Global Hard Disk Drive Market - Forecasts from 2023 to 2028

The global hard disk drive market is estimated to grow at a CAGR of 0.54%, reaching US$28.386 billion in 2028 from US$27.335 billion in 2021.

The growing use of portable hard disk drives, desktop hard disk drives, and network-attached storage hard disk drives to store operating systems, software programs, and other items on magnetic disks is expected to fuel consistent expansion in the global hard disk drive market. Moreover, the development of smart, connected technologies is boosting the demand for storage drives to store different types of data, therefore it is expected that the recent change in technical trends in the customer electronics industry will aid in the global hard disk drive market growth. For instance, according to the 2022 projection from the Consumer Technology Association (CTA), the U.S. consumer technology industry is anticipated to produce over US$505 billion in retail revenue from sales for the first time.

Downfall in hard disk drive market

The global hard disk drive market experienced a fall in 2022. In addition, according to Seagate's annual report, revenue in fiscal year 2023 decreased by $4.3 billion, or about 37%, from fiscal year 2022. This decline was primarily attributable to a decrease in the number of exabytes shipped and, to a lesser extent, price erosion, as a result of weaker demand in mass capacity and legacy markets which were impacted by macroeconomic conditions and pandemic-related headwinds. Nevertheless, it is anticipated that the current market circumstances will last until the first half of fiscal year 2024.

Increasing demand for consumer electronics

The demand for cutting-edge consumer electronics devices has greatly expanded over the past several years due to technological progress. The penetration of these gadgets is anticipated to expand as they become increasingly accessible. Consequently, the demand for HDDs is being driven by expanding practical HDD uses in a variety of consumer electronics items, from fixed equipment (such as HDD recorders) to mobile devices. Moreover, consumers need more storage space on their consumer electronics gadgets as they continue to accumulate massive volumes of digital content, particularly since the pandemic outbreak. To further establish their market position, hard drive manufacturers have begun concentrating on boosting storage capacity on smaller form factor hard disk drives (HDDs).

Rise in use of smartphones

As more people have access to high-speed Internet, even those living in rural places may now use the Internet, which is crucial to the expansion of the intelligent consumer electronics business. The International Telecommunication Union estimates that 4.9 billion people, or nearly 63% of the world's population, will be online in 2021. The demand for smartphones, laptops, and wearable technology has been considerably fueled by such trends. For instance, the GSMA estimates that in Europe, 86% of the population, or 474 million individuals, were subscribers to mobile services in 2021. By 2025, this number is projected to increase to 480 million. There will be 311 million 5G connections in Europe by 2025, representing a 44% adoption rate.

It is projected that the hard disk drive market in India will grow steadily.

The hard disk drive is a non-volatile data storage device that consists of one or more spinning disks coated with magnetic material and read/write heads that move the disk's surface for reading data. Such storage devices find high applicability in consumer electronics goods such as laptops and computers. The booming electronics demand in India has propelled the overall electronic manufacturing output of the country, thereby positively impacting the market demand for storage devices such as hard disk drives in the country. For instance, according to the Ministry of Electronics & IT, in 2021-2022 electronics manufacturing in India reached US$87.1 billion which signified an increase of 77.7% over US$49 billion recorded in 2016-2017. Furthermore, as per the same source, India's electronic production is expected to reach US$300 billion by 2026.

Market Key Developments

• In July 2022, Western Digital stated that it has begun distributing its new 22TB HDDs, which were created to target three important markets: WD Red Pro for network attached storage (NAS), WD Purple Pro for smart video/surveillance, and WD Gold HDDs for IT/data center channel clients. To achieve the density of 2.2TB per platter, these drives make use of OptiNAND technology, energy-assisted PMR (ePMR), triple-stage actuator (TSA), and HelioSeal.
• In March 2022, Seagate Technology LLC launched its "SkyHawk AI 20TB" hard disk drive in India which would be used in network video recorders, and would also support multiple videos & AI streams.

Segmentation:

By Type

• Internal HDD
• External HDD

By End-User

• Enterprises
• Nearline Storage
• Consumer Use

By Storage Capacity

• Below 1TB
• 1TB and above

By Geography

• North America
• United States
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• United Kingdom
• Germany
• France
• Italy
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Others
• Asia Pacific
• China
• Japan
• India
• South Korea
• Taiwan
• Others