Next-Generation Data Storage Market by Storage System (Direct-Attached, Network-Attached, Storage Area Network), Storage Architecture, Storage Medium, Storage Systems, Deployment Type, End-user and Region – Global Forecast to 2028
[302 Pages Report] The Next-Generation Data Storage market size is projected to grow from USD 60.7 billion in 2023 to reach USD 86.2 billion by 2028; it is expected to grow at a Compound Annual Growth Rate (CAGR) of 7.3% from 2023 to 2028.
Rising data generation with surge in use of mobile and smart wearable devices, surging adoption of IoT technologies and connected devices, rising use of 5G technology, and increasing adoption of NVMe in enterprise storage systems are the factors driving the growth of the Next-Generation Data Storage market.
Next-Generation Data Storage Market Forecast to 2028
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Next-Generation Data Storage Market Dynamics
Driver: Surging adoption of IoT technologies and connected devices
With the Internet of Things (IoT) technologies and connected devices gaining traction over the past few years, the volume of machine-generated data has increased tremendously. Many organizations combine machine-generated and manually collected data to get the best results. This has also led to the generation of an enormous volume of digital data in recent times, and managing such huge volumes of data has become a problem for many organizations. Likewise, capturing, storing, and partially or completely analyzing large volumes of data prior to its transmission to different users is the critical challenge several data centers face. Next-generation data storage devices address this issue by providing automated cloud backup and centralized file storage solutions, making data accessible from anywhere.
Restraint: Data security concerns
When data is considered, privacy is the main concern faced by organizations and customers worldwide. Next-generation data storage devices are usually secure and available at an affordable cost. However, sometimes when data is stored at a remote location, the security of that data might be a concern. This is due to multitenancy, a phenomenon in which software running on a server serves multiple groups of users. These users share common access. Thus, the data stored by these users is accessed by several third-party users and can be misused.
Additionally, e-commerce, mobile payments, cloud computing, big data and analytics, IoT, AI, machine learning, and social media are the major trends that subject users and organizations to cyber threats. The nature of the threats is becoming more diverse. Various threats such as distributed denial-of-service (DDoS), ransomware, advanced persistent threats (APTs), viruses, worms, malware, spyware, botnets, spam, spoofing, phishing, hacktivism, and potential state-sanctioned cyberwarfare are impacting businesses, questioning the security of data. Thus, the security of data accessed from and stored at remote locations is expected to hamper the growth of the next-generation data storage market.
Opportunity: Increasing traction of industry-grade flash memories
The highest memory operations and data security levels are required for industrial applications since these applications are frequently at the forefront of crucial systems, including those in the aerospace & defense and healthcare industries, as they cannot afford to have any room for uncertainty or error. Flash memory is replacing HDDs in industrial applications. However, when flash memory is utilized in industrial settings, the grade of the memory must be sufficient to match the device’s requirements. Thus, non-volatile manufacturers are offering application-specific flash memories. Single-level cell (SLC) NAND flash is mostly used in industrial applications. One piece of data is stored on each cell in SLC flash; thus, data corruption or loss due to a power outage during writing is extremely unlikely because just one piece of data needs to be written per cell.
Challenge: Generation of high latency in connecting storage devices over internet
When connected to the network, next-generation data storage devices such as NAS devices experience a delay in data transfer from the server to a client. This phenomenon is called latency. Due to a weak network and connectivity issues, latency in NAS devices is observed. High latency experienced by storage devices when connected over the internet tends to deteriorate the performance of NAS devices. Also, when multiple clients are working on a NAS platform and try to access multiple files simultaneously, the entire framework may slow down, and the utilization levels of the NAS device may shoot up. To overcome this challenge, high-speed internet services need to be adopted. A strong network between the server and client ensures low latency and high performance of NAS devices. However, it is not completely practical for NAS systems to function with 100% efficiency, as performance can fluctuate with time. However, the best way to get the maximum efficiency out of a NAS system is to monitor the system parameters consistently and make changes when required.
Next-Generation Data Storage Ecosystem
NAS segment to dominate market during the forecast period.
