Enterprise Data Storage Market Size, Share, Trends, Growth, Forecasts, 2032

Enterprise Data Storage Industry Prospective:

The global enterprise data storage market size was worth around USD 87.65 billion in 2023 and is predicted to grow to around USD 117.39 billion by 2032 with a compound annual growth rate (CAGR) of roughly 3.30% between 2024 and 2032.

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Enterprise Data Storage Market: Overview

An enterprise data storage is a centralized information storing system used for maintaining and keeping business-related information. It acts as a common source for data management, storage, and protection with the aim of connections across other computer systems. The enterprise data storage technology has been designed for the processing of extremely heavy workloads that businesses are often subject to. Hence, an ideal enterprise data storage system should be scalable for work density up to 300 gigabytes without the user requiring to invest in creating subsystems or excessive cabling. Additionally, the technology is required to ensure unlimited connectivity and provide necessary support for all the operating platforms. As opposed to distributed storage, an enterprise data storage system relies heavily on working with the offerings of a storage area network (SAN). The growing demand for efficient data storage and management systems has been influential in shaping the industry for enterprise data storage. During the forecast period, the industry is expected to grow at a rapid rate.

Key Insights:

• As per the analysis shared by our research analyst, the global enterprise data storage market is estimated to grow annually at a CAGR of around 3.30% over the forecast period (2024-2032)
• In terms of revenue, the global enterprise data storage market size was valued at around USD 87.65 billion in 2023 and is projected to reach USD 117.39 billion, by 2032.
• The market is projected to grow at a significant rate due to the rapid expansion in business-related data and information
• Based on industry segmentation, BFSI was predicted to show maximum market share in the year 2023
• Based on enterprise size segmentation, large enterprises were the leading segment in 2023
• On the basis of region, North America was the leading revenue generator in 2023

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Enterprise Data Storage Market: Growth Drivers

Rapid expansion in business-related data and information will drive the market demand rate

The global enterprise data storage market is expected to grow due to the increasing expansion of business data and information. The modern digital world relies heavily on information technology (IT) systems. Additionally, factors such as globalization and increasing complexities in business operations have led to a substantial increase in the amount of data that a company generates and stores every day. Businesses are in need of effective data storage tools that can be easily accessed whenever required. The increase in the number of companies worldwide as well as expanding business ventures is expected to promote the adoption of enterprise data storage systems.

Increasing investments in artificial intelligence (AI) and machine learning (ML) technologies will generate high revenue in the industry

One of the key drivers for enterprise data storage systems is the growing investments in AI and ML technologies. Technology companies including world giants and start-ups are investing heavily in artificial intelligence and machine learning systems. In July 2023, WIPRO, a leading Indian technology giant, announced an investment of USD 1 billion in AI. The company is expected to make this investment in the course of the next three years. In September 2023, the EY organization announced the launch of EY.ai. It is a unifying platform meant for the seamless adoption of AI for their clients. EY has invested around USD 1.4 billion to bring its AI version to reality. Artificial intelligence is expected to revolutionize the way the current IT industry functions as more research continues to explore the several applications of the technology.

Enterprise Data Storage Market: Restraints

High cost of implementation may restrict the market expansion rate

The global enterprise data storage market is expected to be restricted due to the high implementation cost associated with enterprise data storage systems. The implementation cost deals with several aspects of installing enterprise data storage systems. For instance, companies must have the basic infrastructure required to support the installation and use of data storage technology. Additionally, employees must be trained in using the tool effectively for optimal results. However, companies with limited budgets may be unwilling to adapt to the modern means of enterprise data storage.

Enterprise Data Storage Market: Opportunities

Increasing the launch of new cloud-based solutions will generate high-growth opportunities

The global enterprise data storage market is expected to generate high growth opportunities owing to the increasing launch of new cloud-based solutions with higher functionalities. In July 2023, DigiBoxx, a digital file-sharing and cloud storage solutions provider, announced the launch of a new enterprise and individual-level data storage system under the brand name Megh3. The solution is affordable and simple to use. In February 2024, Hewlett Packard Enterprise launched the first scale-out disaggregated black storage.

The new release called the HPE GreenLake for Block Storage will allow customers to scale performance and capacity independently and is termed the first-of-its-kind solution in the market. In a recent move, Dell Technologies announced a partnership with NVIDIA DGX SuperPOD AI infrastructure through which the latter will be responsible for validating the new advancements made by Dell Technologies to its data storage technology. The advancements are made in the Dell PowerScale and are influenced by the growing demand from customers for higher GenAI and AI performance.

