Emergence of large enterprise set to propel data storage market
FYI, this story is more than a year old
The data storage market reached a value of $36 billion in 2018, according to a new report from IndustryARC, who says the market is estimated to grow at a CAGR of 21% during the forecast period 2019-2025.
The report found that the movement to hybrid storage, proliferated use of smart phones, laptops, and tablets has increased penetration of storage data management.
Early adoption of machine learning (ML) and Artificial Intelligence (AI), as well as the Internet of Things (IOT), is influencing the data storage in ways such as lower costs, automation, enhanced security and reliability.
According to the report, the data storage market is anticipated to grow positively owing to wide applications in enterprises, telecommunication, consumer electronics, banking, financial services and insurance (BFSI), media & entertainment and other (energy, automotive, government, education) industries.
Enterprise is a major application segment estimated to grow at a CAGR of 23% during the forecast period 2019-2025. This is due to the larger enterprises such data centers, and e-commerce giants, have started building in-house data storage centers which automatically increase the procurement of data storage devices for various applications, the report says.
Over the last few years, growth of data centers have been increasing in the APAC region, IndustryARC says. The region held the largest market share of 37% in the global data storage market in 2018.
The data storage semiconductor also known as memory units are increasingly deployed in the areas of data center infrastructure of the countries such as Singapore, Hong Kong, China, India, Japan and others, which is majorly contributing to the overall growth of APAC data storage market.
The latest findings states that the increasing growth in cloud infrastructure, implementation of Solid-State Drives (SSD) and Hard Disk Drives (HDD) in computer applications is anticipated to register a higher amount of share in the upcoming years, which will help the APAC region to continue its growth.
Rising adoption of smartphones, combined with an increase in disposable incomes, is leading to a growth in digitalisation in developing economies such as China, Japan, Indonesia, Australia, Malaysia, and others.
The report also found the increasing usage of digital devices and services by enterprises is likely to result in a huge amount of data, which will compel businesses to leverage cloud computing technologies. Leading companies such as Microsoft Corporation, IBM Corporation, Amazon Web Services, Inc., Samsung Group, and few others are offering advanced cloud computing services to boost the market growth, particularly in the APAC region.
Data Storage Market Growth Drivers
Emergence of Interesting Content over the Internet
Increased penetration of the internet has created a multitude of opportunities for industries such as media and entertainment, and advanced electric devices, the report found.
Large file sizes of media content such as music, movies, and high-resolution images require high-capacity and high-performance storage devices. The digital transformation of content is creating a huge demand for manufacturers of data storage systems.
Role of hyper converged storage in enterprise data storage
Hyper-converged storage platform is initially focused on primary storage. The technology creates a solution by eliminating redundant data and storing data in distributed form, IndustryARC says.
Hyper-converged infrastructure brings together data center services to increase computing, networking and storage. This improves the performance efficiency and reduces the operational cost. New technologies such as hyper-converged infrastructure provides an alternative for enterprises running VMs and managing the data storage efficiently. The emergence of hyper-converged infrastructure has provided benefits to enterprises, allowing them to reduce operational cost, and simplify the management and has gained ground on cloud deployment.
R&D Investment and Initiative, Funding
In 2018, Western Digital Corporation launched the largest mechanical hard drive for data storage. This a 15TB helium sealed hard disk drive, specifically designed for data centers and cloud storage services. It is envisioned for enterprise customers who are in the need of compact and reliable storage systems. IndustryARC says this product is anticipated to increase the demand from enterprises, which in turn will drive the growth of data storage market.
In 2018, Samsung announced plans to invest $16m into R&D over the next three years, with a focus on future growth of secondary data storage management in the South Korean region. In semiconductor products, Samsung will also invest in manufacturing hubs to meet significant demand for semiconductors from the automotive industry, and data centers.
GIGABYTE, a well-known manufacturer of computer hardware components and systems, has entered into the data storage market by partnering with Bigtera to offer high-performance software defined storage solutions. The entrance of this new competitor is anticipated to see continued growth in the data storage market, the report says.
"Putting in all together the characteristics such as performance, capacity, visibility, adaptability of storage technologies are increasingly growing in the sales of server based storage system," explains IndustryARC.