Next-Generation Data Storage Global Market Report 2024

The next-generation data storage market size has grown rapidly in recent years. It will grow from $80.74 billion in 2023 to $89.36 billion in 2024 at a compound annual growth rate (CAGR) of 10.7%. The growth observed during the historical period can be attributed to several factors, including the rapid expansion of data volumes, initiatives for digital transformation, the imperative for faster data retrieval, concerns regarding data security, and a rising demand for cost-effective storage solutions.

The next-generation data storage market size is expected to see rapid growth in the next few years. It will grow to $136.72 billion in 2028 at a compound annual growth rate (CAGR) of 11.2%. The anticipated growth in the forecast period is driven by the expansion of edge computing, a heightened emphasis on energy-efficient storage solutions, advancements in quantum computing, the impact of data compliance and privacy regulations, and an increased focus on enhanced security measures. Key trends expected during the forecast period include the widespread adoption of non-volatile memory (NVM) technologies, continuous advancements in solid-state drives (SSDs), the deployment of storage virtualization, the integration of artificial intelligence (AI) in storage management, and the increasing adoption of hybrid and multi-cloud storage solutions.

The anticipated growth in the next-generation data storage market is expected to be propelled by a surge in the use of mobile and smart devices. Smart devices, which are intelligent electronic gadgets placed next to, on, or inside an organism, are witnessing increased usage. The rise in mobile device usage leads to higher internet searches and social media activity, resulting in a substantial increase in generated data. For example, as of February 2023, there were 71.8 million mobile connections in the UK, reflecting a 3.8% increase from 2021 and surpassing the country's total population by 4.2 million. Projections indicate that by 2025, with 68.3 million people in the UK, around 65 million individuals will be smartphone users. This surge in mobile and smart device usage is a significant driver for the growth of the next-generation data storage market.

The growth of the next-generation data storage market is expected to be fueled by increasing concerns about cybersecurity. Cybersecurity concerns encompass issues related to safeguarding computer systems, networks, and data from theft, damage, unauthorized access, and various cyber threats. Next-generation data storage technologies present compelling solutions for cybersecurity challenges, offering features such as massive scalability and distributed access, making it challenging for attackers to target a single point of failure. In 2022, financial Chief Information Security Officers (CISOs) reported that threat actors were employing more sophisticated cyberattacks each year, with 79% expressing this concern. Next-generation data storage solutions address these concerns by incorporating advanced security features such as encryption, access controls, and threat detection mechanisms. Consequently, the escalating cybersecurity concerns are driving the growth of the next-generation data storage market.

The next-generation data storage market is witnessing a prominent trend of product innovations, with companies leveraging advanced technologies to maintain their competitive edge. An example of this trend is IBM, a US-based IT services and consulting company, which, in April 2021, introduced IBM Spectrum Fusion - a novel container-native software-defined storage (SDS) solution. This innovative product is designed to integrate with Red Hat OpenShift, enabling businesses to deploy software-defined storage solutions for cloud, edge, and containerized data centers, catering to both virtual machines and containers.

Major players in the next-generation data storage market are strategically engaging in partnerships and collaborations with start-ups and mid-sized companies to enhance their product and service offerings. These strategic alliances contribute to the expansion of companies' product portfolios and geographical reach. A notable example is the partnership formed in May 2022 between NetApp, a US-based intelligent data infrastructure company, and Kyndryl, a US-based information technology company. This collaboration aims to accelerate digital transformation by jointly developing advanced storage infrastructure-as-a-service solutions. These solutions provide customers with flexibility, versatility, and value in managing unstructured information, facilitating enterprises in deriving business value from their data.

In March 2023, Akamai Technologies, a US-based software development company, acquired Ondat, a UK-based provider of cloud-based storage solutions. This strategic acquisition, for an undisclosed amount, empowers Akamai to offer a novel approach to cloud computing by combining core and distributed computing sites with a highly scaled edge network. Ondat's cloud storage technology, integrated with Akamai's capabilities, provides a unique solution for businesses, particularly with a native Kubernetes platform that delivers persistent storage instantly on any Kubernetes cluster, enhancing overall business operations.

Major companies operating in the next-generation data storage market report are Samsung Electronics Co. Ltd., Dell Technologies Inc., Hitachi Ltd., Huawei Technologies Co. Ltd., The International Business Machines Corporation, SK hynix Inc., Broadcom Inc., Fujitsu Limited, Hewlett Packard Enterprise Company, Toshiba Corporation, Infineon Technologies AG, Western Digital Technologies Inc., Microchip Technology Inc., Inspur Group Co. Ltd., NetApp Inc., Pure Storage Inc., Nutanix Inc., Pure Storage Inc., Netgear Inc., Rambus Incorporated, DataDirect Networks, Everspin Technologies Inc., Cloudian Inc., Drobo Inc., Viking Technology, Avalanche Technology Inc., Spin Memory Inc., 4DS Memory Limited, Nantero Inc.

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

Key categories of next-generation data storage include Direct Attached Storage (DAS), Network Attached Storage (NAS), Storage Area Network (SAN), and other innovative solutions. DAS involves physically connected storage devices, such as FireWire drives and solid-state drives, directly to the computer. Technologies driving next-gen data storage include magnetic storage, hybrid flash arrays, and solid-state drives (SSD), organized in file-based, object-based, and block storage formats, deployed both on-premises and in the cloud. Industries benefiting from these advancements span BFSI, government, retail, IT and telecommunication, manufacturing, healthcare, education, and media and entertainment.

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

The next-generation data storage market consists of revenues earned by entities through online data storage and protection solutions. The market value includes the value of related goods sold by the service provider or included within the service offering. The next-generation data storage market also includes sales of storage devices such as Parallel Advanced Technology Attachment (PATA) hard drives and Serial Advanced Technology Attachment (SATA) hard drives, which are used in providing next-generation data storage services. 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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