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The network attached storage (NAS) market size is forecast to increase by USD 17.37 billion at a CAGR of 8.5% between 2023 and 2028. The market is experiencing significant growth due to the increasing need for data backup and redundancy in the context of digital transformations. The increase in data generation and the resulting requirement for efficient data management are key drivers for the market. Additionally, key developments among vendors, such as the release of advanced NAS solutions with enhanced features, are further fueling market growth. The increasing incidences of data breaches have also heightened the importance of secure and reliable data storage solutions, providing an impetus to the market. These trends are expected to continue, driving the NAS market towards substantial growth in the forecast period.
Network-attached storage (NAS) has emerged as a popular data storage solution in various industries and consumer markets. The adoption of NAS is driven by the need for high-speed transport protocols, such as gigabit Ethernet, to support the transfer and storage of large data sets, including video data in broadcasting environments, finance, healthcare, high-performance computing (HPC) servers, and cloud storage services. NAS is increasingly being used to store data from digital devices, such as personal computers (PCs), enterprise desktops, smartphones, laptops, tablets, digital gadgets, voice assistance devices, public clouds, consumer wearables, smartphones, 3D smart glasses, and augmented reality (AR) devices. With the digitalization of data, the demand for secure NAS solutions is growing, especially in sectors dealing with sensitive information. NAS is also used in 4G and 5G networks for storing and transferring data at high speeds. Hard disc drives are commonly used as storage media in NAS devices due to their high capacity and reliability.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The on-premises segment is estimated to witness significant growth during the forecast period. The Network-Attached Storage (NAS) market is experiencing significant growth due to the increasing adoption of smart gadgets, such as 3D smart glasses and augmented reality (AR) and virtual reality (VR) devices, which generate large amounts of unstructured data. Big Data and digitalization are driving the need for advanced data storage solutions, including NAS, in various industries, such as telecommunications, IT-enabled services, and digital media content. Performance issues with traditional storage solutions, such as Storage Area Networks (SAN) and Direct Attached Storage (DAS), have led organizations to consider NAS as an alternative.
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The on-premises segment accounted for USD 16.77 billion in 2018. Hybrid cloud storage solutions, including NAS, are gaining popularity due to work-from-home and hybrid work policies. Midmarket NAS solutions cater to the needs of small-medium businesses, offering cost-effective and efficient data storage solutions. On-premises NAS solutions are preferred by large enterprises for data security and control, especially for handling sensitive data. Cellphones, computers, and 4G, 5G technologies also generate vast amounts of data, which necessitates the use of NAS for data backup and storage. The NAS ecosystem includes both consumer-level and enterprise-level solutions, with the latter catering to the needs of large organizations with massive data storage requirements. Hybrid cloud services are increasingly being adopted for data backup and disaster recovery, further fueling the growth of the NAS market.
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North America is estimated to contribute 30% 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.
Network Attached Storage (NAS) is a data storage solution that enables high-speed transport of digital data between connected devices using Gigabit Ethernet and advanced high-speed transport protocols. This solution is increasingly being adopted in various sectors, including video data storage for broadcasting environments, finance, healthcare, and High-Performance Computing (HPC). With the digital transformation and deployment of 5G, NAS is becoming essential for managing the increasing LAN traffic and ensuring data security in the era of data theft and server breaches. NAS solutions offer customized options for businesses, including scale-up NAS for growing storage needs and scale-out NAS for distributed data storage. NAS is also crucial for smart city projects, data centers, and ransomware recovery. Moreover, remote access and cloud platforms facilitate seamless integration of NAS with digital data workloads, making it an indispensable component of modern IT infrastructure.
Our researchers analyzed the data with 2023 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.
The rising need for data backup and redundancy with increase in digital transformations is notably driving market growth. The global market is experiencing significant growth due to the increasing demand for reliable data storage solutions in the digital age. With the increasing reliance on digital data for various business operations, analytics, and customer engagement, the importance of secure and efficient data storage has become paramount. NAS systems offer a cost-effective and scalable solution for organizations to manage and access large volumes of data seamlessly. The proliferation of remote work and cloud computing has further amplified the demand for centralized storage solutions, enabling teams to collaborate effectively and access data from multiple locations. Additionally, the necessity for data redundancy to safeguard against data loss, whether from cyberattacks, hardware failures, or human errors, has driven businesses to adopt NAS solutions. These systems offer built-in backup features and data protection capabilities, making them an essential component of the digital transformation journey.
Furthermore, the integration of NAS with emerging technologies such as Augmented Reality (AR), Virtual Reality (VR), Big Data, Machine Learning, and Hybrid Cloud Services is expanding their applications in various industries, including Telecommunications, ITES, and Small-medium Businesses. The NAS ecosystem comprises Consumer-level, Enterprise-level, and Midmarket NAS solutions, catering to the diverse needs of different sectors. The integration of NAS with Smart Gadgets like 3D Smart Glasses, Cellphones, and Computers, and the advent of 4G and 5G networks, are expected to fuel the growth of the NAS market in the coming years. Digital media content creation and Digitalization are also driving the demand for NAS solutions to store and manage unstructured data. Thus, such factors are driving the growth of the market during the forecast period.
