WELLESLEY, Mass., July 17, 2018 (GLOBE NEWSWIRE) -- While renewed interest in vinyl records is helping with growth, overall the magnetic and optical media manufacturing market is expected to shrink due to online video streaming and the growing popularity of cloud technologies, according to a report by BCC Research.
The industry is expected to see a compound annual growth rate (CAGR) of -12.3% through 2022, when it could be worth $12.4 billion, according to the report Magnetic and Optical Media Manufacturing: Global Markets to 2022.
Major players in the market include Dell Technologies, Hitachi, Sony, Toshiba and Western Digital, among others.
Research Highlights
- The reproduction of recorded media accounted for more than 90% of the total market in 2017, with a value of $21.7 billion. Hard disk drives accounted for 8.8% of the market and $2.1 billion.
- The industry’s bright spot is vinyl records, which anticipate a CAGR through 2022 of 11.9%. The hard disk drives market will shrink by 7.4%, and the CD and DVD segment will shrink by 9.6%.
- The Asia-Pacific region accounted for 58% of the market and had a 2017 value of $13.9 billion, followed in size by North America at 28.8% ($6.9 billion) and Western Europe at 5.7% ($1.4 billion)
“Customers are increasingly using streaming services for media consumption such as iTunes for music and Netflix for movies; this is expected to limit growth of the magnetic and optical media market,” the report notes. “Streaming services provide the media over the internet, thus eliminating the need for purchasing physical copy of media such as audiotapes, videotapes and compact discs.”
Market Restraints Include Cloud Storage, Proliferation of Solid State Drives
Of all the factors conspiring to limit market growth, two stand out: the rising popularity of solid state drives and increasing use of cloud storage. Solid state drives, the report notes, are growing rapidly and offer higher operational performance than hard disk drives. Meanwhile, magnetic and optical storage is seeing decreased use as cloud storage expands in popularity. Many businesses are moving away from owning data centers and are instead using cloud providers to handle data and applications.
About BCC Research
BCC Research is a publisher of market research reports that provide organizations with intelligence to drive smart business decisions. By partnering with industry experts worldwide, BCC Research provides unbiased measurements and assessments of global markets covering major industrial and technology sectors, including emerging markets. For more information about BCC Research, please visit bccresearch.com. Follow BCC Research on Twitter at @BCCResearch.