- Summary
- Table Of Content
- Methodology
Heat-Assisted Magnetic Recording Device Market Introduction :
Heat-Assisted Magnetic Recording Device Market is estimated to reach over USD 389.15 Million by 2031 from a value of USD 23.51 Million in 2022 and is projected to grow by USD 31.17 Million in 2023, growing at a CAGR of 37.10% from 2023 to 2031.
Heat-Assisted Magnetic Recording Device Market Definition & Overview:
Heat-assisted magnetic recording devices are advanced data storage devices that utilize heat for obtaining higher data density on hard disk drives (HDDs). Heat-assisted magnetic recording devices use recording material that are less prone to thermal instability, which enables smaller recording bits in HDDs. Moreover, heat-assisted magnetic recording device offers increased hard drive storage capacity and higher performance. The aforementioned benefits of heat-assisted magnetic recording device are key determinants for increasing its utilization in laptops/notebooks, desktops, servers, and other related applications.
Heat-Assisted Magnetic Recording Device Market Insights :
Heat-Assisted Magnetic Recording Device Market Dynamics - (DRO) :
Key Drivers :
Rising expansion of data centers is driving the market growth
Heat-assisted magnetic recording devices are primarily used in data center severs for storing large volumes of data and electronic information. The benefits of heat-assisted magnetic recording device including high reliability, improved system performance, higher data storage capacity, and longer life span are key determinants for driving its utilization in data centers.
Factors including the rapid pace of digital transformation, increasing deployment of cloud services, expansion of data centers, and rising demand for higher capacity server storage solutions are among the major prospects driving the adoption of heat-assisted magnetic recording devices.
For instance, in November 2021, Tencent Cloud launched its new data center in Brazil in order to fulfill the rising demand for digitalization in Latin America. The launch of the new data center provides highly reliable and stable cloud services to facilitate the growth of Brazilian and other Latin America-based businesses.
Additionally, NTT Ltd. launched its hyper scale data centers in Chennai, India with an overall planned capacity of 34.8 MW critical IT load. Hence, the rise in development of data centers is driving the adoption of heat-assisted magnetic recording devices for application in data center severs for storing large volumes of data and electronic information, in turn proliferating the growth of the market.
A surge in cloud computing, Internet of Things (IoT), and big data deployment is spurring the market growth
The rising trend of digital transformation, integration of cloud computing, IoT, and data-intensive applications is increasing the demand for high capacity storage solutions. The growing need to manage and store large amounts of digital content along with the increasing adoption of data-intensive technologies are driving the demand for high-capacity storage solutions such as heat-assisted magnetic recording (HAMR) devices. The ability of heat-assisted magnetic recording devices to enable higher data densities and store larger amounts of data within a smaller physical footprint makes it ideal for utilization as high-capacity storage solutions in cloud computing, IoT, and data-intensive applications.
Factors including rapid pace of digital transformation, rising cloud adoption, and increasing enterprise IoT deployment for business applications are primary determinants driving the market demand for heat-assisted magnetic recording devices.
According to Infosys Cloud Radar 2021, over 40% of enterprises surveyed intended to shift over 60% of systems into the cloud in 2022, depicting an increase from 17% in 2021. Additionally, in October 2022, the Ministry of Electronics and Information Technology of India partnered with Google Cloud to enable the Indian public sector including government agencies, banking financial services and insurance, and public sector units to deploy Google Cloud as a part of the country's digital transformation initiatives.
Hence, the surging cloud computing deployment is increasing the adoption of heat-assisted magnetic recording devices for high capacity storage to enable higher data densities and store larger amounts of data, thereby, driving the market growth.
Key Restraints :
Rising adoption of solid-state drives (SSDs) is restraining the market growth
Heat-assisted magnetic recording devices are advanced data storage devices that utilize heat for obtaining higher data density on hard disk drives (HDDs). However, the rising adoption of solid-state drives (SSDs), due to its several benefits is a key factor constraining the market growth.
For instance, solid-state drives offer several benefits over hard disk drives including faster speed, higher bandwidth, increased durability and reliability, lower weight, and higher energy efficiency among others.
Additionally, solid-state drives consumer less power to operate and generate less audible noise as compared to hard disk drives. Further, solid-state drives are used as an alternative to hard-disk drives in multiple applications including laptops, desktops, data centers, and others, owing to their faster speed and improved performance. Therefore, the increasing adoption of solid-state drives as an alternative to hard disk drives are restraining the growth of the market.
