Next Generation Data Storage Market

Next Generation Data Storage Market Size

Global Next Generation Data Storage Market size was valued at USD 60.63 billion in 2023 and is projected to grow from USD 64.67 billion in 2024 to USD 107.60 billion by 2031, exhibiting a CAGR of 7.55% from 2024 to 2031.

In the scope of work, the report includes solutions offered by companies such IBM Corporation, Dell Inc., Hewlett Packard Enterprise Development LP, NetApp, Inc., Pure Storage, Inc., Hitachi Ltd, Western Digital Corporation, Seagate Technology LLC, Samsung, Huawei Technologies Co., Ltd. and others.

The adoption of non-volatile memory express (NVMe) technology and rapid growth in data volumes are driving next generation data storage market growth. The adoption of non-volatile memory express (NVMe) technology marked a significant advancement in the realm of data storage, particularly in meeting the demands for high-speed data access.

NVMe leverages the capabilities of solid-state drives (SSDs) to deliver exceptionally low latency and high throughput, thereby enabling faster data processing and retrieval compared to traditional storage interfaces such as SATA and SAS.

This technology is particularly crucial in applications where real-time data access is paramount, such as in financial services, healthcare, and scientific research. A key factor driving the widespread adoption of NVMe is its ability to unlock the full potential of modern data-intensive workloads, including big data analytics, artificial intelligence (AI), and machine learning (ML).

As organizations generate and analyze larger volumes of data at increasingly faster rates, NVMe provides a scalable and efficient solution to handle these demands while ensuring minimal latency and optimal performance. Moreover, NVMe's integration with emerging technologies such as edge computing and cloud-native architectures further enhances its relevance in supporting distributed and decentralized data storage infrastructures.

Next generation data storage refers to advanced technologies and architectures designed to address the evolving needs of storing, managing, and accessing data in modern digital ecosystems. These storage solutions go beyond traditional methods by integrating innovations such as NVMe, hybrid cloud environments, and software-defined storage (SDS).

Deployment of next generation storage involves the implementation of scalable and agile infrastructures that efficiently handle massive data volumes across diverse environments, including on-premises data centers, public and private clouds, and edge computing nodes.

Storage in this context encompasses not only the physical hardware components but also encompasses virtualized and software-defined storage solutions that optimize resource utilization and facilitate seamless data mobility.

Applications of next generation data storage span various industries, from accelerating data analytics and improving decision-making processes in business to supporting real-time data processing in IoT deployments and enhancing patient care in healthcare through faster access to medical records and diagnostic imaging.

Analyst’s Review

Key players in the next generation data storage market are strategically positioned to capitalize on growing demands for scalable, high-performance storage solutions. These companies have adopted diverse strategies focusing on innovation, partnerships, and geographic expansion to maintain competitive advantage.

• For instance, in May 2024, NetApp unveiled advanced AFF A-Series all-flash storage systems designed for demanding workloads, including GenAI, VMware, and enterprise databases. Additionally, NetApp enhanced its portfolio, enabling customers to operate more efficiently and drive innovation through optimized data utilization.

Current growth trends indicate robust investments in research and development aimed at advancing technologies such as NVMe, quantum storage, and blockchain-integrated storage solutions. Imperatives for these key players include enhancing data security measures, optimizing storage efficiency, and addressing regulatory compliance requirements amidst evolving data privacy laws globally.

Additionally, strategic acquisitions and collaborations with technology providers and industry stakeholders are pivotal in expanding market presence and addressing niche market segments. These players are poised to leverage their technological prowess and market expertise to cater to the burgeoning demands for efficient, scalable, and secure data storage solutions across various sectors.

Next Generation Data Storage Market Growth Factors

The big data expansion signifies the exponential growth in the next generation data storage market. This is driven by the proliferation of connected devices, social media interactions, IoT deployments, and digital transformation initiatives. Organizations are increasingly harnessing big data to gain valuable insights, improve decision-making processes, and enhance operational efficiencies.

The big data expansion lies in its potential to unlock previously untapped business opportunities and competitive advantages through advanced analytics, predictive modeling, and machine learning algorithms. This trend is reshaping traditional data storage architectures, driving the demand for scalable storage solutions that accommodate the growing influx of data while ensuring security, accessibility, and regulatory compliance.

