The surge in demand and hike in prices propelled the enterprise SSD industry revenues to 47.6 percent quarter-on-quarter increase in 4Q23, totaling approximately $23.1 billion, according to insights provided by TrendForce.
Enterprise SSD prices soared by over 15 percent in the fourth-quarter.
Optimistic capital expenditure forecasts for 2024, demand from various end products entering peak sales periods and reductions in OEM NAND Flash inventories, resulted in capacity shortages, further amplifying the surge in the enterprise SSD business.
Momentum from server brand orders intensified, notably from Chinese clients. On the supply side, diminishing inventory levels and efforts to exit loss-making positions have led to a climb in enterprise SSD prices, with contract prices projected to surge by over 25 percent. This is anticipated to fuel a 20 percent revenue growth in the first quarter of 2024.
Among the key players in the enterprise SSD segment, SK Group emerged as a standout performer in 4Q23, experiencing the highest growth rate with revenues hitting $766 million — a 96.9 percent increase — fueled by renewed stocking demand from key North American clients.
Following closely, Samsung secured the second-highest growth at 64.3 percent, reaching $961 million, benefiting from reduced production and revitalized order dynamics that sparked a significant price rally, consequently boosting revenues and shipments.
Micron witnessed a 6.8 percent rise in revenues to $250 million, primarily driven by contract price hikes in the enterprise SSD space during the fourth quarter. The company continues to make strides in this sector, gradually rolling out PCIe 4.0 products and initiating customer validations for its 232-layer offerings in a bid to capture a larger share of the market.
Meanwhile, Kioxia enjoyed a 4.3 percent revenue increase in 4Q23, totaling $217 million, capitalizing on the growing shipments of PCIe 4.0 amid swift price rebounds and supply constraints faced by leading suppliers.
On the flip side, Western Digital experienced a downturn, with revenues plummeting to $113 million, a 23.4 percent decline — attributed to diminishing demand for its flagship products. With limited PCIe product validations and a strategic focus on client SSD product development, Western Digital faces forthcoming challenges in enterprise SSD market growth.