AI-Powered Storage Global Market Report 2024

The AI-powered storage market size has grown exponentially in recent years. It will grow from $25.99 billion in 2023 to $32.52 billion in 2024 at a compound annual growth rate (CAGR) of 25.1%. The growth observed in the historical period can be attributed to the ascendancy of cloud computing, the escalating complexity of data, heightened concerns surrounding data security, a surge in demand for real-time analytics, and the expanding Internet of Things (IoT) ecosystem.

The AI-powered storage market size is expected to see exponential growth in the next few years. It will grow to $80.36 billion in 2028 at a compound annual growth rate (CAGR) of 25.4%. The anticipated growth in the forecast period can be attributed to the proliferation of data-driven decision-making, the heightened impact of data privacy regulations, the implementation of autonomous storage management, the influence of quantum computing, and the evolution of continuous learning storage systems. Major trends expected in the forecast period encompass technological advancements in neural networks, the integration of AI in data lifecycle management, the utilization of AI for predictive storage maintenance, the optimization of storage hardware through AI, the implementation of AI-powered disaster recovery, and the emergence of green AI storage solutions.

The proliferation of data centers is anticipated to be a driving force behind the burgeoning expansion of the AI-powered storage market in the foreseeable future. Data centers, serving as facilities providing shared access to applications and data via an advanced network, computing, and storage infrastructure, form the backbone of this growth. AI-powered storage solutions analyze extensive real-time data within these data centers, utilizing machine learning algorithms and predictive analytics. This analytical capability empowers data center operators to discern patterns, enabling informed decisions for optimizing resource allocation, capacity planning, and workload management. For instance, findings from the Korea Data Center Council (KDCC) in February 2021 indicated that colocation data centers reached an overall capacity of 430MW in IT load by the close of 2020, constituting 11% of the total APAC IT load. Anticipated projections by Savills Korea suggest a growth of 700MW in total commercial data center IT load in Korea between 2021 and 2023, accounting for 15% of the overall Asia-Pacific capacity. Thus, the expanding number of data centers serves as a pivotal driver propelling the AI-powered storage market.

The upsurge in the adoption of cloud-based applications is anticipated to significantly propel the expansion of the AI-powered storage market. Cloud adoption involves organizations strategically leveraging cloud technologies to augment their business operations. AI-powered storage assumes a pivotal role in this cloud adoption trend, offering advanced storage solutions capable of optimizing performance, reducing costs, and adapting to the diverse needs across various industries and applications. For instance, Eurostat reported in December 2021 that 41% of EU enterprises embraced cloud computing in 2021, primarily utilizing it for hosting email systems and storing electronic files. This marked a 5-percentage point increase from 2020. Large enterprises in the EU demonstrated a 72% adoption rate of cloud computing in 2021, a 7-percentage point upsurge from 2020. Comparatively, medium-sized businesses showcased a 53% adoption rate in 2021, increasing from 46% in 2020. Hence, the escalating adoption of cloud-based applications stands as a significant catalyst propelling the growth of the AI-powered storage market.

The AI-powered storage market is witnessing a significant trend towards product innovation, spearheaded by major industry players striving to maintain their competitive edge. A prominent example is Huawei Technologies Co. Ltd.'s October 2023 launch of the OceanStor A310, a novel AI storage model tailored for the era of large AI models. This system caters to the burgeoning need for optimal storage capacity in training industry models, basic model training, and segmented scenario models. The OceanStor A310 serves as a deep learning data lake storage solution with limitless horizontal scalability and high-performance capabilities for diverse workloads prevalent in large model scenarios and basic models across industries. Facilitating end-to-end management of extensive data storage for AI processes such as data collection, pre-processing, training, and inference, the OceanStor A310 possesses robust data analysis capabilities compatible with big data and high-performance computing (HPC) frameworks. Its prowess lies in analyzing data from similar sources while aligning with big data and HPC environments.

Leading entities within the AI-powered storage market are channeling efforts towards introducing advanced solutions leveraging cutting-edge technologies, particularly high-performance computing (HPC) and machine learning algorithms, in pursuit of a competitive advantage. HPC, renowned for its computational prowess, significantly accelerates AI algorithm training processes, notably those rooted in machine learning and deep learning, thereby reducing the time required for AI model development and refinement. Furthermore, the integration of machine learning algorithms within AI-powered storage solutions optimizes storage performance and cost-efficiency. For instance, in March 2023, Nvidia Corporation unveiled DGX Cloud, an AI supercomputing service empowering businesses with immediate access to essential hardware and software components for training sophisticated models, including generative AI applications. This service amalgamates integral components such as high-performance computing (HPC) and machine learning algorithms, striving to enhance storage performance while concurrently minimizing costs. Collaborating initially with Oracle Cloud Infrastructure (OCI), Nvidia aims to host DGX Cloud Infrastructure with top cloud service providers. OCI Supercluster, equipped with high-performance local and block storage, scales to encompass superclusters exceeding 32,000 GPUs, bare-metal compute, and an RDMA network tailored explicitly for this purpose.

In June 2021, Hewlett Packard Enterprise Company, a prominent information technology company based in the United States, completed the acquisition of Determined AI for an undisclosed amount. This strategic move by Hewlett Packard Enterprise is geared towards integrating Determined AI's distinctive software solution, empowering machine learning (ML) engineers across various industries to seamlessly develop and train ML models. The goal is to enhance the speed and accuracy of insights derived from data. Determined AI, a US-based technology company specializing in machine learning, brings valuable expertise to Hewlett Packard Enterprise through its AI-based storage solutions.

Major companies operating in the AI-powered storage market report are Google LLC, Samsung Electronics Co. Ltd., Microsoft Corporation, Dell Technologies Inc., Hitachi Ltd., Lenovo Group Limited, Intel Corporation, International Business Machines Corporation, Cisco Systems Inc., Fujitsu Limited, Micron Technology Inc., Hewlett Packard Enterprise Company (HPE), Nvidia Corporation, Toshiba Corporation, Pure Storage Inc., Veritas Technologies LLC, Cohesity Inc., Infinidat, Tintri Inc., CTERA Networks Ltd., Zadara Inc., Pavilion Data Systems Inc., MinIO Inc., DriveScale Inc., Caringo Inc.

North America was the dominant region in the AI-powered storage market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the AI-powered storage market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the AI-powered storage market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary offerings in AI-powered storage include software and hardware. Software plays a crucial role, representing a collection of scripts, instructions, and data designed to execute specific activities. In the context of AI-powered storage, software contributes to reducing errors and enhancing accuracy and precision in data storage. Various storage systems fall under the umbrella of AI-powered storage, including direct-attached storage, network-attached storage, and storage area network. These systems utilize storage mediums such as hard disk drives (HDD) and solid-state drives (SSD) and leverage different storage architectures such as file and object-based storage, as well as block storage. AI-powered storage finds applications across diverse sectors, serving enterprises, government bodies, cloud service providers, telecom companies, and other end-users.

The AI-powered storage market research report is one of a series of new reports that provides AI-powered storage market statistics, including AI-powered storage industry global market size, regional shares, competitors with a AI-powered storage market share, detailed AI-powered storage market segments, market trends and opportunities, and any further data you may need to thrive in the AI-powered storage industry. This AI-powered 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 AI-powered storage market consists of revenues earned by entities by providing services such as modernizing storage infrastructure, supercomputing stability, securing data, data management, and data storage. The market value includes the value of related goods sold by the service provider or included within the service offering. The AI-powered storage market also includes sales of floppy disks, optical discs, compact discs (CDs) and digital video discs (DVDs), and flash 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 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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