Global Next Generation Data Storage Market By Storage System (Direct-Attached Storage, Network-Attached Storage, Storage Area Network, Others), By Storage Architecture (File & Object based Storage, Block Storage), By Deployment Type (on premise, Cloud, Hybrid), By end-User (Enterprises, Government Bodies, Cloud Service Providers, Telecom companies), Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2024-2033

Report Overview

The Global Next Generation Data Storage Market size is expected to be worth around USD 140.3 Billion By 2033, from USD 55.1 Billion in 2023, growing at a CAGR of 9.8% during the forecast period from 2024 to 2033.

The next generation data storage is referred to the advancements in data storage products as well as solutions that helps in dealing with the enhanced number of file size and a higher amount of unstructured data that is present with the market. this helps in managing a large scale of data with higher security, scalability, reliability and speedy recovery in a cost efficient way. This also helps in a scalable storage and management of a large scale of data that is generated by businesses especially large enterprises.

The next-generation data storage market is predicted to grow at a higher rate due to an increase in digital data generation, the explosion of IoT devices, and the implementation of cloud computing technologies. There are several key trends influencing the market including the growth of mobile usage as well different wearable devices. Additionally, the rapid deployment of 5G networks and the increasing demand for a high speed data access as well as a real time analytics.

The ongoing adoption of solid-state drives (SSDs) over traditional hard disk drives (HDDs) has also boosted due to its reliability and higher performance. In addition to this, the use of different technologies such as artificial intelligence and machine learning system has been a positive factor for the market growth. Growth factors for this market include the rapid digital transformation in various sectors such as healthcare, finance, and retail, which require robust data storage capabilities.

Additionally, technological innovations like solid-state drives (SSD), software-defined storage (SDS), and hyper-converged infrastructure systems are enhancing the performance and capacity of storage solutions, providing a significant push to the market expansion. However, challenges such as data security concerns, high initial investment costs, and the complexity of data management in an increasingly decentralized IT environment pose hurdles to growth.

Furthermore, the requirement for compliance with various national and international regulations regarding data privacy adds a layer of complexity for organizations operating across borders. Despite these challenges, there are substantial opportunities for new entrants in the Next Generation Data Storage market. The continuous need for upgraded data storage solutions opens the door for innovative startups and tech firms to introduce novel products and services.

New entrants can differentiate themselves by offering cost-effective solutions, enhanced security features, or specialized storage options tailored for specific industries or use cases. For instance, In April 2023, VAST Data announced a significant development: Hewlett Packard Enterprise (HPE) decided to use VAST Data’s top-notch file software platform in their new service, HPE GreenLake for File Storage. VAST’s advanced software, which is designed to handle data on a large scale, is now a key part of this new HPE service.

Key Takeaways

• The Next Generation Data Storage Market size is estimated to reach USD 140.3 billion with a CAGR of 9.8% during the forecast period and was valued at USD 55.1 billion in the year 2023.
• Based on the storage system, the Direct-Attached Storage segment has dominated the market with a share of 37.6% in the year 2023.
• Based on the storage architecture, the File & Object based Storage segment has dominated the market with a share of 53.7% in the year 2023.
• Based on the deployment mode, the on premise segment has dominated the market with a share of 44.3% in the year 2023.
• Based on the end user, the enterprises segment has dominated the market with a share of 36.5% in the year 2023.

Storage System Analysis

In 2023, the Direct-Attached Storage (DAS) segment held a dominant market position, capturing more than a 37.6% share of the Next Generation Data Storage market. This type of storage system, which connects storage devices directly to a computer or a server, remains a preferred choice due to its simplicity, speed, and cost-effectiveness.

DAS systems do not require a network to connect to data, which eliminates potential network-related bottlenecks and simplifies management without necessitating extensive IT expertise. This straightforward setup is particularly beneficial for small to medium-sized enterprises that require robust storage solutions without the complexities and costs associated with more advanced storage networks.

