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Global computer storage market to grow in 2010

El Segundo, Calif. — The global market for hard disk drives (HDDs) and optical disk drives (ODDs) used in computers is expected to climb as the PC market continues to strengthen, reports iSuppli Corp. The market researcher expects global revenue of HDD shipments to reach $27.7 million in 2010, up 18.4 percent from $23.4 billion in 2009. ODD revenue will also increase, reaching $14.8 billion in 2010, up 7.6 percent from $13.7 billion in 2009.

The report, “Hard Disk Drive and Optical Disk Drive for Computing Q1 2010 Interim Update,” also finds that in 2009, HDD revenue for computers fell by 11.7 percent and ODD revenue decreased by 6.3 percent.

“The 2010 economic recovery will bring rising sales of PCs,” said Fang Zhang, analyst for storage systems at iSuppli, in a statement. “The notebook sector is expected to be particularly strong, with shipments outgrowing those of desktops. This will drive the robust increase in HDD shipments.”

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Zhang said other factors contributing to greater demand include new server purchases and the migration to 2.5-inch HDDs in data centers to achieve cost reductions. In addition, the adoption of Microsoft Corp.’s Windows 7 operating system by the enterprise business segment is helping to drive PC sales. Shipments also continue to rise for external drives used for the storage of gaming, music and movies, he said.

Reflecting a normal seasonal slowdown, iSuppli expects HDD revenue for computers in the first quarter of 2010 to decrease slightly to $6.6 billion, down from $6.7 billion in the fourth quarter of 2009, but will recover to fourth quarter levels by the second quarter of 2010.

While the computer-oriented ODD market won’t recover to its fourth quarter of 2009 revenue level of $4.1 billion in 2010, iSuppli expects the market to grow on an annual basis this year.

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