Next-generation Data Storage Market by Application, Storage System and Geography - Forecast and Analysis 2023-2027

Next-generation Data Storage Market Size 2023-2027

The next-generation data storage market size is forecast to increase by USD 26.59 billion at a CAGR of 7.93% between 2022 and 2027. Market expansion hinges on various factors, notably the escalating demand for IoT and big data operations, spurred by advancements in technology and the proliferation of interconnected devices. With the exponential growth in digital data volume, businesses are increasingly reliant on sophisticated data management solutions to extract actionable insights and drive informed decision-making processes. Moreover, the widespread adoption of software-as-a-service (SaaS) applications by enterprises underscores the shift towards cloud-based solutions for enhanced flexibility and scalability. As organizations seek to leverage data-driven strategies to gain a competitive edge, there's a growing imperative to invest in robust infrastructure and analytics tools capable of processing and analyzing vast datasets efficiently. This confluence of factors is driving market growth, fueling innovation, and reshaping the landscape of data management and analytics across industries.

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

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Market Segmentation

In the market, mobile devices, smart wearables, and connected devices are driving the demand for advanced data production and storage solutions. With the advent of 5G technology, the volume of data being generated is expected to increase exponentially. This data needs to be securely stored and processed in real-time for applications in e-commerce, smart technologies, and automated systems. Cloud storage and data centers are the preferred options for businesses seeking scalable and cost-effective solutions. Mobile payments and cloud computing require high-speed, low-latency storage solutions like Flash memory and HDDs from non-volatile manufacturers. Big data, analytics, AI, and machine learning require large-scale, distributed storage systems. However, the increasing use of cloud storage and data centers also poses new challenges, such as security breaches and cyber threats.

This market report extensively covers market segmentation by application (SAN, NAS, and DAS), deployment (on-premise and cloud), and geography (North America, Europe, APAC, South America, and the 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 Application

The market share growth by the SAN segment will be significant during the forecast period. In the market, businesses seek flexible solutions to manage increasing data volumes and ensure data transfer, protection, and backup. High-speed data storage through Storage Area Networks (SANs) enables on-premise and cloud environments to offer better performance and control compared to Direct-Attached Storage (DAS) and Network-Attached Storage (NAS). Enterprises, particularly in sectors like retail, healthcare, telecom, and IT, require such solutions for their databases and critical applications. SANs offer improved data availability and flexibility, making them a preferred choice against DAS and NAS.

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The SAN Segment showed a gradual increase in the market share of USD 29.04 billion in 2017. In today's digital landscape, data security and compliance are paramount, with threats such as ransomware attacks, cyber threats, distributed denial-of-service, and malware posing significant risks. SANs, hybrid, and cloud storage solutions provide enhanced data protection and disaster recovery capabilities. IT specialists oversee the installation structure of these storage systems, ensuring data security and compliance with industry regulations. SANs are essential for industries dealing with sensitive data, such as electronic health records in healthcare, telemedicine, and mobile payments. Cloud computing, big data, AI, machine learning, social media, and other data-intensive applications also benefit from these advanced storage solutions. Thus, such factors are expected to boost the growth of the market in focus during the forecast period.

By Deployment

The market is characterized by advanced on-premises solutions that utilize high-speed connectivity technologies like Fibre Channel, InfiniBand, and Ethernet with RDMA to enhance data transfer rates, minimize latency, and boost I/O performance. These innovations cater to the increasing demands of sectors such as BFSI, manufacturing, and consumer goods for faster data processing in tablets, laptops, and FOBS systems. Next-generation storage solutions also prioritize data security in the face of hacktivism and state-sanctioned cyberwarfare. They offer features like advanced encryption, access controls, data integrity checks, and compliance with regulatory standards. Flash memory and HDDs from non-volatile manufacturers are key components of these solutions. PAC Storage, a leading US-based provider, is at the forefront of this market evolution. Thus, such factors are expected to boost the growth of the segment and the global market during the forecast period.

By Region

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North America is estimated to contribute 32% 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. The market in North America is experiencing significant growth due to the adoption of flexible storage solutions among Small and Medium Enterprises (SMEs). These businesses require data transfer, protection, and backup solutions with high-speed capabilities to remain competitive. The upcoming 5G technology is expected to boost the demand for cloud storage, particularly among telecom companies. SMEs, with dynamic needs and limited resources, are under constant pressure to upgrade and implement advanced storage systems, such as direct-attached storage, network-attached storage, and storage area networks. IT specialists are essential for installation structures, ensuring data security and compliance with regulations in sectors like retail, healthcare, and finance.

However, businesses must also consider potential threats, including ransomware attacks, cyber threats, and data breaches, necessitating robust data security measures. Key sectors like healthcare, with electronic health records and telemedicine, and finance, with mobile payments and big data, are particularly vulnerable to these risks. AI, machine learning, social media, and other data-intensive applications further increase the need for reliable, high-speed storage solutions. Such factors will increase the market growth in this region during the forecast period.

Market Dynamics

Distributed denial-of-service attacks and healthcare data breaches have become common occurrences. Therefore, ensuring data security and privacy is a critical consideration in next-generation data storage solutions. In conclusion, the market is characterized by the need for high-speed, low-latency, scalable, and secure storage solutions to support the growing volume and variety of data being generated by mobile devices, smart wearables, and connected devices. Cloud storage, data centers, Flash memory, HDDs, and distributed storage systems are key technologies driving the market.