The leading position of the DAS segment is also attributed to its high performance in environments where fast data access is critical. For example, video editing and high-performance computing applications rely heavily on the rapid data retrieval speeds that DAS offers. Furthermore, the cost advantages of DAS over networked storage solutions make it an attractive option for businesses looking to maximize their IT budgets.

In settings where data does not need to be widely shared or where the security of direct connections outweighs the benefits of networked access, DAS continues to be the go-to storage solution. Moreover, advancements in technology have enabled DAS systems to increase their storage capacity and data transfer speeds, enhancing their appeal in the growing data storage market.

As enterprises continue to generate vast amounts of data, the scalability and affordability of DAS make it a viable option for many, keeping it at the forefront of the storage solutions market. These attributes, combined with ongoing improvements and innovations in storage technology, suggest that the DAS segment will maintain its relevance and possibly expand its market share in the coming years.

Storage Architecture Analysis

In 2023, the File & Object-Based Storage segment held a dominant market position, capturing more than a 53.7% share of the Next Generation Data Storage market. This architecture has become increasingly popular due to its versatility and efficiency in handling the explosive growth of unstructured data, such as multimedia files, documents, and big data analytics.

File & Object-Based Storage systems provide a scalable and flexible solution that can manage vast amounts of data more effectively than traditional block storage. This capability is particularly crucial in an era where data generation is ubiquitous – from consumer applications to large-scale enterprise environments. The lead of the File & Object-Based Storage segment is further strengthened by its adaptability in modern data environments, where requirements extend beyond simple storage to comprehensive data management and real-time accessibility.

Unlike block storage, which is optimal for database environments but less flexible for other types of data, File & Object-Based Storage can seamlessly handle both traditional file data and modern object data under a single system. This flexibility allows organizations to streamline their IT infrastructure and reduce costs, while also enhancing their ability to leverage new technologies like artificial intelligence and machine learning for data analysis.

Moreover, the integration of cloud technologies has boosted the adoption of File & Object-Based Storage solutions. These solutions offer superior capabilities for disaster recovery, data archiving, and global data distribution, making them ideal for enterprises looking to enhance their data accessibility and security. With ongoing advancements and the increasing push towards digital transformation, the File & Object-Based Storage segment is expected to continue its growth trajectory, driven by its ability to meet the diverse and demanding storage needs of today’s digital businesses.

Deployment Type Analysis

In 2023, the on-premise segment held a dominant market position in the Next Generation Data Storage market, capturing more than a 44.3% share. This enduring preference for on-premise storage solutions can be attributed to their perceived reliability and control over data security. Many organizations, particularly those in industries like finance and healthcare that are governed by stringent data protection regulations, prefer on-premise storage because it provides direct control over hardware and data storage, minimizing external threats and unauthorized access.

The leadership of the on-premise segment is also reinforced by its stability and performance consistency. On-premise storage systems are not reliant on internet connectivity, which means they often offer faster data access speeds and reduced latency compared to cloud-based solutions. This is critical for businesses that rely on real-time data processing and for those operating in areas with unreliable internet service. Additionally, on-premise storage can be more cost-effective in the long term for organizations with a stable data growth rate, as it involves upfront investment but lower ongoing operational costs.

Furthermore, technological advancements have made on-premise storage more scalable and easier to manage, which helps in maintaining its attractiveness among businesses that have existing on-premise infrastructure. Innovations in storage technologies, such as improvements in solid-state drives and software-defined storage, have enhanced the efficiency and capacity of on-premise solutions, ensuring they remain a viable option for businesses aiming to keep pace with the increasing demands for data storage without transitioning to cloud or hybrid models.

By End User Analysis

In 2023, the Enterprises segment held a dominant market position in the Next Generation Data Storage market, capturing more than a 36.5% share. This significant market share is largely due to the growing demand within enterprises for robust data management and storage solutions that can support their digital transformation initiatives. As businesses across various sectors continue to generate vast amounts of data, the need for scalable, secure, and efficient data storage systems becomes crucial.

