Data Center Storage Market by Deployment and Geography - Forecast and Analysis 2022-2026

The data center storage market share is expected to increase by USD 193.61 billion from 2021 to 2026, and the market’s growth momentum will accelerate at a CAGR of 26.41%.

This data center storage market research report provides valuable insights on the post-COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers data center storage market segmentation by deployment (SAN system, NAS system, and DAS system) and geography (North America, Europe, APAC, South America, and the Middle East and Africa). The data center storage market report also offers information on several market vendors, including DataDirect Networks Inc., Dell 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., Quanta Computer Inc., Unitrends Inc., and Toshiba Corp. among others.

What will the Data Center Storage Market Size be During the Forecast Period?

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Data Center Storage Market: Key Drivers, Trends, and Challenges

Based on our research output, there has been a positive impact on the market growth during and post-COVID-19 era. The growing deployment of edge computing is notably driving the data center storage market growth, although factors such as high initial costs may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the data center storage industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Data Center Storage Market Driver

The growing deployment of edge computing is one of the major drivers impacting the data center storage market growth. The growth of the global data center storage market is driven by the increasing deployment of edge computing, which is leading to more edge data centers being built, thus contributing to the demand for data center storage solutions. Edge computing is a network architecture wherein the data is stored and processed near to where it originates. An edge server in this network serves as the connection between separate networks. The advantage of edge computing is that the stored content is close to the client machine, thereby reducing latency and improving server response. This type of network architecture was initially implemented by SMEs, but the growing demand for efficient and secure data management has spurred its implementation in other large-scale enterprises. Several start-ups in the process of deploying commercial mini data centers for edge computing are witnessing growth in the global data center storage market. The growing deployment of edge computing will spur the demand for storage solutions for edge data centers, which is expected to drive the growth of the market during the forecast period.

Key Data Center Storage Market Trend

Growing penetration of IoT-enabled devices is one of the major trends influencing the data center storage market growth. The increase in the use of IoT-connected devices worldwide has resulted in the generation of large amounts of data. Furthermore, the rise in the adoption of connected cars, connected homes, connected health, and smart cities has increased the data generated by these devices. These IoT-enabled devices led to an exponential increase in data center network traffic over the years by transferring more data to data centers. All these factors have increased the need for effective data storage and data analytics and, therefore, have compelled enterprises to invest in storage systems and big data analytics to manage and analyze the data effectively to derive business intelligence insights. Enterprise data centers undergo constant upgrades to satisfy big data storage and processing needs. The data is suitable for large enterprises, such as e-commerce solution providers and SMEs, primarily for their business growth. In addition, the forecast period will also witness the emergence and growth of edge computing facilities, where the possibility of adopting storage infrastructure is high. All these factors are expected to increase the demand for data center storage solutions further during the forecast period.

Key Data Center Storage Market Challenge

High initial costs is one of the major challenges impeding the data center storage market growth.  A small change in technology has a ripple effect on the operability of the data center. For instance, until recently, HDDs were considered the most cost-effective methods for data storage in data centers. However, the steady transition to SSDs from HDDs has resulted in high upfront costs for enterprises. SSDs do not have any moving mechanical components, and therefore, customers do not have to incur maintenance costs, issues regarding wear and tear, or damage to the parts. An SSD has three times the density of an HDD. For example, if a three-tier data center requires a 10-cabinet system when using SSDs, the same data center would require a 30-cabinet system when using HDDs. Also, apart from the need for SSDs, the implementation of SAN requires a high initial investment in Fiber Channel host bus adapters, Fiber Channel switches, and Fiber Channel-connected tape. The hardware cost involved in implementing a small SAN for 10-20 servers will be $100,000-$150,000. Therefore, the high initial cost is one of the major challenges hindering the market growth.

This data center storage market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.

Parent Market Analysis

Technavio categorizes the global data center storage market as a part of the global Internet services and infrastructure market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the data center storage market during the forecast period.

Who are the Major Data Center Storage Market Vendors?

The report analyzes the market’s competitive landscape and offers information on several market vendors, including:

 

• DataDirect Networks Inc.
• Dell 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.
• Quanta Computer Inc.
• Unitrends Inc.
• Toshiba Corp.

 

This statistical study of the data center storage market encompasses successful business strategies deployed by the key vendors. The data center storage market is fragmented and the vendors are deploying organic and inorganic growth strategies to compete in the market.

To make the most of the opportunities and recover from the post-COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The data center storage market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

Data Center Storage Market Value Chain Analysis

Our report provides extensive information on the value chain analysis for the data center storage market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

Which are the Key Regions for Data Center Storage Market?

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29% of the market’s growth will originate from North America during the forecast period. The US is the key market for data center storage in North America. Market growth in this region will be slower than the growth of the market in MEA and APAC.

The increasing number of data centers and the growing demand for IoT devices will facilitate the data center storage market growth in North America over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

COVID Impact and Recovery Analysis

In 2020, the outbreak of COVID-19 propelled market growth of cloud data centers in North America. With work from home becoming the new normal, owing to the COVID-19 outbreak, there was an increase in the adoption of cloud services and digitization, leading to the emergence of a new business environment. In North America, the restrictions imposed across various industries to curb the spread of the disease during the lockdowns increased the demand for digital and online transactions. This propelled the demand for automation services and solutions. 

What are the Revenue-generating Deployment Segments in the Data Center Storage Market?

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Data center storage market share growth by the SAN system will be faster than the growth of the market by the other segments. A SAN system has a high-performance capacity, because of which it is highly preferred for high-speed traffic such as high transaction databases and e-commerce websites. SAN is primarily deployed by enterprises such as Facebook and Google that deal with high-volume and resource-intensive data, where the data needs to be processed simultaneously.

This report provides an accurate prediction of the contribution of all the segments to the growth of the data center storage market size and actionable market insights on the post-COVID-19 impact on each segment.

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Data Center Storage Market Scope
Report Coverage	Details
Page number	120
Base year	2021
Forecast period	2022-2026
Growth momentum & CAGR	Accelerate at a CAGR of 26.41%
Market growth 2022-2026	$ 193.61 billion
Market structure	Fragmented
YoY growth (%)	16.02
Regional analysis	North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution	North America at 29%
Key consumer countries	US, China, Singapore, UK, and France
Competitive landscape	Leading companies, Competitive strategies, Consumer engagement scope
Key companies profiled	DataDirect Networks Inc., Dell 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., Quanta Computer Inc., Unitrends Inc., and Toshiba Corp.
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, and Market condition analysis for the 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.

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What are the Key Data Covered in this Data Center Storage Market Report?

• CAGR of the market during the forecast period 2022-2026
• Detailed information on factors that will drive data center storage market growth during the next five years
• Precise estimation of the data center storage market size and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behavior
• The growth of the data center storage industry across North America, Europe, APAC, South America, the Middle East, and Africa
• A thorough analysis of the market’s competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of data center storage market vendors

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