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The data center storage market size is estimated to grow by USD 117.3 billion at a CAGR of 18.56% between 2023 and 2028. The data landscape is evolving at an unprecedented pace, with increasing volumes, velocities, veracities, and varieties of data. This data explosion is fueled by the Internet of Things, artificial intelligence, and machine learning applications. In response, there is a growing demand for Non-Volatile Memory Express-enabled storage solutions. NVMe offers faster data transfer rates, lower latency, and higher bandwidth compared to traditional storage technologies. Additionally, the growing deployment of edge computing is driving the need for NVMe-enabled storage at the edge, enabling real-time data processing and analysis. NVMe-enabled storage solutions are becoming essential for businesses to gain a competitive edge in today's data-driven economy. These solutions offer faster data access, improved performance, and enhanced data security, making them an ideal choice for organizations looking to leverage their data for insights and innovation.
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The market is a significant segment of the overall data center industry, encompassing various storage technologies such as traditional storage, all-flash storage, and hybrid storage. The market is driven by the growing demand for IT & telecommunication, media & entertainment, and cloud computing applications. Traditional storage technologies like Tape drives and Hard disk drives continue to be in use, but the shift towards all-flash storage and hybrid storage is gaining momentum due to their higher performance and efficiency. Predictive storage management is also becoming increasingly popular for optimizing storage utilization and reducing downtime. Cloud computing, Network-attached storage Systems, IT infrastructures, Servers, and Network infrastructure are key areas driving the growth of the market. Business contingency plans and cloud capabilities are also crucial factors, as organizations seek to ensure data availability and security. The increasing adoption of Hybrid cloud and Edge computing is also expected to impact the market significantly. Collaborative software and Teleconferencing services are also driving up the demand for large-scale data storage. Internet traffic is also a significant factor as more businesses move towards digital transformation and remote work. The market is evolving with advancements in Network-attached storage (NAS), Storage Area Network (SAN), and Direct Attached Storage (DAS) systems. Innovations in cloud storage and services, edge computing adoption, and robust power and cooling infrastructure support these technologies. Deployment Storage Area Network System and redundant array of independent disks enhance reliability and performance, ensuring seamless data management. 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.
Increasing volume, velocity, veracity, and variety (4Vs) of data is notably driving market growth. The market is experiencing significant growth due to the increasing demand for managing and storing vast amounts of digital information in data centers. The volume of data being generated continues to escalate, moving beyond traditional units of measurement like megabytes (MB) and gigabytes (GB), with data now being produced on a scale of zettabytes (ZB) and yottabytes (YB). The velocity at which data is generated and processed is also increasing, with customers requiring real-time access to data for effective decision-making. This shift from batch processing to real-time analysis has put a premium on high-performance storage solutions. Data center storage solutions encompass various technologies such as Network-attached storage (NAS) systems, Hard disk drives (HDD), Solid-state drives (SSD), Flash memory, and High-performance storage arrays.
Furthermore, skilled professionals are essential for managing these complex IT infrastructures, which include servers, storage, network infrastructure, and business contingency plans. The adoption of hybrid cloud and edge computing is also driving the demand for advanced storage technologies. The BFSI industry, Education sector, Internet of Things, and Government sector are major contributors to the market. Collaborative software, teleconferencing services, SaaS providers, and Internet users also generate substantial data, necessitating robust storage solutions. Predictive storage management, Tape drives, and various types of Storage Area Networks (SANs), including FC SAN, iSCSI SAN, and FCoE technology, are essential components of data center storage solutions. The increasing Internet traffic and the growing importance of cloud capabilities further accentuate the need for advanced storage technologies. Thus, such factors are driving the growth of the market during the forecast period.
Growing penetration of IoT-enabled devices is the key trend in the market. The proliferation of digital information and the surge in connected devices, particularly in the Internet of Things (IoT) era, have significantly increased the volume of data being generated and transferred to data centers. This data influx has led to a heightened demand for advanced data center storage solutions, including Network-attached storage (NAS) systems, High-performance storage arrays, and Storage Area Networks (SANs) such as FC SAN, iSCSI SAN, and FCoE technology. To manage this data effectively, businesses are investing in skilled professionals, IT infrastructures, servers, and network infrastructure. Moreover, the adoption of hybrid cloud and edge computing solutions is also driving the market. Predictive storage management software technologies are being employed to optimize storage utilization and improve overall efficiency.
Furthermore, the BFSI industry, Education sector, SaaS providers, and Teleconferencing services are among the major contributors to the market. In addition, the Government sector and the growing Internet traffic are also fueling the market's growth. Data center storage solutions include Tape drives, Hard disk drives (HDD), and Solid-state drives (SSD), with Flash memory emerging as a popular choice due to its high performance and reliability. Collaborative software, such as those used for business contingency plans and cloud capabilities, are also driving the demand for data center storage. Overall, the market is expected to continue its growth trajectory, driven by the increasing need for effective data management and analysis in various industries. Thus, such trends will shape the growth of the market during the forecast period.
Increasing data center consolidation is the major challenge affecting the market's growth. The market is experiencing significant transformation due to the adoption of various software technologies and strategies aimed at optimizing data center facilities. Digital information is growing at an unprecedented rate, necessitating the need for advanced storage solutions. Network-attached storage (NAS) systems and Storage Area Networks (SANs), including FC SAN, iSCSI SAN, and FCoE technology, are increasingly being utilized. The trend toward hybrid cloud adoption and edge computing is driving the demand for high-performance storage arrays. Skilled professionals are essential for managing IT infrastructures, including servers, storage, and network infrastructure. Predictive storage management is becoming increasingly important to ensure business continuity and disaster recovery.
