Next-Generation Data Storage Market

[356 Pages Report] The next-generation data storage market was valued at USD 65.1 billion in 2024 and is estimated to reach USD 90.0 billion by 2029, registering a CAGR of 6.7% during the forecast period.

The growth of the next-generation data storage market is driven by growing demand for energy-efficient and compact storage solutions in homes and small offices, increasing adoption of NVMe in enterprise storage systems, and rising use of 5G technology.

Next-Generation Data Storage Market Forecast to 2029

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Market Dynamics:

Drivers: Increased data generation attributed to surging use of smartphones and smart wearable devices

Major data generation sources used earlier were personal computers (PCs) or enterprise desktops. Nowadays, smartphones, tablets, and laptops have become essential to life with changing lifestyles, working patterns, and rapid globalization. The use of these devices has increased rapidly globally, which indicates that the popularity of digital devices is at its peak. Similarly, with technological advancements, many new gadgets have been launched, such as consumer wearables, Alexa (voice assistance device), 3D smart glasses, smart gadgets, and augmented and virtual reality (AR/VR) products. These devices generate high volumes of data through various applications, online shopping, financial transactions, etc. Most people spend almost 5–6 hours on mobile applications daily. This leads to increased data volumes and internet use, leading to a surge in big data and fueling the demand for next-generation data storage solutions.

Restraint: Limited support for advanced features and functionalities in entry-level next-generation data storage solutions

The limited support for advanced features and functionalities in entry-level next-generation data storage solutions presents a notable restraint for the market's growth. While next-generation storage technologies offer a range of innovative capabilities catering to diverse user needs, entry-level solutions often lack the sophistication required to leverage these features. This limitation can hinder the ability of users, particularly small businesses and budget-conscious consumers, to harness the full potential of next-generation storage technologies.

One significant impact of this restraint is on the overall user experience. Entry-level storage solutions offer basic data storage and retrieval functionality but often lack advanced features such as data deduplication, encryption, and advanced data management tools. As a result, users may find themselves constrained regarding data security, efficiency, and overall usability. Furthermore, the limited support for advanced features may restrict the scalability and adaptability of entry-level storage solutions. Businesses and individuals with evolving storage needs may find it challenging to upgrade or expand their storage infrastructure seamlessly due to the lack of support for features such as automated data tiering, dynamic provisioning, and integration with cloud services. This can result in higher long-term costs and operational inefficiencies as users may need additional hardware or software solutions to meet their evolving requirements.

Opportunities: Emergence of artificial intelligence (AI) and machine learning (ML) technologies

The emergence of AI and ML is a transformative force for data storage, offering various opportunities for intelligent data management and analytics. These technologies enable organizations to leverage their data more innovatively, shaping the future of the next-generation data storage market. AI and ML algorithms are skilled at deriving insights from large datasets, enabling organizations to optimize their data storage infrastructure. By analyzing patterns in data usage and predicting future storage needs, AI-driven solutions facilitate proactive management, ensuring that storage resources are allocated efficiently and effectively.

The integration of AI-powered analytics enhances data security within storage environments. These algorithms can detect anomalies and potential threats in real time, enabling organizations to respond swiftly to security breaches and mitigate risks. By augmenting traditional security measures with AI-driven solutions, organizations can fortify their defense systems against cyber threats and safeguard sensitive data, instilling stakeholder trust and confidence. For instance, in February 2024, Huawei Technologies Co., Ltd. (China) launched new products in OceanStor A-Series. This solution includes the Data Management Engine (DME), eDataMate toolchain, data fabric, and AI storage solutions like OceanStor A800 and A310. It enhances AI training data management globally, improving efficiency with features like OceanStor A800's high-performance NAS storage and real-time hyper-cluster scheduling support.

Challenge: Challenges associated with multi-tenancy and resource isolation in shared NAS environments

The challenge of multi-tenancy and resource isolation in shared NAS (Network Attached Storage) environments presents a formidable obstacle for the next-generation data storage market. In such environments, where multiple users or organizations share the same infrastructure, ensuring robust data security and isolation is paramount. However, the coexistence of diverse workloads and datasets heightens the risk of unauthorized access, data breaches, and leakage of sensitive information.

Managing multi-tenant NAS environments entails complexity in provisioning, monitoring, and enforcing access controls. With competing demands for computing, storage, and network resources among different tenants, performance degradation, latency issues, and uneven workload distribution can occur. Effectively managing resource allocation and implementing quality of service (QoS) policies are essential to mitigate these bottlenecks and ensure consistent performance across tenants.

