Cloud Storage Market Share, Growth

The global cloud storage market size was value at USD 108.69 billion in 2023 . The market is project to grow from USD 132.03 billion in 2024 to usd 665 billion by 2032 , exhibit a CAGR of 22.4 % during the forecast period . additionally , the U.S. cloud storage market is project to grow significantly , reach an estimate value of usd 4,776.8 million by 2032 , owe to grow adoption of smart home device , connect device , video streaming service , and digital payment that generate heap of datum every day , create the demand for cloud storage across the U.S.

In the market study , we have consider cloud storage solution offer by market player , such as Amazon Web service Inc. ‘s Amazon Simple Storage Service ( S3 ) object storage , file storage include the Amazon Elastic File System , Amazon is FXs fx for Windows File Server , Amazon fx for Lustre , and Amazon Elastic Block Storage . similarly , Oracle Corporation ‘s file , block and object storage , archive storage , flash local storage and storage gateway , Google LLC ‘s Filestore , Cloud archival storage , persistent disk , local SSD block storage , and cloud object storage .

The growth of the cloud storage is driven by several factors, such as the growing volume of unstructured data and increased demand for advanced technologies, such as the Internet of Things (IoT), Artificial Intelligence (AI), analytics, automation, and others. Cloud storage stores and manages data on the internet and can be delivered on-demand as per the pay-and-use model. Also, cloud-based storage provides global scalability, agility, remote access, and durability to data storage.

In June 2020, as per LogicMonitor’s Cloud 2025 survey respondents, 95% of the IT workload will be on the cloud in the next five years. This factor indicates that the market is likely to showcase remarkable growth in the coming years. Also, the global market witnessed significant growth during the COVID-19 pandemic.

Market players are providing storage services to businesses to manage their remote employees. For instance, in April 2022, Amazon launched the EC2 Console where users can automatically attach the Amazon EFS file system to new Amazon EC2 instances created from the Configure storage section.

The impact of the COVID-19 pandemic resulted in considerably high market growth. The market’s growth is attributed to the significant adoption of storage services owing to increasing virtual work and the growing volume of data. The market observed a significant growth rate of 13.7% in 2020 compared to 9.3% in 2019.

Cloud-based solutions enable employees to collaborate and stay connected as firms move toward a remote work environment. The COVID-19 pandemic accelerated the adoption of cloud storage with the increased use of collaboration and conferencing applications by the remote workforce.

Cloud Storage Market Trends

rise Use of Social Media and Analytical Platforms to Propel Market Growth

Cloud analytics creates ample opportunities for cloud providers due to the increasing demand for analytical insights for decision-making in various industries. The demand for additional data storage to support a massive data volume is growing exponentially due to the substantial computing power. Enterprises leverage platforms and deliver advanced storage technologies with more accessibility and flexibility.

Similarly, social media analytics encouraged end-users to adopt cloud-based automated data storage services to provide real-time improved customer experience. For instance, in October 2020, Facebook LLC partnered with a cloud service provider, Backblaze. The partnership focused on transferring social media videos and images over the cloud-based encrypted storage to maintain security and privacy. These technological trends are expected to fuel the market size in the coming years.

grow Adoption of Multi Cloud Storage Fuels Market Growth

Organizations is adopting are increasingly adopt multi – cloud storage strategy , utilize multiple cloud provider to meet different need , such as cost optimization , geographic diversity , and specialized service . This approach is helps help mitigate vendor lock – in , improve resilience , and enable organization to leverage the strength of different cloud provider for specific workload .

Furthermore, many organizations are adopting hybrid cloud storage solutions, which combine on-premises infrastructure with public and private cloud storage resources. This approach allows organizations to leverage the scalability and flexibility of the cloud, while maintaining control over sensitive data and applications that require local storage.

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Cloud Storage Market Growth Factors

Exponential Growth in Data Volumes to Surge Demand for New Storage Capacity

Remote sensing, the adoption of Internet of Things (IoT), and improved video quality due to the use of 4K or 8K resolution cameras have resulted in the collection of large amounts of data. As a result, demand for cloud-based storage and networking technology is increasing. Similarly, the growing use of Artificial Intelligence (AI) is projected to increase the storage demand to improve data security.