Enterprises are increasingly investing in next-generation storage technologies to improve operational efficiency, enhance data accessibility, and ensure data integrity. The leadership of the Enterprises segment is also driven by the adoption of technologies such as IoT, big data analytics, and artificial intelligence, which require advanced data storage solutions that are not only scalable but also capable of managing diverse data types and large data volumes.

Additionally, as cybersecurity concerns rise, enterprises are prioritizing data storage solutions that offer enhanced security features to protect sensitive information against breaches and cyber threats. Moreover, the shift toward remote work models and the expansion of e-commerce have further accelerated the need for reliable data storage solutions among enterprises.

These trends necessitate robust data infrastructure to handle increased traffic, ensure customer data protection, and support cloud-based applications and services. With these evolving business needs, the Enterprises segment continues to expand its footprint in the Next Generation Data Storage market, driven by a clear requirement for more sophisticated and adaptive data storage options.

Key Market Segments

By Storage System

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

By Storage Architecture

• File & Object based Storage
• Block Storage

By Deployment Type

• On premise
• Cloud-based
• Hybrid

By End-User

• Enterprises
• Government Bodies
• Cloud Service Providers
• Telecom companies

Driver

Rising Adoption of Advanced Technologies

The Next Generation Data Storage market is driven by the rapid integration of cutting-edge technologies such as the Internet of Things (IoT), artificial intelligence (AI), and 5G. These technologies are generating vast amounts of data that need efficient storage solutions.

The proliferation of smartphones and wearable devices, which contribute significantly to data creation, further propels the demand for advanced storage solutions. With the continuous advancements in technology and the increase in data generation, next-generation data storage solutions are becoming indispensable for handling large volumes of data efficiently​.

Restraint

High Costs and Data Security Concerns

Despite the growing demand, the next-generation data storage market faces significant challenges, particularly concerning the high costs associated with cloud storage solutions and data security. The initial investment for setting up advanced storage infrastructures is substantial, which can deter smaller enterprises.

Additionally, with the increasing frequency of cyber threats and data breaches, there are heightened concerns about the security of cloud and server-based storage solutions. These issues represent significant obstacles that can slow market growth and adoption rates​.

Opportunity

Increasing Need for Data Analytics

The escalating demand for data analytics presents a substantial opportunity for the next-generation data storage market. As businesses across various sectors strive to harness data for strategic insights, the need for robust storage solutions that can support extensive data analysis grows.

This trend is further supported by the adoption of cloud storage and solid-state drives, which provide the necessary infrastructure to facilitate efficient data analytics. This not only helps in unlocking valuable insights from data but also drives the adoption of more sophisticated storage solutions​​.

Challenge

Technological Complexity and Maintenance

A major challenge in the next-generation data storage market is the complexity of the technologies involved and the maintenance they require. As storage solutions become more advanced, they also become more complex to manage and maintain. This can pose a barrier to adoption, particularly for organizations that lack the technical expertise.

Furthermore, maintaining these systems to ensure efficiency and reliability can incur additional costs, adding to the total cost of ownership. These factors make it essential for businesses to carefully consider their storage needs and the potential long-term implications of their storage technology choices​.

Growth Factors

• Growing Data Volumes: The increase in data that is generated by smartphones, wearable devices, IoT technologies, and connected devices is effectively driving the demand for unconventional data storage solutions. Additionally, the increase in digital data requires well-organized storage systems to achieve, procedure, and examine large datasets​​​​.
• Implementation of NVMe Technology: The increasing implementation of NVMe (Non-Volatile Memory Express) technology augments data storage performance by offering a faster data admittance and condensed latency, which is vital for high-speed data processing requests​.
• Development of Cloud and Hybrid Storage Solutions: Administrations are gradually adopting cloud and hybrid storage solutions for their flexibility, scalability, and cost-effectiveness. These solutions provide the active storage needs of businesses, permitting continuous data management across changed platforms​​​​.
• Developments in AI and Big Data Analytics: The addition of artificial intelligence (AI) and big data analytics into storage systems is dynamic and the demand for next-generation storage solutions is increasing. These technologies need vigorous storage organization to handle large dimensions of data and deliver real-time understandings​​.
• Increase of 5G Technology: The disposition of 5G technology is predictable to upsurge data generation knowingly, further increasing the need for progressive storage solutions that can switch high-speed data handover and large data capacities​​.

