The largest manufacturers of SSDs for the consumer market are strengthening their positions. The combined share of the five largest SSD manufacturers in the retail market increased from 59% in 2022 to 72% in 2023. These companies take advantage of their dominant position to obtain better prices for NAND flash memory, which strengthens their competitiveness and allows them to accumulate sufficient resources in case of sudden changes in the SSD market.
According to TrendForce, SSD shipments to the retail market in 2023 reached 180 million units, up 3.7% compared to 2022. One of the key reasons for the increase was that many personal computers (PCs) purchased during the pandemic need to be upgraded. Most of these PCs come with 256GB or 512GB storage capacity, which is not enough for today’s gamers and content creators. This has encouraged users to increase the capacity of their SSDs to 2 TB and above, which has had a significant impact on sales growth.
Image source: TrendForce
In the second half of 2023, NAND suppliers significantly reduced production of flash memory to increase its average price. This decision, along with the expectation of rising prices, encouraged consumers to buy early, which also contributed to an increase in supply volumes throughout the year.
Kingston has maintained its position as the largest SSD manufacturer in the retail sector through its extensive distribution network and strong product support. ADATA took second place, targeting manufacturers of productive systems and gamers. Lexar made notable gains in the Chinese market, finishing third, while Kimtigo used its local strength to secure a fourth position in the rankings. Chinese consumer goods brand Biwin entered the top five for the first time.
Colorful came in sixth place by improving cost efficiency by using its own controllers and NAND chips to boost its sales. Gigabyte rose two positions in revenue thanks to strong demand in the gaming sector and the supply of its motherboards. Teclast moved up one spot, while PNY expanded its presence through e-commerce channels and international markets, taking second to last place in ninth place. Rounding out the top ten is Transcend, which specializes in products for the industrial and corporate sectors, which managed to maintain profitability in the consumer market despite declining supply volumes.
Although the number of Chinese manufacturers in the top 10 has decreased, such companies continue to close the technology gap by moving from PCIe 4.0 to PCIe 5.0. YMTC, another NAND flash memory manufacturer, is promoting next-generation processes to circumvent US sanctions. The Chinese market demonstrates stable demand for domestic products, which strengthens the position of local brands in the SSD market.
The retail SSD market may face significant challenges in the near future. With nearly all new laptops already equipped with SSDs, demand for HDD replacements—a key driver of retail SSD sales growth—is gradually declining. Future growth will be driven by the need for increased capacity and improved performance of SSDs. As a result, retail brands will have to develop strategies to overcome the expected decline in SSD purchases.