Cloud Storage Market Report Cover

Cloud Storage Market

Cloud Storage Market Report Cover

Cloud Storage Market Size, Share, Growth & Industry Analysis, By Offering (Storage, Services), By Type (Private, Public, Hybrid), By Enterprise Type (SMEs, Large Enterprises) and Regional Analysis, 2024-2031

Author : Saket A.

Pages : 120

Base Year : 2023

Release : May 2024

Report ID: KR731

Cloud Storage Market Size

Global Cloud Storage Market size was recorded at USD 144.05 billion in 2023, which is estimated to be at USD 173.19 billion in 2024 and projected to reach USD 655.20 billion by 2031, growing at a CAGR of 20.93% from 2024 to 2031. With the exponential growth of digital data and the increasing adoption of cloud computing across diverse industries, the cloud storage market is poised to witness substantial expansion. In the scope of work, the report includes solutions offered by companies such as Amazon Web Services, Inc., Google LLC, Microsoft, IBM Corporation, Dropbox, Inc., Wasabi Technologies, Backblaze, OVH SAS, RACKSPACE TECHNOLOGY, MEGA, and others.

The proliferation of Internet of Things (IoT) devices is mainly driving market expansion. The IoT ecosystem generates vast amounts of data, including sensor readings and real-time analytics, thus necessitating scalable and flexible storage solutions. Moreover, the notable shift toward remote work and digital transformation initiatives in businesses is fueling the demand for cloud storage solutions. As organizations are increasingly adopting hybrid and multi-cloud architectures to enhance flexibility and scalability, their reliance on cloud storage providers to store, manage, and secure their data is growing.

Additionally, advancements in cloud storage technologies, such as edge computing and hybrid cloud storage solutions, contribute to market growth by enabling faster data processing and reducing latency. As businesses are prioritizing data accessibility and performance, these innovations are offering lucrative opportunities for cloud storage providers to cater to evolving customer needs and preferences.

The cloud storage market encompasses the provision of remote data storage services offered by third-party vendors, allowing users to store, access, and manage digital data over the internet. It includes a wide range of storage solutions, such as object storage, file storage, and block storage, delivered through public, private, or hybrid cloud environments. The market serves diverse industries and consumer segments, providing scalable, cost-effective, and secure storage solutions to meet evolving data storage needs. Key functionalities include data encryption, redundancy, and accessibility across devices and locations.

Analyst’s Review

The cloud storage market is poised to witness significant growth, propelled by the proliferation of IoT devices, increasing digitization, and the adoption of cloud-native applications. Key players in the market are focusing on expanding their service offerings, enhancing data security measures, and leveraging advanced technologies such as edge computing and AI to deliver scalable and efficient storage solutions. 

Cloud Storage Market Growth Factors

IoT proliferation, stringent data regulations, and evolving collaboration needs are reshaping the landscape of the cloud storage market. With an estimated surge in connected devices in the upcoming years, generating vast amounts of data, cloud storage emerges as a pivotal solution, offering scalability and cost-effectiveness to accommodate this exponential growth. Moreover, stringent data regulations, such as the General Data Protection Regulation (GDPR) and the Central Consumer Protection Authority (CCPA), are compelling organizations to adopt secure storage practices, This trend favors cloud storage providers equipped with robust compliance features and geographically distributed data centers.

Additionally, the growing shift toward remote work and dispersed teams is underscoring the importance of centralized and secure storage solutions for seamless collaboration. Cloud storage addresses these evolving collaboration needs by enabling teams to access and share data from any location, thereby fostering productivity and innovation.

However, rising data security concerns and vendor lock-in pose significant challenges to the growth of the cloud storage market. Data breaches impact a company's reputation and result in substantial fines, necessitating robust security measures and transparent practices from cloud storage providers to instill user trust. Moreover, vendor lock-in inhibits data portability and flexibility, potentially hindering scalability and innovation for businesses. Cloud storage providers are prioritizing vendor-neutral solutions and facilitating seamless data migration to alternative platforms, empowering users with greater control over their data and reducing dependency on specific providers.

