The global next-generation data storage market size was valued at USD 53.1 billion in 2018 and is expected to grow at a compound annual growth rate (CAGR) of 12.5% from 2019 to 2025. Some of the key factors expected to drive the market for next-generation data storage include significant growth in the global penetration of IoT in industries such as retail, healthcare, and manufacturing and a consequent rise in the adoption of cloud computing. Digitization of information in residential and commercial places, supported by an escalated use of mobile computing devices such as laptops, smartphones, and tablets, is significantly contributing to the market growth. Additionally, there is a massive rise in the volume of digital information across industry verticals such as healthcare, retail, and BFSI, which leads to the need for effective next-generation data storing devices.
Market players are focusing on the development of scalable, effective, and flexible cloud platforms as the volume of information generated across the enterprise sector are continuously rising and customers are looking for improved options for storing and managing their information. To leverage the cloud’s storing capabilities, market players are investing in innovative cloud technologies such as crystal etching. Combining Big Data analytics and cloud storage is allowing next-generation data storage companies to establish real-time and reliable access across all channels to enhance customer experience, especially for online shopping and internet banking.
There remains an unmet need to deliver high-speed and robust data storing solutions due to the increasing demand for data digitization and minimization of human labor. However, technological advancements that can cater to market needs are associated with high costs. This could result in low penetration of such high-end technologies in economically sensitive regions such as APAC and MEA. Nevertheless, the rising consumer demand for effective data analytics is expected to create numerous growth opportunities for the next-generation data storage market in the next few years.
The rising production of information from input-output electronic devices employed across a variety of applications in a rising number of industries is a key growth contributor in the market for next-generation data storage. Data generation across several sectors reflects the need for its maintenance and organization. Some of the recent technological advancements driving a significant paradigm shift in the market include online shopping, smart technologies, and automated systems. Furthermore, increasing funding for R&D activities for the development of advanced technologies to meet consumer needs is contributing to revenue generation in the market for next-generation data storage.
Rising penetration of the Internet, growing e-commerce industry, digitization of day-to-day activities, and increasing volume of media data transfer are expected to increase market penetration of solid-state drives and cloud solutions. The impending launch of consumer electronics products with improved processing speeds is also likely to lead to an increased demand for advanced data storing solutions such as solid-state drives and cloud. This, in turn, is likely to provide strong growth opportunities to the market for next-generation data storage in the next few years.
The Direct-Attached Storage (DAS) segment dominated the market for next-generation data storage in 2018, capturing more than 38% of the overall market share. The basic and simple architecture of DAS enables a variety of information accessibility features. For instance, any PC or laptop may directly access their own DAS or access information stored on DAS directly connected to storage servers over a network. Moreover, the low-cost of DAS technology makes it ideal for small- and medium-scale businesses. The rising number of small- and medium-scale businesses in emerging economies across Asia Pacific is likely to drive the DAS segment over the forecast period.
The Network-Attached Storage (NAS) segment is likely to witness the fastest growth through the forecast period. The ease of usage of the platform, beneficial features such as automated data backup, more storage space, and economical pricing make NAS an attractive next-generation data storage choice for customers. The growth of the segment is expected to be further driven by the rising demand for accessing information from a single connected device for multiple users via an authenticated network.
The local (on-premise) next-generation data storage segment dominated the market in 2018 and was valued at nearly USD 20 billion. The segment is driven largely by the high performance of local storage solutions. The local next-generation data storing option is best suited for residential or small-sized enterprises due to its cost-effectiveness and backup & recovery capability. However, the low capacity and low reliability are some of the key challenges that can hinder its adoption to a certain extent over the forecast period.
The hybrid next-generation data storage segment is anticipated to demonstrate strong growth over the forecast period. A hybrid system uses both local and off-site resources to manage information. As a result, these systems allow companies to move workloads between private clouds or on-premise data storage and use the public cloud to host applications and data. The growing need to manage large volumes of data - structured as well as unstructured - is a crucial contributing factor for the promising growth prospects of hybrid next-generation data storage segment in the near future.
The magnetic next-generation data storage segment, including devices such as Hard Disk Drive (HDD), magnetic tapes, RAM, and floppy disks, dominated the market in 2018, driven by the easy availability and lack of competitive rivalry in the segment. Although HDD's low prices play a key role in driving their demand, the segment is likely to witness a gradual decline in market share through the forecast period owing to the emergence of improved mediums for storing information. The Solid State Drive (SSD) segment is estimated to emerge as one of the fastest-growing next-generation data storage technology, supported by safer data encryption and storage using electronic chips instead of magnetic strips. An elongated lifespan, low noise & heat production, high operational speed, and low power consumption are also expected to drive the demand for SSDs in the near future.