Future Opportunities :
Rising government initiatives for adoption of cloud is expected to promote potential opportunities for market growth
The rising government initiatives for adoption of cloud is anticipated to present potential opportunities for the growth of the heat-assisted magnetic recording device market. Heat-assisted magnetic recording devices are often used in cloud data centers for storing large volumes of data and information. The deployment of heat-assisted magnetic recording device in cloud data centers offer higher data storage capacity, high reliability, and improved system performance.
Factor including the growing pace of digitalization and rising government initiatives for adoption of cloud are expected to facilitate lucrative growth aspects for the market.
For instance, the Government of India introduced GI Cloud (MeghRaj), a cloud computing initiative. The GI Cloud initiative aims at accelerating delivery of e-services in the country while enhancing ICT (Information and Communications Technology) spending of the Government. The initiative ensures optimum proliferation of cloud adoption across various governmental agencies and department to streamline the involved processes. Therefore, the rising government initiatives towards the adoption of cloud is anticipated to increase the application of heat-assisted magnetic recording device in cloud data centers, in turn promoting opportunities for market growth during the forecast period.
Heat-Assisted Magnetic Recording Device Market Report Insights :
| Report Attributes | Report Details |
| Study Timeline | 2017-2031 |
| Market Size in 2031 | USD 389.15 Million |
| CAGR (2023-2031) | 37.10% |
| By Sales Channel | Direct Sales and Distributor Sales |
| By Application | Laptops/Notebooks, Desktops, Servers, and Others |
| By Region | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
| Key Players | Seagate Technology LLC, TDK Corporation, Western Digital Corporation, Fujitsu, Showa Denko K.K. |
Heat-Assisted Magnetic Recording Device Market Segmental Analysis :
Based on the Sales Channel :
Based on the sales channel, the market is bifurcated into direct sales and distributor sales. The distributor sales segment accounted for the largest revenue share in the year 2022. The distributor sales channel of heat-assisted magnetic recording devices comprises of both offline and online modes. In the online mode, the heat-assisted magnetic recording devices can be bought from e-commerce websites. The offline mode includes the distribution of heat-assisted magnetic recording devices through retail stores, specialist stores, and others. In addition, buying from a distributor also benefits the consumer to select the best product available in the market.
For instance, Seagate Technology LLC is among few of the heat-assisted magnetic recording device manufacturers that offer its storage solutions including heat-assisted magnetic recording-based HDD for purchase through regional distributors including Supertron Electronics, Kronicles Asia, Exertise Enterprise, and others. Therefore, the increasing availability of heat-assisted magnetic recording devices in distributor sales channel is a prime factor proliferating the growth of the segment.
The direct sales channel segment is anticipated to register fastest CAGR growth during the forecast period. In direct sales channel, products are sold directly to customers by the means of various physical outlets such as company outlets, and others. Moreover, the direct sales channel also comprises of online mode, in which the manufacturers sell the products through its own company websites. Additionally, purchasing heat-assisted magnetic recording devices from direct sales channel offers various benefits such as faster response time, higher product quality, competitive pricing, competitive pricing, and higher return on investments, which are primary factors increasing the purchase of heat-assisted magnetic recording devices from direct sales channel.
For instance, Seagate Technology LLC and Western Digital Corporation are among few of the heat-assisted magnetic recording device manufacturers that offer heat-assisted magnetic recording-based hard drives for direct purchase through company website. Therefore, the increasing availability of heat-assisted magnetic recording devices in direct sales channels, attributing to its above benefits, is a key factor projected to drive the growth of the segment during the forecast period.
Based on the Application :
Based on the application, the market is segregated into laptops/notebooks, desktops, servers, and others. The server segment accounted for the largest revenue share of 42.5% in the year 2022. Factors including the rapid pace of digitalization, increasing deployment of cloud services, expansion of data centers, and rising demand for higher capacity server storage solutions are driving the growth of the sever segment.
For instance, in October 2022, IONOS Group SE, in collaboration with Fasthosts, launched a new data center with an initial investment of approximately USD 24.4 million in Worcester Six Business Park located in the United Kingdom. Therefore, the rising development of data centers is driving the adoption of heat-assisted magnetic recording devices for application in data center severs for storing large volumes of data and electronic information, in turn driving the growth of the market.
