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HDD revenues 'set for decline'

The hard disk drive (HDD) market is set to see a slowdown in growth over the next five years

The hard disk drive (HDD) market is set to see a slowdown in growth over the next five years as tablets featuring NAND flash eat into laptop sales, according to a report.

Market research group iSuppli predicts variable annual rates of HDD revenue rises over the next two years but a steady decline afterwards.

It says the growth until 2015 will be driven largely by businesses as they buy more PCs and storage servers to strengthen their IT infrastructure for cloud and other applications.

However sales of notebook and netbook disks have taken a significant hit as tablets that come with flash make huge inroads into the market.

HDD revenues for this year are expected to be around $28.1 billion (£17.2 billion) - 4.1% higher than last year and up 7% from 2009.

ISuppli expects the growth to fall to 3.9% in 2012 and rise the next year to 4.5%, followed by another sharp decline to 2.8% in 2014. By 2015, HDD revenues are expected to grow 2.1% to $32.1 billion (£19.6 billion).

Although the company has not predicted a period of growth stagnation, based on the projections it could come sometime between 2017 and 2020.

Copyright Press Association 2011

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