The Global AI Powered Storage Market size is expected to reach $66.5 billion by 2028, rising at a market growth of 24.5% CAGR during the forecast period

NEW YORK, Feb. 23, 2023 /PRNewswire/ -- The Global AI Powered Storage Market size is expected to reach $66.5 billion by 2028, rising at a market growth of 24.5% CAGR during the forecast period.

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AI-enabled or AI-powered storage uses AI workloads and contemporary analytics to provide scale-out storage systems for data-driven organizations. Most companies in the modern world depend on data; nevertheless, businesses are well aware of the amount of data they create, the value of the data, the elimination of undesired data, and the lifetime of that data. As a result, companies are always looking for new ways to manage their data, including checkpoints for compliance, optimizing their data, registering their data, and conditioning them. AI-powered storage enters the scene at this juncture since it helps businesses to analyze data sensibly and speedily by delivering immediate insights.

The AI-powered storage process can be broken down into three distinct phases: the first is data intake, followed by training using machine learning, and finally, inference, which is the phase of providing insights.

Organizations produce enormous amounts of data that must be categorized and optimized effectively. This need is primarily driving the demand for AI-powered storage worldwide. In addition to this, the expanding use of artificial intelligence across a wide variety of business sectors all over the world, as well as the rising adoption of cloud-based services, are both acting as additional factors that are likely to contribute positively to the expansion of the global market for AI-powered storage in the years to come.

It is frequently utilized for process optimization and automation, data management, and boosting the system's efficiency; as a result, it is greatly desired in the information technology (IT), software, medical sciences, travel, hospitality, and retail sectors. Furthermore, it is widely desired in sectors like BFSI, telecom, entertainment, government, and cloud service providers because it provides encryption and data protection against possible security risks. In addition, it protects against potential security threats.

COVID-19 Impact Analysis

A significant impact was made on the AI Powered Storage Market as a result of the COVID-19 outbreak. Since COVID-19 took place, investment in AI-led enterprises and organizations, most affiliated with COVID, has continued at a very healthy level. Following the release of COVID-19, it was anticipated that there would be a significant acceleration in the technical growth of the industrial sector, corporate enterprises, and government agencies. Several companies have begun using AI-powered storage systems for their real-time data storage to enhance their business models and increase their turnaround rate. In addition, this expansion has resulted in significant new investments being made in the AI-Powered Storage Market worldwide.

Market Growth Factors

An increase in the use of applications and services hosted on the cloud

The increasing use of cloud-based apps and services is one of the primary factors driving the market for AI-powered storage solutions. Applications that run on the cloud have brought about a significant shift in the commercial world, particularly amid the COVID-19 pandemic. Using AI-powered storage systems for high-performance computing assists businesses in integrating their data and dealing with large amounts of unstructured data. It is anticipated that the market for AI-powered storage would see significant growth throughout the forecast duration.

An increase in investments in artificial intelligence and machine learning by BFSI companies

BFSI companies are increasing the amount of money they spend in artificial intelligence and machine learning software to provide better service to their customers and streamline the administration of fintech. Furthermore, because the BFSI industry is becoming more complex and competitive, there is a growing need for solutions specifically customized to the industry's requirements. As a consequence of this, a large number of financial institutions and fintech businesses are making investments in artificial intelligence solutions to fulfill the needs of their customers.

Market Restraining Factors

Issues with network utilization and latency in the public cloud

The public cloud might be problematic in terms of latency when it comes to storing and retrieving data. Loss of control over the network from beginning to end, which may occur when data is gathered in the public cloud, in conjunction with significant latency, can disorient how applications function. In addition, storage solutions might be disrupted if the supplier of cloud-based storage has similar network issues, which would ultimately halt activity and cause significant financial losses for organizations. Inadequate Internet bandwidth, distant data center locations, and heavy network traffic are three more factors that might contribute to concerns with latency.

Component Outlook

Based on the component, the AI-powered Storage Market is classified into hardware and software. In 2021, the software segment obtained a significant revenue share of the AI-powered storage market. This is because it saves money and time while also reducing risk, all of which are projected to provide lucrative growth and prospects for the industry in the coming years.

Storage Architecture Outlook

Based on storage architecture, the AI-powered storage market is classified into file & object-based storage and object storage. In 2021, the object storage segment contributed a sizeable portion of the total revenue generated in the market for AI-powered storage. Object storage provides the most scalable storage architecture, making it well-suited to accommodate the enormous amounts of data required for artificial intelligence and machine learning.

Storage System Outlook

Based on the storage system, the AI-powered storage market is divided into direct attached storage, network attached storage, and storage area network. The storage area segment of the AI-powered storage market had the substantial revenue share in 2021, leading to its dominance globally. The widespread usage of storage area networks in small and medium-sized organizations is driving the expansion of the market. It is a network of data storage devices that makes it simpler for data centers to collaborate on storage matters.