Cloud Storage Market Trends

The notable shift toward hybrid cloud storage models, where businesses leverage both public and private cloud storage solutions to achieve optimal security, cost-effectiveness, and flexibility, is propelling market growth. This trend reflects a strategic approach to data management, allowing organizations to balance performance requirements with regulatory compliance and budget constraints. The rise of file synchronization and sharing (FSS) solutions is reshaping the landscape of cloud storage.

Cloud-based FSS platforms enable real-time file access and collaboration across devices, catering to the increasing demand for remote work capabilities. This trend underscores the importance of seamless data accessibility and collaboration tools in today's digital workplace environments. Moreover, the growing adoption of serverless computing is fueling the need for cloud storage solutions that seamlessly integrate with these platforms. Serverless computing eliminates the burden of server management, leading to increased efficiency and scalability for businesses.

Segmentation Analysis

The global cloud storage market is segmented based on offering, type, enterprise type, end user and geography.

By Type

Based on type, the market is categorized into private, public, and hybrid. The public segment captured the largest market share of 54.65% in 2023. This considerable growth is primarily attributed to the increasing adoption of public cloud services by businesses seeking cost-effective and scalable storage solutions. Public cloud providers offer on-demand storage resources, enabling organizations to scale infrastructure according to fluctuating demands without upfront investments in hardware.

Additionally, the growing preference for outsourcing IT infrastructure and management is fostering demand for public cloud storage services, allowing businesses to focus on core competencies while leveraging the expertise of cloud providers. Furthermore, the availability of a wide range of storage options, including object storage, file storage, and block storage, caters to diverse use cases and industries, thereby augmenting the growth of the public cloud storage segment.

By Enterprise Type

Based on enterprise type, the market is bifurcated into SMEs and large enterprises. The large enterprises segment generated the highest revenue of USD 87.91 billion in 2023. Large enterprises possess substantial data storage requirements due to their extensive operations and expansive datasets, necessitating robust and scalable cloud storage solutions. Furthermore, the emphasis on data security and compliance in large enterprises prompts the adoption of cloud storage services with advanced security features and regulatory compliance capabilities.

Additionally, large enterprises often prioritize innovation and agility, seeking cloud storage solutions that facilitate seamless integration with other cloud-based services and support agile development methodologies. Moreover, the need for centralized data management and collaboration tools in geographically dispersed large enterprises fuels the demand for cloud storage services that offer advanced data management and collaboration features.

By End User

Based on end user, the market is divided into BFSI, IT & telecommunication, healthcare & life science, retail & consumer goods, manufacturing, and others. The BFSI segment is projected to garner highest revenue of USD 164.52 billion by 2031. Stringent regulatory requirements, such as those concerning data security and compliance standards like  GDPR and PCI DSS, compel BFSI institutions to adopt secure and compliant cloud storage solutions.

Furthermore, the increasing volume of digital transactions and customer data is necessitating scalable and resilient storage infrastructure to ensure data availability and integrity. Additionally, the BFSI sector prioritizes operational efficiency and agility, leading to the increasing adoption of cloud storage services to streamline data management processes and support digital transformation initiatives. Moreover, the need for real-time data analytics and insights to enhance customer experience and risk management fuels the demand for advanced cloud storage solutions tailored to the unique requirements of the BFSI industry.

Cloud Storage Market Regional Analysis

Based on region, the global cloud storage market is classified into North America, Europe, Asia-Pacific, MEA, and Latin America.

Cloud Storage Market Size & Share, By Region, 2024-2031

The North America Cloud Storage Market share stood around 35.48% in 2023 in the global market, with a valuation of USD 51.11 billion. Stringent data residency regulations, such as the Health Insurance Portability and Accountability Act  (HIPAA) for healthcare and the Payment Card Industry Data Security Standard (PCI DSS) for payments, are contributing to the increasing demand for cloud storage providers with geographically distributed data centers within the region. Compliance with these regulations mandates that sensitive data be stored within specific jurisdictions, prompting organizations to seek cloud storage solutions that ensure data residency compliance while maintaining data accessibility and security.