An increase in key development among vendors is the key trend in the market. The global market is witnessing intense competition among vendors, as they strive to differentiate their offerings. To maintain their market positions, companies are exploring new strategies, such as developing innovative technologies and forming strategic partnerships. For instance, in September 2022, QNAP Systems launched the QTS 5.0.1 NAS operating system, which enhances security, convenience, and performance. Key features of this latest version include secure RAID disk replacement, compatibility with Enterprise Self-Encrypting Drives (SED), and support for the Windows Search Protocol for NAS shared folders. As the use of Smart Gadgets, 3D Smart Glasses, Augmented Reality (AR), and Virtual Reality technologies continues to grow, the demand for NAS solutions to manage Big Data, Unstructured Data, and Digital Media Content is increasing. Performance issues have become a major concern for businesses adopting Server Message Block (SMB) and Network File System (NFS) protocols. To address these challenges, vendors are offering Hybrid Cloud Storage solutions, including Direct Attached Storage (DAS) and Storage Area Network (SAN) alternatives. Moreover, the shift towards remote work and Hybrid Work Policies due to the Digitalization trend has fueled the demand for On-Premises Data Storage Solutions. Telecommunications and Information Technology-Enabled Services (ITES) industries are major consumers of NAS, as they deal with vast amounts of data.
Moreover, with the advent of 4G and 5G networks, the need for reliable and secure Data Backup solutions is more critical than ever. In the consumer market, there is a growing demand for Consumer-level NAS and Enterprise-level NAS solutions for Small-medium Businesses (SMBs). Hybrid cloud services are gaining popularity, as they offer the benefits of both On-Premises and Cloud Storage. Midmarket NAS Solutions are increasingly being adopted to address the unique requirements of SMBs, offering scalability, flexibility, and cost-effectiveness. In conclusion, the NAS market is witnessing significant growth, driven by the increasing adoption of Smart Gadgets, AR/VR technologies, Big Data, and Digitalization. Vendors are focusing on innovation and partnerships to cater to the evolving needs of businesses and consumers, offering solutions that address performance issues, data security concerns, and the need for flexible and cost-effective storage options. Thus, such trends will shape the growth of the market during the forecast period.
The increasing incidences of data breach is the major challenge that affects the growth of the market. The Network Attached Storage (NAS) market is experiencing significant growth due to the increasing adoption of smart gadgets such as 3D smart glasses, Augmented Reality (AR), and Virtual Reality, which generate vast amounts of unstructured data. NAS devices provide an efficient solution for managing and storing this data, especially for industries dealing with Big Data, IoT, Digital Media Content, and Digitalization. However, performance issues have emerged as a concern, leading organizations to consider alternatives like Storage Area Networks (SAN) and Direct Attached Storage (DAS). NAS systems face challenges in delivering optimal performance, cyber security, particularly when handling large files and high-bandwidth applications. Moreover, the shift towards remote work and hybrid work policies due to the COVID-19 pandemic has increased the reliance on NAS devices for data storage and access. This trend has led to an increase in demand for Midmarket NAS Solutions that cater to the needs of small and medium businesses. The NAS ecosystem includes various components like Server Message Block (SMB) and Network File System (NFS), which facilitate file sharing and access across the network. The NAS market also caters to the demands of ITES, Telecommunications, and Information Technology-Enabled Services industries, which generate massive amounts of data daily. The integration of Hybrid Cloud Storage solutions and Data backup services has further expanded the market's scope. However, the increasing use of NAS devices for storing sensitive data raises concerns about data security. Cybercriminals often exploit weaknesses in network configurations, outdated software, and insufficient security protocols, putting critical data at risk.
However, organizations must prioritize security measures, including encryption, regular software updates, and comprehensive access controls, to mitigate these risks. The advent of 4G and 5G networks, Cellphones, and Computers have made it easier to access data from anywhere, making NAS devices an essential component of the digital infrastructure. The integration of Hybrid cloud services and Machine learning algorithms has further enhanced the capabilities of NAS devices, enabling advanced data backup and disaster recovery solutions. Consumer-level NAS and Enterprise-level NAS solutions cater to different market segments, with the latter offering advanced features and higher performance. Overall, the NAS market is poised for continued growth, driven by the increasing demand for efficient data storage and management solutions. Hence, the above factors will impede the growth of the market during the forecast period.
The market forecasting 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 market growth analysis strategies.
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.
Buffalo Americas Inc. - The company offers network attached storage solutions such as TeraStation 3010 series and TeraStation 6000 series.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key 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 network attached storage (NAS) market is experiencing significant growth due to the increasing demand for data storage solutions that offer high-speed transport protocols, such as gigabit Ethernet. NAS is becoming increasingly popular in various industries, including video data storage for broadcasting environments, finance, healthcare, high-performance computing (HPC), and cloud storage services like artificial intelligence, OneDrive, Google Drive, and Dropbox. The digital transformation and the adoption of network technologies are driving the growth of the NAS market. The deployment of 5G networks is also expected to boost the market, as NAS provides an ideal solution for handling the increased Lan traffic and ensuring data security in the era of data theft and server breaches. Customized NAS solutions, such as scale-up and scale-out NAS, are being adopted by organizations to meet their specific needs. NAS is also finding applications in smart city projects, data centers, and ransomware recovery. With the proliferation of digital data workloads on personal computers (PCs), enterprise desktops, smartphones, laptops, tablets, digital devices, laptops, gadgets, voice assistance, and consumer wearables, the demand for NAS is expected to continue to grow.
Industry Scope |
|
Report Coverage |
Details |
Page number |
141 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.5% |
Market growth 2024-2028 |
USD 17.37 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
7.7 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 30% |
Key countries |
US, China, UK, France, and Japan |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ASUSTeK Computer Inc., Buffalo Americas Inc., Buurst Inc., Cisco Systems Inc., D Link Corp., Dell Technologies Inc., Hewlett Packard Enterprise Co., Hitachi Ltd., Huawei Technologies Co. Ltd., Infortrend Technology Inc., International Business Machines Corp., NetApp Inc., NETGEAR Inc., Panasas Inc., QNAP Systems Inc., Seagate Technology LLC, StorCentric Inc., Synology Inc., Thecus Technology Corp., and Western Digital Corp. |
Market dynamics |
Parent market analysis, Market 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 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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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Deployment
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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