Data Storage Systems Manufacturing
Description
Companies in this industry manufacture devices that allow the storage and retrieval of data from computers. Major companies include Dell EMC, NetApp, and Western Digital (all based in the US); Fujitsu, Hitachi, and Toshiba (Japan); and Seagate (Ireland), as well as the data storage divisions of large computer OEMs such as HPE and IBM.
The global data storage market is forecast to reach about $13 billion by 2030 and grow at a CAGR of 32.3% during the 2024-2030 forecast period, due to the high adoption of cloud storage technology and external data storage devices, according to IndustryARC. The data storage demand will grow in the coming years, especially in the Asia Pacific, as the number of active mobile users increases, according to Expert Market Research (EMR).
The US data storage systems manufacturing industry includes about 90 companies with combined annual revenue of about $5 billion.
Makers of blank storage media are covered in the Magnetic & Optical Media Manufacturing industry profile.
COMPETITIVE LANDSCAPE
Demand is driven by spending levels in the consumer and enterprise computing markets. The profitability of individual companies depends on operational efficiency and rapid product development. Large companies have advantages in development and marketing budgets, component purchasing power, and sales reach, as well as their ability to offer more comprehensive product lines. Because they typically serve a broader customer base, large companies may also be less vulnerable to declines in individual customer segments. Small companies can compete effectively by identifying underserved markets or providing superior technology. The US industry is highly concentrated: the 50 largest companies generate about 99% of industry revenue.
Manufacturers of magnetic disk and optical storage drive products face growing competition from devices that use flash memory and other solid-state technologies.
Imported data storage devices, mainly from Thailand, China, and Mexico, account for about 75% of the US market. Exports, primarily to Mexico and Canada, account for about 60% of US production.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major data storage system products include computer storage devices which account for about 95% of the industry revenue. Other computer storage devices account for about 5%. Other products include storage area networks (SANS), tape drivers, and disk subsystems and disk arrays.
Hard disk drives (HDDs) are used in personal computers (PCs) to store operating systems, applications, and other data. Primary components in a hard drive include disks, read/write heads, head disk assemblies, and printed circuit board (PCB) assemblies. The disks, or platters, are made from aluminum alloy or glass that has been coated with a layer of magnetic material. The read/write head scans the disks as they rotate at a very high speed, reading or recording information. The head disk assembly includes a spindle that holds the platters and a motor that rotates them. Microchips on the PCB assembly control the flow of data between the read/write head and the host computer. Individual HDD storage capacity typically ranges from 80 gigabytes (GB) to two terabytes (TB).
Enterprise-level disk storage systems range from servers with a single hard drive to refrigerator-size enclosures that house hundreds of drives capable of storing multiple petabytes (PB) of data. (A petabyte is equal to 1,000 terabytes; a terabyte is equal to 1,000 gigabytes.) External storage systems may be directly attached to a workstation or server, a configuration known as direct-attached storage (DAS), but large-scale storage increasingly is networked in either storage area network (SAN) or network-attached storage (NAS) configurations, or a combination. Both SAN and NAS allow data sharing among multiple servers or workstations.
Optical disc drives are used to access software, music, and other content that has been distributed on removable media, as well as for small-scale data backup and file sharing. Optical drives may be read-only or have the ability to write (or burn) data to recordable or rewritable discs. Major components in optical drives include servo motors for rotating the disc and moving a device called the pickup head (PUH), or laser pickup. Pickup heads include lasers that read and write information on the disc, lenses to guide the lasers, and photodiodes to detect light reflected from the disc's surface.
Companies may operate manufacturing facilities or outsource some or all of their manufacturing to third parties. Individual components such as platters and PCBs are commonly sourced from third-party providers. The data storage systems industry is characterized by rapid technological advances that necessitate significant research and development investments. R&D spending may represent 10-15% of revenue. Disputes over patents and other intellectual property are common in the industry.
The global data storage market is forecast to reach about $13 billion by 2030 and grow at a CAGR of 32.3% during the 2024-2030 forecast period, due to the high adoption of cloud storage technology and external data storage devices, according to IndustryARC. The data storage demand will grow in the coming years, especially in the Asia Pacific, as the number of active mobile users increases, according to Expert Market Research (EMR).
The US data storage systems manufacturing industry includes about 90 companies with combined annual revenue of about $5 billion.
Makers of blank storage media are covered in the Magnetic & Optical Media Manufacturing industry profile.
COMPETITIVE LANDSCAPE
Demand is driven by spending levels in the consumer and enterprise computing markets. The profitability of individual companies depends on operational efficiency and rapid product development. Large companies have advantages in development and marketing budgets, component purchasing power, and sales reach, as well as their ability to offer more comprehensive product lines. Because they typically serve a broader customer base, large companies may also be less vulnerable to declines in individual customer segments. Small companies can compete effectively by identifying underserved markets or providing superior technology. The US industry is highly concentrated: the 50 largest companies generate about 99% of industry revenue.
Manufacturers of magnetic disk and optical storage drive products face growing competition from devices that use flash memory and other solid-state technologies.
Imported data storage devices, mainly from Thailand, China, and Mexico, account for about 75% of the US market. Exports, primarily to Mexico and Canada, account for about 60% of US production.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major data storage system products include computer storage devices which account for about 95% of the industry revenue. Other computer storage devices account for about 5%. Other products include storage area networks (SANS), tape drivers, and disk subsystems and disk arrays.
Hard disk drives (HDDs) are used in personal computers (PCs) to store operating systems, applications, and other data. Primary components in a hard drive include disks, read/write heads, head disk assemblies, and printed circuit board (PCB) assemblies. The disks, or platters, are made from aluminum alloy or glass that has been coated with a layer of magnetic material. The read/write head scans the disks as they rotate at a very high speed, reading or recording information. The head disk assembly includes a spindle that holds the platters and a motor that rotates them. Microchips on the PCB assembly control the flow of data between the read/write head and the host computer. Individual HDD storage capacity typically ranges from 80 gigabytes (GB) to two terabytes (TB).
Enterprise-level disk storage systems range from servers with a single hard drive to refrigerator-size enclosures that house hundreds of drives capable of storing multiple petabytes (PB) of data. (A petabyte is equal to 1,000 terabytes; a terabyte is equal to 1,000 gigabytes.) External storage systems may be directly attached to a workstation or server, a configuration known as direct-attached storage (DAS), but large-scale storage increasingly is networked in either storage area network (SAN) or network-attached storage (NAS) configurations, or a combination. Both SAN and NAS allow data sharing among multiple servers or workstations.
Optical disc drives are used to access software, music, and other content that has been distributed on removable media, as well as for small-scale data backup and file sharing. Optical drives may be read-only or have the ability to write (or burn) data to recordable or rewritable discs. Major components in optical drives include servo motors for rotating the disc and moving a device called the pickup head (PUH), or laser pickup. Pickup heads include lasers that read and write information on the disc, lenses to guide the lasers, and photodiodes to detect light reflected from the disc's surface.
Companies may operate manufacturing facilities or outsource some or all of their manufacturing to third parties. Individual components such as platters and PCBs are commonly sourced from third-party providers. The data storage systems industry is characterized by rapid technological advances that necessitate significant research and development investments. R&D spending may represent 10-15% of revenue. Disputes over patents and other intellectual property are common in the industry.
Table of Contents
- Industry Overview
- Quarterly Industry Update
- Business Challenges
- Business Trends
- Industry Opportunities
- Call Preparation Questions
- Financial Information
- Industry Forecast
- Web Links and Acronyms
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