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The enterprise data storage market size is forecast to increase by USD 11.6 billion at a CAGR of 4.39% between 2023 and 2028. The market is experiencing significant growth, driven by several key trends and challenges. One major trend is the increased adoption of cloud applications, which necessitates more efficient and scalable storage solutions. Another trend is the shift towards software-defined storage, which offers greater flexibility and cost savings for organizations. However, high operating expenses for vendors pose a challenge, as they strive to maintain profitability while delivering innovative solutions to meet evolving customer needs. Additionally, the growing volume and complexity of data, along with the need for data security and compliance, add to the market's dynamic landscape. Overall, these factors contribute to an evolving market.
The market is witnessing significant growth due to the increasing demand for reliable and scalable storage solutions for business-related information. Traditional storage disks continue to dominate the market, offering fault-tolerant and accessible storage options for big businesses. However, the shift towards cloud computing services and cloud-based solutions is gaining momentum, with distributed storage subsystems becoming a popular choice. Centralized sources of data protection are essential for ensuring business continuity and data accessibility, especially for mission-critical workloads. Cloud infrastructures provide a centralized and scalable system for storing digital data, making them an attractive option for corporate operations. Solid-state drives (SSDs) and software-defined storage (SDS) are becoming increasingly popular due to their high performance and efficiency.
Moreover, the cabling and connectivity are crucial factors in ensuring seamless data transfer between storage devices and operating platforms. HCI (Hyperconverged Infrastructure) is another emerging trend in the market, offering a cost-effective and simplified solution for managing storage, computing, and networking resources. Data security remains a top priority, with businesses requiring protection mechanisms to safeguard their valuable information. Data centers continue to play a vital role in the enterprise data storage landscape, providing a reliable and fault-tolerant infrastructure for storing and managing business information.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The SAN segment is estimated to witness significant growth during the forecast period. The market caters to the demands of large businesses for safeguarding and managing their mission-critical business-related information. Scalable systems, such as Storage Area Networks (SANs), serve as a dependable solution for handling workloads generated by IT systems and telecommunication in specialist industries like healthcare and manufacturing. SANs offer protection through cabling and connectivity, ensuring data accessibility and security in data centers and cloud infrastructures. Modern SANs incorporate advanced technologies like AI and ML for optimizing storage utilization and enhancing system performance. With the advent of 5G communication infrastructure, SANs are becoming increasingly relevant for high-speed data transfer. SAN subsystems consist of hardware and software components, including Hyper-converged storage (HCI), Software-Defined Storage (SDS), Solid-State Drives (SSDs), and traditional Storage Area Networks (SANs).
Moreover, cloud service providers and startups are also adopting SAN solutions for their scalable and cost-effective nature. SANs offer scalable solutions for handling growing data volumes, ensuring data availability and security, while maintaining reasonable prices. Operating platforms like Windows, Linux, and UNIX are compatible with SANs, making them a versatile choice for various industries. Overall, the market offers a wide range of products and services catering to the diverse needs of businesses, ensuring data protection and efficient management of digital data for corporate operations.
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The SAN segment accounted for USD 28.30 billion in 2018 and showed a gradual increase during the forecast period.
North America is estimated to contribute 35% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The market: Business-related information is a critical asset for large enterprises, requiring the protection and scalable systems for efficient workloads. Subsystems, such as cabling and connectivity, are essential components of these systems, ensuring seamless data accessibility and secure operating platforms. Distributed storage solutions, including AI and ML, are increasingly popular in industries like healthcare and manufacturing, where real-time data processing is crucial. IT systems in IT and telecommunication sectors rely on dependable storage mediums like Hyper-converged infrastructure (HCI), Cloud storage, and Software-defined storage (SDS) for their digital data needs.
Moreover, big businesses require scalable solutions for their corporate operations, with SSDs and HCI offering reasonably priced, high-performance options. Startups and cloud service providers also benefit from these innovative products and services, enhancing their infrastructure configurations to meet growing data demands. The 5G communication infrastructure further boosts the market, enabling faster data transfer and processing.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increased adoption of cloud applications is the key driver of the market. The market is experiencing significant growth due to the increasing adoption of cloud applications, particularly Software as a Service (SaaS) and Platform as a Service (PaaS), in various industries. These cloud applications enable organizations to store and access data remotely, leading to a higher demand for enterprise data storage solutions that can seamlessly integrate with cloud platforms. Cloud-based storage solutions offer numerous advantages, including increased accessibility, scalability, and reliability, making them a preferred choice for data-intensive applications in edge computing deployments and hybrid cloud environments. Moreover, the digital transformation initiatives in sectors such as finance, healthcare, and manufacturing, driven by trends like Artificial Intelligence (AI), Machine Learning (ML), Predictive Analytics, Natural language processing, Image recognition, and the Internet of Things (IoT), are fueling the need for advanced storage technologies.
Moreover, the adoption of 5G networks and mobile storage solutions is further expanding the scope of data storage requirements. Hybrid storage technology, including Storage Area Networks (SAN), Network-Attached Storage (NAS), Direct-Attached Storage (DAS), Hybrid storage systems, Hard Disk Drives (HDD), Solid State Drives (SSD), Object storage systems, and Tape storage systems, are essential components of on-premises data centers. However, the growing threat of cyberattacks, including ransomware, necessitates the data security systems, such as immutable snapshots, encryption, and ransomware detection, to protect sensitive data. In conclusion, the market is poised for substantial growth, driven by the increasing adoption of cloud applications, digital transformation initiatives, and the need for advanced storage technologies to support data-intensive applications and handle the massive amounts of data generated by AI, ML, IoT, and 5G networks.
