Cloud Storage Market Opportunities and Strategies to 2033

This report describes and explains the cloud storage market and covers 2018-2023, termed the historic period, and 2023-2028, 2033F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global cloud storage market reached a value of nearly $93.6 billion in 2023, having grown at a compound annual growth rate (CAGR) of 21.07% since 2018. The market is expected to grow from $93.6 billion in 2023 to $234.5 billion in 2028 at a rate of 20.16%. The market is then expected to grow at a CAGR of 20.90% from 2028 and reach $605.7 billion in 2033.

Growth in the historic period resulted from the strong economic growth in emerging markets, rise of remote work, rise in need for data security and backup and increasing investments in digital transformation. Factors that negatively affected growth in the historic period include the increase in cost of cloud infrastructure and platform services.

Going forward, the growing data volumes, increasing internet penetration, increasing adoption of smartphones, growing adoption IoT connected devices, favorable government initiatives and globalization of businesses will drive the market. Factors that could hinder the growth of the cloud storage market in the future include the limited availability of skilled personnel and technical expertise.

The cloud storage market is segmented by component into storage model and services. The storage model market was the largest segment of the cloud storage market segmented by component, accounting for 65.02% or $60.9 billion of the total in 2023. Going forward, the storage model segment is expected to be the fastest growing segment in the cloud storage market segmented by component, at a CAGR of 20.63% during 2023-2028.

The storage model market is segmented by type into object storage, file storage and block storage. The block storage market was the largest segment of the storage model market segmented by type, accounting for 46.64% or $28.4 billion of the total in 2023. Going forward, the block storage segment is expected to be the fastest growing segment in the storage model market segmented by type, at a CAGR of 20.44% during 2023-2028.

The cloud storage market is segmented by organization size into large enterprises and small and medium-sized enterprises (SMEs). The large enterprises market was the largest segment of the cloud storage market segmented by organization size, accounting for 79.49% or $74.4 billion of the total in 2023. Going forward, the small and medium-sized enterprises (SMEs) segment is expected to be the fastest growing segment in the cloud storage market segmented by organization size, at a CAGR of 21.90% during 2023-2028.

The cloud storage market is segmented by mode into private cloud, public cloud and hybrid cloud. The hybrid cloud market was the largest segment of the cloud storage market segmented by mode, accounting for 77.94% or $73 billion of the total in 2023. Going forward, the public cloud segment is expected to be the fastest growing segment in the cloud storage market segmented by mode, at a CAGR of 22.84% during 2023-2028.

The cloud storage market is segmented by vertical into BFSI, IT and telecommunication, government and public sector, manufacturing, healthcare and life science, retail and consumer goods, media and entertainment and other verticals. The BFSI market was the largest segment of the cloud storage market segmented by vertical, accounting for 32.40% or $21.9 billion of the total in 2023. Going forward, the healthcare and life science segment is expected to be the fastest growing segment in the cloud storage market segmented by vertical, at a CAGR of 22.92% during 2023-2028.

Asia-Pacific was the largest region in the cloud storage market, accounting for 33.39% or $31.3 billion of the total in 2023. It was followed by North America, Western Europe and then the other regions. Going forward, the fastest-growing regions in the cloud storage market will be Asia-Pacific and South America, where growth will be at CAGRs of 24.15% and 22.55% respectively. These will be followed by the Middle East and Africa, where the markets are expected to grow at CAGRs of 21.64% and 21.14% respectively.

The global cloud storage market is highly concentrated, with large players operating in the market. The top ten competitors in the market made up to 51.10% of the total market in 2023. Amazon Web Services, Inc. was the largest competitor with a 17.45% share of the market, followed by Microsoft Corporation with 10.13%, Alphabet Inc. (Google LLC) with 7.07%, Alibaba Group Holding Limited with 4.04%, International Business Machines Corporation with 3.00%, Salesforce, Inc. with 2.78%, Tencent Holdings Ltd. with 2.05%, Oracle Corporation with 1.90%, Dell Technologies Inc. with 1.74% and Rackspace Technology, Inc. with 0.95%.

The top opportunities in the cloud storage market segmented by component will arise in the storage model segment, which will gain $94.6 billion of global annual sales by 2028. The top opportunities in the storage model market segmented by type will arise in the block storage segment, which will gain $43.6 billion of global annual sales by 2028. The top opportunities in the cloud storage market segmented by organization size will arise in the large enterprises segment, which will gain $108.4 billion of global annual sales by 2028. The top opportunities in the cloud storage market segmented by vertical will arise in the BFSI segment, which will gain $36.3 billion of global annual sales by 2028. The top opportunities in the cloud storage market segmented by mode will arise in the hybrid cloud segment, which will gain $104.8 billion of global annual sales by 2028. The cloud storage market size will gain the most in the USA at $30.5 billion.

Market-trend-based strategies for the cloud storage market include introduction of cloud-based storage solutions enhancing data security and accessibility, adoption of unified data ecosystems enhancing accessibility and control of organizational data, development of secure document collaboration solutions to enhance data protection and strategic partnerships and acquisitions among major players to enhance product offerings.

Player-adopted strategies in the cloud storage market include focus on delivering high-performance, scalable cloud storage solutions tailored for latency-sensitive applications, accelerating federal cloud migrations by providing secure, end-to-end cloud storage services through strategic partnerships, enhancing data management capabilities by introducing features such as managed folders, expanding global cloud and AI infrastructure by launching new cloud regions and data centers and partnerships to drive next-generation enterprise solutions by integrating generative AI.

To take advantage of the opportunities, the analyst recommends the cloud storage companies to focus on secure, scalable cloud solutions, focus on unified data ecosystems, focus on secure document collaboration solutions, focus on the storage model segment, focus on the file storage segment, focus on the small and medium-sized enterprises segment, focus on the public cloud segment, expand in emerging markets, focus on strategic partnerships and acquisitions, focus on competitive pricing strategies, focus on targeted marketing campaigns, continue to use B2B promotions and focus on the healthcare and life sciences segment.