AI, Surveillance and Security Put HDD Back at the Centre of the Storage Story

Artificial intelligence is reshaping global data storage needs, pushing hard disk drives (HDDs) back into the spotlight. According to Futuresource Consulting’s latest Worldwide HDD Channel Market Tracker, enterprise and surveillance deployments are fuelling strong demand, even as Q2 2025 shipments fell back in the channel.

While internal HDD volumes slipped 2% quarter-on-quarter to 5.3 million units, and external shipments dropped 11% to 4.7 million, analysts note that these headline declines mask a deeper story of growth. AI workloads are driving unprecedented demand for enterprise-class HDDs, with global deployments projected to surge well into 2027. Surveillance applications, also amplified by AI, remain overwhelmingly HDD-led, accounting for around 90% of deployments.

“HDDs aren’t competing head-to-head with SSDs across all categories and markets,” says Mats Larsson, Research Consultant at Futuresource Consulting. “They’re powering different parts of the storage ecosystem. AI data lakes, cloud-scale enterprise deployments and surveillance archives all depend on HDD. What we’re seeing is less about fading relevance, and more about HDD finding its place at the heart of the next wave of data creation.”

Enterprise boom redefines the market
Enterprise drives are leaning hard into HDD, with vendors reporting robust demand for high-capacity models. Futuresource expects the enterprise surge to continue for several years, fuelled by cloud investment and AI requirements. Vendors are already preparing for the transition to HAMR technology, which will expand capacity even further from 2026.

Surveillance scales up
AI isn’t just reshaping the enterprise landscape. In surveillance, AI is making an impact alongside increases in video quality and data retention periods, and HDD maintains an overwhelming share of storage. Futuresource notes that surveillance HDDs grew sharply in China during Q2, with similar momentum across key European markets.

Hybrid cloud and rising security considerations
Enterprises are expected to shift their infrastructure strategies. A growing number will be moving back to on-premises or hybrid cloud solutions to maintain control sensitive data. With the growing ability to AI to harvest data and extract insights makes the task of security even more essential This trend will sustaining demand for both NAS and enterprise HDD in the channel market, even as consumer-facing categories soften.

The HDD outlook is narrower, but stronger
While Futuresource forecasts show an ongoing weakness in consumer HDD segments, the enterprise, surveillance and NAS segments will continue to exhibit strength. With AI driving new volumes of data, and hybrid storage strategies emerging worldwide, HDD is being repositioned as a critical enabler of the next era of digital infrastructure.

“HDD is moving out of the spotlight in consumer tech, but it is stepping back onto the stage in enterprise,” says Larsson. “It’s less about fading relevance, and more about a comeback tour, powered by AI, cloud and the simple truth that no other medium delivers cost-effective scale like HDD. That’s where the next chapter of the HDD story will be written.”

About Futuresource Consulting

Futuresource Consulting is a leading research and consulting firm, delivering in-depth analysis and strategic insights across storage media, technology and consumer electronics. With decades of experience in storage research, Futuresource helps vendors, investors and channel partners understand trends, anticipate disruption and identify opportunities.

The Worldwide HDD Market Tracker: Q2 2025 Channel Market Summary provides analysis across internal and external HDD categories, with insights by vendor, region and segment. To learn more about the quarterly tracking service or to purchase the report, please contact imad.sarwar@futuresource-hq.com.

Press Contact: Nicola Finn, Marketing Manager, Futuresource Consulting, nicola.finn@futuresource-hq.com