HDD market shows divergent trends as surveillance drives and regional factors fuel demand

The global hard disk drive (HDD) market faced ongoing headwinds in the first quarter of 2025, as consumer preferences continued to shift and economic pressures persisted worldwide. According to Futuresource Consulting’s latest Storage Media Quarterly Report, worldwide Q1 shipments of internal HDDs were down 4% quarter-on-quarter. However, despite the challenges, pockets of resilience remain. 

Surveillance powers growth amid declining client HDD demand

“While client HDDs are experiencing significant declines, we’re seeing continued expansion of surveillance and enterprise deployments,” says Mats Larsson, Research Consultant at Futuresource Consulting. “These movements highlight the HDD market’s adaptive role in an evolving storage ecosystem. Vendors are refocusing to meet demand in these resilient categories, and our report maps out how that shift is playing out region by region.” 

Surveillance HDDs accounted for nearly 60% of global internal HDD volumes in Q1, reflecting their growing role in security-focused applications.  

India shines, while EMEA faces steeper declines

In the Asia Pacific region, shipments fell by just 2%, buoyed by a double-digit quarterly surge in India, where surveillance and small-capacity client drives led the charge. In contrast, EMEA volumes dropped by 7% overall, with MEA markets seeing even sharper declines as price-sensitive consumers increasingly turn to SSD solutions. 

North America showed a marginal decline, but it remains a critical channel for high-capacity enterprise HDDs, accounting for nearly a quarter of global enterprise HDD shipments in Q1. 

External HDD market under pressure from SSD

EXT HDD shipments fell 11% globally in Q1, as consumers continue to shift their focus onto faster SSD alternatives. In the Americas, supply chain constraints in Latin America further compounded the slowdown, with a 12% contraction. Meanwhile, EMEA posted an 18% drop, while APAC saw a more modest single-digit decline, buoyed by stronger sales in India and the Philippines. 

Shifting vendor dynamics and regional strategies

WD and STAX remain the top players in the internal HDD market and, notably, surveillance HDDs accounted for the lion’s share of each brand’s product mix in Q1. Toshiba, meanwhile, is restructuring its distribution in key ASEAN markets, opening new partnerships, but facing some challenges. 

On the external HDD front, STAX and WD both reported declines, yet Adata bucked the trend in APAC with an 8% quarterly rise, driven by robust demand in India and China. 

Insights for growth in a changing market

“The HDD market is in a phase of consolidation and repositioning,” says Larsson. “Surveillance and enterprise segments continue to offer solid opportunities, even as client and external HDDs face challenges from SSD migration and shifting consumer priorities. Vendors must be agile, adapting regionally, focusing on resilient niches, and navigating global trade uncertainties to unlock sustainable pockets of growth as we move forward across the year.” 

To learn more about Futuresource Consulting’s Worldwide HDD Tracker Channel Market Summary Q1 2025 or to make a purchase, please contact ben.thrussell@futuresource-hq.com or visit here.