Thursday, March 7th 2024

Enterprise SSD Industry Hits US$23.1 Billion in Revenue in 4Q23, Growth Trend to Continue into Q1 This Year

The third quarter of 2023 witnessed suppliers dramatically cutting production, which underpinned enterprise SSD prices. The fourth quarter saw a resurgence in contract prices, driven by robust buying activity and heightened demand from server brands and buoyed by optimistic capital expenditure forecasts for 2024. This, combined with increased demand from various end products entering their peak sales period and ongoing reductions in OEM NAND Flash inventories, resulted in some capacity shortages. Consequently, fourth-quarter enterprise SSD prices surged by over 15%. TrendForce highlights that this surge in demand and prices led to a 47.6% QoQ increase in enterprise SSD industry revenues in 4Q23, reaching approximately $23.1 billion.

The stage is set for continued fervor as we settle into the new year and momentum from server brand orders continues to heat up—particularly from Chinese clients. On the supply side, falling inventory levels and efforts to exit loss-making positions have prompted enterprise SSD prices to climb, with contract prices expected to increase by over 25%. This is anticipated to fuel a 20% revenue growth in Q1.
SK Group recorded the highest growth rate in the enterprise SSD segment for 4Q23, with revenues hitting $766 million—a 96.9% jump—thanks to renewed stocking demand from key North American clients. Samsung secured the second-highest growth at 64.3%, reaching $961 million, as reduced production and revitalized order dynamics spurred a price rally and significantly boosted revenues and shipments.

Micron saw a 6.8% rise to $250 million, driven by Q4 enterprise SSD contract price hikes. The company is making strides in the enterprise SSD space, gradually rolling out PCIe 4.0 products and initiating customer validations for its 232-layer offerings as it aims for a larger slice of the market share.

Kioxia enjoyed a 4.3% revenue increase in 4Q23 to $217 million, capitalizing on growing PCIe 4.0 shipments amid swift price rebounds and supply constraints faced by leading suppliers. Meanwhile, Western Digital experienced a downturn, with revenues falling to $113 million—a 23.4% decline—due to diminishing demand for its flagship products. With limited PCIe product validations and a strategic focus on client SSD product development, Western Digital faces upcoming challenges in enterprise SSD market growth.
Source: TrendForce
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6 Comments on Enterprise SSD Industry Hits US$23.1 Billion in Revenue in 4Q23, Growth Trend to Continue into Q1 This Year

#1
Wirko
What's the correct sales number here? Text says $23.1 billion but in the table it's 10 times less. $2.3 billion would be an incredibly low number for enterprise SSDs in one quarter, that's the retail value of one million 12.8TB or 15.36TB units.
Posted on Reply
#2
bonehead123
TheLostSwedeWestern Digital experienced a downturn, with revenues falling to $113 million—a 23.4% decline—due to diminishing demand for its flagship products
Well, seeins how I bought over $8K of their 850X's last year, at least I know I did my part to help soften this blow for them. I know those are consumer drives, and that's a minuscule amount in the overall picture, but just sayin... hehehe :)
Posted on Reply
#3
mechtech
Got my 4TB Corsair MP600 Pro LPX for $330 CAD

Not thinking about spending another penny on SSD's until they are around that price range again............or absolutely have no choice.
Posted on Reply
#4
DaemonForce
I'm glad my enterprise addiction doesn't show up in these figures.
Picked up my 400GB WarpDrive for like $35 USD. I'm good.
Can't imagine why anyone would need 4TB of flash but having 4x1TB SAS modules sounds cool. Maybe someday.
Posted on Reply
#5
Wirko
bonehead123Well, seeins how I bought over $8K of their 850X's last year, at least I know I did my part to help soften this blow for them. I know those are consumer drives, and that's a minuscule amount in the overall picture, but just sayin... hehehe :)
If they mention "headwinds" in their next financial report, we'll know they're talking about the guy at TPU who stopped buying their stuff.
Posted on Reply
#6
ThrashZone
H,
Well prices were pretty high and suddenly dropped at the end of the year 2023 so I grabbed a couple 4tb sn850x at 230.us per

First of 2024 they were sky high again darn near doubled and now dropping a little only at about 25% more than December-2023.
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Dec 7th, 2024 20:50 CST change timezone

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