Next-Generation Data Storage Market Report 2025

The next-generation data storage market size has grown strongly in recent years. It will grow from $87.37 billion in 2024 to $95.5 billion in 2025 at a compound annual growth rate (CAGR) of 9.3%. The growth in the historic period can be attributed to rapid data growth, digital transformation initiatives, the need for faster data retrieval, data security concerns, and 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 $157.34 billion in 2029 at a compound annual growth rate (CAGR) of 13.3%. The growth in the forecast period can be attributed to edge computing expansion, focus on energy-efficient storage, quantum computing developments, data compliance and privacy regulations, and enhanced security measures. Major trends in the forecast period include the adoption of non-volatile memory (NVM) technologies, advancements in solid-state drives (SSDs), deployment of storage virtualization, integration of artificial intelligence (AI) in storage management, and 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.

Rising cybersecurity concerns are expected to drive the growth of the next-generation data storage market in the future. Cybersecurity concerns refer to the issues and apprehensions surrounding the protection of computer systems, networks, and data from theft, damage, unauthorized access, or various cyber threats. Next-generation data storage technologies provide promising solutions for cybersecurity, including massive scalability and distributed access, which make it more challenging for attackers to exploit a single point of failure. For example, in April 2024, Parachute Technology, a US-based IT solutions company, reported that government agencies experienced 49 cyber incidents in the first half of 2023, representing an 11% increase compared to 2022. Thus, the growing cybersecurity concerns are driving the expansion of the next-generation data storage market.

Product innovations are emerging as a significant trend in the next-generation data storage market. Companies in this sector are leveraging advanced technologies to maintain their competitive edge. For example, in November 2023, DataDirect Networks, a US-based software company, introduced DDN Infinia, an advanced software-defined storage platform designed to address the challenges of AI data management. This platform is remarkably user-friendly, allowing deployment in just 10 minutes, and offers uninterrupted service with rolling upgrades and automated storage allocation. It enables rapid tenant creation through dynamic data provisioning and features robust multi-tenancy alongside automated SLA management. Additionally, DDN Infinia includes sophisticated metadata management to enhance governance and control, ensuring secure and scalable data processing across various environments, including Amazon S3 object storage.

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 include 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., 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 2024. 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.

Next-generation data storage encompasses cutting-edge storage solutions and services designed to efficiently manage expanding volumes of data, particularly unstructured data. Employing these advanced storage devices facilitates swift and reliable data recovery, as well as robust data preservation.

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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