Data Storage Systems Manufacturing Industry Profile



Companies in this industry manufacture devices that allow the storage and retrieval of data from computers. Major companies include Dell EMC, NetApp, and Western Digital (all based in the US); Fujitsu, Hitachi, and Toshiba (Japan); and Seagate (Ireland), as well as the data storage divisions of large computer OEMs such as Hewlett Packard Enterprise and IBM.

Regardless of their primary location, major data systems storage manufacturers are global in scope; manufacturing is often performed overseas, component parts may be sourced from various countries, and products are marketed and sold worldwide.

The US data storage systems manufacturing industry includes more than 100 companies with combined annual revenue of about $7 billion.

Makers of blank storage media are covered in the Magnetic & Optical Media Manufacturing industry profile.

COMPETITIVE LANDSCAPE

Demand is driven by spending levels in the consumer and enterprise computing markets. The profitability of individual companies depends on operational efficiency and rapid product development. Large companies have advantages in development and marketing budgets, component purchasing power, and sales reach, as well as their ability to offer more comprehensive product lines. Because they typically serve a broader customer base, large companies may also be less vulnerable to declines in individual customer segments. Small companies can compete effectively by identifying underserved markets or providing superior technology. The US industry is highly concentrated: the 20 largest companies generate about 95% of industry revenue.

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