Fine-grained access controls, resource quotas, and workload isolation techniques are necessary to mitigate contention and maintain performance predictability. Failure to address tenant isolation and fairness concerns can lead to performance service level agreement (SLA) violations and regulatory non-compliance, hindering market growth. Addressing these challenges requires innovative approaches to security, performance management, resource allocation, and data governance to meet the evolving needs of organizations in shared storage environments.

Next-generation Data Storage Ecosystem

Network-attached Storage (NAS) segment to hold larger market share during the forecast period.

The network-attached storage (NAS) segment is expected to hold high market share during the forecast period. The growing demand for centralized storage solutions, coupled with the need for flexible and scalable storage options, fuels the growth of network-attached storage in the market. NAS is used in various environments, including homes, small businesses, large enterprises, and remote offices, where it serves as a reliable platform for file sharing, backup and recovery, multimedia streaming, and collaborative work environments. Companies are emphasizing developing and introducing technically advanced NAS solutions to stay competitive in the market. For instance, in January 2024, TerraMaster (China) launched 4-Bay NAS ‘F4-424 Pro’. The latest 424 series incorporates Intel's 12th Generation Alder Lake N95 CPU, 8GB of DDR5 RAM, dual 2.5Gbps network interfaces, two M.2 NVMe slots, and a USB Type-C host port alongside a USB Type-A port. Compared to the preceding model, this lineup boasts an impressive 40% boost in overall performance. This powerful and versatile solution caters to the needs of home users, small office/home office (SOHO) setups, and small businesses, offering robust computing capabilities in a compact form factor.

Solid-state drive (SSD) segment account for the largest share of the next-generation data storage market for during the forecast period

Solid-state drive (SSD) segment to hold high market share during the forecast period. SSDs are leading in market share primarily due to their superior speed, reliability, and efficiency compared to traditional storage mediums like HDDs and tapes. With significantly faster data access and transfer speeds, SSDs enhance overall system performance and productivity, making them ideal for modern data-driven environments. The increasing need for storage capacity and adoption of NVMe technology are also driving factors for growth in the SSD market. For instance, in February 2024, Samsung (South Korea) launched the SSD 990 EVO, a consumer NVMe SSD in 1 TB and 2 TB options. The new product aims to enhance everyday computing tasks like gaming, work, and video/photo editing, catering to a wide range of users.

File-and Object-based Storage segment account for the largest share of the next-generation data storage market for during the forecast period

File-and object-based storage (FOBS) segment to hold high market share during the forecast period. The growth of the FOBS market is driven by an increase in the amount of unstructured data, including documents, images, videos, and sensor data, necessitating scalable and efficient storage solutions. FOBS is well-suited for handling large volumes of unstructured data due to its flexibility, scalability, and rich metadata capabilities. For instance, in November 2023, Quantum Corporation (US) launched Quantum Myriad, an all-flash, scale-out file- and object-based storage software platform for enterprises handling video and unstructured data. With its modern cloud-native architecture, Myriad offers deployment flexibility, high performance, and ease of use, addressing future storage needs while reducing IT staff burden.

Enterprise segment account for the largest share of the next-generation data storage market for during the forecast period

The enterprise segment is expected to hold a high market share during the forecast period. Enterprises generate and utilize vast amounts of data, necessitating robust and scalable storage solutions. The complexity and volume of data in enterprise environments require high-performance storage systems such as network-attached storage (NAS), direct-attached storage (DAS), and storage area network (SAN) that can deliver quick access and processing capabilities. These next-generation storage devices' advanced data transfer speeds enable companies to manage heavy workloads with greater reliability and efficiency. As the demand for data storage in enterprises continues to surge, companies focus on increasing the capacity of storage solutions. For instance, in November 2023, Western Digital Corporation (US) introduced its latest innovation: the Ultrastar DC HC680 SMR HDD family, featuring a 24 TB capacity spread across 10 disks. Specifically designed for hyperscale, cloud, and enterprise data center clients, these high-density drives prioritize storage density, energy efficiency, and cost-effectiveness. Ideal for sequential write workloads, they cater to various applications such as bulk storage, online backup, video surveillance, and big data storage. This launch underscores the increasing importance of accommodating growing data volumes and diverse storage needs within enterprise environments.

On-premises segment account for the largest share of the next-generation data storage market for during the forecast period

The on-premises segment is expected to hold a high market share during the forecast period. Data sovereignty and security concerns drive many organizations, particularly those in highly regulated industries such as finance, healthcare, and government, to prefer keeping their data on-site where they have full control over its management and security protocols. Moreover, concerns about data transfer costs, compliance issues, and the need for specialized hardware or infrastructure also require organizations to maintain their storage infrastructure on-premises. Advancements in NAS hardware systems will further contribute to the growth of the on-premises segment. For instance, in November 2023, QNAP Systems, Inc. (Taiwan) unveiled Thunderbolt 4 Network Attached Storage (NAS), powered by 12th Gen Intel Core i5/i7/i9 Processors. The new solutions come with 32 GB/64 GB DDR4 RAM suitable for videography, photography creators, and media & entertainment applications.

