Next-generation Data Storage Market - By Storage System (Direct-Attached Storage, Network-Attached Storage, Storage Area Network), By Storage Architecture (File & Object-based Storage, Block Storage), By Storage Medium, By Deployment Type, By End-Use, Forecast, 2023 - 2032

Next-generation Data Storage Market Size

Next-generation Data Storage Market size was valued at over USD 57 Billion in 2022 and is anticipated to grow at a CAGR of over 10% between 2023 and 2032.
 

Increasing number of internet users is growing the volume of digital data generated by platforms such as online payment gateways, websites, media & entertainment, IoT devices, and Artificial Intelligence (AI). This rise is fueling the demand for next-generation data storage, which allows businesses to store data and create databases as well as analyze future business data. It reduces data corruption & loss and allows for faster data recovery.
 

The rapid adoption of AI in several countries has resulted in a massive increase in digital data generated from activities such as customer service for banks, the use of robotics in manufacturing facilities, and enterprise decision-making, driving the demand for high data storage capacity. Major artificial intelligence users, such as the U.S. and China, are producing massive amounts of data from AI applications, boosting the global data economy. All of these factors contribute to the increasing demand for next-generation data storage.
 

Next-generation data storage technology includes advanced data storage products & solutions that deal with the growing file sizes and massive amounts of unstructured data. This technology securely manages large amounts of data while enabling cost-effective, reliable, secure, and fast data recovery. It also enables scalable storage and handling of large amounts of data generated by large corporations.

Security is a significant issue that must be addressed. If the data is stored somewhere, a third party may be able to obtain it. Many layers of security can prevent unauthorized access, such as encryption and reliance on third-party providers, but there is a limit to how well these measures can protect the data. Furthermore, the cost of maintenance & repair can make next-generation data storage a significant investment for businesses & organizations. The high cost of installation of next-generation data storage is a significant impediment to market growth as businesses & organizations may hesitate to invest in these systems due to financial constraints.
 

COVID-19 Impacts

The COVID-19 pandemic negatively impacted the next-generation data storage market due to the strict lockdowns and social distancing norms implemented to contain the virus spread. Economic uncertainty, a partial business shutdown, and low consumer confidence affected the demand for substation automation technology. During the pandemic, the supply chain was hampered along with logistics activities. However, with the relaxation of restrictions, the market growth is expected to pick up speed in the post-pandemic scenario.
 

Next-Generation Data Storage Market Trends

Explosive growth in digital data, significant advancements in IoT, the proliferation of smartphones, tablets & laptops, and the increasing penetration of high-end cloud computing are some of the key factors driving market growth. The deployment of next-generation data storage to boost general databases for future use and optimize databases in various verticals, such as BFSI, healthcare, and government, is expected to drive significant growth in the storage industry during the forecast period.
 

Rapid advancements in areas including Big Data, cloud computing, and mobile services are expected to boost market growth. Currently, traditional data storage technologies are incapable of handling the massive amounts of data generated every day, whereas next-generation data storage with benefits such as improved reliability, efficiency, and cost-effectiveness can meet the growing demand for data storage.
 

Next-Generation Data Storage Market Analysis

Based on end-use, the next-generation data storage market is segmented into BFSI, healthcare, retail, cloud service providers, government, IT & telecom, and others. The BFSI segment is expected to grow at a lucrative growth rate of over 12% between 2023 and 2032. Data creation through multiple touchpoints, such as mobile banking, digital wallets, and chatbot-supported customer assistance services, is currently at its peak in the banking sector.
 

To provide a seamless customer experience and facilitate frictionless backend processes, BFSI firms are increasingly adopting secure, fast, reliable & scalable data infrastructure. Furthermore, the growing need for financial institutions to make decisions based on databases to gain a competitive advantage is compelling them to implement smarter business platforms that are agile, adaptable, and feasible.
 

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Based on storage architecture, the next-generation data storage market is divided into file & object-based storage and block storage. The file & object-based storage segment held a market value of over USD 20 Billion in 2022, which is attributed to the increasing demand to arrange large volumes of data in a structure. File storage is a hierarchical storage method for organizing & storing data on a computer hard drive or a Network-Attached Storage (NAS) device. Object storage is a type of computer data storage architecture that is intended to handle large amounts of unstructured data. Unlike block storage architecture, it defines data as distinct units that are accompanied by metadata and a unique identifier that can be used to locate & access each data unit. Due to the rapid adoption of IoT technologies and connected devices as well as the increased use of mobile & smart wearable devices, the demand for file & object-based storage is increasing.
 

Based on deployment type, the next-generation data storage market is bifurcated into on-premises and cloud. The on-premises segment held a dominant market share in 2022 and is anticipated to grow at over 8% CAGR from 2023 to 2032. The high performance of on-premises storage solutions drives the segment. Due to its low cost and backup & recovery capabilities, on-premise next-generation data storage is best suited for small-sized businesses. The growing need to manage large volumes of data, both structured and unstructured, is a critical factor promising growth prospects for the on-premises segment.
 

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North America is the dominant region in the global next-generation data storage market with over 35% share in 2022. The region is a pioneer in the adoption of advanced data-storage technologies. The U.S. has a high concentration of both global companies and consumers. In addition, the proliferation of hyper-scale data centers, which are primarily used by cloud computing companies and social network providers, has increased rapidly. These factors contribute to the region’s dominance in the market.
 

Next-generation Data Storage Market Share

Some of the major players operating in the next-generation data storage market are:

• IBM Corporation
• Dell Technologies
• Hewlett Packard Enterprise Development LP
• Hitachi Ltd
• Huawei Technologies Co., Ltd
• NetApp
• Cloudian Inc
• Fujitsu
• Pure Storage Inc.
• NetGear
• Samsung
• Western Digital Corporation,
• Nutanix.
   

These players focus on strategic partnerships and new storage system launches for market expansion. Furthermore, these players are heavily investing in research to introduce innovative storage systems and garner maximum revenue in the market.
 

Next-Generation Data Storage Industry in News:

• In May 2022, TerraMaster introduced a new eight-bay Direct-Attached Storage (DAS) device for customers who require centralized data storage. Unlike NAS, DAS is used locally via cables that connect directly to a PC or other device. The new TerraMaster D8-332 is a professional RAID storage device with up to 160TB of capacity.
   
• In July 2022, Samsung Electronics Co. unveiled a second-generation smart solid-state drive (SSD), an upgraded data storage device that significantly reduces the computer processing time and energy consumption.
   

The next-generation data storage market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD Million from 2018 to 2032, for the following segments:

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By Storage System

• Direct-Attached Storage (DAS)
• Network-Attached Storage (NAS)
• Storage Area Network (SAN)

By Storage Architecture

• File & object-based storage
• Block storage

By Storage Medium

• Hard Disk Drive (HDD)
• Tape
• Solid-State Drive (SSD)

By Deployment Type

• On-premises
• Cloud

By End-use

• BFSI
• Healthcare
• Retail
• Cloud service providers
• Government
• IT & telecom
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • ANZ 
• Latin America
  • Brazil
  • Mexico 
• MEA
  • South Africa
  • Saudi Arabia
  • UAE