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The enterprise data storage market size is estimated to grow by USD 11.6 billion at a CAGR of 4.39% between 2023 and 2028. The increased adoption of cloud applications is driven by factors such as scalability, flexibility, and cost-effectiveness, as businesses seek to leverage cloud technology to improve their operations and enhance their competitiveness. The growing demand for IoT and big data operations is driving the need for cloud-based solutions that can handle large volumes of data and provide real-time analytics and insights. The high adoption of Software-as-a-Service (SaaS) applications by enterprises is driven by the convenience and accessibility of cloud-based software, which allows businesses to access and use applications from anywhere, at any time, without the need for extensive IT infrastructure.
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The market share growth by the storage area network (SAN) segment will be significant during the forecast period. It is a dedicated high-speed network that interconnects enterprise storage devices to multiple servers. A SAN moves the stored information from the common user network and recollects and organizes it into an independent high-speed network. A SAN allows each server to access storage devices. Also, it allows servers to take over the volume and control it. The backup server controls the primary server by connecting to the storage volume in the event of a system failure in a collected environment.
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The SAN segment showed a gradual increase in the market share of USD 28.30 billion in 2018. Enterprises are the main adopters of these devices as these devices offer better flexibility, availability, and performance when compared with DAS or NAS systems. A SAN is a type of local area network (LAN) that is designed to handle the transfer of huge volumes of information. SAN devices support information, retrieval, and replication using high-end servers and multiple disk arrays. Vendors such as Dell Technologies Inc., Hewlett Packard Enterprise Development, and IBM are known for their SAN equipment. Thus, the adoption of SAN by the major vendors operating in the market will drive market growth during the forecast period.
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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. North America is the fastest-growing region in the global market. The potential benefits of enterprise data, such as low power consumption and improved write speed, are propelling the adoption of enterprise data storage among SMEs in the region. SMEs face constant pressure to upgrade themselves and keep pace with rapid technological advances, thereby gaining a competitive edge over their competitors. The advent and penetration of IoT, coupled with third-platform technologies, such as cloud computing and analytics, is compelling organizations to implement IT solutions. This requires enhanced IT infrastructure and a real-time application environment. This will boost the demand for these solutions in North America during the forecast period.
Moreover, the steady growth rate of the regional market is attributed to the increasing number of data centers being set up in the region, which is driving the demand. For instance, in May 2021, Google Canada announced plans to invest USD600 million in the construction of a center in Beauharnois, Quebec, to meet the growing demand for Google services in Canada. In addition, the growth in the regional market is driven by factors such as the increasing amount of information generated by businesses, the need for efficient information management and solutions, and the rise in the adoption of cloud-based solutions. Thus, due to the abovementioned factors, the market is expected to grow positively during the forecast period.
Storage disks and cloud computing services are pivotal components in modern data accessibility and protection strategies for business-related information. While conventional storage systems offer fault-tolerant solutions, cloud infrastructures provide scalable and accessible storage options from a centralized source. This setup supports big businesses by efficiently managing digital data and corporate operations across distributed environments. Technologies like SSDs and HCI enhance storage subsystems and workloads by optimizing connectivity and cabling for diverse operating platforms. The focus on security within cloud infrastructures ensures robust data protection and regulatory compliance, crucial for safeguarding business information. As businesses evolve, the integration of cloud computing and distributed storage enables flexible and resilient systems capable of handling dynamic business workloads and scaling with organizational growth. This strategic adoption supports efficient data management and operational continuity in today's competitive digital landscape.
The increased adoption of cloud applications is notably driving market growth. Cloud applications, including Software as a Service (SaaS) and Platform as a Service (PaaS), enable organizations to store and access information from anywhere globally on demand. The shift towards cloud-based solutions has led to a rise in demand for these solutions that can seamlessly integrate with cloud platforms. This integration is crucial for storing critical information reliably, with flexibility and portability. This has spurred the development of cloud-based storage solutions that offer scalability, flexibility, and cost-effectiveness to meet the increasing demand. These solutions also support data sharing, high availability, disaster recovery, and other critical aspects of efficient data storage solutions.
