China's enterprise SSD shows a trend of high value and high growth: driven by the needs of cloud computing and digital economy, the scale of China's enterprise storage market has steadily increased, and the storage capacity has continued to rise. According to the prediction of iResearch, the market scale of enterprise SSD in China in 2021, 2022 and 2023 increased by 26%, 37% and 28% year-on-year, reaching 48.9 billion yuan in 2025.
The growth of China's enterprise SSD market comes from three levels: increased downstream demand + technology iteration HDD and replacement demand of old interface / protocol + localization replacement.
Enterprise SSD storage needs high performance, and the customization demand has increased significantly. The special needs of customers are reflected in firmware and controller. Companies with enterprise controller and firmware R & D capability are expected to achieve rapid development.
Independent and controllable enterprise SSD belongs to the field with high technical and market barriers. Companies supported by upstream NAND flash particle manufacturers and recognized by key customers such as downstream Alibaba, Tencent and three operators have advantages.
Investment logic and related companies: – China's enterprise SSD market is still in the early stage of rapid growth. Many companies' product development strategies focus on the extension of firmware, controller and other products or technologies to downstream modules. Chinese SSD industry chain manufacturers can be summarized as "module manufacturing companies with master design capability". Relevant companies with core competence of PCIe SSD include: yihengchuangyuan (Firmware), Derui Lingxin (firmware + Master), Yingren Technology (consumer master into enterprise master), Dapu micro, Deyi micro, Hunan Goke Microelectronics Co.Ltd(300672) (listed companies have R & D investment), etc. – Distributed storage takes the place of traditional storage, and the opportunity of localization of advanced networking controller is: Chinese mainland has many optical fiber systems, switching systems and big data industrial bases. It is expected that there will be a wide range of domestic alternative space in the future. The relevant companies include Hua Lan Wei (HBA control chip, RAID control chip), Guoxin Technology (listed companies, RAID control chip) and so on. In terms of the whole machine, the beneficiaries include Toyou Feiji Electronics Co.Ltd(300302) (listed companies) with strong core technology capability in the field of information and innovation and the layout of the whole industrial chain. The scale advantage of the whole machine is significant, and the relevant listed companies: Unisplendour Corporation Limited(000938) (Xinhua III), Inspur Electronic Information Industry Co.Ltd(000977) , etc.
Risk tip: the enterprise SSD market is broad, there are many new entrants, and the fierce price competition leads to the risk of gross profit margin decline; The cost of upstream storage particles accounts for a high proportion, and its price fluctuation leads to the instability of product gross profit margin; The verification cycle of cloud computing major customers is long, the market capacity of small and medium-sized customers is relatively limited, and there is uncertainty risk in the R & D investment of new products.