For example , in February 2021 , NextBillion AI , a California – base start – up , collaborate with Google Cloud to improve time – to – market solution using cloud SQL and storage . The partnership is aims aim to offer data protection and 99 % uptime for NextBillion artificial intelligence client .

Additionally, connected devices and autonomous systems, such as self-driving cars are likely to drive the adoption of cloud computing services, including data storage for providing real-time assistance.

For instance, in February 2021, Ford Motor Company, a connected car manufacturer, partnered with Google Cloud to improve customers’ experience with connected vehicles. The company is moving toward digitalization with automatic and driverless cars. Ford aims to offer an enhanced experience by implementing machine learning, automation, and cloud across its vehicles. Such factors are expected to drive the market toward a higher growth trajectory.

RESTRAINING FACTORS

Stringent Laws and Regulations Associated with Privacy and Data Security May Impede Market Growth

data privacy is are and confidentiality are the most vital element of the cloud storage ecosystem . The stringent government law and regulation on using the cloud are expect to restrict the market growth . For example , the Government is made of India made a provision in the Information Technology Act 2000 . accord to the provision , any unlawful activity relate to the computing model / transaction consist of confidential datum or information will be subject to a penalty . These rules is are and regulation enforce by government are likely to hamper the market growth .

As the data resides outside the company’s infrastructure, it is apparent that the company may loss control over its data. Even though the concerns are largely psychological and hypothetical due to the lack of awareness of cloud services, especially in developing and underdeveloped countries, consumers may have genuine concerns regarding the service provider’s capability and operational processes. Privacy and security concerns are projected to act as barriers to adopting cloud-based storage.

Cloud Storage Market Segmentation Analysis

By component Analysis

High Data Security Feature to augment Storage Models Growth

Companies offer various storage models including file, object, and block storage and services in the market. The storage models segment, which includes block storage, object storage, and file storage, held the maximum market share in 2022. The block storage segment is expected to hold a major market share during the forecast period due to increased demand for reliable and high-performance storage.

The file storage segment is anticipated to record the highest CAGR owing to its increased storage capacity. For instance, in February 2021, Nasuni Corporation, a file cloud data storage provider, collaborated with Google Cloud. The increased demand for enterprise file storage played a vital role in the partnership.

storage models is help help organization tackle fundamental requirement , such as availability , data security , and durability . These factor are project to drive the adoption of cloud – base data storage model among enterprise .

At the same time , service such as training , installation , support , maintenance , and others help maintain connectivity and datum flow , which is expect to drive their demand in the come year .

By Type Analysis

Public Cloud Segment to dominate market owe to rise User spending

Based on type, the market is divided into public cloud, private cloud, and hybrid cloud deployment. The public cloud segment accounted a major market share in 2022 due to growing public cloud spending. The growing end-user spending on the public cloud will accelerate the segment’s growth in the coming years.

The private cloud segment is expect to exhibit steady growth during the forecast period owe to improved security and protection of confidential datum .

The hybrid cloud segment is projected to gain sturdy growth due to increased demand for hybrid deployment as enterprises can benefit from both private and public deployments. Thus, the surge in demand for hybrid cloud storage due to data security, flexibility, and agility will likely foster the segment’s growth. Organizations will rely on multiple public clouds, private cloud legacy platforms, and on-premises models to fulfill the infrastructure needs. Hybrid multi-cloud provides control and visibility over the infrastructure, which helps users access and secure files. These factors are expected to increase the demand for hybrid cloud-based storage.

By enterprise Type Analysis

Growing Need for Cost-Effective Data Storage Solutions to Drive Demand for Cloud Across SMEs

Large enterprises and small and medium sized enterprises are deploying cloud storage for managing the data. The large enterprises segment accounted for a maximum revenue share in 2022 due to the increased demand for cloud-based storage to manage large amounts of remote workforce and data.