Moreover, the BFSI industry and education sector are major consumers of data center storage, with the Internet of Things (IoT) and government sector also contributing significantly. SaaS providers, teleconferencing services, and internet users are also driving up the demand for cloud capabilities and storage. The growth of internet traffic and collaborative software further necessitates the need for efficient data center storage solutions. Tape drives and hard disk drives (HDD) continue to be popular choices for data storage, but solid-state drives (SSD) and flash memory are gaining popularity due to their high performance and faster access times. The consolidation of data centers is a major trend, with providers seeking to reduce costs and improve security and control. This can involve physically consolidating multiple data centers or optimizing a single large data center to run more efficiently on fewer resources. Edge data centers are also emerging as a solution for processing and storing data closer to the source, reducing latency and improving performance. Hence, the above factors will impede the growth of the market during the forecast period
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.
Dell Technologies Inc. - The company offers data center storage that includes Modular Data Center Micro 8-Series, DSS 8440 Machine Learning Server,and DSS 7000 Storage Server.
The market research and growth report also 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 share growth by the SAN system segment will be significant during the forecast period. The market is experiencing significant growth due to the increasing demand for IT and telecommunication infrastructure, media and entertainment industries, cloud computing, and SMEs. Traditional storage systems are being replaced by advanced solutions such as all-flash storage and hybrid storage. IT load capacity requirements are escalating due to data-intensive technologies, digital services, and economic performance.
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The SAN system segment showed a gradual increase in the market share of USD 41.30 billion in 2018. Government regulations and local data security concerns are driving the need for advanced storage solutions that ensure data availability and security. Submarine cable projects and 5G networks are fueling the demand for high-capacity storage devices and networking equipment. Hyperscale facilities, mobile data usage, e-commerce, and the telecommunications sector are also major contributors to the market growth. Cloud service providers are investing heavily in on-premises storage and cloud storage to meet the increasing demand for remote work capabilities and data storage capacities. Manufacturing, public sector, media, gaming, and digital transformation are some of the key industries driving the adoption of hybrid infrastructure. Flash storage drives are becoming increasingly popular due to their high performance and low latency. SAN systems are being widely adopted due to their centralized control, flexibility, and cost-effectiveness. The market is witnessing significant technological advances, with major vendors introducing new storage solutions designed to support the SAN protocol. The market is expected to continue growing due to the increasing demand for efficient and secure data storage solutions.
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Europe is estimated to contribute 30% 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.
The market is witnessing significant growth due to the increasing adoption of digital services, data-intensive technologies, and digital transformation in various industries. Traditional storage systems are being replaced by advanced solutions like all-flash storage and hybrid storage. IT & telecommunication companies, media & entertainment, and the public sector are major contributors to this market's growth. Government regulations regarding local data security and national security are driving the demand for on-premises storage. Cloud computing and hyperscale facilities are also fueling the market's expansion. The telecommunications sector, with its mobile data usage and 5G networks, is generating massive data traffic, necessitating large data storage capacities. E-commerce and manufacturing industries also contribute significantly to the market's growth. SMEs are increasingly investing in IT infrastructure, including storage devices and networking equipment, to improve their economic performance. Submarine cable projects and IT load capacity requirements further boost the market. The need for data availability, data storage capacities, and remote work capabilities is driving the adoption of cloud storage and cloud service providers. Digital transformation in sectors like gaming and media is also contributing to the market's growth.
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.
Data Center Market: Data Center Market Analysis North America, APAC, Europe, South America, Middle East and Africa - US, Germany, UK, China, Canada - Size and Forecast
Data Center Rack Market: Data Center Rack Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, China, UK, Australia, Germany - Size and Forecast
Data Center Construction Market: Data Center Construction Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, China, Japan, UK, Germany - Size and Forecast
The market is witnessing significant growth due to the increasing demand for IT infrastructure in various sectors such as IT & telecommunication, media & entertainment, and cloud computing. Traditional storage systems are being replaced by advanced solutions like all-flash storage and hybrid storage to meet the IT load capacity requirements of businesses. SMEs and the public sector are also investing in data center storage to ensure local data security and comply with government regulations. Data-intensive technologies, digital services, and economic performance are driving the adoption of flash storage drives and other storage devices in the market. Hyperscale facilities, mobile data usage, and the rollout of 5G networks are expected to further increase data traffic, leading to a surge in demand for data storage capacities. Submarine cable projects and the telecommunications sector are major contributors to the market's growth.
Furthermore, the manufacturing industry and the public sector are also investing in data center storage to support digital transformation and remote work capabilities. Cloud service providers are offering on-premises and cloud storage solutions to cater to the varying needs of businesses. National security and internet infrastructure are key concerns for governments, leading to increased investment in data center storage. Data availability and data storage capacities are critical factors influencing the market's growth. Hardware and networking equipment are essential components of data center storage infrastructure. Overall, the market is expected to continue its growth trajectory in the coming years.
Market Scope |
|
Report Coverage |
Details |
Page number |
160 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 18.56% |
Market growth 2024-2028 |
USD 117.3 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
15.22 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
Europe at 30% |
Key countries |
US, UK, France, China, and Singapore |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
DataDirect Networks Inc., Dell Technologies Inc., Equinix Inc., Fujitsu Ltd., Hewlett Packard Enterprise Co., Hitachi Vantara LLC, Huawei Technologies Co. Ltd., Inspur Group., International Business Machines Corp., Lenovo Group Ltd., NEC Corp., NetApp Inc., Netgear Inc., Nimbus Data Inc., Oracle Corp., OVERLAND STORAGE, INC., Pure Storage Inc., and Quanta Computer Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Deployment
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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