Key Market Driver

The growing demand for IoT and big data operations is a driving trend in the market.  The Next-generation Data Storage Market is poised for expansion due to the projected 40 billion Internet-of-Things (IoT) devices by 2022. IoT trends, including connected cars, homes, and cities, will generate massive data volumes. Sectors like manufacturing, utilities, retail, automotive, and social media utilize IoT, necessitating energy-efficient networks of smart nodes for constant connectivity. This reliance on IoT increases the demand. 

Further, advanced technologies, such as Flash memory and HDDs from non-volatile manufacturers, offer reduced latency for devices like tablets and laptops. Furthermore, systems like FOBS and PAC Storage (US) are crucial in sectors like BFSI and manufacturing, ensuring data security amidst concerns of hacktivism and state-sanctioned cyberwarfare. Thus, such factors are expected to drive market growth during te forecast period. 

Significant Market Trends

The software-defined storage is a key trend in the market. In the market, the demand for advanced solutions is escalating due to the increasing need for efficient data management in the face of cyber threats such as hacktivism and state-sanctioned cyberwarfare. Next-generation data storage technologies, like Software-Defined Storage (SDS), are gaining popularity for their ability to increase flexibility, scalability, and automation in enterprise storage infrastructures. SDS separates software services, including data administration and safety, from hardware services, enabling resource pooling, abstraction, and automated management.

Further, key players in the market include manufacturers of Flash memory and HDDs. The adoption of SDS is driven by the need for low latency in applications used in sectors like BFSI, manufacturing, and consumer goods. Devices such as tablets and laptops also require fast data access, making SDS an attractive option. Furthermore, the on-premises storage market is expected to grow, with PAC Storage (US) being a significant player. Future developments in SDS may include the integration of Flash memory in FOBS systems to reduce latency and improve overall performance. Thus, such factors are expected to fuel market growth during the forecast period. 

Major Market Restrain

The high operating expenses of companies are a major challenge in the market. The Next-Generation Data Storage Market is subject to significant expenses due to the need for advanced research and development in creating customized specifications. This industry is influenced by various factors, including hacktivism and state-sanctioned cyberwarfare, which can impact the demand for specific storage solutions. Flash memory and HDDs, manufactured by non-volatile memory suppliers, are key components in tablets, laptops, and FOBS systems.

Furthermore, the BFSI sector, manufacturing sector, and consumer goods sector drive the demand for on-premises storage solutions, while cloud service providers face cyclical demand patterns due to the success of devices like smartphones and tablet PCs. PAC Storage (US) and other vendors must balance production with revenue to mitigate the effects of unexpected changes in demand, which can lead to oversupply or shortage situations, affecting latency and overall manufacturing costs. Thus, such factors are expected to impede market growth during the forecast period. 

Market Customer Landscape

The market industry 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 market forecasting report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

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.

Cloudian Inc. - The company offers next-generation data storage, such as Cloudian HyperStore.

DataDirect Networks Inc. - The company offers next-generation data storage such as the DDN A300 Series.

Dell Technologies Inc. - The company offers next-generation data storage such as Dell PowerMax NVMe, Dell PowerStore, and Dell EMC Unity XT. These arrays are all-flash and use NVMe drives for high performance and low latency.

The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• Drobo Inc.
• Furukawa Electric Co. Ltd.
• Hewlett Packard Enterprise Co.
• Hitachi Ltd.
• Inspur Group
• International Business Machines Corp.
• Micron Technology Inc.
• NetApp Inc.
• Netgear Inc.
• Nutanix 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. 

• Application Outlook 
  • SAN
  • NAS
  • DAS

• Deployment Outlook
  • On-premise
  • Cloud

• 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:

In the market, technologies such as DATATA, PRODUCTION, MOBILE DEVICES, and CONNECTED DEVICES are driving innovation. Smart technologies like Smart Storage, Torchage, and Storage are revolutionizing the way data is managed and accessed. These advanced storage solutions offer increased capacity, faster access, and improved security. Devices like 5G Technology enable real-time data transfer and processing, making next-generation data storage an essential component of the digital economy. The demand for data-intensive applications and the exponential growth of data require new storage solutions. Technologies like Cloud Storage, Serverless Storage, and Object Storage provide scalability and flexibility. Secure storage solutions like Encrypted Storage and Secure Connect offer data protection.

Further, the market also includes emerging technologies like Blockchain Storage and DNA Storage. These technologies offer unique advantages like immutable data and high data density, respectively. In summary, the next-generation data storage market is witnessing significant growth due to the increasing demand for data storage and management solutions. Technologies like Smart Storage, 5G Technology, and Blockchain Storage are leading the way in this rapidly evolving market.

Market Scope
Report Coverage	Details
Page number	163
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 7.93%
Market growth 2023-2027	USD 26.59 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	7.42
Regional analysis	North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution	North America at 32%
Key countries	US, China, Japan, UK, and France
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	Cloudian Inc., DataDirect Networks Inc., Dell Technologies Inc., Drobo Inc., Furukawa Electric Co. Ltd., Hewlett Packard Enterprise Co., Hitachi Ltd., Inspur Group, International Business Machines Corp., Micron Technology Inc., NetApp Inc., Netgear Inc., Nutanix Inc., Oracle Corp., Pure Storage Inc., Quantum Corp., Samsung Electronics Co. Ltd., Scality Inc., Western Digital Corp., and Toshiba Corp.
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.

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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 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 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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