Enterprise External OEM Storage Systems Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, China, Japan, UK, France - Size and Forecast 2023-2027

Enterprise External OEM Storage Systems Market Forecast 2023-2027

The enterprise external OEM storage systems market size is estimated to grow by USD 5.48 billion at a CAGR of 3.16% between 2022 and 2027. The market's expansion is contingent upon various factors, notably the escalating demand for non-volatile memory express (NVMe)-enabled storage solutions, the increasing adoption of multi-cloud platforms, and the rising prevalence of Internet of Things (IoT)-enabled devices. The heightened demand for NVMe-enabled storage solutions is driven by their superior performance and efficiency compared to traditional storage solutions. Simultaneously, the adoption of multi-cloud platforms is rising due to their ability to offer flexibility and scalability to businesses. Furthermore, the proliferation of IoT-enabled devices across industries is fueling the need for efficient and high-performance storage solutions. These factors collectively contribute to the market's growth trajectory, with NVMe-enabled storage solutions poised to play a significant role in meeting the evolving storage requirements of modern businesses.

It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

What will be the size of the Market During the Forecast Period?

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Market Segmentation

This 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).

By End-User

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 information storage and protection capabilities. The 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. 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.

By Type

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 information 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, information migration from one storage device to another, the archiving and retrieval of archived information, and the sharing of information among different servers in a network. Such advantages of SAN will drive the segment and market in focus during the forecast period.

Regional Overview

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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 companies 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.

Market Dynamics

The market is witnessing significant growth due to the increasing demand for storage tiering and cloud storage integration. Enterprises are focusing on disaster recovery and efficient storage management software to ensure data availability. Technologies such as data archiving, data replication, and storage scalability are becoming essential for businesses. Solutions like cold storage and object storage gateways are gaining popularity for their cost-effectiveness. Backup as a Service (BaaS) and DRaaS (Disaster Recovery as a Service) are being adopted for data protection. The market also sees innovations in storage containers, immutable storage, and elastic block storage to meet evolving storage needs.

Key Market Driver

The growing demand for non-volatile memory express-enabled storage solutions is driving growth in an 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 information generation and the development of new applications based on technologies such as AI and machine learning, 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 market during the forecast period.

Significant Market Trends

The implementation of AI in enterprises is a key trend in the 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 can 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 market during the forecast period.

Major Market Restrain

The high initial cost of set up for enterprise external OEM storage systems is a major challenge faced by the 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 information 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.

Key Market Customer Landscape

The 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 Market Customer Landscape

Who are the Major 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.

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:

• 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.

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.

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. 

• End-user Outlook 
  • SMEs
  • Large Enterprises

• Type Outlook 
  • SAN
  • NAS
  • DAS

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

Market Analyst Overview

The market is experiencing rapid evolution, with technologies like External Storage Arrays, SAN (Storage Area Network), and NAS (Network Attached Storage) becoming crucial for data management. Storage virtualization and all-flash arrays are enhancing storage performance, while hybrid storage systems offer a balance between speed and cost-effectiveness. Data deduplication and Data compression technologies are optimizing storage efficiency. Enterprises are also investing in backup and recovery solutions, storage security, and unified storage for comprehensive information management. Software-defined storage and hyper-converged infrastructure are reshaping storage architectures, while Fibre Channel, iSCSI, and FCoE are key protocols for data transfer. Storage encryption, Storage Consolidation and Storage Compliance compliance are critical for data protection and regulation adherence. Multi-cloud storage solutions and persistent storage cater to diverse storage needs, and edge storage solutions are emerging for distributed information management.

Moreover, in the market, storage provisioning plays a key role in allocating storage resources efficiently. Storage security solutions are essential for safeguarding sensitive data, while file storage ensures organized data management. Storage monitoring tools help in real-time tracking and optimization of storage performance. Converged storage systems offer integrated solutions for storage needs. Flash storage provides high-speed data access, and data lifecycle management ensures data is appropriately managed throughout its lifecycle. Scalable file systems enable storage expansion as needed, and high availability storage ensures data accessibility. SDDC solutions integrate storage, compute, and network resources. Storage orchestration automates storage management tasks. Cold storage solutions cater to the storage of infrequently accessed data. Distributed storage distributes data across multiple locations for redundancy and availability. Block storage as a service provides storage resources on-demand. Data center storage encompasses all storage solutions within a data center environment.

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 Forecasting, 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 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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