Data security concerns represent a critical challenge facing organizations in the era of digital transformation and increasing cyber threats. With the exponential growth of data volumes and the widespread adoption of cloud computing and IoT devices, safeguarding sensitive information from unauthorized access, data breaches, and cyber-attacks has become paramount.

The challenge of data security is exacerbated by stringent regulatory requirements such as GDPR, CCPA, and HIPAA, which mandate organizations to implement robust data protection measures and ensure the confidentiality, integrity, and availability of data.

Addressing data security concerns requires comprehensive strategies encompassing encryption, access controls, threat detection, and incident response protocols. Organizations must also prioritize employee training and awareness programs to mitigate human errors and insider threats.

Next Generation Data Storage Market Trends

The rise of edge computing signifies a paradigm shift in data processing and storage from centralized data centers to distributed edge devices closer to the point of data generation and consumption. This trend is driven by the proliferation of IoT devices, autonomous systems, and real-time applications that require low latency, high bandwidth, and reduced reliance on centralized cloud infrastructures.

Edge computing addresses the limitations of traditional cloud computing architectures by enabling faster data processing, minimizing network congestion, and enhancing application performance for latency-sensitive use cases such as autonomous vehicles, augmented reality (AR), and industrial automation.

The driver behind the rise of edge computing to support real-time decision-making, improve operational efficiency, and enable new business models that capitalize on the immediacy and responsiveness of edge devices.

Segmentation Analysis

The global market is segmented based on deployment, storage system, end-use, and geography.

By Deployment

Based on deployment, the next generation data storage market is categorized into on-premises and cloud-based. The cloud-based segment of the data storage market is projected to expand at a CAGR of 8.13% over the forecast period.

Organizations across various industries are increasingly adopting cloud storage solutions to leverage benefits such as scalability, flexibility, and cost-efficiency. Cloud-based storage eliminates the need for on-premises infrastructure investments and allows businesses to scale their storage capacities dynamically based on demand.

The rise in data generation from sources such as IoT devices, social media platforms, and digital transactions necessitates robust and scalable storage solutions, which cloud platforms are well-positioned to provide.

Advancements in cloud technologies, including hybrid and multi-cloud deployments, are enhancing data accessibility, security, and disaster recovery capabilities, further driving adoption. The global shift toward remote work and digital transformation initiatives post-pandemic has accelerated the adoption of cloud-based storage solutions, making them integral to modern business operations across sectors.

By Storage System

Based on storage system, the market is classified into direct-attached storage, network-attached storage, and storage area network. The network-attached storage (NAS) segment dominated the next generation data storage market in 2023, capturing a significant share of 42.35%, primarily due to its versatility, ease of deployment, and cost-effectiveness for storing and sharing data across networks.

NAS devices provide centralized storage accessible by multiple users and devices over a local area network (LAN) or wide area network (WAN). This architecture appeals to businesses seeking efficient storage solutions that support collaborative workflows, data sharing, and centralized management without the complexity of traditional storage area networks (SANs).

Additionally, the scalability of NAS solutions allows organizations to expand storage capacities incrementally as their data needs grow. The robust performance, data protection features, and compatibility with various operating systems are contributing to NAS's popularity across diverse industries, including healthcare, education, media, and small to medium-sized enterprises (SMEs).

By End-Use

Based on end-use, the next generation data storage market is divided into BFSI, retail, healthcare, media & entertainment, and others. The BFSI segment achieved the highest revenue of USD 21.55 billion in 2023, driven by several factors contributing to its robust growth in data storage expenditures.

The BFSI sector handles vast amounts of sensitive financial data, including transactions, customer records, and regulatory information, necessitating secure and scalable storage solutions. Digital transformation initiatives within the BFSI sector, such as online banking, mobile payments, and fintech innovations, have intensified the demand for high-performance data storage infrastructures capable of supporting real-time transaction processing and analytics.

Stringent regulatory compliance requirements, such as GDPR and PCI-DSS, mandate comprehensive data protection measures and storage solutions that ensure data integrity and confidentiality. Additionally, the BFSI sector's focus on enhancing customer experience through personalized services and predictive analytics is driving investments in advanced storage technologies such as cloud-based storage, hybrid storage solutions, and encrypted storage systems.

