LTO tape shipments fell by 16 exabytes in 2025, according to the LTO Program, the HPE, IBM and Quantum Corp alliance that oversees the Linear Tape-Open format used in around 85 percent of tape sales. The dip follows an all-time high in 2024, and the Program attributes it largely to cautious purchasing amid an uncertain international trade environment, though it insists this is a blip rather than a sign of decline, pointing to tape's continued appeal for low-power, high-capacity storage.

Total 2025 shipments came to 160.3 exabytes, down nine percent from 2024's 176.5 exabytes but still the second-highest total on record. Storage analyst Tom Coughlin said the slowdown reflected businesses adjusting sourcing and inventory decisions, and predicted stronger growth once trade uncertainty eases, particularly as power constraints at data centres favour tape's low energy use. The LTO Program also highlighted a 57 percent year-on-year jump in Q1 2026 shipments, boosted by a new 40TB cartridge compatible with existing drives, and forecast 2026 could be a record year. The article notes tape's drawbacks — slow restore times and careful storage requirements — and that hyperscalers' cloud-based "virtual tape" alternatives mostly rely on hard disk drives, which are themselves in short supply due to AI demand, while only Sony and Fujifilm manufacture LTO cartridges.