Server Storage Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, China, France, UK, Germany - Size and Forecast 2024-2028

Server Storage Market Forecast 2024-2028 

The server storage market size is projected to increase by USD 87.66 billion, at a CAGR of 27.06% between 2023 and 2028. Market growth hinges on various factors: rising demand for edge computing, increased investments in data centers, and escalating interest in artificial intelligence (AI). These elements collectively propel the market forward, reflecting evolving technological landscapes and the expanding needs of industries reliant on advanced computing solutions.

The market growth and forecasting report includes key player's detailed analyses of the competitive landscape of the market and information about 20 market companies, including Alphabet Inc., Amazon.com Inc., Apple Inc., Cisco Systems Inc., DataDirect Networks Inc., Dell Technologies Inc., Gigabyte Technology Co. Ltd., HCL Technologies Ltd., Hewlett Packard Enterprise Co., Hitachi Ltd., Huawei Technologies Co. Ltd., International Business Machines Corp., Jair Network and Services Pvt. Ltd., Microsoft Corp., NetApp Inc., Nutanix Inc., NVIDIA Corp., Pure Storage Inc., Scale Computing, StorMagic, TATWA Technologies Ltd., and velia.net Internetdienste GmbH. Additionally, Cloud Software Group Inc. company offers solutions which allow advanced storage features to be exposed on storage targets that support advanced features such as thin provisioning, VDI snapshots, and fast cloning.

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

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Market Dynamics 

The market continues to thrive globally, catering to businesses across every country with diverse applications and organizations seeking enhanced capacity and scalability. Virtualization technologies are reshaping the landscape, optimizing storage area network and network attached storage solutions. The rising prominence of solid-state drives is revolutionizing data access speeds, while traditional mediums like tape maintain relevance in backup strategies. Efficient storage management is key amid burgeoning memory demands. Amidst this dynamic scenario, the servers market witnesses a surge in demand for storage systems, emphasizing the pivotal role of storage servers in modern IT infrastructures. Our researchers analyzed the market research and growth data with 2023  as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage. 

Market Driver

Increasing demand for high-performance computing in various industries is the key factor driving the market. High-performance computing (HPU) in server storage is witnessing a surge in demand across various industries, including healthcare, finance, research, and artificial intelligence. These sectors heavily rely on robust computing capabilities for tasks like analysis, simulations, and modeling. In healthcare, the rise of personalized medicine and genome research necessitates substantial computing power for analyzing vast datasets. Similarly, financial institutions grapple with escalating data volumes due to algorithmic trading, risk modeling, and fraud detection, all demanding real-time data processing.

Thus, to address these needs, solutions like International Business Machines Corp.'s Spectrum Scale are employed for high-performance data management, catering to industries with intensive computational requirements. This trend is poised to propel the growth of the servers market and storage systems market during the forecast period. Moreover, the integration of virtualization, backup, scalability, and diverse storage technologies like storage area network, network attached storage, solid-state drive, and tape further enhances storage management capabilities. As businesses and organizations continue to prioritize memory and the market's trajectory remains promising.

Market Trends

Advancement to support AI, Machine Learning, and deep learning is the primary market trend. Data is the most important aspect of the enterprises' decision-making process, and their success depends on how effectively they analyze the data. Align with market trends and analysis, enterprises are increasingly implementing new data analysis models using advanced technologies such as AI, big data, ML, and DL on huge volumes of datasets. However, the current server storehouse estate of many enterprises and center service providers is not enough to handle such heavy and complex workloads.

Moreover, market players are introducing server storehouses embedded with field-programmable gate arrays (FPGAs), application-specific integrated circuits (ASICs), and GPUs to match the computing requirements of high-performance computing (HPC) workloads. Thus, such advancements in server storehouse designs by different companies will fuel the growth of the market in focus during the forecast period.

Market Restrain

Rising cybersecurity threats is a challenge that affects the market. The threat of cyberattacks has increased significantly over the past few years. Enterprises across different industry verticals are concerned about the security of sensitive information, such as customers' personal details, financial information, and the organization's intellectual property. Furthermore, new data protection regulations, such as the General Data Protection Regulation (GDPR), are enforcing stringent regulations on enterprises to protect sensitive data.

Further, ransomware is a kind of malicious software that disables access to computers until a ransom amount is paid to the hacker. Thus, enterprises must ensure security features, such as data encryption at rest, motion, and use; regulatory compliance; multi-factor authentication; and securing personally identifiable information (PII) before deploying storehouse systems to prevent such attacks. Thus, such factors have increased the need for effective data security software and solutions, which has further increased the cost and overall operational expenses for enterprises. Hence, such factors are expected to impede the growth of the market during the forecast period.

Market Segmentation 

By End-user

The market share by the large enterprises segment will be significant during the forecast period. Large enterprises play a pivotal role in shaping the dynamics of the market. This market segment, characterized by its scale, complexity, and diverse requirements, constitutes a significant portion of the overall server storage landscape. The unique needs and challenges faced by large enterprises drive the innovation and evolution of server storage solutions, making it a crucial focal point for industry players. 