Next Generation Data Storage Market Regional Analysis

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

North America's next generation data storage market share accounted for 36.27% and valued at USD 21.99 billion in 2023. North America is home to a significant number of leading technology companies and enterprises that drive innovation and early adoption of advanced data storage solutions. Robust investments in digital infrastructure, including cloud computing, IoT, and big data analytics, are propelling the demand for scalable and secure data storage architectures.

• For instance, in 2022, Google's significant investment of approximately USD 9.5 billion in its U.S. offices and data centers underscores its commitment to expanding its infrastructure and capabilities in the region. This substantial financial allocation reflects Google's strategic focus on enhancing its data processing, storage, and operational efficiency to support the increasing demand for its services.

Moreover, stringent data privacy regulations and compliance requirements in sectors such as healthcare, finance, and government are fueling the demand for sophisticated storage solutions that ensure data protection and regulatory adherence. Additionally, the region's strong economic growth, coupled with increasing digitalization across industries, is fueling the adoption of next generation data storage technologies.

Asia-Pacific is poised to grow at the highest CAGR of 8.61% over 2024-2031 in the next generation data storage market. The proliferation of mobile devices, IoT deployments, and digital initiatives across sectors such as manufacturing, healthcare, and retail is generating vast amounts of data, thereby increasing the demand for scalable and efficient data storage solutions.

The adoption of cloud computing and edge computing technologies is accelerating, driven by the need for real-time data processing and improved operational efficiency.

• For instance, in April 2024, Hitachi, Ltd. launched the Hitachi Virtual Storage Platform One, a hybrid cloud solution designed to revolutionize data management and utilization for organizations in today’s dynamic technological environment.

Government initiatives supporting digital transformation, coupled with investments in 5G infrastructure and smart city projects, are creating opportunities for advanced data storage solutions. Moreover, the rising number of tech-savvy consumers and businesses embracing e-commerce, digital payments, and online services is impelling the demand for robust data storage infrastructures in the Asia-Pacific region.

Competitive Landscape

The next generation data 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.

Manufacturers are adopting a range of strategic initiatives, including investments in R&D activities, the establishment of new manufacturing facilities, and supply chain optimization, to strengthen their market standing.

List of Key Companies in Next Generation Data Storage Market

• IBM Corporation
• Dell Inc.
• Hewlett Packard Enterprise Development LP
• NetApp, Inc.
• Pure Storage, Inc.
• Hitachi Ltd
• Western Digital Corporation
• Seagate Technology LLC
• Samsung
• Huawei Technologies Co., Ltd.

Key Industry Developments

• June 2024 (Launch): Western Digital launched a comprehensive AI Data Cycle framework, outlining a structured approach to optimize storage configurations for large-scale AI workloads. This initiative enables customers to strategically design and deploy efficient storage infrastructures, enhancing AI investment returns and lowering total ownership costs associated with AI operations.
• May 2024 (Launch): Hewlett Packard Enterprise introduced enhanced solutions within the HPE GreenLake cloud, aimed at streamlining enterprise management and optimization of storage, data, and workloads across both on-premises and public cloud settings. New additions include HPE GreenLake Block Storage for AWS, expansions under the HPE Timeless Program, and support expansions for HPE GreenLake for Private Cloud Business Edition, integrating HPE Alletra MP and HPE SimpliVity Gen 11.
• April 2024 (Partnership): MaxLinear unveiled a strategic partnership with Dell Technologies to innovate storage solutions for the data-centric era. This collaboration was purposed to integrate MaxLinear’s Panther III storage accelerator into Dell’s PowerMax storage platform, promising enhanced performance for critical workloads.
• February 2024 (Launch): Huawei introduced three groundbreaking solutions to assist global carriers in developing advanced data infrastructure for the AI era: AI Data Lake, All-Scenario Data Protection, and DCS Full-Stack Data Center. These innovations capitalize on large AI models to unlock and maximize data asset value.
• October 2023 (Launch): IBM unveiled the IBM Storage Scale System 6000, a cloud-scale global data platform for intensive data and AI workloads. Part of IBM’s Storage for Data and AI portfolio, it offers enhanced performance with up to 7M IOPs and 256GB/s throughput in a 4U footprint.

The global next generation data storage market is segmented as:

By Deployment

• On-premises
• Cloud-based

By Storage System

• Direct-Attached Storage
• Network-Attached Storage
• Storage Area Network

By End-Use

• BFSI
• Retail
• Healthcare
• Media & Entertainment
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • UK
  • 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