Data storage poses significant financial and technical challenges for enterprises. A recent report from IDTechEx, titled Emerging Memory and Storage Technology 2025-2035: Markets, Trends, Forecasts, delves into how organizations are navigating these complexities, particularly as a 2022 Seagate study revealed that many allocate up to a third of their IT budgets to storage. With concerns about rising costs due to inflation, high energy prices, and demanding workloads, businesses are reevaluating their storage strategies.
Shift from HDD to SSD
Historically, Hard Disk Drives (HDDs) were the primary choice for large-scale storage, favored for their cost-effectiveness and high capacity. However, increased energy costs and the need for enhanced performance have led to the rise of Quad-Level Cell (QLC) Solid State Drives (SSDs) as a viable alternative, particularly for read-heavy applications. Ethan Phillips, a technology analyst at IDTechEx, states that QLC SSDs’ advantages in energy efficiency, storage density, and operational simplicity are making them more appealing than traditional HDDs, especially regarding Total Cost of Ownership (TCO).
Market Dynamics and Revenue Trends
In 2024, the HDD market generated approximately $15.1 billion, with Seagate and Western Digital dominating around 80% of that revenue, while Toshiba held a smaller share. However, HDD revenue is increasingly concentrated in mass capacity drives, particularly nearline HDDs, which serve data centers and enterprise storage. Nearline products currently account for about 60% of HDD revenue, a figure projected to surpass 95% by 2035 as SSD adoption continues to grow.
Technological Advancements in HDD and SSD
To meet evolving storage demands, HDD technology is shifting towards higher capacity and performance, with drives exceeding 50TB expected to emerge as soon as 2026. Nevertheless, as QLC SSD technologies advance, they increasingly pose a challenge not just in performance but also in capacity and cost, raising questions about their potential in large-scale cold storage scenarios.
Advantages of QLC SSDs
QLC SSDs store four bits per cell, significantly enhancing storage density compared to earlier types like TLC or MLC. This technology allows for greater capacities at a lower cost per gigabyte, essential for expansive storage needs. Furthermore, the performance and efficiency gains provided by QLC SSDs are particularly beneficial for energy-intensive applications such as AI, analytics, and real-time data processing.
Additionally, QLC SSDs are tailored for read-heavy tasks, making them suitable for various applications, including AI inference, archival storage, and backups. As flash memory costs decrease, the price per terabyte of QLC SSDs is approaching parity with HDDs, especially when considering factors like performance, density, and simplicity of operation.
For an in-depth look at the evolving storage landscape and its implications for enterprises, the IDTechEx report offers a thorough analysis and forecasts the continuing transformation in memory and storage technology.