Next-Generation Data Storage Market - Forecasts from 2025 to 2030

The Next-Generation Data Storage Market is expected to grow from USD 79.601 billion in 2025 to USD 125.320 billion in 2030, at a CAGR of 9.50%.

The Next-Generation Data Storage Market is a critical pillar of the global technology ecosystem, projected to grow significantly through 2030, driven by exponential data growth, cloud adoption, and advancements in AI and IoT. Supporting industries like IT, telecom, BFSI, and healthcare, the market leverages advanced storage systems such as SAN, NAS, and FOBS to manage vast datasets and enable real-time analytics. Asia-Pacific leads with its robust IT and data center growth, followed by North America and Europe. Despite challenges like high costs and cybersecurity risks, innovations in hybrid cloud and AI-driven storage are fueling robust market expansion.

Market Overview

Next-generation data storage systems, including Direct-Attached Storage (DAS), Storage Area Network (SAN), Network-Attached Storage (NAS), and File and Object-Based Storage (FOBS), address the scale and complexity of modern data environments. The market is driven by a surge in data creation, reaching 147 zettabytes in 2024 (International Data Corporation, 2024), and the rise of hybrid cloud strategies, adopted by 85% of organizations in 2024 (Flexera, 2024). Serving IT and telecom, retail, BFSI, and healthcare, these systems support data-intensive applications like AI training and e-commerce analytics, ensuring compliance with regulations like GDPR and CCPA (European Commission, 2018; State of California, 2020).

Growth Drivers

Key factors propelling the market include:

• Data Proliferation: Global data growth, driven by IoT and AI, necessitates scalable storage solutions (International Data Corporation, 2024).
• Cloud and Hybrid Models: Multi-cloud strategies boost demand for SAN and NAS, with 85% of enterprises adopting hybrid environments in 2024 (Flexera, 2024).
• AI and IoT Advancements: AI workloads require low-latency storage. NVIDIA's NVMe-based DGX systems, launched in September 2023, enhanced AI training performance (NVIDIA Press Release, September 2023).
• Regulatory Compliance: GDPR and CCPA drive secure storage adoption in BFSI and healthcare, ensuring data protection (European Commission, 2018; State of California, 2020).

Market Restraints

Challenges include:

• High Costs: SAN and hybrid systems require significant investment, limiting SME adoption.
• Cybersecurity Risks: Data breaches, affecting 2.6 billion records in 2024, highlight storage vulnerabilities (U.S. Cybersecurity and Infrastructure Security Agency, 2024).
• Integration Complexity: Migrating legacy systems to advanced architectures increases costs and timelines.

Geographical Analysis

• Asia-Pacific: The fastest-growing region, led by China's 450,000 data centers and India's 8% IT industry growth in 2024 (China National Bureau of Statistics, 2024; Ministry of Electronics and Information Technology, 2024). The IT and telecom sector dominates, with 70% of storage deployments supporting AI and IoT. Japan's $10 billion 5G investment further drives demand (Ministry of Internal Affairs and Communications, 2024).
• North America: The U.S. leads with hyperscale data centers processing 60% of global cloud workloads in 2024 (U.S. Department of Commerce, 2024). BFSI, with 80% of banks using SAN, and healthcare drive growth (U.S. Federal Reserve, 2023; Health Canada, 2024). Canada and Mexico contribute through digital health and IT outsourcing.
• Europe: Germany's €5 billion IoT investment and France's €3 billion fintech data solutions fuel growth (German Federal Ministry for Economic Affairs, 2024; French Ministry of Economy, 2024). Healthcare, with 70% of EU hospitals adopting digital records, is significant (European Commission, 2023).

Segment Analysis

• Storage Area Network (SAN): Dominant for enterprise applications, SANs offer high-performance storage. Dell's PowerMax 8500, launched in October 2023, boosted AI workload processing by 50% (Dell Technologies Press Release, October 2023). BFSI and IT sectors drive demand.
• File and Object-Based Storage (FOBS): FOBS supports unstructured data, with 60% of e-commerce platforms using it in 2024 (International Trade Administration, 2024). NetApp's ONTAP upgrade in September 2023 improved data retrieval by 40% (NetApp Press Release, September 2023).
• IT and Telecom: This segment leads, with HPE's Alletra Storage MP, launched in November 2023, reducing telecom latency by 25% (HPE Press Release, November 2023). Global 5G connections reached 2.5 billion in 2024 (GSMA, 2024).

Key Developments

• Dell PowerMax 8500: Launched in October 2023, enhancing AI performance by 50% (Dell Technologies Press Release, October 2023).
• NetApp ONTAP Upgrade: Improved FOBS retrieval by 40% in September 2023 (NetApp Press Release, September 2023).
• HPE Alletra Storage MP: Reduced telecom latency by 25% in November 2023 (HPE Press Release, November 2023).
• NVIDIA DGX NVMe Storage: Boosted AI training in September 2023 (NVIDIA Press Release, September 2023).
• China Data Center Growth: 450,000 data centers in 2024 (China National Bureau of Statistics, 2024).
• India IT Growth: 8% increase in 2024 (Ministry of Electronics and Information Technology, 2024).

The Next-Generation Data Storage Market is thriving, driven by data growth, cloud adoption, and AI advancements. Asia-Pacific leads, with North America and Europe following. Industry experts should monitor innovations, regulatory compliance, and regional investments to capitalize on opportunities through 2030.

Key Benefits of this Report:

• Insightful Analysis: Gain detailed market insights covering major as well as emerging geographical regions, focusing on customer segments, government policies and socio-economic factors, consumer preferences, industry verticals, and other sub-segments.
• Competitive Landscape: Understand the strategic maneuvers employed by key players globally to understand possible market penetration with the correct strategy.
• Market Drivers & Future Trends: Explore the dynamic factors and pivotal market trends and how they will shape future market developments.
• Actionable Recommendations: Utilize the insights to exercise strategic decisions to uncover new business streams and revenues in a dynamic environment.
• Caters to a Wide Audience: Beneficial and cost-effective for startups, research institutions, consultants, SMEs, and large enterprises.

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Industry and Market Insights, Opportunity Assessment, Product Demand Forecasting, Market Entry Strategy, Geographical Expansion, Capital Investment Decisions, Regulatory Framework & Implications, New Product Development, Competitive Intelligence

Report Coverage:

• Historical data from 2022 to 2024 & forecast data from 2025 to 2030
• Growth Opportunities, Challenges, Supply Chain Outlook, Regulatory Framework, and Trend Analysis
• Competitive Positioning, Strategies, and Market Share Analysis
• Revenue Growth and Forecast Assessment of segments and regions including countries
• Company Profiling (Strategies, Products, Financial Information, and Key Developments among others.

Next-Generation Data Storage Market Segmentation:

By Storage System Type

• Direct Attached Storage (DAS)
• Network-Based Storage (NAS)
• Network-Attached Storage
• Storage Area Network

By Architecture Type

• File & Object-Based Storage
• Block Storage

By Deployment

• Cloud
• On-Premise

By End-User

• IT & Telecommunication
• Retail
• BFSI
• Healthcare
• Government
• Others

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• Germany
• France
• United Kingdom
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Israel
• Others
• Asia Pacific
• China
• India
• Japan
• South Korea
• Indonesia
• Thailand
• Taiwan
• Others