Zoned Flash Market

2020 Analysis and Review: Zoned Flash Market by Component – SATA, SAS for 2020 - 2030

Introduction

Data storage has always been imperative to business organizations. For decades, data was primarily stored on mechanical hard drives. These conventional hard disk drives (HDDs) are mostly based on portable parts, such as a read-write head which moves back and forth to accumulate data. This renders them inefficient in the 21st century.

Consequently, the concept of solid state drives (SSDs) assumed concrete shape. Largely confined to the aerospace and military domains initially, SSDs have penetrated consumer devices to enhance drive performance and facilitate easy data collection. In the modern-day context, SSDs have pervaded low-cost mainstream laptops and PCs.

SSDs have offered immense benefits to businesses working with immense volumes of data, such as programming environments or analysis. These companies rely on SSDs to enhance file-transfer speeds and access times. They are also extensively used in gaming computers and servers to enhance battery life.

Research has proven that SSD zoning delivers three times more throughput and 65% more transactions per second, greatly enhancing performance. Based on these aforementioned trends, the market for SSD-based zoned flash is anticipated to widen during the 2020-2030 forecast period.

Adoption of Zoned Flash Devices

Since the past decade, approaches towards data accumulation and storage has undergone paradigm shifts across various industries. Storage facilities have expanded beyond the conventional storage arrays and archiving tapes to more varied platforms, such as peripheral component interconnect express (PCIe) SSDs.

Various trend heavy industries- such as food processing, entertainment, fashion and social media- gather and analyze masses of streaming time-series data to predict where these markets are heading. Greater granularity and specificity is augmenting data volume and specificity, requiring specialized storage facilities.

A few years ago, storage silos were considered a bane, as it involved additional expenditure on expensive hardware. However, as business operations are upgrading, this has become a necessity. Hence, the demand for zoned flash devices is likely to surge impressively, reaching a threshold of US$ 3.5 Bn by 2030, expanding at a stellar pace.

The Potential of NVMe

Non Volatile Memory Express (NVMe) host controller interface specifications are emerging as the mainstay of the zoned flash market. By its design, NVM express permits host hardware or software to fully exploit the levels of parallelism in modern SSDs. Consequently, it reduces input-output overheads, leading to performance improvements.

NVMe has emerged as the industry standard for PCIe SSDs in several form factors, including U.2, M.2, akaike information criterion (AIC) and enterprise & data center SSD form factor (EDSFF). The interface is immensely efficient, providing greater scalability and lower latency.

As businesses contend with the perpetual growth of data, they are rethinking their data capturing, preserving, access and transformation approaches. As economics and performance is paramount, NVMe has greatly assisted businesses achieve this objective.

Key Challenges

While prices of SSDs have declined over time, they are still expensive in terms of per unit storage compared to conventional hard disks. This is anticipated to remain prevalent throughout the forecast period, restricting uptake of zoned flash devices.

Additionally, Non-And (NAND) flash drives gradually ooze out charge if devoid of power for prolonged periods. This results in worn-out drives to start losing data typically after a year or two, depending upon the storage temperature. Consequently, SSDs are not suitable for archival storage.

Another factor likely to inhibit the zoned flash market is the inability to recover lost data. While this is a welcome development in terms of ensuring security, it may lead to irreparable consequences in certain events due to no back-up.

Region-wise Analysis

North American Zoned Flash Market

The North American zoned flash market is slated to record a monumental 36.8% CAGR across the 2020-2030 forecast period.  Suring volumes of unstructured data across key industries and technological advancements are augmenting the need for secure and cost-efficient data storage services.

A significant chunk of the demand will likely be generated from large-scale enterprises, accounting for nearly 60% of the market share by 2030-end. Majority of business entities are investing in statistical analysis systems, attributed to the voluminous amounts of data collated by them.

As the complexity of data assimilation grows with each passing day, key vendors are leveraging the situation to expand their presence across the regional market. Several notable developments with respect to data collation have occurred in the North American landscape.

Recently, in July 2020, SAS collaborated with Microsoft Corporation to develop an extensive technology, enabling customers to smoothly run their SAS interfaces on cloud, permitting entities to concentrate on expanding their business revenues. The agreements provides for transitioning to the Microsoft Azure Cloud system to smoothen operations.

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Europe Zoned Flash Market

A significant landscape shift has been observed in the European zoned flash market. According to a popular study, by 2020-end, the sales of laptops equipped with conventional hard disk drives are likely to stave off, paving the way for SSD-mounted devices.

More than 9 out of 10 new laptops sold in Q4 of 2019 in Western Europe were equipped with SSDs. This is a marked increase compared to the same time period in 2017, in which SSDs were mounted on 2/3rd of the laptops.

