NAND Flash products have started to develop in a polarized direction: the demand for consumer storage is flat, while the market response for high-performance, enterprise-level storage products is enthusiastic.
In the past 2024, the storage market has been polarized: the recovery of consumer electronics in the terminal market has been slow, while AI applications continue to break through strongly. Storage products have thus started to develop in a polarized manner: consumer storage demand is flat, while the market response to high-performance, enterprise-level storage products is enthusiastic.
In the second half of 2023, storage manufacturers adjusted their production capacity according to market conditions in an attempt to improve the supply-demand relationship. By 2024, the capacity adjustment gradually took effect, and many storage manufacturers returned to the profit model in 2024.
However, the trend of the contract price of the memory market is not so "smooth sailing". Overall, the contract price of the memory market continued to rise in the first half of 2024, but in the second half of the year, due to changes in market demand, the contract price of memory encountered downward pressure. In the fourth quarter, the increase in DRAM converged, while NAND Flash reversed and fell.
Looking ahead to 2025, the industry believes that although AI applications remain very strong, driving up demand for high-performance HBM and QLC SSD products, the consumer electronics market has not yet seen strong signs of recovery, and the storage market may still face challenges in terminal demand, price, and production capacity.
The storage market is facing challenges such as lack of terminal demand, falling contract prices, and overcapacity in some areas that will lead to production cuts. However, the future of the storage industry is still worth looking forward to: the strong growth trend of AI is still nurturing unlimited development opportunities, and storage manufacturers are also making every effort to adjust production capacity and promote the production of high-profit, high-performance storage products to continuously improve supply and demand, and once again drive the storage industry to move forward.