Furthermore, the media and entertainment industry in the region presents a lucrative opportunity for cloud storage providers. With the increasing digitization of content and the rise of streaming platforms, the demand for scalable and high-performance storage solutions for large media files including movies and music is on the rise. By aligning with the specific needs of customers, cloud storage providers are capturing a significant market share and establishing themselves as preferred partners for content creators and distributors in North America, thereby fostering regional market growth.

Asia-Pacific is projected to witness the highest growth at a CAGR of 22.94% over 2023-2031. Rapid e-commerce growth is boosting the demand for secure and scalable storage solutions tailored to the specific needs of online retail businesses. With the booming e-commerce sector in countries, including China, India, and Southeast Asia, there is a significant demand for cloud storage providers to offer solutions optimized for managing product data, customer information, and logistics operations.

Furthermore, the rising demand for disaster recovery and business continuity solutions in Asia-Pacific presents substantial opportunity. The region is prone to natural disasters such as earthquakes, typhoons, and floods, which pose significant risks to businesses' data and operations. Cloud storage provides a reliable and geographically dispersed backup solution, enabling businesses to mitigate the impact of disasters and ensure data availability and continuity.

Competitive Landscape

The global cloud storage market report will provide valuable insight with an emphasis on the fragmented nature of the industry. Prominent players are focusing on several key business strategies such as partnerships, mergers and acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their market shares across different regions. Companies are implementing impactful strategic initiatives, such as expanding services, investing in research and development (R&D), establishing new service delivery centers, and optimizing their service delivery processes, which are likely to create new opportunities for market growth.

List of Key Companies in Cloud Storage Market

  • Amazon Web Services, Inc.
  • Google LLC
  • Microsoft
  • IBM Corporation
  • Dropbox, Inc.
  • Wasabi Technologies
  • Backblaze
  • MEGA

Key Industry Developments 

  • April 2024 (Partnership): NetApp, the company specializing in intelligent data infrastructure, expanded its collaboration with Google Cloud, aimed at simplifying data utilization for GenAI and hybrid cloud tasks for businesses.

The Global Cloud Storage Market is Segmented as:

By Offering    

  • Storage
  • Services

By Type

  • Private
  • Public
  • Hybrid

By Enterprise Type

  • SMEs
  • Large Enterprises

By End User

  • BFSI
  • IT & Telecomm.
  • Healthcare & Life science
  • Retail & Consumer Goods
  • Manufacturing
  • Others

By Region

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • France
    • U.K.
    • Spain
    • Germany
    • Italy
    • Russia
    • Rest of Europe
  • Asia-Pacific
    • China
    • Japan
    • India
    • South Korea
    • Rest of Asia-Pacific
  • Middle East & Africa
    • GCC
    • North Africa
    • South Africa
    • Rest of Middle East & Africa
  • Latin America
    • Brazil
    • Argentina
    • Rest of Latin America
  • Check Icon Additional Company Profiles
  • Check Icon Additional Countries
  • Check Icon Cross Segment Analysis
  • Check Icon Regional Market Dynamics
  • Check Icon Country-Level Trend Analysis
  • Check Icon Competitive Landscape Customization
  • Check Icon Extended Forecast Years
  • Check Icon Historical Data Up to 5 Years
Frequently Asked Questions (FAQ's)
The global market is projected to reach USD 655.20 billion by 2031, growing at a CAGR of 20.93% from 2024 to 2031.
The global market was valued at USD 144.05 billion in 2023.
Exponential growth of digital data and the increasing adoption of cloud computing across industries, the cloud storage market is poised to witness substantial expansion.
Top key players in cloud storage are Amazon Web Services, Inc., Google LLC, Microsoft, IBM Corporation, Dropbox, Inc., Wasabi Technologies, Backblaze, OVH SAS, RACKSPACE TECHNOLOGY, MEGA, and others.
Asia-Pacific is the fastest growing region with the CAGR of 22.94% in the forecasted period (2024-2031) with the market value forecasted to reach at USD 160.39 billion by 2031.
By offering, the storage segment will hold the maximum share in the cloud storage market with the revenue value of USD 428.70 billion by 2031.
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