PUBLISHER: The Business Research Company | PRODUCT CODE: 2149501
PUBLISHER: The Business Research Company | PRODUCT CODE: 2149501
Computational storage refers to a data storage architecture that incorporates processing capabilities directly into storage devices or storage systems to handle data closer to its point of storage. It enables faster data processing, minimizes data movement, lowers latency, and enhances resource utilization by performing functions such as data filtering, compression, encryption, and analytics within the storage layer. It facilitates effective data management by decreasing the processing burden on centralized computing systems and enhancing overall infrastructure performance.
The primary components of computational storage include hardware, software, and services. Hardware refers to physical storage equipment with integrated processing capabilities that enables computation to be performed closer to stored data, minimizing data movement and enhancing processing efficiency. These components support solid state drives, hard disk drives, and hybrid storage types and are deployed through On-Premises and cloud models. The key applications include data centers, edge computing, cloud computing, enterprise storage, and others, while the end users include information technology and telecommunications, banking, financial services, and insurance, healthcare, government, media and entertainment, and others.
Tariffs are influencing the computational storage market by increasing the cost of imported storage devices, semiconductors, controllers, processors, and electronic components required for computational storage solutions. This is increasing equipment expenses and creating procurement challenges, particularly in regions reliant on imported semiconductor and data infrastructure components such as Asia-Pacific, North America, and Europe. Hardware-intensive segments such as computational storage drives, storage processing units, and computational storage controllers are particularly exposed because of their dependence on globally sourced components. However, tariffs are also promoting local production, regional supplier diversification, and increased investment in domestic semiconductor and data infrastructure ecosystems, strengthening long-term supply chain resilience.
The computational storage market research report is one of a series of new reports from The Business Research Company that provides computational storage market statistics, including computational storage industry global market size, regional shares, competitors with a computational storage market share, detailed computational storage market segments, market trends and opportunities, and any further data you may need to thrive in the computational storage industry. This computational storage market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The computational storage market size has grown exponentially in recent years. It will grow from $6.37 billion in 2025 to $7.84 billion in 2026 at a compound annual growth rate (CAGR) of 23.0%. The growth in the historic period can be attributed to growing enterprise data volumes, increasing demand for rapid data processing, expanding adoption of high-performance computing infrastructure, rising workloads on centralized computing resources, and increasing need for effective data management.
The computational storage market size is expected to see exponential growth in the next few years. It will grow to $17.71 billion in 2030 at a compound annual growth rate (CAGR) of 22.6%. The growth in the forecast period can be attributed to growing demand for real-time data processing capabilities, increasing adoption of data-intensive applications, rising need to optimize infrastructure resources, expanding requirement for storage-level analytics, increasing demand for low-latency computing architectures. Major trends in the forecast period include growing adoption of data processing capabilities within storage devices, rising emphasis on minimizing data movement, increasing preference for low-latency data processing, greater integration of computational capabilities into storage infrastructure, expanding application of storage-level data filtering and compression.
The explosion of enterprise data volumes is expected to propel the growth of the computational storage market going forward. Enterprise data volumes refer to the rapidly increasing amount of structured and unstructured data generated, stored, and processed by organizations through applications, business operations, IoT devices, analytics platforms, and digital services. Enterprise data volumes are increasing due to the growing adoption of digital applications, which generate substantial amounts of structured and unstructured data that require efficient storage, management, and processing solutions. Enterprise data volumes continue to grow exponentially across industries, driving the need for advanced data processing architectures in which Computational Storage enables organizations to overcome traditional storage bottlenecks by bringing computation closer to data, improving performance, reducing data movement, enhancing scalability, and optimizing the efficiency of enterprise workloads. For instance, in March 2024, according to Edge Delta, a US-based software company, the world produced an estimated 120 zettabytes (ZB) of data, equivalent to roughly 337,080 petabytes (PB) per day. With approximately 5.35 billion internet users globally, this indicates that, on average, each user could be generating around 15.87 terabytes (TB) of data every day. Therefore, the explosion of enterprise data volumes is driving the growth of the computational storage market.
Key companies operating in the computational storage market are focusing on developing innovative technologies such as high-speed interface-based computational storage solutions to improve data processing efficiency, reduce latency, optimize storage performance, and support data-intensive workloads including artificial intelligence (AI), databases, and cloud computing applications. High-speed interface-based computational storage solutions are advanced storage technologies that integrate computational capabilities directly into storage devices, enabling data processing at the storage layer instead of transferring large datasets to external processors, thereby reducing data movement, improving response times, and lowering overall infrastructure costs compared with traditional storage architectures. For example, in January 2024, NVM Express, Inc., a US-based non-profit organization, released the NVM Express Computational Storage Feature Specification, an industry-standard framework designed to enable communication between applications and NVMe computational storage devices across compute and storage environments. The specification introduces two key command sets: the Computational Programs Command Set, which enables a host-driven and modular approach for deploying computational programs on storage devices, and the Subsystem Local Memory Command Set, which allows access to memory within an NVMe subsystem through computational programs and NVMe I/O commands. These capabilities enable enterprises and hyperscale data centers to offload compute-intensive operations to storage devices, improving performance for latency-sensitive applications such as AI models, databases, and content delivery networks. This advancement highlights the increasing adoption of standardized computational storage technologies to improve scalability, interoperability, and efficiency in modern data-intensive computing environments.
In January 2023, Microsoft Corporation, a US-based technology company, acquired Fungible Inc. for $190 million. Through this acquisition, Microsoft Corporation sought to strengthen its data center infrastructure capabilities by incorporating Fungible Inc.'s energy-efficient Data Processing Unit (DPU) technologies, supporting enhanced networking and storage performance, greater server efficiency, optimized energy usage, and the development of advanced cloud infrastructure solutions for Microsoft Azure and enterprise customers. Fungible Inc. is a US-based semiconductor and data center technology company specializing in computational storage solutions through its DPU-powered fungible storage cluster.
Major companies operating in the computational storage market are Amazon.com Inc., Alphabet Inc., Microsoft Corporation, NVIDIA Corporation, Intel Corporation, IBM Corporation, Dell Technologies Inc., Hewlett Packard Enterprise Company, Broadcom Inc., Advanced Micro Devices Inc., Western Digital Corporation, Micron Technology Inc., NetApp Inc., Samsung Electronics Co. Ltd., Pure Storage Inc., Seagate Technology Holdings plc, SK hynix Inc., Marvell Technology Inc., KIOXIA Holdings Corporation, ScaleFlux Inc., Eideticom Inc.
North America was the dominating region in the computational storage market in 2025. Asia-Pacific is expected to be the rapidly growing region in the forecast period. The regions covered in the computational storage market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the computational storage market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The computational storage market consists of revenues earned by entities by providing services such as computational storage design, integration, deployment, configuration, software optimization, storage management, maintenance, and technical support. The market value includes the value of related goods sold by the service provider or included within the service offering. The computational storage market also includes sales of computational storage drives, computational storage processors, smart SSDs, NVMe-based storage devices, storage controllers, embedded processing units, and computational storage platforms. Values in this market are 'factory gate' values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Computational Storage Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses computational storage market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for computational storage? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The computational storage market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
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