Cloud storage services, hybrid storage systems, and on-premise storage solutions are crucial in ensuring data availability, accessibility, and security in today's dynamic business landscape.
Software-defined storage is the upcoming trend in the market. The market is experiencing significant growth due to the increasing adoption of software-defined storage (SDS) architectures. SDS separates the control plane from the data plane, enabling organizations to manage storage resources through software across various hardware platforms. This approach offers greater flexibility, scalability, and cost savings, making it an attractive alternative to traditional, hardware-based storage systems. One of the primary reasons for the increasing popularity of SDS is the exponential growth of data generated by businesses, governments, and consumers. Traditional storage solutions are struggling to keep up with this data deluge, leading organizations to seek more efficient and flexible ways to store and manage their data.
Moreover, the SDS allows for quick and cost-effective scaling, making it an ideal solution for data-intensive applications, artificial intelligence (AI), machine learning (ML), predictive analytics, natural language processing, image recognition, and other data-centric technologies. Moreover, the rise of edge computing deployments, hybrid cloud environments, and digital transformation initiatives in industries such as finance, healthcare, and manufacturing, is driving the demand for SDS. The integration of IoT, 5G networks, and mobile storage solutions is also contributing to the growth of the market. Additionally, the need for data security systems, including ransomware detection, immutable snapshots, encryption, and cyberattack protection, is further fueling the adoption of SDS.
However, the SDS supports various storage technologies such as Hard Disk Drives (HDD), Solid State Drives (SSD), Hybrid storage technology, Storage Area Networks (SAN), Network-Attached Storage (NAS), Direct-Attached Storage (DAS), Object storage systems, and Tape storage systems. Cloud storage services and on-premises data centers are also leveraging SDS to optimize their storage infrastructure. Overall, the SDS market is expected to continue its growth trajectory, driven by the increasing demand for efficient, flexible, and cost-effective storage solutions.
High operating expenses for vendors is a key challenge affecting the market growth. The market is experiencing significant growth due to the increasing adoption of edge computing deployments, hybrid cloud environments, and digital transformation initiatives in various industries. With the rise of data-intensive applications such as Artificial Intelligence (AI), Machine Learning (ML), Predictive analytics, Natural Language Processing (NLP), Image recognition, and others, the demand for advanced storage solutions is increasing. This trend is further fueled by the Internet of Things (IoT) and 5G networks, which generate massive amounts of data that need to be stored and analyzed. Vendors in this market face high operating expenses due to research and development (R&D) costs and infrastructure costs.
However, the R&D expenses arise from the development of new technologies like software-defined architectures, Hybrid cloud technology, Hard Disk Drives (HDD), Solid State Drives (SSD), Hybrid storage technology, Storage Area Networks (SAN), Network-Attached Storage (NAS), Direct-Attached Storage (DAS), Object storage systems, and Tape storage systems. Infrastructure costs include building and maintaining on-premises data centers, on-premise storage solutions, and cloud-based storage solutions. Moreover, cyberattacks are a significant concern for enterprises, leading to the adoption of advanced data security systems like encryption, ransomware detection, immutable snapshots, and others. These security measures add to the overall cost of storage solutions. Additionally, data placement and tiering strategies are essential to manage the increasing volume, velocity, and variety of data.
Overall, the market is expected to grow significantly in the coming years, driven by the need for advanced storage solutions in various industries.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Broadcom Inc. - The company offers enterprise data storage such as CA 1 flexible storage.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is witnessing significant growth due to the increasing adoption of cloud computing services and cloud-based solutions. Traditional storage systems, including storage area networks, network attached storage, direct attached storage, digital storage, and networked appliances, are being replaced by more fault-tolerant, accessible storage options. Centralized sources of storage have become a preferred choice for big enterprises as they offer better data protection, data management, and data sharing functions. Storage disks, such as redundant, logical storage containers, have become essential components of enterprise storage systems. These storage mechanisms provide durable, scalable, and agile solutions for managing big data analytics and unstructured data.
Moreover, cloud-based storage platforms offer centralized remote support, administration, and disaster recovery, backup, and restoration functions. Data security is a critical concern for businesses, and storage systems must provide data protection mechanisms. Software manufacturers are developing advanced storage systems that offer data security features, including encryption, access control, and compliance with industry standards. The market is expected to grow further as businesses continue to prioritize data management and data resolution, support for computer systems, and the integration of storage systems with various platforms.
Market Scope |
|
Report Coverage |
Details |
Page number |
186 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.39% |
Market growth 2024-2028 |
USD 11.6 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.13 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 35% |
Key countries |
US, Germany, China, UK, and Japan |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Broadcom Inc., Commvault Systems Inc., DataDirect Networks Inc., Dell Technologies Inc., Fujitsu Ltd., Hewlett Packard Enterprise Co., Hitachi Ltd., Huawei Technologies Co. Ltd., Infinidat Ltd., Inspur Group, International Business Machines Corp., Lenovo Group Ltd., NetApp Inc., Nutanix Inc., Oracle Corp., Pure Storage Inc., Seagate Technology Holdings Plc, Veritas Technologies LLC, Western Digital Corp., and Zadara Inc. |
Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Solution
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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