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The enterprise external OEM storage systems market size is estimated to grow at a CAGR of 3.16% between 2022 and 2027. The market size is forecast to increase by USD 5.48 billion. The market's growth depends on several factors, including the growing demand for non-volatile memory express-enabled storage solutions, the rise in adoption of multi-cloud platforms, and the growing penetration of IoT-enabled devices. Enterprise external OEM storage systems are known as branded storage systems that are external to servers and sold directly or indirectly to business users. These systems are generally RAID or JBOD systems, which can be connected to application servers directly or networks such as SAN or NAS configuration.
This enterprise external OEM storage systems market report extensively covers market segmentation by end-user (SMEs and large enterprises), type (SAN, NAS, and DAS), 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.
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The growing demand for non-volatile memory express-enabled storage solutions is driving growth in an enterprise's external OEM storage system market. Growing demand for NVMe-compatible storage solutions is driving the market growth of the world's external OEM storage system market. NVMe is a protocol for high-speed access to storage media. It offers many advantages when compared with legacy protocols such as SAS/SATA.
Moreover, with the exponential growth in data generation and the development of new applications based on technologies such as AI and machine learning, in order for organizations to decrease the overall cost of ownership and accelerate growth in their enterprises, market demand is being driven by storage solutions that are capable of working with real-time processing. Thus, the market is witnessing a significant demand for NVMe-enabled SSDs, which will drive the growth of the global enterprise external OEM storage systems market during the forecast period.
The implementation of AI in enterprises is a key trend in an enterprise's external OEM storage system market. AI's capacity to analyze large volumes of data has attracted the interest of enterprises. AI applications that have been introduced in enterprises are creating several opportunities for firms to change their methodologies on how to engage customers, identify target markets, and collect and assess sales leads. Thus, Enterprises are directly influenced by artificial intelligence in areas such as job and business functions.
However, AI has the ability to create an efficient storage management solution by learning IO patterns and data lifecycles, thus helping storage solutions make more intelligent decisions on storage optimization. Hence, increased use of artificial intelligence will lead to the development of more advanced external OEM storage solutions for enterprises, which, in turn, will drive the growth of the global enterprise external OEM storage systems market during the forecast period.
The high initial cost of set up for enterprise external OEM storage systems is a major challenge faced by the enterprise external OEM storage system market. Data centers, with investments of up to a billion dollars, are some of the most expensive business facilities on earth. All stakeholders in the data center building and construction industry face immense pressure to adhere to timelines and start operations as soon as possible. The key indicators to consider for the design and construction of a data center facility shall be time to market, as well as electricity costs at the megawatt level.
Furthermore, the demand for effective IT infrastructure to support the exponential rise in data traffic due to the adoption of next-generation technologies such as AI, IoT, and 5G, among others, is rising. Due to capital constraints, it is hard for the majority of SMEs to expand their data center capacity, which has resulted in slower adoption of external OEM storage systems. This, in turn, will negatively impact the market in focus during the forecast period.
The market share growth by the SMEs segment will be significant during the forecast period. Small enterprises often rely on enterprise external OEM storage systems to enhance their data storage and protection capabilities. The global enterprise external OEM storage systems market's small enterprise segment consists of companies with smaller IT infrastructures and budgets compared to larger enterprises.
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The SMEs segment showed a gradual increase in the market share of USD 18.36 billion in 2017 and continued to grow by 2021. Small enterprises in various industries, such as e-commerce, finance, healthcare, and manufacturing, can benefit from enterprise external OEM storage systems. The global market for enterprise external OEM storage systems is dominated by enterprises of all sizes, as well as SMEs. Companies offer a range of enterprise external OEM storage systems with different features, performance levels, and price points to accommodate the specific needs and budgets of small-scale businesses.
SAN is a type of storage networking architecture that is used by enterprises for business-critical applications that need to deliver high throughput and low latency. SAN uses a small computer system interface (SCSI), fiber channels, and Ethernet protocols to communicate between the servers and storage devices. A SAN system is built with more than one component, which includes a RAID storage system, switches, servers, backup devices, interface cards, and cables. A SAN is running on a fiber channel network and has been following block data processing where blocks are allocated an identifier which will be used to store and retrieve these blocks. The primary function of a SAN system in a data center is to support disk mirroring, restoration, backups, data migration from one storage device to another, the archiving and retrieval of archived data, and the sharing of data among different servers in a network. Such advantages of SAN will drive the segment and market in focus during the forecast period.
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APAC 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. Another region offering significant growth opportunities to vendors is North America. The enterprise external OEM storage systems market in North America is expected to grow at a steady pace during the forecast period. The growth rate is steadily increasing due to the rising number of data centers in the area, which is driving the demand for storage devices.
Moreover, the region is also witnessing an increase in the momentum of digital transformation across the BFSI, automotive, consumer electronics, healthcare, IT, and retail industries. This digital transformation is supporting the adoption of advanced technologies and solutions such as IoT, AI, and cloud computing. To meet the demand for computing capacity with minimum expenditure, enterprises are becoming more and more likely to adopt solutions offered by hyperscale providers like Amazon Web Services, Microsoft, or Oracle. This requires enhanced IT infrastructure and a real-time application environment. Therefore, this will boost the demand for enterprise external OEM storage systems in North America during the forecast period.
The outbreak of COVID-19 in 2020 had a negative impact across North America. The rising number of COVID-19 cases in the region influenced governments to enforce lockdowns, which led to the closure of enterprises and hindered the sales of enterprise external OEM storage systems in this region. Spending on enterprise external OEM storage systems will grow further as a result of an increasing need for storage capacity owing to growing data volumes, driven by big data technologies, artificial intelligence, and the IoT, which, in turn, will help the regional enterprise external OEM storage systems market grow during the forecast period.
The Enterprise External OEM Storage Systems Market 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 Enterprise External OEM Storage Systems 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.
Commvault Systems Inc. - The company offers enterprise external OEM storage systems solutions such as commvault backup and recovery, metallic SAAS, and commvault hyperscale XTM.
DataDirect Networks Inc. - The company offers enterprise external OEM storage systems solutions such as optimized HPC storage for research and innovation, used for high-performance computing storage for research and commercial breakthroughs.
Dell Technologies Inc. - The company offers Enterprise External OEM Storage Systems solutions such as DELL VXRAIL, PowerEdge Servers, and YOURID.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market 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 enterprise external OEM storage systems 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.
Enterprise External OEM Storage Systems Market Scope |
|
Report Coverage |
Details |
Page number |
168 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.16% |
Market growth 2023-2027 |
USD 5.48 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
2.64 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
APAC at 31% |
Key countries |
US, China, Japan, UK, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Commvault Systems Inc., DataDirect Networks Inc., Dell Technologies Inc., Fujitsu Ltd., Hewlett Packard Enterprise Co., Huawei Technologies Co. Ltd., International Business Machines Corp., Lenovo Group Ltd., NEC Corp., NetApp Inc., Netgear Inc., Nfina Technologies Inc., Nimbus Data Inc., Oracle Corp., Pure Storage Inc., Seagate Technology Holdings Plc, Toshiba Corp., VIOLIN Systems LLC, Western Digital Corp., and Hitachi Ltd. |
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. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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