AI-driven demand forces global storage market into structural reset, says Futuresource

Strong enterprise growth masks severe shortages and price inflation across consumer storage markets 

The global storage market has been thrust into a prolonged period of sustained pressure, as AI-driven demand reshapes supply, pricing and vendor strategy across HDD, SSD, NAND, DRAM Modules and MEMORY. 

Futuresource Consulting’s latest Perspectives report points to 2025 as a definitive turning point for the global landscape. Rapid expansion of hyperscale and AI data centres drove an unprecedented surge in demand, with enterprise players absorbing the majority of available storage output. This has triggered the largest supply imbalance in over a decade. Coupled with sharp price increases, a fundamental shift in market dynamics is set to persist.  

While enterprise suppliers have seen strong growth, the impact on consumer and channel markets has been severe. Availability has tightened significantly, with SSD prices rising sharply and some consumer models increasing multiple times over in cost since early 2025.  

“The storage market is no longer operating on traditional supply-demand cycles,” says Mats Larsson, Principal Analyst, Futuresource. “AI has instigated a structural shift, where enterprise and hyperscale requirements dictate allocation, leaving limited capacity for the open market.” 

Enterprise prioritisation reshaping supply 

The report highlights a clear strategic pivot among leading manufacturers, including Micron, Samsung and SK Hynix, towards higher-margin enterprise products such as data centre SSDs, high-bandwidth memory and server DRAM. 

This shift is further constraining supply across consumer segments, with reduced availability impacting client SSDs, external storage and gaming memory. At the same time, hyperscalers continue to pre-book capacity, limiting inventory for distributors, retailers and smaller OEMs.  

Price inflation and constrained supply set to continue 

Rising demand combined with supply constraints is creating significant upward pressure on pricing. SSD and DRAM costs have escalated rapidly, while component shortages are limiting HDD manufacturers’ ability to scale production in response. 

Extended lead times for nearline HDDs, in some cases stretching beyond a year, are further complicating the market response and pushing more demand towards SSD-based solutions.  

As a result, both upgrade cycles and new purchases are being affected, with consumers delaying decisions in anticipation of price changes that are unlikely to materialise in the near term. 

New opportunities emerge amid disruption 

Despite the challenges, the disruption is opening doors across the ecosystem. 

Chinese storage manufacturers are increasing their global presence, stepping in to address supply gaps left by established vendors focusing on enterprise and AI markets. At the same time, demand for refurbished HDD and SSD products is accelerating as businesses and consumers seek cost-effective alternatives.  

A multi-year imbalance ahead 

“We’re not expecting the current environment to revert back anytime soon,” says Larsson. “AI is anticipated to drive demand through to at least 2027. Constrained supply, elevated pricing and shifting competitive dynamics, particularly between enterprise and consumer verticals, are expected to be the mainstays of the new market landscape.” 

Explore the full analysis 

To gain deeper insight into the trends shaping the storage market, including vendor strategies and long-term forecasts, the full Futuresource Perspectives: Storage Media – A Market Under Pressure report is available for free download here. 

For more information or enquiries, please contact Chloe at chloe.douthwaite@futuresource-hq.com.  

Learn more about Futuresource’s storage media insights here.