The global data centre storage market was valued at $50,24-billion in 2022, and is estimated to reach $74,02-billion by 2031, growing at a CAGR of 4,4% during the forecast period (2023–2031).
This is according to a March 2023 study by Straits Research, which points out that data centres are created and built to process the data generated by consumers and business end-users as mission-critical facilities.
The IT infrastructures of data centres, such as servers, storage, and network infrastructure, are linked to processing and storing user data.
In addition to power and cooling infrastructure, data centres offer highly available, reliable, and scalable services to end-users. Depending on location, size, and capacity, data centre construction costs range from thousands to billions of dollars.
Data centres will develop and adapt as businesses grow in order to meet the escalating connectivity demands of various industries.
In addition to rising Internet traffic, the use of collaborative software by businesses is also on the rise.
As cloud storage and teleconferencing services expanded, more businesses became accustomed to remote work.
Data centres assist businesses with their data storage needs. Moreover, there is a greater emphasis on business continuity and disaster recovery as a service (DRaaS), which will increase storage demand.
Cloud operators such as Amazon Web Services, Google, and Microsoft are expanding their storage infrastructure to enable efficient cloud-based workflows, thereby contributing to the market’s growth.
5G drives growth on the edge
Increased connectivity options with well-established hyperscale data centres fuel the expansion of edge deployments as 5G adoption increases. Multiple edge data centres will be connected to a single hyperscale facility via a decentralised architecture developed by edge data centers.
Edge is where data is received, generated, processed, and transferred between users and applications in realtime. As a rapidly increasing number of applications migrate to the cloud, improving performance and reducing operational and maintenance costs have become essential, which can be achieved if solutions are present at the edge.
Thus, the growth of edge due to the adoption of 5G creates growth opportunities for the global market for data centre storage.
Key highlights of the study include:
The global data centre storage market size is estimated to reach $74,02-billion by 2031, growing at a CAGR of 4,4% during the forecast period (2023–2031).
By storage architecture, the global data centre storage market is divided into NAS, SAN, and DAS. The NAS segment is responsible for the largest market share and is anticipated to grow at a CAGR of 5,42% over the forecast period.
By storage type, the global data centre storage market is segmented into traditional storage, all-flash storage, and hybrid storage. The traditional storage segment owns the market and is expected to grow at a CAGR of 2,31% over the forecast period.
By end-user, the global data centre storage market is segmented into the cloud/IT sector, the BFSI sector, the government sector, and other sectors. The cloud/IT sector segment is the highest contributor to the market and is expected to grow at a CAGR of 5.95% during the forecast period.
North America is the most significant global data center storage market shareholder and is anticipated to grow at a CAGR of 2,56% during the forecast period.
Global data centre operators and cloud service providers are investing significantly in the US and Canada. The market for North American data centres is expanding due to the increasing popularity of IoT, 5G, the Covid-19 pandemic, and the demand for high-speed online entertainment streaming.
Increasing data traffic has necessitated the development of more data centres to support data produced by businesses and consumers. In North America, cloud computing services and applications will continue to increase, leading to the expansion of massive cloud-based data centers.
Asia-Pacific is expected to grow at a CAGR of 6,81% over the forecast period. Asia-Pacific will continue to have the highest demand for cloud and global colocation services. In addition, AWS, Microsoft, Alibaba, and Facebook continue to invest in the Asia-Pacific market, which is experiencing consistent growth.
Government agencies in several Asia-Pacific nations are also developing data centres to digitalise their operations. The increasing demand for on-demand video, mobile gaming, and online content will be a crucial factor in the procurement of IT infrastructure in the region.