Next-gen data storage market to be worth $90 billion by 2029

The next-generation global data storage market is projected to grow from $65.1 billion in 2024 to $90 billion by 2029, according to analyst house MarketsandMarkets.

The growth is attributed to the adoption of IoT technologies and connected devices, growing the requirement for real-time data, and the increasing data generation as a result of the use of wearable devices and smartphones. The widening take-up of AI-driven technologies, of course, is also cited as a major driver.

By storage system, said MarketsandMarkets, the storage area network (SAN) segment is projected to grow at a “high” CAGR (compound annual growth rate) during the forecast period.

“SAN architectures are optimized for high-throughput data access and low-latency performance, making them well-suited for mission-critical applications such as databases, virtualization, and high-performance computing,” the analysts explained.

SANs also play a crucial role in supporting virtualized infrastructures by providing centralized storage management and seamless integration with cloud services. Technological advancements like flash-based storage and cloud integration “enhance” SANs’ appeal, “positioning them as vital components” of modern IT infrastructures, added the analyst company.

The hard-disk drive (HDD) segment is also projected to grow at a “high rate” during the forecast period. Rising demand for HDDs for high-capacity storage systems for applications such as cloud storage, datacenters, PCs, surveillance systems, and industrial embedded systems is driving the growth.

Burgeoning cloud services are a major driver of the market, with demand for advanced data storage systems “surging” due to the proliferation of cloud platforms – encompassing traditional corporate private clouds, new public clouds, and personal home clouds, the analyst said.

“Technological advancements in next-generation storage systems have led to the development of flash and hybrid arrays with new interfaces like peripheral component interconnect express (PCIe), and non-volatile memory express (NVMe), and these advancements, characterized by high speed and rapid data access, are driving adoption,” MarketsandMarkets added.

Key companies cited in the analysts’ market forecast include Dell Technologies, Hewlett Packard Enterprise, NetApp, Huawei Technologies, Pure Storage, Hitachi, Fujitsu, IBM, DataDirect Networks, Micron Technology, Quantum Corporation, Western Digital, Samsung, Nutanix, Seagate, Scality, SK hynix, and Kioxia.