Global hard disk drive (HDD) industry revenue is expected to grow from $33.4bn in 2010 to $48.2bn in 2015, according to new research from IDC. However, the resaerch firm warns that to register the growth, the industry will need to transform itself and reorder its R&D priorities.
The research highlighted that despite the threat of media tablets and solid state drives (SSDs) slowing global HDD unit shipment growth, the HDD industry has tremendous revenue expansion opportunities over the next five years.
IDC said that HDD R&D should give more attention to developing faster HDD performance for PC markets while simultaneously delivering HDD capacity advancements.
The research revealed that HDD industry revenue growth will be accelerated based on broadening adoption of storage devices that help to speed up overall PC performance.
IDC said HDD demand will continue to be founded in traditional IT segments, however, unit shipment growth will be driven mainly by the expansion of public and private cloud storage infrastructure. HDD unit shipment will also be driven by demand from consumers and small businesses for private or personal cloud storage devices and offerings.
The research revealed that with or without industry consolidation, HDD average selling price (ASP) declines will slow near term as HDD technology advancements are slowing, making it more difficult for HDD vendors to reduce HDD bill of material costs.
Long term, the HDD industry has an opportunity to increase HDD ASPs with hybrid NAND and rotating disk storage devices aimed at the PC market.
IDC storage mechanisms disk research director John Rydning said the HDD industry needs to shift its R&D priorities, giving more attention to developing faster HDD performance for PC markets while simultaneously delivering HDD capacity advancements to support enterprise storage growth demands.
"At the same time, HDD vendors have an opportunity to transform into storage offering providers with a broad range of products that address the needs of both consumers and small businesses," Rydning said.
