The global storage market is moving through a period of profound change, with shipments of HDD, SSD and DRAM all experiencing double-digit volume decline in 2024. That’s according to the latest quarterly storage report from Futuresource Consulting, which reports year-on-year contractions of 13% for external HDD, 17% for internal HDD, 21% for SSD, and 16% for DRAM.
Yet, amid the downturn, China’s storage manufacturers are surging, reshaping the competitive landscape and seizing market share from established global players.
“Chinese brands are no longer just competing, they’re controlling the pace,” says Jing Xu, Market Analyst at Futuresource Consulting. “Cost efficiency, aggressive expansion and a strong influence over supply chains are giving them a decisive edge.”
Futuresource has identified three key trends that are shaping the future of storage.
China’s SSD sector is surging, building on the significant expansion drive that began in Q1 2023. With domestic brands Yangtze Memory Technologies Company (YMTC), BIWIN and FANXIANG rapidly scaling and playing pivotal roles.
“Their main focus? It’s PCIE 4.0 drives with storage over 1TB,” says Xu. “It’s all about high-speed, cost-efficient storage, which hits the sweet spot of performance and price. They’re also winning the supply chain battle. When competitors struggled with chip shortages from Q4 2023 to Q2 2024, YMTC and its brand Zhitai capitalised, securing market dominance. To top it all off, by Q4 2024, Zhitai overtook Samsung as the top-selling SSD brand on JD.com, China’s leading e-commerce platform.”
While establishing domestic demand, Chinese storage brands started to set their sights on other world territories. Hikvision held 11% of Latin America’s DRAM market in Q4 2024, to achieve third place in the region, accelerating from a 4% share in Q3.
Meanwhile, Lexar is going global. In Q4 2024, 54% of its SSD shipments landed in EMEA, solidifying its grip in Eastern Europe, as well as sustaining presence in the Middle East. Netac is also expanding, using Dubai as a launchpad for Africa and beyond.
Many Chinese brands are also tapping into Russia, using it as a key export market. As demand in China slows, the industry should expect even more aggressive international moves from China in 2025.
While China’s total DRAM market shrank 39% year-on-year in 2024, gaming DRAM surged. Its share of total DRAM shipments climbed from 26% in 2023 to 37% in 2024.
This growth is being fuelled by DDR5 adoption, with brands like Predator and Glowy leading the charge. Changxin Memory Technologies (CXMT) is also making waves, expanding from almost zero market share in 2020 to 5% globally by 2024, according to Qianzhan Industry Research Institute, a Chinese consulting firm.
CXMT currently focuses on LPDDR4 and DDR4, but its heavy investment in LPDDR5 and DDR5 is poised to shake up both China’s domestic market and the global DRAM industry.
“Looking out across the storage landscape, the local brands in China aren’t just competing, they want to win,” says Xu. “Many of the brands are expanding at an astonishing rate, in China as well as in several emerging markets worldwide, with robust support from local Chinese manufacturers. What we’re seeing is a global storage industry under attack. The traditional international leaders need to adapt to the rising challenge from China or they could be left behind, especially in the fast-growing emerging markets around the world.”
About Futuresource Consulting
Futuresource Consulting, established in the 1980s, is a leading research and consulting firm specialising in global market analysis, forecasts and strategic insights. With a deep understanding of emerging trends and technologies, Futuresource helps businesses navigate complex markets and make informed decisions.
To learn more about Futuresource Consulting’s Quarterly Storage Tracker or to make a purchase, please contact Imad at imad.sarwar@futuresource-hq.com.
Press Contact: Nicola Finn, Marketing Manager, Futuresource Consulting, nicola.finn@futuresource-hq.com
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