Desktop segment is expected to witness fastest CAGR growth during the forecast period. The growth of desktop segment is attributed to several factors including increasing disposable income, rising penetration of consumer devices, and expansion of business enterprises among others.
According to the Key 2021 Statistics for Singapore SMEs, the total number of enterprises in Singapore reached 291,600 in 2021, witnessing a growth of 6.8% as compared to 273,100 enterprises in 2019. Thus, the rising expansion of business enterprises is among the key factors driving the application of heat-assisted magnetic devices in desktops installed in enterprises for higher data storage capacity, in turn contributing to the growth of the market during the forecast period.
Based on the Region :
The regional segment includes North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
North America accounted for the largest revenue share of USD 10.73 Million in 2022 and is expected to reach USD 178.04 Million by 2031, registering a CAGR of 37.1% during the forecast period. In addition, in the region, the U.S. accounted for the maximum revenue share of 85.65% in the same year. The adoption of heat-assisted magnetic recording device in North America is primarily driven by multiple factors including rising investments in development of data centers and increasing demand for high-capacity storage solutions in data centers in the region.
For instance, in January 2023, ManageEngine, a division of Zoho Corporation, announced the launch of two new data centers in Montreal and Toronto cities in Canada, with the aim of offering Canadian customers the benefits of localized data centers with enhanced data security and functionality. The above factors are driving the integration of heat-assisted magnetic recording devices for application in data center severs for storing large volumes of data and electronic information, in turn driving the market growth in North America. Furthermore, the rising trend of cloud deployment by business enterprises and increasing investment in consumer electronic devices including laptops/notebooks and desktops are projected to drive the market growth in North America during the forecast period.
Asia-Pacific is expected to register the fastest CAGR growth of 37.3% during the forecast period. The growing pace of urbanization and development is creating lucrative growth aspects for the market in the region. Moreover, the rising government initiatives for the cloud deployment, and expansion of data centers in the region are contributing to the market growth for heat-assisted magnetic device.
Further, the growth of consumer electronics industry, particularly including desktops and laptops/notebooks are anticipated to drive the market demand for heat-assisted magnetic devices, attributing to its higher data storage capacity. For instance, according to the India Brand Equity Foundation, the consumer electronics sector in India was valued at USD 9.84 billion in 2021, while it is estimated to grow at a significant rate to reach USD 21.18 billion by 2025. Hence, the growing consumer electronics sector is anticipated to drive the utilization of heat-assisted magnetic recording device for application in desktops and laptops/notebooks among others, thereby, proliferating the market growth in the Asia-Pacific region during the forecast period.
Top Key Players & Market Share Insights:
The heat-assisted magnetic recording device market is highly competitive with major players providing heat-assisted magnetic recording device to the national and international markets. Key players are adopting several strategies in research and development (R&D), product innovation, and application launches to hold a strong position in heat-assisted magnetic recording device market. Key players in the heat-assisted magnetic recording device market include-
- Western Digital Corporation
- Fujitsu
- Showa Denko K.K.
Recent Industry Developments :
- In June 2021, Showa Denko K.K. made a contract with Seagate Singapore International for joint development of next-generation hard disk media for data recording based on heat assisted magnetic recording technology, a next-generation data recording technique for hard disk drives.
Key Questions Answered in the Report
What is heat-assisted magnetic recording device? +
Heat-assisted magnetic recording devices are advanced data storage devices that utilize heat for obtaining higher data density on hard disk drives (HDDs).
What specific segmentation details are covered in the heat-assisted magnetic recording device report, and how is the dominating segment impacting the market growth? +
For instance, by sales channel segment has witnessed distributor sales as the dominating segment in the year 2022, owing to its range of benefits including higher accessibility to a variety of products, ease of use, and high flexibility.
What specific segmentation details are covered in the heat-assisted magnetic recording device market report, and how is the fastest segment anticipated to impact the market growth? +
For instance, by application segment has witnessed desktops as the fastest-growing segment during the forecast period due to the rising adoption of heat-assisted magnetic recording device in next-generation desktops for higher data storage capacity.
Which region/country is anticipated to witness the highest CAGR during the forecast period, 2023-2031? +
Asia-Pacific is anticipated to register fastest CAGR growth during the forecast period due to rising government initiatives for cloud deployment, expansion of data centres, and growth of consumer electronics in the region.
