Market Trends of Next Generation Memory Industry
Information Technology Application will Have Significant Share in the Market
- With the growing size of enterprises, many IT firms have embraced enterprise storage technologies. Such adoption has driven the demand for next-generation storage to handle organizations' computing power. According to the IBEF, India's IT and BPM industries are expected to grow from USD 6.96 billion in H1 2021 to USD 19.93 billion in 2025.
- Also, according to NASSCOM India and MeitY India, The total revenue generated by the IT and BPM industry in India reached a significant amount of USD 227 billion in 2022 and is likely to reach USD 245 billion in 2023. The general upward trend observed during this period can primarily be attributed to the substantial influx of outsourcing from foreign companies.
- While many client devices use solid-state storage technologies nowadays, hundreds of millions still use hard disk drives (HDDs) across virtually all data centers worldwide. With the help of heat-assisted magnetic recording (HAMR) technology, HDDs should be able to store a lot more data in the coming years.
- Though HDD media is still a top seller in the storage industry, the adoption of flash and SSDs has risen fast over the last several years. Because of the rapid growth of data, significant media investments are being made in this sector. Vendors regularly launch new products to keep this technology relevant and ready for emerging applications. For instance, in October 2022, Western Digital, a leading provider of memory technologies, expanded its NVMe SSD portfolio by launching a new SSD drive. This new SSD targets the hardcore gaming segment.
- Furthermore, the growing demand for data centers to support the storage needs of the IT industry is creating growth opportunities for the market under consideration. Even though North America has the most data centers, investments in data centers are also being driven by growing demand in other places. This is creating growth opportunities in other places as well.
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North America to Account for a Major Share
- The North American region has been one of the early adopters of next-generation technologies and infrastructure. The IT industry significantly drives the economy in the United States. The rapidly changing technologies and high data generation across industries require more efficient processing systems. These factors drive the demand for the next-generation memory market in the region.
- The region is shifting from individual devices and system storage to the core cloud and network edge. According to a survey by Intel Security, the number of companies adopting hybrid cloud services alone has risen by three times the previous level. Cloud providers have been making the cloud more secure and giving organizations better, more reliable systems, which can be very helpful.
- Various government initiatives to support the region's digital infrastructure also support the studied market's growth. For instance, the US government recently started the Data Center Optimization Initiative (DCOI) to deliver better services to the public while increasing the return on investment to taxpayers by consolidating many data centers in the country. As part of consolidation, large-scale data centers are built, and underperforming ones are shut down. This is expected to create growth opportunities for the market.
- Also, since the region has the most data centers, next-generation memory providers are focusing most of their attention on applications in data centers and hyperscale data centers. For instance, according to Cloudscene, in 2022, the United States alone will have 2,701 data centers.
- With investments in data centers increasing steadily, the North American region is expected to continue to remain a favorite destination for the next generation of memory providers. For instance, in March 2022, Vantage Data Centers, a leading provider of hyperscale data center campuses, announced an additional investment of CAD 900 million (USD 721.1 million) to scale its Canadian operations. As part of the investment plan, a third campus will be built in Montreal, and two existing campuses in Quebec City and Montreal will be made bigger.
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