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The software-defined storage (SDS) market size is forecast to increase by USD 105.07 billion at a CAGR of 37.02% between 2023 and 2028. The market is experiencing significant growth due to several key trends. The rise in cloud adoption is driving the demand for SDS solutions as organizations seek to reduce costs and improve flexibility. Another trend is the rise of high-performance computing (HPC) and the Internet of Things (IoT), which require large amounts of data processing and storage. New technology, such as FalconStor's SDS offerings, is helping to address these demands with high-performance, cost-effective solutions. Market news indicates that market leaders are investing heavily in SDS to meet the evolving needs of IT organizations. However, high costs associated with SDS implementation remain a challenge for some organizations, making it essential for companies to offer affordable and scalable solutions. In summary, the SDS market is poised for continued growth, driven by cloud adoption, HPC, IoT, and the need for cost-effective, high-performance storage solutions.
Software-defined storage (SDS) is an essential component of digital transformation in various sectors, including the BFSI sector and public sector, driven by the exponential data growth and the need for cost-effective, flexible, and efficient data management solutions. SDS enables automating process controls through AI and machine learning, enhancing data protection, and ensuring data security through encryption. SDS is increasingly being adopted by enterprises for data center solutions, cloud storage, and high-performance computing (HPC) applications. Container-native SDS solutions are gaining popularity due to their ability to support containerized applications. Excelero and FalconStor are some of the leading SDS companies providing innovative solutions.
Furthermore, the digital economy is driving the demand for SDS, with businesses in emerging economies adopting SDS to analyze customer data and gain insights for better decision-making. The public sector is also leveraging SDS for staff productivity and efficient service delivery. The cost savings and flexibility offered by SDS make it an attractive option for businesses looking to optimize their IT infrastructure. Data protection and security are critical considerations, and SDS solutions offer strong features to address these concerns.
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 BFSI segment is estimated to witness significant growth during the forecast period. The market is experiencing significant growth due to the increasing data storage requirements of IT organizations, particularly in sectors such as High-Performance Computing (HPC) and the financial services industry (BFSI). With the influx of Internet users and the Internet of Things (IoT) generating vast amounts of data, there is a pressing need for scalable and efficient storage solutions. FalconStor and other market leaders are responding to this demand by investing in advanced data centers and cloud infrastructure. New regulations, such as the General Data Protection Regulation (GDPR), necessitate strong data protection measures, further fueling market growth. Additionally, emerging technologies like artificial intelligence (AI), machine learning (ML), deep learning (DL), and blockchain are generating massive data volumes, necessitating SDS solutions for efficient data management.
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The BFSI segment was valued at USD 2.46 billion in 2018 and showed a gradual increase during the forecast period.
North America is estimated to contribute 37% 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.
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The market in North America is currently the largest and is projected to maintain its dominance during the forecast period. The region's market growth can be attributed to the increasing demand for data center connectivity networks from IT organizations, particularly in the context of the imminent launch of 5G. Telecommunication service providers are actively working towards commercializing 5G services, which is expected to boost the demand for software-defined solutions in North America. Additionally, sectors such as healthcare are adopting advanced technologies like AI and generating large volumes of data, necessitating the use of SDS for efficient data management. FalconStor, one of the market leaders, is well-positioned to cater to this demand with its high-performance storage solutions. Market News indicates that the Internet of Things (IoT) is another significant growth area for SDS in North America, as the increasing number of IoT devices generates vast amounts of data that require efficient storage and management solutions.
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 surge in cloud adoption is the key driver of the market. Software-defined storage (SDS) is an essential component of cloud computing, which enables organizations to manage data storage through software, rather than relying on traditional hardware.
Furthermore, the digital economy and digital transformation have led to exponential data growth, particularly in emerging economies, necessitating efficient and cost-effective storage solutions. SDS offers enterprises the ability to address these challenges by simplifying storage management processes and improving scalability and efficiency.
The rise of hyper-converged technology is the upcoming trend in the market. Software-defined storage (SDS) is a pivotal component of the digital economy, fueling the digital transformation in enterprises across the globe. With exponential data growth, the demand for efficient and scalable storage solutions has become imperative.
Furthermore, SDS, as part of the converged infrastructure, offers a software-defined approach to managing storage, enabling enterprises to decouple storage from hardware and optimize resource utilization. Emerging economies are expected to witness significant growth in SDS adoption due to the benefits of increased IT efficiency and reduced capital expenditures. Hyper-converged infrastructure, a type of SDS, consolidates storage, computing, and networking into a single system, providing centralized management and optimizing space and power consumption. This technology is particularly beneficial for small and medium-sized enterprises, streamlining IT operations and enhancing overall agility and efficiency.
The high costs associated with software-defined storage is a key challenge affecting the market growth. The digital economy and digital transformation have led to exponential data growth in enterprises, particularly in emerging economies. To address the challenges of storage consolidation and reduce capital expenditure (CAPEX) and operational expenditure (OPEX), companies in The market offer solutions such as hyper-converged infrastructure, primary storage, secondary storage, object storage, and cloud storage. Excelero and Exxact Corporation are notable players in this market.
However, enterprises face the challenge of purchasing multiple software-defined storage solutions based on their specific requirements, which can be costly. Some companies demand upfront licensing fees based on storage capacity, leading to potential losses if the solutions do not fully utilize existing infrastructure. Encryption is a crucial factor in SDS solutions to ensure data security.
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.
VMware Inc.: The company offers software-defined storage products, namely vSAN, Site Recovery Manager, and Virtual Volumes.
The market research and growth report 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.
Software-defined storage (SDS) is an innovative technology that enables businesses to manage and store data more efficiently in the digital economy. With exponential data growth and the increasing adoption of digital channels, SDS solutions have gained significant traction among enterprises, BFSI sector, public sector, and emerging economies. These solutions offer deployment flexibility, reliability, and scalability, making them an ideal choice for high-performance computing (HPC), artificial intelligence (AI), Internet of Things (IoT), and digital transformation initiatives. SDS solutions provide a single interface for managing on-premises data and cloud storage, automating process controls, and ensuring data protection and security. They offer cost savings by eliminating the need for traditional hardware and allowing businesses to deploy container-native software-defined storage.
Furthermore, data security is ensured through encryption, and data recovery is facilitated through seamless integration with data protection software. The market for SDS is expected to grow exponentially due to the increasing demand for cost-effective, scalable storage architecture that can handle unstructured data and meet the requirements of various industries, including HPC, BFSI, and public sector. Despite the benefits, security concerns remain a major challenge for SDS adoption. However, with continuous innovation and advancements in SDS technology, these challenges are being addressed, making SDS an essential component of the software-defined infrastructure in today's digital economy.
Market Scope |
|
Report Coverage |
Details |
Page number |
191 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 37.02% |
Market growth 2024-2028 |
USD 105.07 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
27.17 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 37% |
Key countries |
US, China, Japan, UK, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Avaya LLC, Broadcom Inc., Cisco Systems Inc., Citrix Systems Inc., DataCore Software Corp., DataDirect Networks Inc., Dell Technologies Inc., Fujitsu Ltd., Hewlett Packard Enterprise Co., Hitachi Ltd., Huawei Technologies Co. Ltd., International Business Machines Corp., Lenovo Group Ltd., Microsoft Corp., NetApp Inc., Nutanix Inc., Oracle Corp., Pure Storage Inc., Telefonaktiebolaget LM Ericsson, and VMware Inc. |
Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, 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 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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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 Component
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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