Middle East Conflict Hits Hard Disk Drive Shipments

Why It Matters

The contraction highlights how geopolitical tensions can quickly curtail niche export markets, pressuring Thai HDD manufacturers to diversify away from conflict‑prone routes. It also signals a potential slowdown in regional data‑centre expansion, affecting global storage supply chains.

Key Takeaways

• HDD exports to Middle East drop 18% to $79 million in 2026
• Region accounts for only 1% of Thailand's total HDD shipments
• UAE remains dominant market, holding 78% of regional HDD export value
• Turkey sees 55% export surge as routes bypass Strait of Hormuz

Pulse Analysis

Thailand remains a modest player in the global hard‑disk‑drive market, with annual shipments valued at roughly US$11.7 billion. While the Middle East contributes a mere 1% of that volume, the recent Iran‑related conflict has exposed the fragility of export pathways that rely on the Strait of Hormuz. Shipping disruptions forced carriers to reroute through the Suez Canal, inflating transit times and costs. For Thai manufacturers, the 18% drop to US$79 million underscores the need to hedge against geopolitical shocks that can disproportionately affect small‑scale markets.

Data‑centre construction across the Gulf has been a bright spot for storage demand, rising from 319 facilities in 2024 to an estimated 347 in 2025, a 9% year‑on‑year increase. However, the war has stalled several projects, especially in the United Arab Emirates, where the number of facilities grew only 11% despite earlier optimism. The slowdown translates into weaker HDD import orders, as operators defer capacity upgrades. Notably, Turkey’s HDD imports surged 55% because its supply chain avoids the Hormuz bottleneck, while Israel’s imports rebounded after a sharp March dip, reflecting the uneven regional impact.

The broader competitive landscape pits Thailand against China, which dominates cost‑driven HDD production. With the Middle East market contracting, Thai firms may need to pivot toward higher‑value niches or explore alternative regions less exposed to maritime risk. Strategic investments in supply‑chain resilience, such as diversified routing and localized inventory buffers, could mitigate future disruptions. In the medium term, the outlook for Thai HDD exports hinges on the resolution of the Iran conflict and the pace of data‑centre investment recovery, both of which will shape global storage demand dynamics.