Enterprise Data Storage Market by Solution, Type and Geography - Forecast and Analysis 2023-2027

Enterprise Data Storage Market Forecast 2023-2027

The enterprise data storage market size is estimated to grow by USD 11.35 billion at a CAGR of 4.46% between 2022 and 2027. 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.

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

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Market Segmentation

This market trends and analysis extensively covers market segmentation by solution (SAN, NAS, and DAS), type (storage, backup, and others), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

By Solution

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 27.40 billion in 2017. 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.

By Region

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North America is estimated to contribute 31% 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.

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.

Market Dynamics and Customer Landscape

The market is driven by the need for critical information storage with reliability, flexibility, and scalability. Enterprises seek these solutions that offer portability and programmability, enabling efficient information management. Technologies like Virtualization, Network-attached Storage (NAS), and Software-defined Storage (SAS) are increasingly adopted for their automation abilities and ability to handle unstructured data. Data security, high availability, and disaster recovery are key concerns, driving the demand for these solutions. Efficient restoration functions and reliable backup are essential for ensuring its integrity and accessibility.  Our researchers analyzed the data with 2022 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.

Key Market Driver

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.

Major Market Trends

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.

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.

Significant Market Challenge

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.

Key Customer Landscape

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

Who are the Major Enterprise Data Storage Market Companies?

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:

• 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.
• Zadara Inc.

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.

Segment Overview

The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.

• Deployment Outlook 
  • SAN
  • NAS 
  • DAS

• Application Outlook 
  • Storage 
  • Backup
  • Others

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Brazil
    • Argentina
    • Chile
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The market is driven by the increasing use of Mobile devices and the growing need for Data collection and management. However, challenges like Data corruption and Breach of data exist, with Cyber-attacks and Ransomware posing significant Threats. The Healthcare sector, with its sensitive data, is a key area for investment, offering Investment pockets for companies. Technological innovation is crucial, leading to new investments and strategic developments. Consumer behavior analysis drives decisions, while Countermeasures are essential to protect against threats. Pestel analysis guides strategies, ensuring global recovery trends and success for front runners.

The market is evolving with the adoption of Cloud-based storage systems and the advancement of big data analytics. The Internet of Things (IoT) is driving data generation, as highlighted in the IDC Report 2021. This data is used for various downstream applications, necessitating reliable Suppliers and efficient management of raw materials and mining processes. Investors play a crucial role in this market, impacting the final price of these solutions. Digital content is a key focus, demanding robust Direct Attached Storage (DAS) solutions. Navigating through these developments requires exploring various Paths to success while addressing existing restraints.

The market is experiencing significant growth, driven by the increasing demand for these solutions due to trends like Work from home. IT and Telecom sectors are major contributors, focusing on data Protection. A thorough Market scenario analysis reveals a shift towards EverFlex storage solutions and the adoption of Camera-equipped devices and Smartphones for data storage. The rise of Container-based storage and technologies like Red Hat Storage Technologies and Kubernetes indicates the industry's evolution. Banking and Financial Services are also leveraging advanced solutions, including Tablets, reflecting the ongoing evolution of big data analytics.

Enterprise Data Storage Market Scope
Report Coverage	Details
Page number	175
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 4.46%
Market growth 2023-2027	USD 11.35 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	4.0
Regional analysis	North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution	North America at 31%
Key countries	US, China, Japan, Germany, and UK
Competitive landscape	Leading Vendors, Market Positioning of Vendors, 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 Forecasting, 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 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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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market's competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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