Magnetic and SSD technologies have a notable difference in terms of price and performance. While magnetic storage is considered as the most convenient in terms of capacity, it fares low in terms of performance. On the other hand, the SSD technology features fast performance but low capacities. A hybrid array is a type of storage technology that aims to bridge the gap between these two. With the growing demand for efficiency and performance across complex enterprise applications, such as big data, IoT, and artificial intelligence technologies, the hybrid flash array technology is likely to witness promising growth opportunities.
On the basis of end-user, the market for next-generation data storage is segmented into home and business. The business end-user segment, accounting for the dominant share in the market in 2018, is further segmented into banking, financial services and insurance (BFSI), retail, healthcare, government bodies, telecom companies, cloud service providers, and others. Of these, the healthcare segment accounted for the largest share in the market for next-generation data storage in 2018 and is anticipated to retain its leading position throughout the forecast period. Data storage in the healthcare industry has undergone a paradigm shift in the last few years, from conventional digital data storage to the utilization of cloud space for storing important patient and business information pertaining to a variety of procedures, operations, and services. The rising application of hybrid cloud in the healthcare industry is anticipated to be a major growth driver for the healthcare segment in the foreseeable future.
The cloud service providers segment is projected to emerge as one of the fastest-growing segments in the market for next-generation data storage over the forecast period. Cloud computing is likely to play a massive role in the development of next-generation machines. Moreover, the increased adoption of cloud technologies such as hybrid cloud, IoT, BDaaS, and PaaS, is likely to necessitate cloud service providers to utilize next-generation data storage solutions to better cater to their customers.
North America dominated the market for next-generation data storage in 2018, accounting for a nearly 40% revenue share of the global market. This can be attributed to the large volume of unstructured data across several industry verticals and the need for secure and economic solutions for storing data. Easy availability of technologically advanced products such as 3D and molecular storage is likely to further fuel growth prospects of the North American market over the forecast period.
Asia Pacific is positioned to witness the fastest growth in the market for next-generation data storage over the forecast period. A rapid increase in the number of laptop and smartphone users, a rise in disposable income, and growing consumer awareness are the key factors expected to lead to an increased demand for reliable, secure, and cost-efficient storage infrastructure in the region. The rising number of small- and medium-sized businesses across several industries in the region is also likely to work well for the regional market.
The global market for next-generation data storage is rapidly changing with constant technological transformation of data storing devices. Data storage is increasingly becoming one of the significant components of financial budgets in many organizations, leading to a notable rise in potential growth opportunities for companies operating in the market for next-generation data storage. Leading players are focusing on developing new technologies for their customers, along with upholding their existing platforms as it is challenging to switch to new technologies. Some of the prominent players in the next-generation data storage market include:
Hewlett Packard Enterprise Company
International Business Machines Corporation
Micron Technology, Inc.
Market size value in 2020
USD 65.28 billion
Revenue forecast in 2025
USD 118.22 billion
CAGR of 12.5% from 2019 to 2025
Base year for estimation
2014 - 2017
2019 - 2025
Revenue in USD million and CAGR from 2019 to 2025
Revenue forecast, company ranking, competitive landscape, growth factors, and trends
Technology, technique, type, end-user, region
North America; Europe; Asia Pacific; South America; MEA
U.S.; Canada; Mexico; U.K.; Germany; France; China; Japan; India; Singapore; South Korea; Brazil
Key companies profiled
Hewlett Packard Enterprise Company; Dell Inc.; NetApp, Inc.; Hitachi, Ltd.; International Business Machines Corporation; Micron Technology, Inc.; Netgear Inc.; Inspur
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The report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global next-generation data storage market report based on technology, technique, type, end-user, and region.
Technology Outlook (Revenue, USD Million, 2014 - 2025)
Hybrid Flash Array
Technique Outlook (Revenue, USD Million, 2014 - 2025)
Storage Area Network
Type Outlook (Revenue, USD Million, 2014 - 2025)
End-User Outlook (Revenue, USD Million, 2014 - 2025)
Cloud Service Providers
Regional Outlook (Revenue, USD Million, 2014 - 2025)
Middle East & Africa
b. The global next-generation data storage market size was estimated at USD 58.38 billion in 2019 and is expected to reach USD 65.28 billion in 2020.
b. The global next-generation data storage market is expected to grow at a compound annual growth rate of 12.5% from 2019 to 2025 to reach USD 118.22 billion by 2025.
b. North America dominated the next-generation data storage market with a share of 39.7% in 2019. This is attributable to the large volume of unstructured data across several industry verticals and the need for secure and economic solutions for storing data.
b. Some key players operating in the next-generation data storage market include Hewlett Packard Enterprise Company, Dell Inc., NetApp, Inc., Hitachi, Ltd., International Business Machines Corporation, Micron Technology, Inc., Netgear Inc., and Inspur.
b. Key factors that are driving the market growth include significant penetration of IoT technology in industries such as retail, healthcare, and manufacturing and a consequent rise in the adoption of cloud computing.
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