The NAS segment is expected to lead the market during the forecast period. NAS is an easy-to-use, high-capacity, low-cost storage system. It enables organizations to connect their machines through cloud interfaces and retrieve data from a central location for authorized network users and varied clients. Enterprises depend on NAS solutions to back up their business-critical data and gain quick access. Today’s generation is tech-savvy and uses advanced products such as smartphones, tablets, laptops, and other smart devices. The growing penetration of these electronic devices has led to increased digital content in the form of unstructured data. To manage these large data sets, consumers are adopting NAS solutions. Additionally, consumers prefer centralized NAS solutions to store data generated from video surveillance systems, media streaming devices, and backup systems. The NAS solution excels in high-performance-demanding requirements for high-throughput and low-latency workloads from high-performance computing, big data, and media and entertainment applications.
The SSD segment is expected to hold high market share from 2023 to 2028.
The SSD segment is expected to hold high market share during the forecast period. The increasing penetration of high-end cloud computing, the growing adoption of SSDs in data centers, and the advantages of SSDs over HDDs, such as energy efficiency and cost-effectiveness, mainly drive the growth of this market. With Industry 4.0 norms, many sectors are adopting digital transformation and expanding themselves with evolving technologies. This trend is creating demand for cloud computing, which, in turn, will boost the requirement for SSDs across verticals.
The file- & object-based storage segment to grow at high CAGR during the forecast period
The file- & object-based storage segment is projected to be a fast-growing storage architecture segment during the forecast period. Rapidly growing data generation by large enterprises is leading to an increased need for FOBS to manage those huge volumes of data. These huge volumes of structured and unstructured data, including photos, videos, audio files, and other media, are generating considerable market opportunities for the providers of File- & Object-based Storage (FOBS) systems. FOBS systems offer easy synching, sharing, and distribution of data. Further, its requirement in data centers fuels the market growth. Modern data sources that include IoT, cloud privatization, and video surveillance constantly generate a tremendous volume of data. Between file- and object-based storage solutions, object storage solutions are expected to dominate the market during the forecast period as they help handle huge unstructured data, unlike file storage, mainly used to store structured data.
The enterprises segment is expected to hold high market share from 2023 to 2028
The enterprises segment is expected to hold high market share from 2023 to 2028. Enterprises worldwide require high-performance, scalable, and affordable storage solutions, this fuels the development of innovative and technologically advanced data storage systems. The BFSI, manufacturing, consumer goods, and retail sectors adopt advanced storage solutions at the early stage of the evolution of data storage technologies. The demand for these technologies is increasing across all industries, with the growing awareness regarding the benefits of next-generation data storage systems to early adopters.
Market for on-premises segment to hold the largest share throughout the forecast period
The on-premises segment accounted for a high market share, in terms of value, in 2022. On-premises is the most preferred deployment type of next-generation data storage solutions as it offers users complete control over data accessibility, ensuring high data security. Also, utilizing in-house hardware and software solutions ensures stored data’s safety, privacy, and security. Advancements in NAS hardware systems will further contribute to the growth of the on-premises segment. For instance, in September 2021, PAC Storage (US) launched a new U.2 NVMe all-flash network-attached storage suitable for on-premises applications. The new NAS solution excels in high-performance-demanding requirements for high throughput and low latency workloads from high-performance computing, big data, and media and entertainment applications.
Next-Generation Data Storage market in Asia Pacific to grow at highest CAGR during the forecast period
The Asia Pacific Next-Generation Data Storage market is expected to grow at the highest CAGR during the forecast period. rapid urbanization and increased investments in R&D by next-generation data storage solution providers in Asia Pacific contribute significantly to the increasing demand for next-generation data storage systems in the region. Japan and China are witnessing economic development at a high rate. Enterprises in these countries have adopted the latest technologies to sustain and grow in rigorous competition. To remain competitive in increasing operational efficiency, operational outcomes, and financial profitability, companies in this region are investing in upgrading their IT capabilities. The market in this region is expected to grow at a significant pace, mainly led by the growing economies and an increasing number of small and medium-scale businesses, along with mandatory regulations pertaining to digital transformation imposed by the government. This, in turn, is expected to fuel the adoption of Next-Generation Data Storage solutions across Asia Pacific economies in the coming years.
