Next-generation Data Storage Market by Storage Type (DAS, NAS, SANs), Storage Medium, Architecture, End User (BFSI, Retail, Healthcare, Manufacturing, Government, IT and Telecom, Other End Users), and Geography - Global Forecast 2027

The Next-generation Data Storage Market is expected to grow at a CAGR of 10.1% from 2020 to 2027 to reach $56.7 billion by 2027 from $29.0 billion in 2020. Some of the key factors driving the market include explosive growth in digital data, significant growth of IoT, the proliferation of smartphones, tablets, and laptops, and increasing penetration of high-end cloud computing. The storage industry is expected to witness significant growth during the forecast period due to the deployment of next-generation storage to boost general databases for future use and optimize databases in verticals such as BFSI, healthcare, and government. Rapid developments in areas such as Big Data, cloud computing, and mobile services are expected to augment the growth of the market. Traditional data storage technologies are unable to handle the enormous volumes of data generated every day, whereas next-generation data storage, with its advantages such as better reliability, efficiency, and cost-effectiveness, can cater to the growing demand for data storage.

Market vendors are continually developing scalable and effective data storage infrastructure due to the exponential growth of data generated from the enterprise sector. Big Data analytics, coupled with cloud storage, enables next-generation data storage vendors to provide real-time access to information, thus enhancing customer experience.

Explosive Increase in Digital Data to Propel the Growth of the Next-generation Data Storage Market.

With the increase in internet users, the volume of digital data generated from digital platforms, including digital payments, websites, media & entertainment, IoT devices, and Artificial Intelligence (AI), is growing rapidly. This increase is propelling the demand for next-generation data storage, as It enables enterprises to store data and create databases, providing capabilities to analyze future business data. Furthermore, it also reduces data corruption and data loss and enables faster data recovery. The rapid adoption of AI in several countries has led to a massive increase in the digital data generated from activities such as customer service for banks, the use of robotics in manufacturing facilities and home automation, and decision-making in enterprises, boosting the demand for high data storage capacity. Major Artificial Intelligence users such as the U.S. and China are producing enormous volumes of data from artificial intelligence applications, boosting the data economy across the globe. All of these factors have led to the growing demand for next-generation data storage.

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Increasing Adoption of the IoT to Support the Growth of the Next-generation Data Storage Market.

The Internet of Things (IoT), being the latest emerging technology, generates massive data from connected devices such as home automation devices, smartphones, tracking devices, connected car applications, and social media, contributing to the rising demand for next-generation data storage to store and manage the huge volumes of data generated from these channels. Several industries are adopting IoT technology for industrial applications such as predicting equipment failure and crop yields, forecasting weather, and enabling autonomous driving, generating large volumes of sensitive data, driving the demand for next-generation data storage. Companies such as Hewlett Packard Enterprise, Huawei, Hitachi, IBM, and Dell Technologies are investing heavily in next-generation data storage technology to capture larger market shares in the now booming data storage market.

The Impact of COVID-19 on the Next-generation Data Storage Market.

The COVID-19 outbreak compelled companies and institutions to adopt remote working as a precautionary measure to contain the spread of the virus. Hence, most companies in various sectors, such as healthcare and education, have been providing their services electronically. There has been an influx in demand for cloud computing services as organizations adapt to remote work and people turn to online modes of entertainment. This shift has led to a rapid increase in the volume of data generated from various sources.

The overall impact of the COVID-19 pandemic on the market is expected to be moderate. Although there has been an increasing demand for data storage for managing the voluminous amount of data generated during this period, many small & medium businesses have started shutting down, either temporarily or permanently, hampering revenue growth in the next-generation data storage market. In 2020, revenues in the next-generation data storage market have declined. However, the market is expected to recover with a cumulative Y-o-Y growth of 9.2% in 2021.

Key Findings of the Next-generation Data Storage Market Study:

The Storage Area Networks (SANs) Segment to Dominate the Next-generation Data Storage Market.