This transition is attributed to favorable pricing policies initiated by governments across the continent. A noticeable reduction in the price per gigabyte has been recorded by analysts, enabling vendors to market SSD vendors at competitive prices.

The Netherlands is likely to register a major chunk of the market share in terms of SSD-mounted laptops sales, followed by Germany. However, the dominant position is slated to be held by the U.K, registering a phenomenal CAGR of ~40% during the forecast period. 

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East Asia Zoned Flash Market

Amongst all the regions profiled in the report, East Asia promises to be the fastest growing market. Immense business proliferation has led companies to invest in data consolidation platforms, upping the scope for zoned flash players. China & Japan are slated to pivot the East Asian growth in the forecast period.

A prolific CAGR of 42.8% is anticipated for the East Asian market across the forecast period. Favorable reimbursement policies and flexibility of operations have permitted vendors to establish their manufacturing units and partner with regional players.

In 2019, Toshiba Memory Holdings Corporation acquired Taiwan’s LITE-ON Technology Corporation’s SSD business at a purchase price of US$ 165 million. This acquisition has enabled the company to expand its business portfolio, thus allowing it to explore new revenue generating ecosystems.

A number of regional players have played an important role in shaping the local revenue landscape. Some of these players include ADATA (Taiwan), Apacer Technology Inc. (Taiwan), BiWin (China), Cactus Technologies Ltd. (Hong Kong), Digicube (Taiwan) and Mtron (South Korea) among others.

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Category-wise Insights

Component

Demand for SSD management software solutions is poised to accelerate, expected to be valued at over US$ 2.6 Bn by 2030. While they offer prolifically faster performance, over time, the output reduces due to aging. This occurs when data storage capacity reaches 70%.

A number of SSD performance optimization, health, over provisioning and secure erase tools have been developed by prominent manufacturers. These tools enable users to vary when the SSD controller carries out garbage collection and other parameters, thus influencing driver performance.

Players such as Toshiba’s OCZ, Intel and Samsung have played an instrumental role by introducing efficient SSD management solutions such as Samsung Magician, Intel SSD Toolbox and OCZ SSD Utility.

Drive Interface

The serial advanced technology attachment (SATA) segment is projected to hold maximum sway in the zoned flash market. Provision of high data transfer rates between the motherboard and storage device and ability to hot-swap devices have opened up impressive growth prospects.

Immense volumes of data procreation, collation and assimilation have rendered it important to install a robust sorting system across business organizations. As a result, the demand for statistical analysis systems has surged in recent years, anticipated to expand at ~40% CAGR until 2030.

End-User

Business enterprises are expected to remain the key beneficiaries of the global zoned flash market. The segment is anticipated to be valued at US$ 1.2 Bn by 2030. Among those, SMEs are acquiring significant traction, attributed to surging business volumes.

Flash has been a driving force behind enterprise data collection, with SSDs emerging as the most popular media for Not & and (NAND) flash. Majority of NAND flash is still delivered through solid state drives in storage arrays. These devices are an answer to enterprises whose performances have diminished by using disk-based storage systems.

SSD storage have served the highly important purpose of addressing intensive workloads with stellar input-output performance. This has ensured that enterprises keep their energy budget low and concentrate on revenue maximization.

COVID-19’s Impact

The novel coronavirus pandemic has ushered in an unprecedented era of uncertainty. As the world heads towards a recessionary downturn, there are certain industries which are anticipated to stay afloat, including the zoned flash market.

While significant growth restrictions are expected in budgets and infrastructure, an infinitesimal possibility exists with regard to a constrained supply of storage to meet the requirements of the digital universe. As companies increasingly facilitate remote working arrangements, demand for digital data storage facilities is surging multifold.

Against this backdrop, investments in devices offering higher connectivity and data accumulation speeds, such as flash, persistent memory, disk, tape and cloud is likely to aggrandize. Initially, the flash market will experience a 40% increase in price, attributed to heightened demand.

This price increase will continue for nearly 18 months, as customers are anticipated to pay a premium amount to keep their businesses running. A saturation point is expected to be reached, after which a reduction trend is likely to pervade the market.

As the pandemic unfurled in the past few months, incidences of cyberattacks registered a massive surge, with many organizations reporting several incidences of data theft and compromise across online platforms. Thus, companies have accelerated their spending on hardware-based storage devices, providing green spaces for the zoned flash market.

Based on these aforementioned trends, it can be inferred that the global zoned flash market will register an upward sloping throughout the course of the pandemic.

Competitive Intelligence

Prominent players within the zoned flash market are striving towards developing robust data storage solutions by doling out new hardware devices integrated with smart solutions to capture a broader customer base. In addition, they are investing in partnerships, collaborations and acquisitions to expand their market footprint.