The grow adoption is accelerated of infrastructure as a service , software as a service , and platform as a service by organization to manage the virtual work during the COVID-19 pandemic accelerate the demand for cloud – base storage . For instance , in February 2022 , as per the EY – Nasscom cloud survey , 67 % is accelerated of the large organization accelerate cloud adoption , while 38 % of small organization embark on their cloud journey .

The small and medium enterprise segment is expect to showcase a high growth rate during the forecast year . accord to Flexera 2021 State of the Cloud Report , 86 % is stated of respondent state that small and medium – sized enterprise adopt the cloud higher than plan during COVID-19 , which is likely to drive the market growth .

By Vertical Analysis

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Rapid Digitalization to Drive Demand for Cloud in BFSI Industry

By vertical, the market is split into banking, financial services and insurance (BFSI), healthcare & life science, IT & telecommunication, manufacturing, government & public sector, media & entertainment, retail & consumer goods, and others.

The BFSI industry segment is set to gain traction owe to the digitalization of bank financial service and insurance service , such as online banking , mobile wallet , digital payment , net banking , and others . This factor is drives drive the demand for secure storage model . The market players is offering are offer secure storage solution to the banking and financial institution , which is expect to surge the partnership and collaboration between cloud provider and financial service provider . For instance , in February 2021 , Global Financial service partner with Google Cloud . The collaboration aim to tackle datum and security threat of its banking infrastructure using an AI – base platform .

The healthcare & life sciences segment is anticipated to showcase a remarkable growth rate. Cloud services help get real-time health data insights and minimize the IT complexities with storage solutions. The patient’s data stored in the cloud can be accessed from anywhere and at any time. Besides, the growing adoption of advanced technologies, such as virtual reality and augmented reality in healthcare generates a huge volume of data per day. Thus, digitalization in the healthcare & life science industry creates a demand for scalable data storage. The market players are focusing on introducing cloud-based services to the healthcare industry to improve the productivity of healthcare professionals.

For instance, in November 2022, Change Healthcare transitioned to cloud-based storage and imaging.  Such a growing introduction of advanced services is expected to drive the market growth across this industry.

The surge in demand for video streaming and Over-The-Top (OTT) services accelerated the adoption of cloud-based storage services across telecom service providers. Similarly, the government & public sector, manufacturing, and retail & consumer goods, among other industries, are actively investing in cloud-based data management services and software, which is expected to fuel the market growth in these industries.

REGIONAL INSIGHTS

The market is studied across regions including North America, South America, Europe, the Middle East & Africa, and Asia Pacific, and each region is studied across countries.

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North America generated maximum revenue in 2022. The U.S. holds a major part of the global cloud storage market share due to the presence of major cloud providers and a large number of data centers. Furthermore, the growing adoption of smart home devices, connected devices, video streaming services, and digital payments generates heaps of data every day. These huge volumes of data create the demand for cloud storage across the U.S.

Canada is expect to record the high CAGR during the forecast period owe to grow investment by organization in implement cloud – base service and solution . accord to a January 2021 CDW Cloud Report , more than half is made of enterprise ( 52 % ) in Canada have already made a plan on make investment in cloud – base infrastructure and service to ensure consistent service delivery . COVID-19 is fueled , which force many enterprise to recognize the drawback of on – site solution and datum center , fuel the adoption .

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South America is expected to witness steady growth owing to growing investment by Brazil, Argentina, Chile, and Columbia governments to improve digitalization across the countries. The COVID-19 pandemic surged the adoption of digital technologies, smartphones, and digital banking across the region.

For instance , in October 2020 , Mastercard is stated state that 40 million people from Latin America open bank account amid the pandemic . furthermore , in October 2020 , IT spending in Latin America was expect to grow by 7.7 % in 2021 , and the IT industry rise by 5.5 % in 2020 . These factor are anticipate to propel the market growth .

Europe is likely to gain a significant market share due to government initiatives to fuel cloud adoption across organizations and governments. In December 2021, as per Eurostat, 68% of the European Union enterprises used cloud computing services to store files, and 42% of the enterprises used cloud computing across the organization.