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The large enterprises segment showed a gradual increase in the market share of USD 7.65 billion in 2018. One of the primary reasons for server storage adoption among large enterprises is the growth of information. As digital transformation, big data analytics, and the Internet of Things (IoT) become more commonplace, enterprises are dealing with an unprecedented amount of information. This means that advanced server storage solutions must be able to handle large volumes of information while ensuring availability, security, and information integrity. Thus, such factors under the large enterprises segment will fuel the growth of the market during the forecast period.

Market Segmentation By Type

Enterprise server storage serves as a central hub for business information, facilitating sharing, management, and protection across interconnected systems. It caters to heavy workloads of vital business information. Three primary types include SAN, NAS, and DAS. SAN offers high-speed block-level storage for networked servers, enabling multiple connections to one storage device. NAS enables file sharing among various clients, enhancing storage capacity for home or office networks. DAS, initially popular, now yields to SAN and NAS due to their scalability in handling vast information volumes. These factors within the enterprise segment drive growth in the market.

Regional Overview

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North America is estimated to contribute 37% to the growth of the global market during the forecast period. 
Technavio's analysts have provided extensive insight into the market forecast, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. Investments in North America are propelled by the rising adoption of high-performance computing (HPC) systems in industry verticals, such as government, BFSI, and healthcare. In addition, the healthcare sector in the region has embraced cloud adoption, and many healthcare organizations have moved their data to multi-tenant data center facilities, thereby contributing to the demand in the region.

Furthermore, increasing investments by enterprises are expected to provide significant growth opportunities for market players in the region during the forecast period. Further, the demand in North America will be high during the forecast period, primarily due to the exponential growth in traffic from both enterprises and individual consumers. Such factors are expected to increase the need for effective management and investments in new ata center facilities, thereby driving the demand in the region during the forecast period.

Market Customer Landscape

The market forecasting report includes the adoption lifecycle of the market research and growth, 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 and trends strategies.

Global Market Customer Landscape

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.

DataCore Software Corp.: The company offers solutions that maximizes the collective value from storage infrastructure by delivering fast, uninterrupted data access, while reducing costs and increasing flexibility and scalability.

Market analysis and report of 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 research report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018-2028

• End-user Outlook
  • Large enterprises
  • SMEs

• Type Outlook
  • Enterprise
  • Hyperscale

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

Market Analyst Overview:

The market is experiencing dynamic growth driven by various factors, including the rapid development of technology and the escalating demand for high-speed Ethernet. As the volume of data traffic continues to rise, fueled by cloud-based services and the proliferation of AI/ML applications, the need for robust data storehouse solutions becomes increasingly critical. Solid-state drives are gaining prominence in the market, offering superior performance and reliability compared to traditional storehouse mediums. Additionally, the emergence of container-based storage and software-defined storehouse solutions is reshaping the market, providing enhanced flexibility and scalability for IT departments managing unstructured data.

Further, the global data storage market is witnessing fierce competition among competitors such as Hitachi Vantara, IBM Security, and Google Cloud, each vying for a larger share of the server market revenue. As end-user analysis reveals diverse industry demands across the commercial, industrial, and government sectors, companies are tailoring their offerings to meet specific industry requirements. With insights from reports like the IDC Report and X-Force Threat Intelligence Index, organizations are addressing critical concerns such as data corruption and cybersecurity to ensure the integrity and security of their storage systems. From Lifepoint Health to Hackensack Meridian Health, various sectors including healthcare, education, retail, media and entertainment, and logistics are leveraging advanced storage mediums and cloud storage solutions to meet their industry needs.

Market Scope
Report Coverage	Details
Page number	164
Base year	2023
Historic period	2018-2022
Forecast period	2024-2028
Growth momentum & CAGR	Accelerate at a CAGR of 27.06%
Market Growth 2024-2028	USD 87.66 billion
Market structure	Fragmented
YoY growth 2023-2024(%)	26.58
Regional analysis	North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution	North America at 37%
Key countries	US, China, France, UK, and Germany
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	Alphabet Inc., Amazon.com Inc., Apple Inc., Cisco Systems Inc., Cloud Software Group Inc., DataCore Software Corp., DataDirect Networks Inc., Dell Technologies Inc., Gigabyte Technology Co. Ltd., HCL Technologies Ltd., Hewlett Packard Enterprise Co., Hitachi Ltd., Huawei Technologies Co. Ltd., International Business Machines Corp., Jair Network and Services Pvt. Ltd., Microsoft Corp., NetApp Inc., Nutanix Inc., NVIDIA Corp., Pure Storage Inc., Scale Computing, StorMagic, TATWA Technologies Ltd., and velia.net Internetdienste GmbH
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, 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 report forecast during the forecast period
• Detailed information on factors that will drive the growth of the market  between 2024 and 2028
• Precise estimation of the market  size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across North America, Europe, APAC, South America, and Middle East and Africa
• Thorough market analysis and report of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of Industry companies

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