per-gigabyte prices of SSDs is leading to high demand for flash media from various industries, including mobile phone, automobile, and game console manufacturing.

Key Takeaways of Global NVMe Market

It generates absolute dollar opportunity worth $412.1 billion until 2031.
It is currently valued at $54.1 billion in 2022.
It stood at $56.2 billion in 2023.
Its market value from 2018 to 2022 was 24.1%.
USA is forecasted to hold a market share of 32.2% and of 18.8% for China.

Global NVMe Market: Growth Drivers

High-quality, high-speed telecom networks rely heavily on optical fiber communication. There are various advantages of NVMe. The technology provides faster data transfer speeds and lower latency compared to traditional storage interfaces like SATA and SAS. This enhanced performance is particularly crucial for data-intensive applications, such as big data analytics, AI, real-time processing, and HPC.
NVMe is specifically optimized for SSDs, and its widespread adoption is directly linked to the popularity of SSDs as the preferred storage medium due to their speed, reliability, and power efficiency.
In recent years, SSDs have rapidly gained popularity as the preferred storage solution, even surpassing HDDs in the enterprise market. Their dominance has reached a point where certain types of HDDs are becoming scarce in newly manufactured machines. Hence, increase in adoption of NVMe-based storage solutions is boosting the NVMe market value.

Global NVMe Market: Regional Landscape

AsiaPac is projected to hold largest share from 2023 to 2031 with a market share of 57.2%. Presence of major NVMe companies in Japan, South Korea, and China is fueling market dynamics in the region. Increase in production of computing devices is also boosting market statistics in AsiaPac.
In 2020, China was a major exporter of computers, with a value of $156 billion, followed by Mexico ($31.5 billion), USA ($16.6 billion), the Netherlands ($13.7 billion), and Germany ($12.2 billion), according to the Observatory of Economic Complexity.
North America accounted for 38.3% share in 2022. Surge in data generation and increase in adoption of SSDs as part of storage solutions are augmenting market progress in the region. In North America, various sectors, such as consumer electronics, banking, financial services, and insurance (BFSI), and IT and telecom, are witnessing high demand for NVMe technology.

Global NVMe Market: Key Players

Samsung released the 990 PRO, a high-performance NVMe SSD built on PCIe 4.0 technology. This cutting-edge SSD is specifically designed to excel in graphically demanding games and resource-intensive tasks such as 3D rendering, 4K video editing, and data analysis.
Kioxia introduced the latest series of enterprise NVMe SSDs series. These new SSDs come in 2 form factors: enterprise and datacenter standard form factor E3.S, as well as the 2.5-inch form factor.