Latest Trends

• Increase of IoT and Big Data: The cumulative adoption of IoT devices and the resulting increase in data generation needs robust storage solutions in order to manage, process, and analyze vast datasets. This is driving the claim for next-generation storage technologies that can handle high data capacities and deliver real-time analytics competences​​​​.
• Developments in NVMe and SSD Technologies: Non-Volatile Memory Express (NVMe) and Solid State Drives (SSDs) are ahead admiration due to their high-speed data and low latency. These technologies are important for claims that require fast data repossession and are charming gradually integrated into creativity storage resolutions​​​​.
• Shift Concerning Cloud and Hybrid Storage Solutions: Industries are progressively accepting cloud and hybrid storage solutions for their scalability, flexibility, and cost-effectiveness. Cloud storage solutions permit easy access and organization of data across various places, subsidiary the growing need of remote work and digital alteration​​​​.
• Upsurge of Software-Defined Storage (SDS): SDS is ahead traction as it permits for more flexible and well-organized management of storage capitals through software. This method decouples storage hardware from the software that achieves it, as long as better agility and dropping costs​​​​.
• Augmented Focus on Data Security and Compliance: With the increase in cyber threats and stringent data defense regulations, there is a rising emphasis on protected storage solutions. Next-generation storage technologies are including advanced security landscapes such as encryption, access controls, and real-time threat uncovering to safeguard data integrity and compliance​​​​.

Regional Analysis

In 2023, North America held a dominant market position in the next-generation data storage market, capturing more than a 38.2% share. The demand for Next Generation Data Storage in North America was valued at USD 21.0 billion in 2023 and is anticipated to grow significantly in the forecast period.

This leadership can be attributed to several key factors that position the region at the forefront of technological adoption and innovation. Primarily, the presence of major technology giants and startups focused on cutting-edge storage solutions fuels this growth. Companies in Silicon Valley and other tech hubs continuously push the boundaries of what is possible in data storage, including advancements in cloud-based solutions, solid-state drives (SSDs), and hyper-converged infrastructure.

Additionally, the robust infrastructure and high investment in research and development activities across the United States and Canada facilitate the early adoption of new technologies. North America’s commitment to maintaining a competitive edge in the tech sector drives substantial public and private sector funding into data storage solutions. This investment is further supported by favorable government policies aimed at enhancing data security and privacy, which are critical considerations for next-generation data storage technologies.

The region’s market dominance is also bolstered by the increasing generation of large volumes of data from diverse sectors such as healthcare, retail, and financial services, all of which demand efficient and secure storage solutions. As data proliferation continues to grow exponentially, driven by the Internet of Things (IoT), artificial intelligence (AI), and big data analytics, the need for next-generation data storage in North America is expected to rise significantly, ensuring sustained growth and innovation in the region’s data storage market.

Key Regions and Countries

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Russia
  • Netherlands
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of MEA

Key Players Analysis

The global next generation data storage market includes various key players working in it. This has allowed the firm to increase in rivalry in the market. organizations are realizing different strategies to withstand in such competitive market. This method may comprise strategic alliance, mergers, product development, investment on research and development, and joint ventures.

Top Key Players in the Market

• Hewlett Packard Enterprise Company
• Dell Inc.
• NetApp, Inc.
• Hitachi, Ltd.
• International Business Machines Corporation
• Micron Technology, Inc.
• Netgear Inc.
• Inspur
• Other Key Players

Recent Developments

• In February 2024, the Huawei product and solutions have launched three different innovative data storage solutions for the development of Artificial intelligence era.
• In December 2024, Lenovo has launched a new hybrid cloud platform and service that accelerates AI technology that is powered by the next generation Intel Xeon Scalable Processors.
• In October 2023, Hitachi Vantara has launched a next generation data solution storage platform named Hitachi Virtual Storage.

Report Scope