Global next generation data storage market report by 2027| Covid-19 impact analysis, key players, Latest trendsOctober 15, 2021
According to the report, the market is evaluated to grow at a CAGR of 8.3%, earning revenue of around USD 94.4 billion by the end of 2027. The global next generation data storage market worth USD 54.12 billion in 2020. The next generation data storage market is increasing significantly because of the growing data volume among various end-user industries, such as telecom, financial services,healthcare, banking, IT, and insurance (BFSI), etc.
Additionally, due to the increasing popularity of cloud solutions, a new technology known as hybrid storage has gained traction, favoring the growth of the market. In addition, the increasing use of mobile computing devices such as laptops, smartphones and tablets and the digitization of information in residential and business settings contribute significantly to the prosperity of the market. However, the high risk of data theft and cyber attack associated with cloud and hybrid computing remains a major restriction on the global next generation data storage market.
Traditional data storage methods are unable to handle large amounts of data on a daily basis. On the other hand, the next generation data storage infrastructure provides a reliable, fast and cost-effective solution to meet the growing data storage demands. Data is generated by every device we use today; Thus, next generation data storage has become an vital technology. For example, data is generated by wearable gadgets, games, movies and commercials. In order to more effectively hold and retrieve such data, next generation storage technologies are deployed. Due to the increasing volume of data, organizations and enterprises are investing more in data storage infrastructure, increasing their productivity and providing better services. Such investments are expected to drive demand for the next generation of data storage, which will drive the market growth. Data centers and storage facilities are also being developed by both public and private entities, which have proven to be cost-effective for small and medium-sized businesses. As a result of these initiatives, the demand for next generation data storage is likely to increase in the near future.
With the increasing popularity of smartphones and other mobile devices, such as laptops and tablets, the market for next generation data storage is expected to grow dramatically. The increasing use of these tools has resulted in huge amounts of unstructured data that must be managed effectively. Data can be stored in a scalable, cost-effective, fast and reliable manner with next-generation data storage. Large files and unstructured data can be stored efficiently with these data storage systems. Also, with remote working and online education, smartphones play an vital role. The demand for next generation data storage is only likely to increase during the forecast period as manufacturers expand their production facilities.
By Storage Type
The global next generation data storage market is segmented into remote (cloud), local (on-premise), and hybrid, based on storage architecture. The local (on-premises) segment accounts for the huge share of the next generation data storage market. On-premises data storage offers high performance in data delivery resulting in accelerating efficiency for businesses or enterprises. It works well with small businesses and residential applications. With a large number of small businesses, especially in emerging economies, the local data storage segment is growing significantly. However, the hybrid segment is predicted to witness the highest CAGR during the forecast period. Businesses are opting to merge local and hybrid solutions to improve business productivity due to rising remote working trends, ever-increasing need for remote access to data, and a massive surge in data volumes.
The global next generation data storage market is segregated into government bodies, enterprises, cloud service providers and telecom companies, Among these, the enterprise segment accounts for the tremendous market share. This segment is further classified into consumer goods, healthcare, retail, BFSI, manufacturing, media and entertainment, and others. Sectors like healthcare, BFSI, etc., carry and generating large amounts of critical data which requires structured storage platforms that can provide real-time access to access data and protect it from data losses. Furthermore, these sectors are swiftly switching from hardware data storage options to cloud solutions and hybrid solutions for their data storage requirements, which is projected to drive the next generation data storage market growth during the forecast period.
The global next generation data storage market is segmented into Middle-East & Africa Europe, Asia-Pacific, North America, Latin America. In these regions, North America dominates the global next generation data storage market. Due to the concentration of international vendors and consumers in the United States, the next generation storage market is showing signs of expansion in this area.
According to datacenters.com, the number of hyperscale data centers, used mostly by cloud firms and social network providers, has expanded globally, with the United States leading the way with 1,444 data centers and 180 service providers. According to data center marketplace Datacenter.com, more than two-thirds of data centers in the United States have maximum demand, with power densities of about 15 or 16 kW per rack. In addition, some data centers are achieving 20 kW per rack or more. This has prompted the deployment of DCIM, which allows users and manufacturers to effectively manage and operate their data centers.
However, the Asia-Pacific region is predicted to witness the highest CAGR during the forecast period. The high concentration of major industry players such as Toshiba, Fujitsu, Huawei, etc., is a valuable contributing factor to the market in this region. Additionally, a growing number of small and medium-sized businesses are also driving the growth of the global next generation market.
COVID-19 impact on Global Next Generation Data Storage Market
The COVID-19 pandemic has wreaked havoc on the worldwide economy. The global lockdown has hit the enterprise sector with significant losses, with manufacturing, financial services and retail being the worst hit. The global next generation data storage market has flourished after the outbreak of COVID-19. As a result of the lockdown imposed by the governments, people started working from home. Simultaneously, the concept of online education also emerged, which accelerated the growth of the market. As a result of the COVID-19 pandemic, storage suppliers are offering free solutions to help researchers, businesses, work-at-home users and partners run their business and work remotely. However, the global market for next-generation data storage declined when manufacturing activities were suspended during the initial outbreak. Nonetheless, this segment is expected to turn around rapidly in the post-COVID-19 era.
The major key players in the global next generation data storage market are Hewlett Packard Enterprise Company, Samsung, Dell Inc., Netgear Inc., Scality Inc., Toshiba Corp., DataDirect Networks., Fujitsu Ltd., Nutanix, Pure Storage Inc., Micron Technology, IBM Corporation, Hitachi Ltd, Huawei Technologies Co., NetApp Inc., Western Digital Corporation, Inspur, Cloudian Inc., Drobo Inc., and other prominent players.