Cloud Storage Market

The cloud storage market size is expected to reach USD 364.25 billion by 2032 from USD 60.41 billion by 2024. The market is anticipated to progress further at a CAGR of 25.18 per cent during the forecast period.

Current Scenario of the Market

Presently, the cloud storage market remains strong. Companies are progressively switching to a hybrid cloud model. Moreover, the prices of flash drives dropped constantly throughout the first three quarters of 2024 while its production expanded but the demand remained low. The average cost of one Gigabyte (GB) stands at 0.085 dollars which also depicts that the shift to cloud storage platforms. Flash drive costs were high previously in 2024 as a consequence of reduced production by manufacturers however have declined due to a lack of demand. Further, the market is rapidly expanding in North American and European Countries.

Market Drivers

Digital Transformation initiatives are driving the cloud storage market growth. Countries worldwide in recent times have extensively migrated to cloud technologies. In the last few years, cloud computing has emerged as a key factor propelling the digitalisation process across industries. This is because it offers benefits consisting of cost efficiency, enhanced collaboration, increased security, scalability and flexibility. According to Wasabi Technologies, an astonishing 93 per cent of the respondents stated that they anticipate an increase in their cloud storage capacity in 2024 and 90 per cent of participants said that they believe their budgets for cloud storage to rise in 2024.

Market Restraints

The lack of skilled personnel restricts the growth of the cloud storage market. Companies generally struggle with cloud risk, cost, and speed due to a shortage of skilled talent, derailing the market from its course. This can result in un-optimized infrastructure, over-expenditure, insufficient application of resources, and deployment delays, which ultimately cause unexpected spending. Compliance problems and security vulnerabilities are growing, escalating the danger of data theft and legal penalties. All in all, this talent shortage hinders effective cloud management, leading to higher risks, elevated costs, and slower performance for companies.

Segment Analysis

By Type

• Solutions
• Services

The cloud services segment maintained a commanding position in the cloud storage market and is likely to thrive during the forecast period.  Amazon Web Services, Microsoft Azure, and Google Cloud continued to be the most popular cloud services around the world. Moreover, the segment’s market size is likely to expand because alternative clouds become mainstream for edge and AI workloads. AI-focused VCs and NVIDIA have encouraged AI cloud start-ups. To date, a portion of the largest players have raised funding of billions of dollars with the main attraction being their huge supply of GPUs.

By Organization Size

• Large enterprises
• Small and Medium-sized Enterprises (SMEs)

The small and medium-sized Enterprises (SMEs) segment is the bigger category of the cloud storage market. Companies in this segment are progressively adopting cloud technologies to align themselves with the growing tech landscape and market dynamics. As per a study published in AAG, in 2022, about 57 per cent of the workload of SMEs and around 56 per cent of their data was stored in public clouds, with an additional 6 per cent of each aimed to shift to the cloud in the upcoming 12 months.

By Deployment Model

• Public Cloud
• Private Cloud
• Hybrid Cloud

The public cloud remained the top-performing category however hybrid cloud is rapidly gaining traction in the cloud storage market. The majority of organizations prefer to keep their workloads and data on this type of cloud. This is because of its well-established infrastructure, regular updates and easy availability of technical professionals for this model. According to a study, the revenue of public cloud services reached 415 billion dollars in 2022 from 343 billion dollars in 2021. In this segment, Amazon held the biggest share of revenues for infrastructure as a service (IaaS) in 2022, i.e. 40 per cent. As per a 2024 report, about 67 per cent of survey respondents stated they employed public cloud, on the other hand approximately 45 per cent are using private cloud and 38 per cent are adopting a hybrid cloud model.

By Vertical

• Banking, Financial Services and Insurance (BFSI)
• Healthcare and Life Sciences
• Telecommunications and Information Technology-Enabled Services (ITES)
• Government and Public Sector
• Manufacturing
• Consumer Goods and Retail
• Media And Entertainment

The banking, financial services and insurance (BFSI) segment gained the top position under this category of the cloud storage market. This can be attributable to reduced costs, and operational efficiencies. It streamlines operations which generates some key productivity and cost savings.

Regional Analysis

North America is spearheading the cloud storage market and is expected to maintain its dominance during the estimation period. The region has more aggressively embraced this technology than any other continent. The percentage of fully committed to cloud computing in North America is 29 per cent against 19 per cent in Europe.

Recent Market Developments

• In August 2024, Marvell Technology, Inc. reported that it will exhibit its Structera X Compute Express Link (CXL) memory technologies for ML, AI and other data-intensive work at the Flash Memory Summit.

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