China Solid State Drive Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Market Overview

The Chinese solid state drive market is expected to register a CAGR of approximately 12% during the forecast period (2021 - 2026). The primary factor driving the market growth is falling prices of the SSDs and overall erosion of the cost of saving data.

• Also, there is a high activity from the semiconductor fabrication facilities in the country. Several multinational memory manufacturers are investing huge sums, especially augmented by several government initiatives, such as Made in China 2025. By 2030 the country aims to reach USD 305 billion in semiconductor output and be able to meet approximately 80% of the domestic demand for semiconductors. These factors are expected to foster growth in the regional market.
• The demand for SSD has been rapidly increasing, along with the growing number of cloud platforms, from the traditional corporate private and new public clouds to personal clouds in homes. The commonly used SSD interfaces include Serial ATA (SATA), PCI Express (PCIe), and Serial Attached SCSI (SAS). Enhanced features, such as high speed and quick data access, boost the adoption of PCIe SSDs for cloud computing.
• For instance, according to China Telecom, cloud computing was only worth 3% of the Chinese enterprise IT marketed back in 2013, and it is expected to grow by 20% in 2020. Strong government backing and substantial private sector investment are behind the growth of the country’s cloud computing industry.
• However, during the global coronavirus outbreak, the production of China-based SSDs was not severely affected, primarily due to the establishment of automated plants, which is relatively decreasing the demands for the workforce. Also, foundry output delivery to the customers in China was possible despite the lockdown as the semiconductor fabrication plants hold individual national licenses. These allow them to ship their products throughout domestic China, even with cities under quarantine.

Scope of the Report

The Chinese solid state drive market comprises of Serial Advanced Technology Attachment (SATA) and Peripheral Component Interconnect (PCI) Express used by clients from enterprise and consumer goods. The market study provides a detailed analysis of SSDs in the Chinese market and the several growth opportunities and challenges faced by the regional vendors.

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Key Market Trends

Increased Adoption in Data Centers Expected to Boost the Market Growth

• The increasing demand for memory devices, buoyed by the requirement of data centers for memory, is expected to drive the demand for SSDs. According to Cloudscene, China had approximately 50 internet users per 100 in 2019, and the connectivity ecosystem is made up of 85 colocation data centers, 62 cloud service providers, and one network fabric.
• The growth in the Chinese data center market is expected to be bolstered by supportive government initiatives and international investments. The government push for AI in security and intelligence use is further strengthening the demand for SSDs in the country.
• For instance, Apple has started the construction of its first Chinese data center to expand its services in China. The project is scheduled to be completed by 2020 and is in response to new Chinese data laws that demand the citizens’ data to be hosted on Chinese soil. Thus these factors are expected to bolster the demand for SSDs in the country.

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