Storage Medium Outlook

Based on the storage medium, the AI-powered storage market is categorized into hard disk drive and solid-state drive. Within the AI-powered storage market in 2021, the solid-state drive segment obtained the considerable revenue share. A nonvolatile storage medium that saves permanent data on solid-state flash memory is known as a solid-state drive (SSD). Compared to conventional hard disc drives, solid-state drives (SSD) are noticeably more advantageous due to their quicker read/write speeds, lower operating noise levels, and overall superior performance (HDD).

End User Outlook

Based on end user, the AI-powered storage market is classified into enterprise, government bodies, cloud service providers, and telecom companies. The enterprise segment accounted for the largest revenue share in the AI-powered storage market in 2021. Companies must comprehensively understand the data they generate, its worth, how to get rid of data that is not wanted, and how long that data will be accessible. AI-enabled storage offers continuous real-time updates from a range of business data sources, optimizes the data, and conducts other intelligent automated operations on it without the need for human input.

Regional Outlook

Based on region, the AI-powered storage market is classified into North America, Europe, Asia Pacific, and LAMEA. In 2021, the North America region dominated the AI-powered storage market by producing the highest revenue share. This put the region in the position of being the leader. This may be ascribed to the increasing rate of technological advancement and the digitization of the market in this area, which has led to the use of AI-powered storage by enterprises to preserve their vital data. Additionally, the expansion may be attributed to the substantial presence of players in the data storage market, increased awareness, and the availability of trained talents, as well as the growing use of AI storage in the region's expanding financial sector.

The major strategies followed by the market participants are Acquisitions. Based on the Analysis presented in the Cardinal matrix; Alphabet (Google LLC) and Microsoft Corporation are the forerunners in the AI Powered Storage Market. Companies such as Amazon Web Services, Inc. (Amazon.com, Inc.), Intel Corporation, Hewlett-Packard Enterprise Company are some of the key innovators in AI Powered Storage Market.

The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include IBM Corporation, Microsoft Corporation, Amazon Web Services, Inc. (Amazon.com, Inc.), Google LLC (Alphabet Inc.), Cisco Systems, Inc., Hewlett-Packard Enterprise Company, Intel Corporation, Dell Technologies, Inc., Lenovo Group Limited, NetApp, Inc.

Recent Strategies Deployed in AI Powered Storage Market

Partnership, Collaboration and Agreements:

Oct-2022: Google Cloud expanded its partnership with Accenture, specializing in information technology (IT) services and consulting. Through this partnership, both companies aimed at jointly develop new solutions using data and AI. Furthermore, it would enable the clients to build a strong core and reinvent their enterprises on the cloud.

Oct-2022: Lenovo signed an agreement with VMware, a cloud computing and virtualization technology company, to accelerate the transformation of businesses from edge to the cloud. Both companies would develop plans to deliver AI and multi-cloud solutions to enable seamless management across today's changing IT landscape and help customers leverage data intelligence across a wide range of industry-specific applications.

May-2022: IBM Corporation signed an agreement with Amazon Web Services (AWS), a subsidiary of Amazon that provides on-demand cloud computing platforms and APIs to individuals, companies, and governments. This agreement would deliver IBM's clients easy and rapid access to IBM Software that covers Data and AI, Security, Sustainability, and Automation abilities.

Product Launch and Product Expansions:

Jul-2022: Dell Technologies unveiled Dell PowerFlex, a modern storage solution. By deploying a software-defined infrastructure with new file services, Dell PowerFlex enables unified block and file capabilities on a single platform that consolidates traditional and modern workloads. Businesses can derive critical insights to grow in the digital era using these advancements.

Apr-2021: IBM released IBM Spectrum Fusion Hyper-Converged Infrastructure, advanced storage solutions. The company aimed at simplifying data accessibility & availability across hybrid clouds along with planning to ship new container-native software-defined storage solutions designed to help companies expand data availability across complex hybrid clouds for greater business performance and resilience.

Acquisition and Mergers:

Jan-2023: Microsoft Corporation completed the acquisition of Fungible, a developer of composable infrastructure for accelerating the company's data center network and storage performance. The acquisition would enable the company to enhance its broad range of technologies and offerings in offloading, improving latency, increasing system density in data centers, and reducing expenses.

Sep-2022: Google Cloud took over Mandiant, a dynamic cyber defense, threat intelligence, and incident response service provider. The acquisition would enable the company to help enterprises reinvent security, improving their threat, incident, and exposure management.

Jul-2022: IBM took over Databand.ai, a leading provider of data observability software. This acquisition aimed to provide IBM with the most comprehensive set of observability offerings for IT across applications, data, and machine learning and would continue to provide IBM's customers and partners with the technology they require to provide trustworthy data and AI at scale.

May-2022: NetApp took over Instaclustr, a leading platform provider of a fully managed open-source database, pipeline, and workflow applications delivered as a service. The acquisition would combine continuous storage and compute optimization of the company with Instaclustr's fully-managed database and data pipeline services to provide customers with a cloud operations platform that enables an optimized foundation for their applications in the public clouds and on-premises.

Mar-2022: Microsoft took over Nuance Communications, a leader in conversational AI and ambient intelligence industries. This acquisition aimed to bring together Nuance's best-in-class conversational AI and ambient intelligence with Microsoft's secure as well as trusted industry cloud offerings. Also, this acquisition would help providers offer more affordable, effective, and accessible healthcare, and help businesses in every industry create more personalized and meaningful customer experiences.

Mar-2022: Intel signed an agreement to acquire Granulate Cloud Solutions, an Israel-based developer of real-time continuous optimization software. The acquisition would complement Intel's current abilities by helping consumers realize performance benefits, cloud cost reductions & continue workload learning.

Feb-2022: IBM completed the acquisition of Neudesic, a leading U.S. cloud services consultancy. This acquisition aimed to expand IBM's portfolio of hybrid multi-cloud services and further improve the company's hybrid cloud as well as AI strategy.

Sep-2021: Hewlett Packard acquired Zerto, a new disaster recovery, and backup solution. This acquisition would position the HPE GreenLake edge-to-cloud platform in the high-growth data protection market with a proven solution and further propels HPE's storage enterprise into a cloud-native, software-defined data services business.

Jun-2021: Hewlett Packard Enterprise completed the acquisition of Determined AI, a San Francisco-based startup. This acquisition aimed to provide a strong and robust software stack to train AI models quicker, at any scale, utilizing its open source machine learning (ML) platform.

Jun-2021: IBM acquired Turbonomic, an Application Resource Management (ARM) and Network Performance Management (NPM) software, provider. This acquisition aimed to add Turbonomic to IBM's portfolio.

Jun-2021: NetApp acquired Data Mechanics, a managed platform provider for big data processing and cloud analytics. Through this acquisition, the company aimed at adding Data Mechanics?to its existing solutions that help businesses to advance their data and cloud initiatives by leveraging Apache Spark and Kubernetes.

Feb-2021: Cisco completed the acquisition of IMImobile, a leading global provider of cloud communications software and services. This acquisition aimed to integrate IMImobile's solution along with Webex Contact Center, to design a new robust Customer Experience as a Service offer. Additionally, this suite would combine artificial intelligence, collaboration, Communications, cloud contact center, and experience management as a Service to generate a single solution that would give the enterprise the capability to deliver the exceptional experiences consumers require.

Jan-2021: Cisco took over Banzai Cloud, a privately held company headquartered in Budapest, Hungary. Through this acquisition, the Banzai Cloud team would expand Cisco's expertise and abilities through its demonstrated experience with the entire end-to-end cloud-native application, deployment, and runtime, development, and security progress.

Dec-2020: IBM took over Instana, a German-American software firm. Through this acquisition, IBM aimed to deliver industry-leading, AI-powered automation offerings to handle the complications of modern applications that span hybrid cloud landscapes.

Scope of the Study

Market Segments covered in the Report:

By Component

• Hardware

• Software

By Storage Architecture

• File & Object Based Storage

• Object Storage

By Storage System

• Direct Attached Storage

• Network Attached Storage

• Storage Area Network

By Storage Medium

• Hard Disk Drive

• Solid State Drive

By End User

• Enterprises

o BFSI

o Manufacturing

o Media & Entertainment

o Healthcare

o Consumer Goods & Retail

o Others

• Cloud Service Providers

• Telecom Companies

• Others

By Geography

• North America

o US

o Canada

o Mexico

o Rest of North America

• Europe

o Germany

o UK

o France

o Russia

o Spain

o Italy

o Rest of Europe

• Asia Pacific

o China

o Japan

o India

o South Korea

o Singapore

o Malaysia

o Rest of Asia Pacific

• LAMEA

o Brazil

o Argentina

o UAE

o Saudi Arabia

o South Africa

o Nigeria

o Rest of LAMEA

Companies Profiled

• IBM Corporation

• Microsoft Corporation

• Amazon Web Services, Inc. (Amazon.com, Inc.)

• Google LLC (Alphabet Inc.)

• Cisco Systems, Inc.

• Hewlett-Packard Enterprise Company

• Intel Corporation

• Dell Technologies, Inc.

• Lenovo Group Limited

• NetApp, Inc.

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