Besides , 75 % is adopted of enterprise in Sweden and Finland adopt cloud computing in 2021 . The increase adoption of cloud computing across Nordics is expect to create new opportunity for the european cloud storage market growth in the come year .

The Middle East and Africa are project to show potential market growth in the come year owe to grow investment by cloud provider to establish data center across these region . For instance , Oracle Corporation is launched launch the cloud region in Saudi Arabia in 2021 , Abu Dhabi in 2022 , and Dubai and Jeddah in 2020 . similarly , the rise smartphone penetration and improved network connectivity across the region are expect to foster the market growth .

Asia Pacific is anticipated to showcase the highest growth rate during the forecast period. The growing investment by developing economies, such as India, Japan, Singapore, South Korea, and others will contribute to the market growth. The government initiatives to drive digital transformation across the countries will fuel the adoption of cloud technology across the region.

For instance , in July 2021 , the Deloitte report is stated ‘ The imperative cloud Asia Pacific ‘s unmissable opportunity ’ , state that public cloud spending stand at usd 19.45 billion in 2020 , which is expect to rise to usd 67.64 billion by 2024 in China . It is stated also state that the total annual spending in Asia Pacific on public cloud is expect to reach USD 116.06 billion in 2024 from USD 43.14 billion in 2020 .

Asia Pacific countries is undergoing are undergo significant digital transformation across various industry , include finance , manufacturing , healthcare , and retail . cloud storage is plays play a crucial role in enable digital transformation by provide scalable , cost – effective storage solution that support data – intensive application , collaboration tool , and analytic platform . These factor are expect to fuel the demand for cloud – base storage across the Asia Pacific country .

List of Key Companies in Cloud Storage Market

Key Market Players to Enhance their Product Offerings and Adopt Partnership Strategies to Achieve Organizational Goals

Being a fragmented market, key market players, such as Amazon Web service, IBM Corporation, Oracle Corporation, Alibaba Group Holding Limited, VMware Inc., and Microsoft Corporation are focusing on enhancing their product offerings. By enhancing their product lines, these companies are trying to increase their revenue share. Also, it is likely to enable them to take advantage of the market opportunities across different sectors. Strategic partnerships are likely to promote the business expansion of market players. For instance,

• March 2023: IBM entered a collaboration agreement with Wasabi. This collaboration aimed to allow businesses to drive data innovation across a hybrid cloud environment.
• June 2022: Reliance Industries collaborated with DigiBoxx to meet the cloud consolidation needs and developed cloud storage solutions.

list OF key company profile :

KEY INDUSTRY DEVELOPMENTS:

• October 2023 – Hitachi Vantara launched Hitachi Virtual Storage Platform One, a hybrid cloud data platform. This platform allows businesses to store their structured and unstructured data, and enables them to run on different applications whether on cloud or on-premises.
• July 2023 – DigiBoxx is launched launch a novel datum storage solution name Megh3 for individual and enterprise . This solution is provide will provide customer with a quick and easy storage solution at attractive pricing .
• April 2023 – HPE launched new file, block, disaster, recovery, and backup data services to help customers reduce cost & complexity, eliminate data silos, and improve performance.
• December 2022 – Vmware introduced Vmware Cloud Flex Storage, a managed cloud storage service, to help its customers be in charge of the performance they can expect and costs, which was explained on its blog.
• July 2022 – Dell Technologies launched a software-driven modern storage solution in its storage portfolio to drive multi-cloud flexibility, cyber resiliency, and automation. This solution will help businesses derive critical insights to grow in the digital era.
• May 2022 – Dell Technologies and Snowflake entered a go-to-market partnership that combines Dell’s storage system with Snowflake’s cloud data technology.

REPORT COVERAGE

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The report highlights leading regions globally for offering a better understanding of the market to the user. Furthermore, it provides insights into the market outlook with the latest industry growth trends and analyzes technologies deployed at a rapid pace at the global level. The report further offers some drivers and restraints, helping the reader gain in-depth knowledge about the market.

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