Storage Area Network (SAN) Market by Component, Technology and Geography - Forecast and Analysis 2023-2027

Storage Area Network (SAN) Market Size 2023-2027

The Storage Area Network (SAN) Market size is estimated to increase by USD 24.56 billion and grow at a CAGR of 13.94% between 2022 and 2027. The market's growth hinges on various factors, notably the escalating requirement for data backup and redundancy, propelled by the digital transformation wave. Furthermore, the surge in demand from Small and Medium Enterprises (SMEs), coupled with the burgeoning usage of e-commerce platforms, fuels market expansion. SAN, functioning as an integrated network of storage devices shared among multiple servers or computers, offers a communal reservoir for storage capacity. This architecture enables any computer or system within the network to access the SAN seamlessly. However, the market confronts challenges such as cybersecurity vulnerabilities, limited awareness regarding SAN functionalities, and deployment complexities attributed to the intricate integration within SAN systems. Overcoming these challenges demands concerted efforts to enhance cybersecurity measures, raise awareness levels, and streamline the integration process to ensure seamless SAN deployment and optimal performance in meeting evolving storage needs amid digital advancements.

What will be the Size of the Storage Area Network (SAN) Market During the Forecast Period?

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Market Segmentation

This market report extensively covers market segmentation by component (hardware, software, and services), technology (fiber channel, fiber channel over ethernet, InfiniBand, and iSCSI protocol), and geography (North America, Europe, APAC, South America, and 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 Component

The market share growth by the hardware segment will be significant during the forecast period. The hardware segment can be referred to as a collective name used for the physical components of a device (electronic device). Storage area network (SAN)  connectivity comprises hardware, software, and services.

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The hardware segment was valued at USD 6.59 billion in 2017 and continued to grow until 2021. One of the main functionalities of the hardware segment is that it interconnects storage devices and servers, including fiber channels. Some of the key components in hardware include hubs, switches, gateways, directors, and routers. Hence, the rising demand for data backup and fast networking is expected to drive the growth of this segment, which in turn will drive growth during the forecast period.

By Technology

New product launches by several vendors in the market are expected to drive the growth of the fiber channel segment during the forecast period.  A fiber channel can be defined as a high-speed network technology that is used to interconnect servers to data storage area networks.  One of the key functionalities of fiber channels is the management of high-performance disk storage for applications on many corporate networks.  FC technology is crucial for the implementation of SAN and it facilitates connectivity as per the requirements of end-users. FC SAN is a type of fiber channel that supports multiple servers to access network storage devices. Several vendors are introducing new variants of FC SAN. For instance, in February 2022, Broadcom (Brocade) launched its end-to-end Gen 5 Fibre Channel SAN connectivity support for EMC VMAX boxes. Hence, such initiatives are expected to drive the growth of this segment, which in turn will drive the market growth during the forecast period.

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 elaborately explained the regional trends and drivers that shape the market during the forecast period. One of the main factors for the significant growth of the global market in North America is the factors such as the potential benefits, such as low power consumption and improved write speed, resulting in the increased adoption of SAN solutions across small and medium scale industries. Factors such as the rising number of data centers being set up in North America are leading to the increasing demand for storage devices. Hence, such factors are expected to drive the storage area network (SAN) market growth in the region during the forecast period.

Market Dynamics and Customer Landscape

In the realm of data storage, Server Service Area Network (SAN) solutions stand out for their reliability and efficiency, offering low upgradation cost compared to traditional infrastructure. These SANs are integral for organizations dealing with vast amounts of data generated from data-intensive applications and big data analytics. They play a crucial role in supporting emerging technologies like machine learning, ensuring swift retrieval, and seamless storage in cloud computing environments.

SANs provide dynamic failover protection and optimize I/O performance, making them ideal for enterprise settings where uninterrupted operations are paramount. Integration service are essential for deploying SAN-based storage arrays, with consulting services and training available to support implementation. Moreover, ongoing support services ensure the smooth functioning of SAN infrastructure.

These solutions cater to various sectors, including High-Performance Computing (HPC), where high initial costs can be mitigated through efficient SAN deployment. However, stakeholders must navigate trade regulations and conduct production analysis to optimize SAN utilization. As enterprises increasingly adopt hyper scale architectures, SANs remain a cornerstone for reliable management and storage infrastructure.

Key Market Driver

One of the key factors driving the market growth is the rising need for data backup and redundancy due to the surge in digital transformation. As a result, SAN solutions have a huge potential for growth due to the increasing demand for backup and storage across end-user industries, such as healthcare, IT, telecom, banking, financial services, and insurance (BFSI). Some key advantages of SAN solutions include enhancing storage, backup, and redundancy solutions and services. Hence, such applications are expected to drive market growth during the forecasting period.

Significant Market Trends

A key factor shaping the Market growth is the surge in digital transformation. There is a rising transformation in business operations among enterprises with the help of digital technology to streamline their business processes, enhance customer reach, reduce risks, and improve business efficiency.

Enterprises are modernizing their data centers with software-defined solutions to address the needs of huge volumes of machine-critical workloads due to advanced technologies such as AI, machine learning (ML), and IoT. Hence, SAN solutions can manage the bandwidth requirements better when compared to WAN. Hence, it is expected that the demand for SAN solutions to increase significantly which in turn will drive the market growth during the forecast period.

