C2Q 2025 HDD Industry Growth Projected For 2025

Introduction to HDD Industry

The second calendar quarter of 2025 saw significant growth in the Hard Disk Drive (HDD) industry. According to the August 2025 Digital Storage Technology Newsletter, total HDD shipments were up about 6.0% compared to the first quarter of 2025. Total exabytes shipped increased by 12.6% from the first quarter, and HDD revenues, estimated at $6.2 billion, were up by 17.4% from the prior quarter.

Market Performance

Nearline HDD shipments experienced a notable increase of 13% from the prior quarter. The major players in the industry, Western Digital, Seagate, and Toshiba, reported the following shipments: Western Digital shipped 12.9 million units with an estimated 190 exabytes of storage capacity, Seagate shipped 12.5 million units with 162.5 exabytes of storage, and Toshiba shipped 5.0 million units with about 42.3 exabytes of storage. The total estimated exabytes shipped were 394.8 exabytes.

Impact of Trade War

Both Seagate and Western Digital reported some potential impact on the June quarter from the trade war in their quarterly reports. However, they generally felt that nearline storage demand supported near-term growth in storage and revenue. It is worth noting that all HDDs and most components are manufactured outside of the USA.

Seagate’s Performance

Seagate’s HDD revenue was $2.281 billion in the quarter, with Mass Capacity HDDs accounting for 88% of this revenue, up 1% from the prior two quarters. The total storage capacity shipped was 162.5 exabytes, with 150.9 terabytes for all Mass Capacity and 136.6 terabytes for Nearline HDDs. The average HDD capacity was 13.0 terabytes, with Mass Capacity average capacity at 16.5 terabytes and legacy average capacity at 3.4 terabytes. The company shipped about 12.5 million units in the quarter with an average selling price (ASP) of $180.5.

Western Digital’s Performance

Western Digital started reporting on HDD exabyte shipments again rather than the percentage change from the prior quarter. The company shipped 2.1 million client compute units, 1.5 million consumer units, and 8.3 million data center (cloud HDD unit shipments), for a total of 12.9 million units shipped. This means the average capacity of their nearline HDDs was about 20.5 terabytes. The company’s ASP was $202, up 12.8% from the prior quarter, and higher than Seagate’s. Total HDD revenue was $2.605 billion, with cloud storage accounting for about 89% of the company’s revenue in this quarter.

Average Sales Price Trends

There was an 8.4% average sales price (ASP) increase for HDDs from the first quarter of 2025 to the second quarter of 2025. HDD ASPs are now at levels about 17% higher than seen at the end of 1998, due to the increased demand for high-capacity, high-ASP HDDs and the increase in the percentage of these drives shipped.

Market Share

The calendar year 2025 HDD market share by total units was as follows: Toshiba had about 17% (down 1% from the first quarter of 2025), Seagate had 41% (up 1% from the prior quarter), and Western Digital had 42%. The growth of capacity-oriented nearline drives for enterprise and hyperscale applications will result in more components per drive and thus higher head and media demand than in the past by 2028.

Conclusion

In conclusion, the HDD industry experienced significant growth in the second quarter of 2025, with increases in shipments, exabytes shipped, and revenue. The major players in the industry reported strong performances, with Western Digital and Seagate leading the market. The growth of capacity-oriented nearline drives is expected to drive demand for components, leading to potential capital spending to support component growth by 2027.

FAQs

Q: What was the total HDD shipments in the second quarter of 2025?
A: Total HDD shipments were up about 6.0% compared to the first quarter of 2025.
Q: Which company had the highest market share in the second quarter of 2025?
A: Western Digital had the highest market share, with about 42% of the total units shipped.
Q: What was the average sales price (ASP) of HDDs in the second quarter of 2025?
A: The ASP of HDDs increased by 8.4% from the first quarter of 2025 to the second quarter of 2025, with Western Digital’s ASP being $202, up 12.8% from the prior quarter.
Q: What is expected to drive demand for components in the HDD industry?
A: The growth of capacity-oriented nearline drives for enterprise and hyperscale applications is expected to drive demand for components, leading to potential capital spending to support component growth by 2027.