ICT-IOT

Cloud Storage Market Poised to Hit USD 655.20 Billion by 2031, Driven by Widespread Edge Computing Adoption

Jul 2024

ICT-IOT

As per the report published by Kings Research, the global Cloud Storage Market Market was valued at USD 144.05 billion in 2023. The market is projected to reach USD 655.20 billion by 2031, growing at a CAGR of 20.93% from 2024 to 2031.

The cloud storage market is experiencing robust growth, mainly driven by the increasing digitization of business operations and the rising demand for cost-effective data storage solutions. The increasing adoption of cloud-native applications and services is propelling market expansion. Organizations are increasingly migrating their workloads to cloud environments to leverage scalability, agility, and cost-efficiency.

  • According to IDC, worldwide spending on cloud services is expected to surpass $1 trillion by 2024, reflecting the growing reliance on cloud infrastructure and services.

Furthermore, the proliferation of big data analytics and artificial intelligence (AI) applications is fueling the demand for cloud storage solutions capable of handling massive volumes of data and supporting real-time analytics. As businesses leverage data-driven insights to gain competitive advantages and foster innovation, they require robust and scalable storage infrastructure to store and process large datasets efficiently. Moreover, the emergence of vertical-specific cloud storage solutions tailored to the unique requirements of diverse industries such as healthcare, finance, and manufacturing presents lucrative growth opportunities.

  • For instance, in the healthcare sector, the adoption of electronic health records (EHRs) and telemedicine platforms generates significant volumes of sensitive patient data, leading to the need for secure and compliant cloud storage solutions.

Additionally, the globalization of businesses and the increasing focus on disaster recovery and business continuity stimulate the adoption of cloud storage services. By leveraging geographically distributed data centers and redundant infrastructure, cloud storage providers are offering organizations reliable and resilient storage solutions to mitigate risks and ensure data availability.

Key Insights

  • Based on offering, the storage segment held the largest market share of 63.84% in 2023
  • Based on type, the public segment generated the highest revenue of USD 78.72 billion in 2023
  • Based on enterprise type, the large enterprises segment is anticipated to generate a value of USD 377.98 billion by 2031
  • Based on end user, the IT & telecommunications segment is likely to experience a robust CAGR of 22.91% over 2024-2031
  • On the basis of region, Europe is projected to witness significant growth at a CAGR of 20.09% over 2024-2031

Storj and Ahrvo Ink Partnership Deal to Integrate Distributed Cloud Storage with Ahrvo’s Solutions

February 2024: Ahrvo Labs and Storj collaborated to enhance the deployment of Ahrvo's portable identity, transaction management, and document solutions. By tapping into Storj's distributed enterprise cloud storage, Ahrvo aimed to bolster its services significantly. The partnership enabled Ahrvo to utilize Storj's infrastructure to facilitate seamless access to over 200 payments and banking entities worldwide through the portable identity gateway.

Widespread Adoption of Edge Computing to Aid Market Expansion

The increasing adoption of edge computing is contributing significantly to the growth of the cloud storage market. Edge computing involves processing data closer to the source of generation, thereby reducing latency and bandwidth usage. This trend is particularly prominent in applications requiring real-time data processing, such as IoT, autonomous vehicles, and augmented reality.

With the proliferation of edge computing, there is a corresponding need for decentralized storage solutions to support edge devices. By offering low-latency, high-throughput storage services optimized for edge computing architectures, providers are capitalizing on this trend and catering to the evolving needs of businesses across various industries.

Emergence of Quantum Computing to Offer Potential Opportunities for Cloud Storage Market Development

The emergence of quantum computing represents a transformative opportunity for the expansion of the cloud storage market. Quantum computing holds the promise of revolutionizing data storage and processing by enabling exponentially faster computations and resolving complex problems that are beyond the capability of classical computers.

Cloud storage providers are leveraging quantum computing technologies to develop next-generation storage solutions with enhanced security, scalability, and performance. Quantum-resistant encryption algorithms and quantum-inspired optimization techniques help providers address the evolving cybersecurity threats and optimize storage resource allocation in multi-tenant environments.

Europe Garnered Substantial Revenue of USD 976.15 Billion in 2023

Based on region, the global cloud storage market is classified into North America, Europe, Asia Pacific, MEA, and Latin America. Europe has experienced significant growth in 2023 and is likely to grow substantially in the foreseeable future. The region is experiencing a surge in energy demand due to rapid urbanization and industrialization, necessitating robust energy management solutions.

Government initiatives promoting energy efficiency and clean technology adoption are accelerating the adoption of EMS across various industries. Moreover, rising awareness regarding sustainability and corporate social responsibility (CSR) prompts companies to implement EMS, to reduce carbon footprint. Catering to the needs of small and medium-sized enterprises (SMEs) through cost-effective and scalable EMS solutions offers significant opportunities in the region.

Additionally, the rising focus on smart grid development and the growing integration of renewable energy sources such as solar and wind power creates a significant demand for advanced EMS solutions capable of managing distributed energy resources efficiently. Furthermore, the expansion into emerging economies within Asia-Pacific, coupled with increasing disposable incomes, is fostering a burgeoning market for residential cloud storage, promising substantial growth opportunities for EMS providers in the region.

Companies Launch Cutting-Edge Products to Expand Their Market Reach

The global cloud storage market is fragmented with key players such as Amazon Web Services, Inc., Google LLC, Microsoft, IBM Corporation, Dropbox, Inc., Wasabi Technologies, Backblaze, OVH SAS, RACKSPACE TECHNOLOGY, MEGA and others. Companies employ a variety of strategic measures such as acquisitions, mergers, partnerships, product introductions, and collaborations to expand their business globally and enhance their competitive position.

Get the latest!

Get actionable strategies to empower your business and market domination

  • Deliver Revenue Impact
  • Demand Supply Patterns
  • Market Estimation
  • Real-Time Insights
  • Market Intelligence
  • Lucrative Growth Opportunities
  • Micro & Macro Economic Factors
  • Futuristic Market Solutions
  • Revenue-Driven Results
  • Innovative Thought Leadership