Tape Storage Market Report 2025

The tape storage market size has grown rapidly in recent years. It will grow from $5.76 billion in 2024 to $6.37 billion in 2025 at a compound annual growth rate (CAGR) of 10.6%. The growth in the historic period can be attributed to data archiving requirements, long-term data retention, backup and disaster recovery, cost-effectiveness, security and data integrity.

The tape storage market size is expected to see rapid growth in the next few years. It will grow to $10.3 billion in 2029 at a compound annual growth rate (CAGR) of 12.8%. The growth in the forecast period can be attributed to regulatory compliance, data growth in enterprises, energy efficiency, cloud integration, archival of big data, enhanced tape technologies. Major trends in the forecast period include development of energy-efficient tape storage technologies, enhancements in data encryption and security features, utilization of tape storage in hybrid multi-cloud environments, introduction of tape storage as a service (TSaaS), collaborations for standardization and interoperability.

The rapid growth in data volumes is anticipated to drive the expansion of the tape storage market. This increase in data is fueled by various factors, including the rise of IoT devices, the growth of cloud computing, the emergence of big data analytics, the surge in digital content creation, and the heightened use of artificial intelligence and machine learning, all of which generate and necessitate the storage of vast quantities of data. Tape storage is increasingly being adopted to handle this growing data volume, offering a cost-effective and reliable solution for long-term archiving and backup needs. For example, a report from The Linux Foundation in December 2022 noted a significant increase in data growth for the average end-user organization, reaching 2,208 TB - an impressive 215.43% rise from the 700 TB recorded in 2021. Consequently, the rapidly escalating growth in data volumes is expected to propel the growth of the tape storage market in the future.

The increasing demand for IoT (Internet of Things) devices is another factor expected to propel the growth of the tape storage market. IoT devices, equipped with sensors, software, and connectivity features, generate vast amounts of data that require efficient storage solutions. Tape storage emerges as a cost-effective, scalable, secure, and reliable option for managing the substantial data volumes produced by IoT devices. It plays a crucial role in the comprehensive data storage and management strategy for IoT deployments. According to Exploding Topics, an online platform providing insights into emerging trends, it is projected that by 2030, there will be approximately 25.4 billion IoT devices. Consequently, the escalating demand for IoT devices serves as a driving force for the tape storage market.

Technological advancements are prominent trends in the tape storage market, with major companies introducing innovative technologies to maintain their market positions. An example is UNITEX Corporation, a Japan-based computer storage space company, which, in January 2022, unveiled the SB LTO tape drive. This technology, operating on LTO-9 technology, provides secure storage solutions, meeting the evolving requirements for storing less active data. Leveraging LTO-9, it facilitates data transfer speeds of up to 300MB/second, with a native storage capacity of 18TB and a compressed storage capacity of 45TB at 2.5:1 compression ratio.

Companies in the tape storage market are also forging partnerships to enhance their service offerings. Collaborations in this market drive innovation, expand market presence, achieve cost efficiency, offer customer-centric solutions, and contribute to ecosystem development. For instance, in August 2023, Fujifilm, a Japan-based conglomerate, and IBM, a US-based technology company, jointly announced the development of a 50TB native tape storage system. This system, marketed by IBM as an enterprise tape storage solution, addresses the growing demand for high-capacity storage in various sectors, including scientific data, industrial data collection, and cloud service provider environments. The sixth-generation IBM 3592 JF tape cartridge incorporates newly developed technology to achieve the record-breaking 50TB native capacity.

In April 2024, BMC Software, a US-based provider of cloud storage solutions, acquired Model9 for an undisclosed sum. This acquisition supports BMC's strategy to strengthen its offerings in mainframe and hybrid cloud software, specifically focusing on data management for large-scale applications. Model9 is an Israeli startup known for its expertise in mainframe Virtual Tape Libraries (VTL) and data export solutions.

Major companies operating in the tape storage market include Dell Technologies Inc., Hitachi Ltd., Sony Corporation, Lenovo Group Limited, International Business Machines Corporation, Oracle Corporation, Hewlett Packard Enterprise Company, Fujitsu Limited, Toshiba Corporation, Fujifilm Holdings Corporation, Western Digital Corporation, TDK Corporation, Seagate Technology Holdings plc, NetApp Inc., Iron Mountain Incorporated, Qualstar Corporation, Maxell Holdings Ltd., Quantum Corporation, Barracuda Networks Inc., BDT Media Automation GmbH, Overland Tandberg EMEA, Spectra Logic Corporation, Tandberg Data GmbH, QStar Technologies Inc., Sphere 3D Corp, GlassBridge Enterprises Inc., Imation Corp, Advanced Digital Information Corporation, StorageTek Corp.

North America was the largest region in the tape storage market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the tape storage market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the tape storage market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Tape storage involves magnetic tape data storage, a technology utilized for storing digital information on magnetic tape through digital recording. This method is employed to store large volumes of data, serving as a backup in the event of a system failure and for archiving data over the long term.

In the tape storage market, components include tape cartridges and tape vault, with capacities for archiving and backup. Tape cartridges store various data types, such as corporate data and audio/video files. Technologies such as LTO-1 to LTO-9, DDS-1 to DDS-4, and DLT IV are used, serving end-users such as cloud providers, data centers, and enterprises in verticals such as IT and telecom, BFSI, media and entertainment, healthcare, oil and gas, government, and defense.

The tape storage market research report is one of a series of new reports that provides tape storage market statistics, including tape storage industry global market size, regional shares, competitors with an tape storage market share, detailed tape storage market segments, market trends and opportunities, and any further data you may need to thrive in the tape storage industry. This tape 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 tape storage market consists of revenues earned by entities by providing tape storage services such as preserving, protecting, maintaining, and securing data. The market value includes the value of related goods sold by the service provider or included within the service offering. The tape storage market also includes sales of linear tape and helical scan systems. 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 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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