The next-generation data storage market size is estimated to grow at a CAGR of 7.93% between 2022 and 2027. The market size is forecast to increase by USD 26.59 billion. The growth of the market depends on several factors, including the growing demand for IoT and big data operations, the massive increase in digital data volume, and the high adoption of software-as-a-service applications by enterprises. Next-generation data storage refers to the advanced and innovative technologies, methodologies, and systems that are designed to overcome the limitations of traditional data storage solutions. These next-generation storage technologies aim to address the increasing demands for higher capacity, faster performance, improved scalability, enhanced reliability, and more efficient data management.
This next-generation data storage market report extensively covers market segmentation by application (SAN, NAS, and DAS), deployment (on-premise and cloud), and geography (North America, Europe, APAC, South America, and the Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
Next-generation Data Storage Market Overview
Next-generation Data Storage Market Driver
The growing demand for IoT and big data operations is a driving trend in the next-generation data storage market. The popularity of trends such as connected cars, connected homes, and smart cities is growing. Sectors such as manufacturing, utilities, retail, automotive, and social media use the IoT. IoT devices demand an energy-efficient network of smart nodes that need to be always interconnected. This is also driving the use of next-generation data storage, which enables data to be saved even on a device that’s not running.
However, Big data analytics has triggered the high-tech expansion of data centers. On-the-go business is a popular trend, and it has been made viable through technological advances within devices such as mobile phones and tablets. In order to take advantage of the big data storage and processing needs, next-generation Data Centres are constantly being upgraded. In addition, this forecast period will witness the emergence and growth of edge computing facilities, where the possibility of next-generation data storage adoption is higher.
Next-generation Data Storage Market Trends
The software-defined storage is a key trend in the next-generation storage market. Software services and hardware services are being separated using a storage virtualization technique called SDS. Software services include data administration, data safety, and input/output capabilities. By reconfiguring the storage resources that contain different systems as part of a virtualization layer, SDS helps to reduce total costs for enterprise storage devices.
Moreover, the technology enables resource pooling, abstraction, and automated management while offering storage solutions. It also offers support for legacy applications, big data analytics, and cloud-based data applications. The demand for SDS increases as a result of the need to store data efficiently. Adopting new arrays will cost lesser when compared with reconfiguring the existing arrays.
Next-generation Data Storage Market Restrain
Data security concerns are a major challenge in the next-generation data storage market. Due to system vulnerabilities, misconfigurations, insider threats, or targeted attacks, next-generation data storage solutions are vulnerable to data breaches. Breaches can result in unauthorized access to sensitive data, leading to financial loss, reputational damage, and legal and regulatory consequences.
Moreover, data analysis, which allows firms to assess past trends and make future decisions, is increasingly considered one of the key assets for businesses in order to generate revenue opportunities. However, the security of sensitive data, which includes user names, addresses, telephone numbers, and social security numbers, is a major concern for enterprises. The threat of cyberattacks is rising with the growing adoption of cloud services and IoT-based solutions, which will hamper the growth of the market in focus during the forecast period.
Next-generation Data Storage Market Segmentation By Application
The market share growth by the SAN segment will be significant during the forecast period. A storage area network (SAN) is a dedicated high-speed network that interconnects next-generation storage devices to multiple servers. The SAN moves the stored data from the common user network and recollects and organizes it into an independent high-speed network. The SAN allows each server to access storage devices.
The SAN Segment showed a gradual increase in the market share of USD 29.04 billion in 2017 and continued to grow by 2021. SAN is a type of local area network which is designed to handle the transfer of huge volumes of data. SAN storage devices support data storage, retrieval, and replication using high-end servers and multiple disk arrays. Moreover, this will allow the server to take charge of the storage volume and keep control of it. The backup server controls the primary server by connecting to the storage volume in the event of a system failure in a collected environment.
NAS devices are primarily used for storing and managing large amounts of data. To ensure data redundancy, performance, and fault tolerance, they typically contain multiple hard drives configured in different redundant arrays of independent disks (RAID) levels. NAS devices enable easy file sharing among users on the network. They act as a central repository where multiple users can access, edit, and share files simultaneously. This makes collaboration and data sharing more efficient within a home or office environment. NAS devices enable seamless file sharing and collaboration among users, whether in the same office or remotely located. Due to all such features, the NAS segment is witnessing growth, which is expected to boost the growth of the market in focus during the forecast period.
Next-generation Data Storage Market Segmentation By Deployment
Next-generation data storage on-premises often incorporates high-speed connectivity technologies such as Fibre Channel, InfiniBand, or Ethernet with remote direct memory access (RDMA). These technologies enable faster data transfer rates, reduced latency, and improved I/O performance between storage devices and servers. Next-generation on-premises storage solutions often incorporate advanced data management and analytics capabilities. This includes data deduplication, data tiering, automated data movement, data protection, and the integration of analytical tools in order to extract insight from stored data. next-generation of on-premises Storage solutions focused on data security and compliance. On-premises next-generation data storage offers organizations more control, performance, and scalability than those traditional storage solutions. It enables efficient management of large data volumes, supports modern workloads, and provides the foundation for organizations to leverage emerging technologies such as AI, ML, and big data analytics.
Cloud-based next-generation data storage refers to the utilization of advanced storage technologies and architectures within cloud computing environments to meet the evolving demands of data-intensive applications and workloads. For the management and storage of high volumes of data, this system relies on capacity, flexibility as well as access to cloud services. Cloud-based storage solutions provide virtually unlimited scalability, allowing organizations to easily expand storage capacity as their data volume grows. Depending on demand, they may shrink or expand in order to avoid the need for upfront hardware investment as well as accommodate changing storage needs. These features enhance data protection and governance and enable efficient data management, which is expected to boost the growth of the segment and the global market during the forecast period.
North America is estimated to contribute 32% to the growth of the global market during the forecast period. analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. North America is the fastest-growing region in the global next-generation data storage market when compared with other regions.
Moreover, the adoption of next-generation data storage by SMEs is stimulated by the potential benefits, such as reduced energy consumption and better writing speed, attributed to it. SMEs have dynamic needs but fewer resources to meet their objectives when compared with large enterprises. SMEs face constant pressure to upgrade and keep pace with rapid technological advances, gaining a competitive edge over their competitors. Such factors will increase the market growth in this region during the forecast period.
The outbreak of COVID-19 in 2020 had a negative impact across North America. However, the growing demand for edge data centers in the region will positively impact the market growth. The lockdown has resulted in people working from their homes to slow down the spread of the virus. This further increased data generation and increased investments in edge data centers due to the growing demand for computing and storage resources to support 5G-enabled applications. This led to increased demand for next-generation data storage across the region.
Next-generation Data Storage Market Customer Landscape
The Next-generation Data Storage Market industry report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Who are the Major Next-generation Data Storage Market Companies?
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Cloudian Inc. – The company offers next-generation data storage such as Cloudian HyperStore.
DataDirect Networks Inc. – The company offers next-generation data storage such as DDN A300 Series.
Dell Technologies Inc. – The company offers next-generation data storage such as Dell PowerMax NVMe, Dell PowerStore, and Dell EMC Unity XT. These arrays are all-flash and use NVMe drives for high performance and low latency.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
- Drobo Inc.
- Furukawa Electric Co. Ltd.
- Hewlett Packard Enterprise Co.
- Hitachi Ltd.
- Inspur Group
- International Business Machines Corp.
- Micron Technology Inc.
- NetApp Inc.
- Netgear Inc.
- Nutanix Inc.
- Oracle Corp.
- Pure Storage Inc.
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Segment Overview
The next-generation data storage market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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