Furthermore, cloud-based storage solutions offer high scalability, allowing organizations to quickly and easily expand their capacity based on their needs. This scalability helps organizations manage their requirements without the need for costly hardware or infrastructure investments. It enables them to efficiently utilize storage resources, leverage advanced technologies for data analytics, and handle unstructured information effectively. Overall, the growing adoption of cloud applications is driving the global market by increasing the need for scalable, flexible, and cost-effective solutions that can integrate smoothly with cloud platforms, leading to market growth in the forecast period.
The increasing adoption of Software-defined storage (SDS) is the major trend driving the market growth. SDS is a storage architecture that separates the control plane from the data plane, that offers greater flexibility, scalability, and cost savings. SDS uses software to manage resources across a variety of hardware platforms, instead of relying on proprietary hardware-based storage systems. With volumes increasing at an unprecedented rate, traditional solutions are struggling to keep up. SDS offers a more efficient and flexible way to store and manage this information, thus allowing organizations to scale up their infrastructure quickly and cost-effectively.
Moreover, the demand for SDS is also benefiting from the increasing adoption of virtualization technologies. By separating the control plane from the data plane, SDS allows for greater flexibility in deploying virtual machines and applications and can help organizations optimize their virtualization environments. Overall, the SDS demand is expected to grow rapidly during the forecast period, driven by the need for more flexible, scalable, and cost-effective enterprise solutions in the face of increasing information volumes and the move to cloud computing. Thus, such factors will positively impact the market growth during the forecast period.
High operating expenses for vendors is the major challenge impeding the market growth. There are several reasons why vendors in this market may face high operating expenses, including R and D Costs. The development of new and innovative storage solutions incurs significant research and development (R&D) costs. Vendors must invest in new technologies and infrastructure to stay competitive, and this can increase their operating costs. Infrastructure Costs: Vendors must also maintain a large and complex infrastructure to support their solutions. This includes data centers, servers, networking equipment, and other hardware and software systems.
In addition, the cost of building and maintaining this infrastructure can be significant. Vendors in the market must also invest heavily in marketing and sales efforts to reach potential customers. This can include advertising, attending industry conferences, and hiring sales staff. Such factors are expected to hamper the growth market during the forecast period.
The market growth analysis 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 growth strategies.
Global Market 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. This segment offers digital, mixed signal and analog products including for fast switching speeds and low power consumption.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
Enterprise Data Warehouse (EDW) Market: Enterprise Data Warehouse (EDW) Market Analysis North America, Europe, APAC, Middle East and Africa, South America - US, China, UK, India, Germany - Size and Forecast
Next-generation Data Storage Market: Next-generation Data Storage Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, China, UK, France, Japan - Size and Forecast
Enterprise External OEM Storage Systems Market: Enterprise External OEM Storage Systems Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, UK, China, France, Japan - Size and Forecast
In today's digital landscape, conventional storage systems coexist with innovative solutions like cloud storage services and hyper-converged storage, catering to diverse needs across industries from healthcare to manufacturing and retail. These systems provide accessible storage options and robust data sharing functions, crucial for big enterprises managing big data analytics and unstructured data. Technologies such as AI and ML enhance data processing capabilities, supporting predictive analytics, natural language processing, and image recognition in data-intensive applications. Security remains paramount, with advanced data security systems incorporating encryption, immutable snapshots, and ransomware detection to mitigate cyberattacks. The evolution towards hybrid cloud environments and software-defined architectures underscores the shift towards agile, scalable, and dependable solutions capable of integrating with 5G communication infrastructure and IoT deployments. As businesses embrace digital transformation initiatives, storage mediums like Solid State Drives and Object storage systems facilitate efficient data placement and tiering, optimizing performance in IT systems and ensuring compliance with General Data Protection Regulation standards.
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Industry Scope |
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Report Coverage |
Details |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 4.39% |
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Market growth 2024-2028 |
USD 11.6 billion |
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Market structure |
USD Fragmented |
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YoY growth 2023-2024(%) |
4.13 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
North America at 35% |
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Key countries |
US, Germany, China, UK, and Japan |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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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. |
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Market dynamics |
Parent market analysis, Market forecasting growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
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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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