Based on storage type, the next-generation data storage market is segmented into Direct Attached Storage (DAS), Network-Attached Storage (NAS), and Storage Area Networks (SANs). In 2020, the SANs segment is expected to account for the largest share of the next-generation data storage market. Storage Area Networks are mainly used for transferring sensitive data, files, and applications across data centers, large-scale enterprises, and small & medium enterprises. A SAN is used as a high-speed network for transferring data among multiple users directly attached to a server. SANs are currently in great demand because of their block protocols for transferring data among multiple servers and users at high speeds. The versatility of SANs has contributed to innovations in the processing and storage of digital information by incorporating multipurpose servers that can be easily upgraded.

The Hard Disk Drives (HDDs) Segment to Account for the Largest Share of the Next-generation Data Storage Market.

Based on storage medium, the next-generation data storage market is segmented into Hard Disk Drives (HDDs), Solid State Drives (SSDs), and magnetic tape. The HDDs segment is projected to account for the largest share of the market in 2020. HDDs are mainly used as the primary storage medium for storing sensitive data that can be accessed within shorter periods and with better performance. HDDs being cost-efficient, provide storage capacities similar to SSDs, and are available in both external and internal storage types with base capacities much larger than SSDs. The availability of HDDs is abundant in the market in both internal and external types. They also tend to have longer life spans as they do not have flash memory, unlike SSDs. All these factors are expected to generate higher demand for HDDs as compared to SSDs, during the forecast period.

The BFSI Sector to Account for the Largest Share of the Market in 2020.

Based on end-user, the market is segmented into BFSI, retail, healthcare, manufacturing, government, IT & telecom, and other end users. The BFSI segment is expected to hold the largest revenue share in 2020. Data explosion in the banking sector is currently at its zenith due to data creation through multiple touchpoints, including mobile banking, digital wallets, and chatbot-supported customer assistance services. BFSI companies are increasingly adopting secure, fast, reliable, and scalable data infrastructure to provide seamless customer experience and facilitate frictionless backend processes. Furthermore, the growing need to make decisions based on databases to gain a competitive edge is compelling financial institutions to implement smarter business platforms that are agile, adaptable, and feasible.

North America to Hold the Largest Market Share Throughout the Forecast Period.

North America is projected to command the largest share of the next-generation data storage market in 2020. North America has been an early adopter of advanced data-storage technologies. The United States has a large concentration of global companies as well as consumers. Also, there has been a rapid increase in the proliferation of Hyperscale data centers, which are majorly used by cloud computing companies and social network providers. These factors support North America’s largest share in the market.

Key Players

The report includes a competitive landscape based on an extensive assessment of the key strategic developments by leading market participants during the past three years (2018–2020). The key players operating in the next-generation data storage market are IBM Corporation (U.S.), Dell Technologies (U.S.), Hewlett Packard Enterprise Development LP (U.S.), Hitachi Ltd. (Japan), Huawei Technologies Co., Ltd. (China), NetApp (U.S.), Cloudian Inc. (U.S.), Drobo Inc. (U.S.), Inspur (China), Fujitsu (Japan), Pure Storage, Inc. (U.S.), NetGear (U.S.), Samsung (South Korea), Western Digital Corporation (U.S.), and Nutanix (U.S.).

Scope of the Report

Next-generation Data Storage Market, by Storage Type

• DAS
• NAS
• SANs

Next-generation Data Storage Market, by Storage Medium

• HDDs
• SSDs
• Magnetic Tape

Next-generation Data Storage Market, by Architecture

• File & Object-based Storage
• Block Storage

Next-generation Data Storage Market, by End User

• BFSI
• Healthcare
• Retail
• Manufacturing
• Government
• IT & Telecom
• Other End Users

Next-generation Data Storage Market, by Geography

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Rest of Europe
• Asia-Pacific (APAC)
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia-Pacific
• Latin America
• Middle East & Africa

Key Questions Answered in the Report: