Worldwide Data Center Storage Industry to 2027 - Growing Hyperscale Data Center Developments is Driving Growth

News provided by

Nov 02, 2022, 13:45 ET

DUBLIN, Nov. 2, 2022 /PRNewswire/ -- The "Data Center Storage Market - Global Outlook & Forecast 2022-2027" report has been added to ResearchAndMarkets.com's offering.

Data center storage includes all the infrastructure, i.e., tools, processes, and technologies that enable the design, management, and monitoring of the data stored within a data center. Data storage can be classified into three ways - block level, file level, or object level. The storage market comprises several products such as hard disk drives, storage networking, solid state drives, and other infrastructure. The infrastructure mentioned above is necessary for efficient data center storage.

The data center storage market is currently dominated by HDD adoption, with around two-thirds of the market adopting the technology, with key vendors such as Seagate Technology, Western Digital, and Toshiba. Over the coming years, the demand for SSDs is also witnessing a boost, especially from data center operators and telecom companies deploying edge data centers and advanced technology such as cloud, AI, IoT, and big data.

Global demand for cloud and colocation services has soared, particularly since the COVID-19 outbreak. North America has the highest data center storage market, followed by other regions such as APAC and Europe. Expansions also dominate the market by global and local cloud service providers. Furthermore, demand gets driven by consumer support for the growing consumption of online content and digitalization initiatives across various industries. Most governments worldwide are keen to develop the digital economy of their country. They are allocating higher budgets for IT spending, which will drive the global data center storage market.

Key Highlights

Over the next few years, trends driving the global data center storage market include increasing edge deployments, flash/NVMe storage adoption, and the increasing popularity of software-defined storage. Among the various storage infrastructures available, NAS storage leads around 70% of the industry share. Content providers, media, and entertainment businesses will be the significant adopters of NAS-based flash storage solutions.
Traditional storage, especially HDDs, dominates the global data center storage market. The adoption of hybrid storage, combining the capabilities of HDDs and SSDs, will increase over the next few years and grow at the highest CAGR.
Seagate Technology, Toshiba, and Western Digital are the vendors supplying HDDs to the data center storage market. In addition, companies such as Pure Storage, Huawei Technologies, Dell Technologies, Fujitsu, etc., are some of the major SSD vendors in the industry.

Key Trends

Worldwide, cloud, IT, and telecom expect to witness the fastest growth in the industry. The adoption of the cloud by businesses, the development of data centers for 5G deployments, and the pay-as-you-go model for cloud storage are some of the driving forces behind this increase.
BFSI is another industry that will witness significant growth in storage infrastructure adoption. In 2021, over 1.5 million users onboarded Brubank, a fully digital bank authorized to conduct operations by the Central Bank of Argentina. Similarly, WeBank, with Tencent as a prime investor, caters to around 200 million people.
Adopting technology such as big data and IoT by local enterprises through digitalization initiatives has resulted in a significant rise in the procurement of all-flash and hybrid array systems.
Increasing innovations in storage media expected to impact the global data center storage market include the adoption of DNA and holographic storage. With companies like Quantum (LTO-9, LTO-8, and LTO-7 tape drives) and Hewlett Packard Enterprise (LTO Ultrim) providing tape storage in the market, the tape storage market is coming back into the storage industry.
Adoption of software-defined storage is expected to increasingly be used in data center storage over the next few years, mainly because over 80% of data generated is unstructured, making it more difficult to store in a traditional storage system. Software-defined storage for the use cases is currently low in the market; with more cases in countries such as Western Europe, the US, and China, the adoption will grow, along with hyper-converged platforms/rack-level architecture.

Geographical Analysis

Globally, over 40% of the overall spending on storage infrastructure is contributed by North America, followed by APAC. Africa, the Middle East, and the Nordics will witness a double-digit CAGR growth in storage infrastructure spending over the forecast period.
Colocation providers dominate the Latin America data center market, followed by internet and cloud service providers. The expansion of cloud computing will also be critical for colocation providers adding connectivity to cloud platforms such as AWS, Google, Oracle, Microsoft, and IBM.
The growing internet penetration, social media usage, and smart initiatives are the major drivers for the Middle East data center industry. Telecommunication providers, enterprises, governments, cloud, and colocation service providers are the major investors in developing data center facilities.
Countries like Poland, Spain, Portugal, Belgium, and Italy are some of the upcoming investment destinations in Europe. They will also contribute significantly to the global data center storage market.
APAC is the preferred region for cloud service and global colocation providers. The industry in the Asia Pacific is witnessing steady growth with continued investments from AWS, Microsoft, Alibaba, and Facebook. Government agencies across several countries in APAC are also actively involved in developing centers to digitalize their operations.

Vendor Analysis

There is intense competition in the global data center storage market, especially since hyperscale operators are buying ODM infrastructure to meet their storage requirements. OEM infrastructure is more frequently used while deploying on-premises storage infrastructure.
The major procurement of storage infrastructure worldwide is being carried out by cloud service providers involved in rapid expansions with additional cloud regions. These operators are engaged in acquiring storage systems, varying in performance from low to high.
Storage infrastructure players such as Fujitsu, Huawei, IBM, HPE, NetApp, Pure Storage, and Dell Technologies have a significant presence, directly or through reseller/distribution partners. Nvidia has collaborated with IBM and some universities in the US to develop an architecture called Big Accelerator Memory BAM. BAM architecture helps to create a direct link between the storage and GPU.
Oil and Natural Gas Corporation Limited (ONGC), an oil and gas company in India, hosts its SAP S/4HANA workloads on Hewlett Packard Enterprise's HPE GreenLakeedge-to-cloud platform. This platform helps the company improve performance, accelerate digitization, and improve analytics insights.
Oulun Datacenter in Finland has adopted NetApp's flash storage and expanded its existing NetApp-based FAS storage to meet the requirements of its customers.

Key Questions Answered
1. How big is the global data center storage market?
2. What is the growth rate of the data center storage market growing?
3. Which region dominates the global data center storage market share?
4. What are the growth factors in the data center storage market?
5. Who are the key players in the global data center storage market?
6. What are the latest trends in the global data center storage market?

Key Topics Covered:

1 Research Methodology

2 Research Objectives

3 Research Process

4 Scope & Coverage
4.1 Market Definition
4.2 Base Year
4.3 Scope of the Study
4.3.1 Market Segmentation by Geography

5 Report Assumptions & Caveats
5.1 Key Caveats
5.2 Currency Conversion
5.3 Market Derivation

6 Market at a Glance

7 Premium Insights
7.1 Key Highlights
7.2 Segmental Analysis
7.3 Key Market Trends
7.4 Geographical Analysis
7.5 Vendor Analysis

8 Introduction
8.1 Market Overview
8.2 Data Storage Types
8.3 Data Storage Drives

9 Market Opportunities & Trends
9.1 5G Adoption and the Edge
9.2 Adoption of Nvme Storage
9.3 Growing Popularity of Software-Defined Storage
9.4 Relevance of Tape Storage
9.5 Innovations in Storage Media

10 Market Growth Enablers
10.1 Impact of Covid-19
10.2 Growing Hyperscale Data Center Developments
10.3 Impact of IoT and Big Data
10.4 Increasing Adoption of Ai & Ml Workloads
10.5 Cloud Adoption

11 Market Restraints
11.1 Supply Chain Shortages
11.2 Cybersecurity Concerns in Storage

12 Market Landscape
12.1 Market Overview
12.2 Market Size & Forecast
12.3 Five Forces Analysis
12.3.1 Threat of New Entrants
12.3.2 Bargaining Power of Suppliers
12.3.3 Bargaining Power of Buyers
12.3.4 Threat of Substitutes
12.3.5 Competitive Rivalry

13 Storage Architecture
13.1 Market Snapshot & Growth Engine
13.2 Nas
13.2.1 Market Overview
13.2.2 Market Size & Forecast
13.3 San
13.3.1 Market Overview
13.3.2 Market Size & Forecast
13.4 Das
13.4.1 Market Overview
13.4.2 Market Size & Forecast

14 Storage Type
14.1 Market Snapshot & Growth Engine
14.2 Traditional Storage
14.2.1 Market Overview
14.2.2 Market Size & Forecast
14.3 All-Flash Storage
14.3.1 Market Overview
14.3.2 Market Size & Forecast
14.4 Hybrid Storage
14.4.1 Market Overview
14.4.2 Market Size & Forecast

15 End-User
15.1 Market Snapshot & Growth Engine
15.2 Bfsi
15.2.1 Market Overview
15.2.2 Market Size & Forecast
15.3 Government
15.3.1 Market Overview
15.3.2 Market Size & Forecast
15.4 Cloud/It
15.4.1 Market Overview
15.4.2 Market Size & Forecast
15.5 Other Industries
15.5.1 Market Overview
15.5.2 Market Size & Forecast

16 Geography

17 North America

18 Latin America

19 Western Europe

20 Nordics

21 Central & Eastern Europe

22 Middle East

23 Africa

24 APAC

25 Southeast Asia

26 Competitive Landscape
26.1 Competition Overview

27 Vendor Landscape
27.1 Advanced Computer & Network Corporation
27.1.1 Business Overview
27.1.2 Product Offerings
27.2 Buffalo
27.2.1 Business Overview
27.2.2 Product Offerings
27.3 Datadirect Networks (Ddn)
27.3.1 Business Overview
27.3.2 Product Offerings
27.4 Dell Technologies
27.4.1 Business Overview
27.4.2 Product Offerings
27.5 Fadu
27.5.1 Business Overview
27.5.2 Product Overview
27.6 Fujitsu
27.6.1 Business Overview
27.6.2 Product Offerings
27.7 Hewlett Packard Enterprise
27.7.1 Business Overview
27.7.2 Product Offerings
27.8 Hitachi Vantara
27.8.1 Business Overview
27.8.2 Product Offerings
27.9 Huawei Technologies
27.9.1 Business Overview
27.9.2 Product Offerings
27.10 Ibm
27.10.1 Business Overview
27.10.2 Product Offerings
27.11 Intel
27.11.1 Business Overview
27.11.2 Product Offerings
27.12 Infortrend
27.12.1 Business Overview
27.12.2 Product Offerings
27.13 Inspur
27.13.1 Business Overview
27.13.2 Product Offerings
27.14 Kingston Technology
27.14.1 Business Overview
27.14.2 Product Offerings
27.15 Kioxia
27.15.1 Business Overview
27.15.2 Product Offerings
27.16 Lenovo
27.16.1 Business Overview
27.16.2 Product Offerings
27.17 Micron Technology
27.17.1 Business Overview
27.17.2 Product Offerings
27.18 Nec
27.18.1 Business Overview
27.18.2 Product Offerings
27.19 Netapp
27.19.1 Business Overview
27.19.2 Product Offerings
27.20 Oracle
27.20.1 Business Overview
27.20.2 Product Offerings
27.21 Pure Storage
27.21.1 Business Overview
27.21.2 Product Offerings
27.22 Samsung Electronics
27.22.1 Business Overview
27.22.2 Product Offerings
27.23 Seagate
27.23.1 Business Overview
27.23.2 Product Offerings
27.24 Solidigm
27.24.1 Business Overview
27.24.2 Product Offerings
27.25 Toshiba
27.25.1 Business Overview
27.25.2 Product Offerings
27.26 Viking Technology
27.26.1 Business Overview
27.26.2 Product Offerings
27.27 Violin
27.27.1 Business Overview
27.27.2 Product Offerings
27.28 Western Digital
27.28.1 Business Overview
27.28.2 Product Offerings
27.29 Wistron (Wiwynn)
27.29.1 Business Overview
27.29.2 Product Offerings
27.30 Zotac
27.30.1 Business Overview
27.30.2 Product Offerings

28 Report Summary

29 Quantitative Summary