Next-generation Data Storage Market Size, Share, Growth Analysis, By Storage System (Direct-attached Storage, Network-attached Storage), By Storage Medium, By Region - Industry Forecast 2024-2031

Global Next-generation Data Storage Market size was valued at USD 64.20 billion in 2022 and is poised to grow from USD 68.57 billion in 2023 to USD 116.06 billion by 2031, growing at a CAGR of 6.80% during the forecast period (2024-2031).

As the number of internet users continues to rise, the volume of digital data generated from online payment gateways, websites, IoT devices, and AI is also escalating. This surge is fueling the demand for next-generation data storage solutions that not only facilitate the creation of databases and future business analytics but also minimize data corruption and enhance recovery speed. Traditional storage systems are proving inadequate for the vast amounts of daily data, thus prompting IT companies to invest in reliable and cost-effective alternatives such as big data and cloud-based services. However, security challenges persist in cloud storage, including misconfiguration and lack of proper governance. Notably, April 2023 saw VAST Data partner with HPE to integrate advanced data file storage solutions into their GreenLake service, highlighting innovation in the sector.

Top-down and bottom-up approaches were used to estimate and validate the size of the Global Next-Generation Data Storage market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global Next-Generation Data Storage Market Segmental Analysis

Global Next-generation Data Storage Market is segmented by Storage System, Storage Medium, Storage Architecture, Deployment, End User, and Region. Based on Storage System, the market is segmented into Direct-attached Storage, Network-attached Storage, and Storage Area Network. Based on Storage Medium, the market is segmented into Hard Disk Drives, Solid-state Drives, Tapes. Based on Storage Architecture, the market is segmented into File- And Object-based Storage, Block Storage. Based on Deployment, the market is segmented into On-premises, Cloud, Hybrid. Based on End User, the market is segmented into Enterprises, Government Bodies, Cloud Service Providers, and Telecom Companies. Based on Region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.

Driver of the Global Next-Generation Data Storage Market

The global next-generation data storage market is primarily driven by the rapid increase in data generation across numerous sectors, including healthcare, finance, retail, and telecommunications. The surge in data-intensive applications, such as artificial intelligence, the Internet of Things, and big data analytics, has led to an exponential rise in data volume, making conventional storage solutions inadequate. This situation compels organizations to seek innovative data storage alternatives that provide enhanced capacity, speed, and performance. As these advanced storage technologies become more widely adopted, they will continue to support the ongoing data growth, thereby catalyzing the expansion of the market.

Restraints in the Global Next-Generation Data Storage Market

One of the main challenges facing the global next-generation data storage market is the elevated initial costs linked to deploying advanced storage technologies. Innovations like solid-state drives (SSDs), hyperconverged infrastructure (HCI), and storage class memory (SCM) provide substantial performance enhancements; however, they come at a premium compared to conventional storage options. This financial barrier can hinder organizations from adopting these advanced technologies, despite the availability of more affordable cloud storage alternatives. Consequently, the hefty capital investment required for next-generation storage solutions poses ongoing challenges for widespread adoption and may hinder the overall growth of the market.

Market Trends of the Global Next-Generation Data Storage Market

The Global Next-Generation Data Storage market is witnessing a significant trend towards the integration of Artificial Intelligence (AI) and Machine Learning (ML) in inventory management processes. These advanced technologies are revolutionizing data storage solutions by enabling automation, predictive analytics, and self-healing mechanisms that enhance operational efficiency and productivity. AI-driven storage systems can anticipate data access patterns, accelerate data retrieval, and streamline business workflows, substantially minimizing manual efforts. Furthermore, ML applications in storage management address challenges related to data volume and security, ensuring compliance and robustness. As organizations increasingly embrace AI-driven strategies, this market segment is expected to grow substantially in the coming years.