IBM Corporation and Radian Memory Systems have made significant strides with regard to zoned flash systems. In February 2020, both corporations undertook a live demonstration of Radian Zoned Flash SSDs with IBM’s software defined log-structured array storage management stack at the USENIX FAST Conference.

A high availability configuration based on six RMS-350 U.2 SSDs were demonstrated along with zoned namespaces (ZNS). This development is expected to revolutionize data collection methodologies in the upcoming future.

Western Digital is another prominent player within the global zoned flash market. Its OpenFlex Solution was recently selected by the ICM Brain and Spine Institute to streamline critical cures and treatment options. The solution helps doctors capture, share and analyze patient data from multiple clinical imaging tools across different labs.

In addition to these, other prominent zoned flash market players include:

  • SK Hynix
  • SanBLAZE
  • Microchip Technology Inc.
  • OCZ Ltd. (Toshiba)
  • Cactus Technologies Ltd.
  • SAS Institute

Zoned Flash Market: Report Scope

Attribute

Details

Forecast Period

2020-2030

Base Year

2019

Market Analysis

USD Million for value and ‘000 units for Volume

Key Regions Covered

North America, Latin America, Europe, East Asia, South Asia & Pacific and Middle East & Africa

Key Countries Covered

US, Canada, Brazil, Mexico, U.K, Germany, France, Spain, Italy, BENELUX, Russia, China, Japan, South Korea, India, Thailand, Indonesia, Malaysia, Australia, New Zealand, GCC, Turkey and South Africa

Key Segments Covered

Component, Drive Interface and End-User

Key Companies Profiled

IBM Corporation, Radian Memory Systems Inc., Western Digital Corporation, SK Hynix, SanBLAZE & Microchip Technology Inc.

Report Coverage

Market Forecast, Competitive Intelligence, DROT analysis, COVID-19 Impact Analysis, Regional Outlook, Pricing Analysis, Segmental Analysis and Value Chain Analysis

Customization & Pricing

Available upon Request

Key Questions Answered by the Report

  • What is the Zoned Flash Market Size?

    The zoned flash market was valued at US$ 120.9 million in 2019. By 2030, it is expected to surpass the US$ 3.5 billion threshold, expanding phenomenally at a CAGR of 36.5%.

  • Which is the most lucrative region for future proliferation of the Zoned Flash market?

    According to FMI’s projections, the East Asian market is likely to emerge as the fastest growing region, expanding at a stellar pace. The Chinese and Japanese markets will pivot growth throughout the forecast period.

  • How will the COVID-19 pandemic impact upcoming expansion prospects?

    As organizations strive to keep their businesses afloat, they are encouraging their employees to work remotely. Consequently, productivity has increased, leading companies to extend working hours and intensify their data collation operations. This is expected to provide massive traction to zoned flash adoption.

  • What is the degree of competitive rivalry within the global landscape?

    While several regional players dominate the local markets, the global zoned flash market is characterized by the presence of the following players: IBM Corporation, Radian Memory Systems Inc., Western Digital Corporation, SK Hyni and SanBLAZE & Microchip Technology Inc. All of them rely on collaborations and product launches to increase their footprint.

Enquiry before Buying

  • Is this research conducted by Future Market Insights?

    Yes, the zoned flash market report has been compiled by expert analysts of Future Market Insights through a combination of primary and secondary research. To know more about how the research was conducted, you can speak to our research analyst

  • What research methodology is followed by FMI?

    FMI follows a methodology that encompasses the demand side assessment of the market, and triangulates the same through a supply side analysis. This methodology is based on use of standard market structure, methods and definitions. Request detailed methodology.

  • Who are the respondents for primary research?

    FMI speaks to stakeholders across the spectrum, including C-level executives, distributors, product manufacturers, industry experts. For a full list of primary respondents, please reach out to us.

  • What are the sources of secondary research?

    FMI conducts extensive secondary research through proprietary databases, paid databases, and information available in the public domain. We refer to industry associations, company press releases, annual reports, investor presentations, and research papers. More information about desk research is available upon request. 

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Zoned Flash Market segmentation

Component

  • Zoned Flash SSD
  • SSD Management Software

Drive Interface

  • Serial Advanced Technology Attachment (SATA)
  • Statistical Analysis Systems (SAS)

End-User

  • Data Centers
  • Enterprise
  • Large Enterprises
  • SMEs
  • Others

Regional Outlook

  • North America (U.S & Canada)
  • Latin America (Brazil, Mexico & Rest of Latin America)
  • Europe (Germany, Italy, U.K, Spain, Russia & Rest of Europe)
  • East Asia (China, Japan & South Korea)
  • South Asia & Pacific (India, ASEAN, Oceania & Rest of South Asia & Pacific)
  • Middle East & Africa (GCC, Turkey, South Africa & Rest of MEA)

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