Next-generation data storage market in Asia Pacific estimated to grow at the fastest rate during the forecast period

Asia Pacific region in the next-generation data storage market is expected to grow at the fastest rate during the forecast period. The growth of micro, small, and medium enterprises (MSMEs) in Asia Pacific fuels the demand for next-generation data storage solutions. As MSMEs increasingly adopt digital technologies and cloud services to streamline operations and enhance productivity, the need for scalable and secure data storage solutions is on the rise. The digitalization initiatives in the region are driving MSMEs to invest in data storage technologies to support their growing data requirements and digital transformation efforts. According to March 2024 statistics by the Ministry of Micro, Small & Medium Enterprises, Government of India, the total count of MSMEs registered on the Udyam portal and the Udyam Assist Platform (UAP) has surpassed 40 million. Further, according to the Asia Small and Medium-Sized Enterprise Monitor 2023 report by the Asian Development Bank (ADB), micro, small, and medium-sized enterprises (MSMEs) represented 96.6% of all enterprises in Asia in the year 2022. The substantial presence of MSMEs in the region has resulted in a rise in unstructured data volumes, necessitating modern data storage solutions for secure backups within IT infrastructures. This trend is anticipated to drive the adoption of next-generation data storage solutions among MSMEs in Asia Pacific economies in the foreseeable future.

Next-Generation Data Storage Market by Region

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Key Market Players

Major vendors in the next-generation data storage companies are Dell Inc. (US), Hewlett Packard Enterprise Company (US), NetApp (US), Huawei Technologies Co., Ltd. (China), Pure Storage, Inc. (US), Hitachi, Ltd (Japan), Fujitsu (Japan), IBM Corp. (US), DataDirect Networks (US), and Micron Technology, Inc. (US). Apart from this, Cloudian (US), Infortrend Technology Inc. (Taiwan), Quantum Corporation (US), Western Digital Corporation (US), Samsung (South Korea), Nutanix (US), Seagate Technology LLC (US), Scality (US), NETGEAR (US), Inspur Software Co., Ltd. (China), SK HYNIX INC. (South Korea), LucidLink (US), DataCore Software (US), KIOXIA Corporation (Japan), and, Infinidat (US) are among a few emerging companies in the next-generation data storage market.

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Scope of the Report

Next-Generation Data Storage Market Highlights

This research report categorizes the next-generation data storage market based on Storage System, Storage Medium, Storage Architecture, Deployment, End User, and Region.

Recent Developments

• In April 2024, Micron Technology, Inc. (US) introduced the automotive-grade Micron 4150AT SSD, the world's first quad-port SSD. It enables centralized storage for software-defined intelligent vehicles, offering features like SR-IOV, PCIe Generation 4 interface, and rugged automotive design for data center-level flexibility and power in the automotive ecosystem.
• In February 2024, Huawei Technologies Co., Ltd. (China) has launched new products in OceanStor A-Series. This solution includes the Data Management Engine (DME), eDataMate tool chain, data fabric, and AI storage solutions like OceanStor A800 and A310. It enhances AI training data management globally, improving efficiency with features like OceanStor A800's high-performance NAS storage and real-time hyper-cluster scheduling support.
• In February 2024, Huawei Technologies Co., Ltd. (China) unveiled the OceanProtect E8000 and X9000 data backup appliances, along with the next-generation OceanStor Arctic magneto-electric storage solution tailored for warm and cold data. This storage solution is projected to decrease TCO by 20% compared to tapes and reduce power consumption by 90% compared to HDDs.
• In December 2023, Dell Inc. (US) announced new Dell PowerScale OneFS advancement which is flexible, secure and efficient scale-out storage system to address demands for higher AI and GenAI performance. These updates improve AI modelling capabilities for data preparation, training, fine-tuning and inferencing. PowerScale OneFS offers new smart scale-out capability to improve single compute node performance for enhanced GPU utilization, leading to faster storage throughput for AI training, inferencing and checkpointing.
• In December 2023, Micron Technology, Inc. (US) announced the availability of Micron 3500 NVMe SSD. It uses Micron’s 232-layer NAND to support business applications, scientific calculations, cutting-edge games, content creation and other demanding workloads.

Key Questions Addressed in the Report:

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