Next-Generation Data Storage Market by Region
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Key Market Players
Key players in the Next-Generation Data Storage market are Dell Technologies Inc. (US), HPE (US), NetApp, Inc. (US), Huawei Technologies Co., Ltd. (China), Pure Storage, Inc. (US), Hitachi Ltd. (Japan), Fujitsu Ltd. (Japan), IBM Corporation (US), DataDirect Networks (US), and MicronTechnology Inc. (US).
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Report Metric |
Details |
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Market size available for years |
2018—2028 |
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Base year |
2022 |
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Forecast period |
2023—2028 |
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Segments covered |
Storage System, Storage Medium, Storage Architecture, End User, Deployment Type, and Region |
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Geographic regions covered |
North America, Europe, Asia Pacific, and RoW |
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Companies covered |
The major market players include Dell Technologies Inc. (US), HPE (US), NetApp, Inc. (US), Huawei Technologies Co., Ltd. (China), Pure Storage, Inc. (US), Hitachi Ltd. (Japan), Fujitsu Ltd. (Japan), IBM Corporation (US), DataDirect Networks (US), and MicronTechnology Inc. (US), and Others- total 25 players have been covered |
Next-Generation Data Storage Market Highlights
This research report categorizes the next-generation data storage market based on storage system, storage medium, storage architecture, end user, deployment type, and region.
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By Storage System : |
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By Storage Medium : |
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By Storage Architecture : |
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By Deployment Type : |
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By End User : |
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Recent Developments
- In September 2022, Huawei Technologies Co. Ltd. (Japan) launched its new portfolio of All- Flash storage, offering SAN and NAS capabilities with leading reliability and performance, especially for the financial core baking and Hospital Information Systems (HIS) scenarios. OceanStor Dorado also offers the industry's only active-active NAS solution, ensuring file service continuity.
- In July 2022, Dell Technologies Inc. (US) launched a new portfolio of SDS solutions, the PowerFlex, which was previously known as VxFlex. It was added to Dell’s storage portfolio in 2020. This solution offers cloud-enabled storage for a modern storage experience and provides extensive automation capabilities.
- In June 2022, Micron Technology Inc. (US) Micron Technology launched the industry’s first 176-Layer NAND SATA SSD, Micron 5400 SATA SSD, for data centers. This product is available in two variants with storage options for 240 GB to 7.68 TB and the 5400 Max ranging from 480 GB to 3.84 GB.
Frequently Asked Questions (FAQ):
What is the total CAGR expected to be recorded for the Next-Generation Data Storage market during 2023-2028?
The global Next-Generation Data Storage market is expected to record the CAGR of 7.3% from 2023-2028.
Which regions are expected to pose significant demand for Next-Generation Data Storage from 2022-2028?
Asia Pacific is expected to pose significant demand from 2022 to 2028. Major economies such as China, India, Japan and South Korea are expected to have a high potential for the future growth of the market. The North America region is expected hold high market share during the forecast period.
What are the major driving factors and opportunities in the Next-Generation Data Storage market?
- Rising data generation with surge in use of mobile and smart wearable devices, surging adoption of IoT technologies and connected devices, rising use of 5G technology, and increasing adoption of NVMe in enterprise storage systems are the factors driving the growth of the Next-Generation Data Storage market.
- Increasing adoption of hybrid cloud storage, growing requirement for real-time data, and increasing traction of industrial-grade flash memories are projected to create lucrative opportunities for the players operating in the Next-Generation Data Storage market during the forecast period.
Which are the significant players operating in Next-Generation Data Storage market?
Key players operating in the Next-Generation Data Storage market are Dell Technologies Inc. (US), HPE (US), NetApp, Inc. (US), Huawei Technologies Co., Ltd. (China), Pure Storage, Inc. (US), Hitachi Ltd. (Japan), Fujitsu Ltd. (Japan), IBM Corporation (US), DataDirect Networks (US), and MicronTechnology Inc. (US).
