External Storage Global Market Report 2024

The external storage market size has grown rapidly in recent years. It will grow from $35.45 billion in 2023 to $40.44 billion in 2024 at a compound annual growth rate (CAGR) of 14.1%. The growth observed in the historical period can be attributed to several factors, including the rise in data generation, the emergence of cloud-based services, the expansion of digital media and entertainment, the growth of small and medium-sized enterprises (SMEs), and the increasing importance placed on data backup. These factors collectively contributed to the increased demand for external storage solutions during the historic period.

The external storage market size is expected to see rapid growth in the next few years. It will grow to $65.43 billion in 2028 at a compound annual growth rate (CAGR) of 12.8%. The anticipated growth in the forecast period can be attributed to several factors, including continued data proliferation, an increasing demand for remote work solutions, a rising emphasis on cybersecurity measures, the growing adoption of 4K and 8K content, and the expanding use of edge computing. Major trends expected in the forecast period encompass the expansion of network-attached storage (NAS), the adoption of solid-state drives (SSDs), the integration of artificial intelligence (AI) for smart storage solutions, an evolving role in edge computing, and a focus on sustainable and eco-friendly storage solutions. These trends collectively contribute to the projected growth and transformation of the external storage market in the forecasted period.

The anticipated surge in data storage needs is poised to drive the growth of the external storage market in the forthcoming years. Data storage involves preserving digital files, folders, or other information on a storage medium or system in a format that allows easy retrieval in the future. The escalating demand for data usage fuels the increased reliance on external storage due to its expanded capacity, data backup capabilities, mobility, and adaptability across various devices and industries. For instance, as per a report from The Linux Foundation in December 2022, an average end-user organization with a storage capacity of up to 20 petabytes witnessed annual data growth of 566 terabytes in 2021 and a significant surge to 1,746 terabytes in 2022. Similarly, organizations with a storage capacity of up to 25 petabytes experienced a substantial yearly data growth of 2,208 terabytes in 2022, marking a 215.43% increase compared to 2021. Hence, the escalating demand for data storage is anticipated to propel the external storage market.

The anticipated increase in the number of enterprises is set to drive the growth of the external storage market in the foreseeable future. Enterprises refer to independent business entities empowered to conduct business, enter contracts, own assets, accumulate debts, and operate bank accounts. External storage serves as primary or secondary storage in enterprises, facilitating connectivity with servers via Ethernet or fiber channel switches for backup and archiving needs. For instance, based on a report released by the United States Chamber of Commerce in April 2023, there were 5.4 million new company applications submitted in 2021. Therefore, the upsurge in enterprise numbers is expected to fuel the expansion of the external storage market.

Drive failure risks represent a significant restraint within the external storage market. Such risks, including potential data loss and operational disruptions, impose financial and reputational burdens on businesses relying on external storage solutions. Addressing these risks demands proactive measures such as data recovery plans and redundancy, adding complexity and cost to data management. For example, in December 2022, according to Backblaze, Inc., a US-based cloud storage and data backup company, the annualized failure rate (AFR) for external drives increased to 1.37% in 2022, with a recorded 230,921 drive failures. This marked a noticeable rise from the 1.01% AFR and 202,759 drive failures reported in 2021. Therefore, drive failure risks are anticipated to restrain the growth of the external storage market during the forecast period.

Leading companies within the external storage market are dedicated to advancing their technological capabilities, focusing on innovations such as NAND flash memory to establish a competitive advantage. NAND flash memory represents a non-volatile storage technology capable of retaining data even without power and finds widespread application across various electronic devices, ranging from smartphones and laptops to enterprise storage systems and data centers. For example, in March 2022, Micron Technology Inc., a US-based producer of memory and storage solutions, unveiled the 7450 solid-state drive (SSD) embedded with 176-layer 3D NAND technology. This SSD offers a broad capacity spectrum, spanning from 400 GB to 15.36 TB, catering to diverse requirements in data centers. Moreover, it ensures consistent and reliable latencies under two milliseconds, a critical aspect in facilitating high-quality service delivery for substantial data center workloads.

In December 2021, SK Hynix Inc., a South Korea-based memory chip manufacturer, completed the acquisition of Intel Corporation's solid-state drive (SSD) business and the Dalian NAND flash manufacturing facility assets in China for $7 billion. This strategic acquisition significantly bolstered SK Hynix's NAND flash business, consolidating its position within the technology sector and propelling it to a prominent standing in the industry. Intel Corporation, a US-based technology company specializing in advanced memory and storage devices, divested these assets as part of the deal.

Major companies operating in the external storage market report are Samsung Electronics Co. Ltd., Dell Technologies Inc., Lenovo Group Limited, International Business Machines Corporation, Oracle Corporation, SK hynix Inc., Fujitsu Ltd., Hewlett Packard Enterprise Development LP, Toshiba Corporation, Micron Technology Inc., Western Digital Corporation, Seagate Technology LLC, Kingston Technology Company Inc., NetApp Inc., Hitachi Vantara LLC, Pure Storage Inc., SanDisk Ltd., ADATA Technology Co. Ltd., Transcend Information Inc., Quantum Corporation, QNAP Systems Inc., Synology Inc., LaCie, Infortrend Technology Inc., Promise Technology Inc., Zoolz, Thecus Technology Corp., pCloud International AG, ID Cloud Services LTD, Koofr d.o.o.

North America was the largest region in the external storage market in 2023. The regions covered in the external storage market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa The countries covered in the external storage market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The external storage market consists of revenues earned by entities by providing data security, remote access, cloud integration, and data backup and recovery. The market value includes the value of related goods sold by the service provider or included within the service offering. The external storage market also includes sales of network-attached storage (NAS), storage area networks (SAN), and solid-state hybrid drives. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The main types of external storage include optical storage, solid-state storage devices, flash storage devices, external hard drives, and others. Optical storage involves the use of optical discs such as CDs, DVDs, and Blu-ray discs to store data for an extended period, employing lasers for recording and reading data. This method is commonly used for preserving large amounts of data, distributing software, and delivering multimedia content. These external storage systems are connected through interface technologies such as universal serial bus (USB), Thunderbolt, external SATA (eSATA), and Firewire. External storage systems with capacities ranging from up to 1 TB, 1 TB to 100 TB, and exceeding 100 TB find applications in various fields, including consumer electronics, healthcare devices, automotive applications, enterprise storage, industrial applications, and others.

The external storage market research report is one of a series of new reports that provides external storage market statistics, including external storage industry global market size, regional shares, competitors with as external storage market share, detailed external storage market segments, market trends and opportunities, and any further data you may need to thrive in the external storage industry. This external storage market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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