SSD Industry Witnessed A 10% Decline in Global Shipments Last Year As Consumer Demand Weakened

Things aren’t looking good for the SSD industry since research outlet, TrendForce, reported a whopping 10% decline in global shipments last year.

The SSD Industry Saw One Of Its Worst Decline in 2022, With Global Shipments Falling Down Drastically

The SSD industry has been in its “dwindling” state for several quarters now and has been receiving a tremendous decline in revenue since the start of 2022. TrendForce hasn’t exactly pinpointed the core reason behind why the SSD industry went through a downfall. Still, based on what industry’s indicators tell us, weakened consumer demand coupled with a shortage of master control ICs back in 2021 is seen as a key reason for the decrease. Still, since the supply of ICs was resumed at some point during 2022, the current economic conditions of the SSD industry are mostly associated with the “rapid” decline in consumer interest.

TrendForce discloses that the SSD industry saw a total of 114 million units being shipped in 2022, which is a decline of almost 10.7% from the previous year, which is indeed a huge number when you factor in the industry as a whole. Either way, 2022 wasn’t a good year to do business anyway, since the world saw its combat with the COVID-19 pandemic, along with the Russian-Ukraine hostilities, which disrupted the global supply chain as well. Such factors were seen as detrimental to the SSD industry, and their effects still exist, in terms of recovering from the negative financial quarters.

Image Source: Trendforce

TrendForce then focuses on which SSD producer held the throne in terms of market share in the industry, and no surprise, Kingston was ahead of them all, coming in at 28% share. Behind Kingston comes Adata, which didn’t show progress in terms of dominance in the market, rather it consolidated its position. The other notable mentions are the likes of Lexar, Kimtigo, and Netac, which show decent improvements in shipments courtesy of their position in the client and enterprise SSD sector.

Well for 2023, TrendForce has indicated a “positive” outlook for the SSD industry, mainly since NAND suppliers are aggressively cutting down production, and manufacturers are ramping up prices as well. Moreover, Trendforce has also shown optimism for the Chinese homegrown SSD companies, since they are reaching a more “mature” stage, especially when it comes to the PCIe 4.0 technology.

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