Which are the major end-users of the Next-Generation Data Storage market?
Enterprises, government bodies, cloud service providers, and telecom companies are the major end-users of the Next-Generation Data Storage market. The enterprise users have been further segmented into banking, financial service, and insurance (BFSI); consumer goods; retail; healthcare; media and entertainment; manufacturing verticals; and others, which mainly include aerospace & defense, business and consulting, education and research, and energy sectors.
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The study involved four major activities in estimating the size for Next-Generation Data Storage market. Exhaustive secondary research was done to collect information on the market, peer market, and parent market. The next step was to validate these findings, assumptions, and sizing with industry experts across value chains through primary research. The bottom-up approach was employed to estimate the overall market size. After that, market breakdown and data triangulation were used to estimate the market size of segments and subsegments.
Secondary Research
In the secondary research process, sources such as annual reports, press releases, investor presentations of companies, white papers, and articles by recognized authors were referred to. Secondary research was done to obtain key information about the market’s supply chain, value chain, the pool of key market players, and market segmentation according to industry trends, regions, and developments from both market and technology perspectives.
Primary Research
Extensive primary research has been conducted after acquiring knowledge about the next-generation data storage market scenario through secondary research. Several primary interviews have been conducted with market experts from both the demand and supply sides across four major geographies: North America, Europe, Asia Pacific, and RoW (the Middle East & Africa and South America). Approximately 60% and 40% of primary interviews have been conducted with both the supply and demand sides. This primary data has been collected through questionnaires, emails, and telephonic interviews.
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Market Size Estimation
In the complete market engineering process, the top-down and bottom-up approaches have been extensively used, along with several data triangulation methods, to perform market estimation and market forecasting for the overall market segments and subsegments listed in this report. Extensive qualitative and quantitative analyses have been performed on the complete market engineering process to list the key information/insights throughout the report.
The key players in the market have been identified through secondary research, and their market shares in respective geographies have been determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All the percentages of shares and breakdowns have been determined using secondary sources and verified through primary sources. All the possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data. This data has been consolidated and added with detailed input and analysis from MarketsandMarkets presented in this report.
Next-Generation Data Storage Market: Bottom-Up Approach
Data Triangulation
After arriving at the overall market size through the process explained above, the overall market has been split into several segments. To complete the overall market engineering process and arrive at the exact statistics for all the segments, market breakdown and data triangulation procedures have been employed, wherever applicable. The data has been triangulated by studying various factors and trends from both the demand and supply sides. The market has also been validated using both top-down and bottom-up approaches.
Report Objectives
- To define, describe, segment, and forecast the size of the next-generation data storage market, in terms of value, based on storage system, storage architecture, storage medium, end user, deployment type, and region
- To forecast the market size, in terms of value, for various segments with respect to four main regions, namely, North America, Europe, Asia Pacific, and the Rest of the World (RoW)
- To define, describe, segment, and forecast the size of the next-generation data storage market, in terms of volume, based on storage capacity of storage medium
- To provide detailed information regarding the drivers, restraints, opportunities, and challenges influencing the growth of the next-generation data storage market
- To provide an ecosystem analysis, case study analysis, patent analysis, technology analysis, pricing analysis, Porter’s five forces analysis, and regulations pertaining to the market
- To provide a detailed overview of the value chain of the next-generation data storage ecosystem
- To strategically analyze micromarkets1 with regard to individual growth trends, prospects, and contributions to the total market
- To analyze opportunities for stakeholders by identifying high-growth segments of the market
- To strategically profile the key players, comprehensively analyze their market positions in terms of ranking and core competencies2, and provide a competitive landscape of the market
- To analyze strategic approaches such as product launches, acquisitions, agreements, and partnerships in the next-generation data storage market
Available Customizations
With the given market data, MarketsandMarkets offers customizations according to the specific requirements of companies. The following customization options are available for the report:
Company Information
- Detailed analysis and profiling of additional market players based on various blocks of the supply chain
Growth opportunities and latent adjacency in Next-Generation Data Storage Market