Major Market Restrain

Cyber security challenges are one of the key challenges hindering the SAN Market growth. Some of the key industries, such as BFSI and healthcare, are very prone to cyber security attacks and find it challenging to protect their sensitive information, such as that related to financial transactions and the personal information of customers. As a result, several data protection agencies, such as the General Data Protection Regulation (GDPR) in the EU, are enforcing regulations on enterprises to ensure the protection of customer data.

Failure to comply with such security standards can lead to data breaches. For instance, in March 2023, Western Digital Corp. witnessed a network security incident in which hackers stole around ten terabytes of data from the company, including that related to customer information. Hence due to the increasing adoption of IoT and other digitization techniques across industries, the chances of data breaches are high which can significantly hinder the 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 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 Storage Area Network (SAN) 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.

Arista Networks Inc: The company offers storage area networks such as Arista Networks with the 7500R datacenter switch.

ATTO Technology Inc: The company offers storage area networks such as ATTO Xtend SAN.

Broadcom Inc: The company offers storage area networks such as Brocade Fibre Channel.

The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:

• Cisco Systems Inc.
• Citrix Systems Inc.
• DataCore Software Corp.
• Dell Technologies Inc.
• Fujitsu Ltd.
• Hewlett Packard Enterprise Co.
• Hitachi Ltd.
• Infinidat Ltd.
• IntelliMagic BV
• International Business Machines Corp.
• Lenovo Group Ltd.
• Marvell Technology Inc.
• NEC Corp.
• NetApp Inc.
• Oracle Corp.
• StoneFly
• Nutanix Inc.

Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors 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. 

• Component Outlook 
  • Hardware
  • Software
  • Services
• Technology Outlook
  • Fiber channel
  • Fiber channel over ethernet
  • Infiniband
  • iSCSI protocol
• Geography Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The market is witnessing unprecedented growth driven by the burgeoning data generated from organizations worldwide. Data-intensive applications, fueled by trends like big data analytics and artificial intelligence, necessitate robust storage infrastructure with advanced security features. Flash-based storage and SDS solutions are becoming increasingly pivotal in meeting the demands of cloud computing and hybrid IT environments. Organizations are focusing on scalable and agile storage solutions to navigate cost constraints and budgetary limitations. The proliferation of digital devices has led to a data explosion, making real-time data retrieval and mission-critical operations paramount. Strategic objectives revolve around scalable storage solutions, hybrid cloud architectures, and data mobility.

With the rise of cloud-first strategies, interoperability and compatibility issues are being addressed through innovative SAN-based storage arrays and advanced analytics technologies. In this landscape, SAN service providers play a crucial role in offering integration, consulting, training, and support services tailored to meet diverse needs across industries such as Energy and Utility, Military and Defence, and beyond. The market is characterized by hyper-scale deployments, requiring efficient infrastructure development and dynamic failover protection. As the demand for SAN solutions continues to surge, stakeholders navigate challenges such as bandwidth limitations, trade regulations, and high initial costs while embracing technological trends to propel the industry forward.

Moreover, the SANs market is witnessing remarkable growth, driven by the increasing demand for robust data security, data availability, and data integrity solutions. Flash storage arrays are becoming increasingly popular due to their high performance and reliability, attracting various industry participants. While operating costs remain a concern, organizations are embracing cloud adoption to mitigate expenses and enhance scalability. Legacy system integration poses challenges, but innovations like Hypercscale server SAN solutions are streamlining IT and telecom operations. Products like FlexPod and Splunk SmartStore are gaining traction, catering to the surging Internet traffic and the need for efficient data replication and data synchronization. Hybrid IT models are becoming prevalent, facilitating seamless integration and offering reliable estimations for future growth.

Furthermore, technologies such as Direct-Attached Storage system, NAS, and storage virtualization are crucial in optimizing I/O performance and managing structured and unstructured data effectively. Integration services and consulting services play a vital role in deploying scalable solutions, especially in hyper-scale environments. Fibre Channel over Ethernet and Fibre Channel constructions are enabling high-speed data transfer, while LAN architectures support efficient networking. Advanced data security algorithms are deployed in data centers and clusters, safeguarding critical information. IT investment continues to grow, driven by the need for reliable production analysis and the management of quantitative units and volumes in units. High-Performance Computing (HPC) solutions are crucial for handling complex tasks, further driving the demand for SANs in various sectors.

Storage Area Network (SAN) Market Scope
Report Coverage	Details
Page number	161
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 13.94%
Market growth 2023-2027	USD 24.56 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	12.98
Regional analysis	North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution	North America at 37%
Key countries	US, Canada, China, UK, and Germany
Competitive landscape	Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks
Key companies profiled	Arista Networks Inc., ATTO Technology Inc., Broadcom Inc., Cisco Systems Inc., Citrix Systems Inc., DataCore Software Corp., Dell Technologies Inc., Fujitsu Ltd., Hewlett Packard Enterprise Co., Hitachi Ltd., Infinidat Ltd., IntelliMagic BV, International Business Machines Corp., Lenovo Group Ltd., Marvell Technology Inc., NEC Corp., NetApp Inc., Oracle Corp., StoneFly, and Nutanix Inc.
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 forecast 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 vendors
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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