Rising growth in 5G communication infrastructure will help the industry flourish

The global industry for enterprise data storage will generate high growth opportunities owing to the increasing investments in 5G communication infrastructure. This form of modern technology will allow faster speed of data transfer. Companies will be able to transfer large volumes of data in a limited time. Moreover, it will also allow users to use the enterprise data storage systems through mobile phones thus promoting global partners to participate in data management and application. In February 2024, the European Union announced funds worth €50m for 10 new 5G projects in the region.

Enterprise Data Storage Market: Challenges

Challenges associated with compliance across regions may challenge the market expansion rate

The global enterprise data storage market is expected to be challenged due to the challenges associated with compliance across regions. IT systems are highly regulated globally. For instance, in 2023, the US also witnessed the launch of new rules influenced by the General Data Protection Regulation (GDPR) law in Europe thus marking a historical standpoint for the way IT companies operate in the US.

Enterprise Data Storage Market: Segmentation

The global enterprise data storage market is segmented based on industry, storage medium, and region.

Based on industry, the global market segments are BFSI, governments & public sector, IT & telecommunication, healthcare, manufacturing, retail & consumer goods, and others. In 2023, the highest demand was observed in the banking, financial services, and insurance (BFSI) segment. The global finance industry produces large volumes of data every day including several types of information related to insurance, loans, bank accounts, and other data forms. They are required to securely store the information and access it quickly when required. Moreover, multiple sets of stakeholders are involved in accessing the same set of information thus requiring the need for enterprise data storage solutions. As per official estimates, over 328 million terabytes of information are generated every day across the globe.

Based on a storage medium, the global enterprise data storage industry is divided into network attached storage, direct attached storage, hyper-converged storage, storage area network, and cloud storage.

Based on enterprise size, the global industry divisions are large enterprises and small & medium enterprises. In 2023, the highest revenue-generating segment was large enterprises. This unit deals with an extensive set of information daily. They also have the financial backing required to install and use expensive systems such as enterprise data storage. The growing digitization of small & medium-sized companies will help in generating higher segmental revenue. As per official estimates, over 75% of small & medium enterprises are currently undergoing digital transformation.

Enterprise Data Storage Market Report Scope

Enterprise Data Storage Market: Regional Analysis

North America registered a high growth rate due to the US region

The global enterprise data storage market will be led by North America during the projection period. The reason for the higher growth rate is expected to be the existing large-scale presence of digital consumers in the US and Canada regions. Enterprises originating in these countries rely heavily on digital data storage mediums. Additionally, the US is the primary spot for developments in AI and ML technologies. The rising transfer to cloud systems across the US and Canada will help the region thrive. In April 2024, Microsoft, a US-based technology giant, announced plans to open an AI hub in London in the coming years.

In March 2024, the U.S. Department of Commerce’s National Institute of Standards and Technology (NIST) announced its plans to launch an open competition with the aim to use AI to improve the robustness of the US manufacturing sector. The institute is expecting to raise USD 70 million in the form of federal funds. Asia-Pacific is anticipated to witness a steady growth rate during the projection period. Countries such as India and China are generating high volumes of data driven by the growing rate of industrialization. The rising investments in the deployment of domestically-developed enterprise data storage systems will help the region flourish.

Enterprise Data Storage Market: Competitive Analysis

The global enterprise data storage market is led by players like:

• Western Digital Corporation
• Dell Technologies (including Dell EMC)
• Cisco Systems
• Hewlett Packard Enterprise (HPE)
• Lenovo Group Limited
• NetApp
• Seagate Technology
• IBM
• Microsoft Corporation
• Pure Storage
• Huawei Technologies Co. Ltd.
• Hitachi Vantara
• Oracle Corporation
• Nutanix

The global enterprise data storage market is segmented as follows:

By Industry

• BFSI
• Governments
• Public Sector
• IT & Telecommunications,
• Healthcare
• Manufacturing
• Retail & Consumer Goods

By Storage Medium

• Network Attached Storage
• Direct Attached Storage
• Hyper Converged Storage
• Storage Area Network
• Cloud Storage

By Enterprise Size

• Large-Enterprises
• Small & Medium Enterprises

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa