IT Hardware – IDC Storage Forecast: Growth Accelerates on AI + Higher ASPs

Research evidence excerpt

IT Hardware – IDC Storage Forecast: Growth Accelerates on AI + Higher ASPs

Technology | IT Hardware & Networking

June 23, 2026

Amit Daryanani IT Hardware – IDC Storage Forecast:

415-800-0185

amit.daryanani@evercoreisi.com Growth Accelerates on AI + Higher ASPs

Irvin Liu ALL YOU NEED TO KNOW: We’re updating our storage market model

415-800-0183 following IDC’s latest enterprise storage forecast. Given a stronger-

irvin.liu@evercoreisi.com than-expected Mar-qtr result and a more severe memory/component

Victor Santiago pricing environment, we now expect CY26 storage market revenue

212-653-9014 growth of +22.5%, a step-up from our prior forecast of +7.6%. Notably,

Victor.Santiago@evercoreISI.com Q1:26 storage revenues grew +22.7% y/y, a sharp acceleration from

Hannah Liu growth of +5.1% y/y in Q4:25 and above IDC’s prior full-year

212-812-2905 expectation of mid-to-high single digit growth. The y/y growth was

hannah.liu@evercoreISI.com driven by all-flash array strength, which continues to benefit from the

Caden Dahl build out of AI infrastructure. While underlying demand remains healthy,

212-653-9034

the notable change in Mar-qtr results was that revenue growth was Caden.Dahl@evercoreisi.com

increasingly ASP-led rather than unit-led. NAND supply remains heavily

constrained, with hyperscalers largely locking in supply through multi-

year agreements and enterprise OEM customers left to purchase from

the residual supply pool at elevated market prices. As a result, our

CY26 forecast now embeds total market unit growth of only +0.2%

versus ASP growth of +22.3%. By segment, we expect all-flash revenue

growth of +28.7% y/y, HDD revenue growth of +9.6% y/y, and hybrid-

flash revenue growth of +18.5% y/y. Within that, all-flash remains the