According to the Market Statsville Group (MSG), the global cloud native storage market size is expected to grow from USD 12.8 billion in 2022 to USD 119.3 billion by 2033, at a CAGR of 22.5% from 2023 to 2033.
The growing demand for artificial intelligence, the internet of things, automation, analytics, and others, along with the increasing volumes of vague data, are some key factors driving the growth of cloud storage. Organizations are increasingly adopting cloud-native storage due to the growing container utilization. Stateful apps are now required as well as stateless apps, which has increased the demand for persistent storage services and a corresponding increase in demand for cloud-native storage. A few years ago, a surge in gateway demand resulted from the increased adoption of cloud storage systems. The gateways connected the remote cloud storage system and local applications using a device or software on the consumer’s premises. All the usage-based service charges are borne by the consumer, while the company only needs to pay for the space used in data storage. Cost benefits like these are expected to accelerate the cloud-native storage market in the near future. Depending on their needs and the sort of information they need to store, businesses can choose between on-premise, off-premise, and hybrid cloud environments. Another element driving the expansion of this market is the advantages of information security on both physical and digital storage platforms on the cloud storage.
Digital data is kept in a logical network of pools using a service paradigm named "cloud-based storage." The big data set is maintained, backed up, and managed using this methodology, making it simple for users to access the data over any accessible network. A hosting business controls and owns the actual setting for stashing. These hosting companies are responsible for the protection and availability of the data. As per the surveys conducted, in the coming years, nearly 90% of the IT workload is expected to be on cloud storage.
The COVID-19 pandemic has significantly impacted the global economy, although the cloud-native storage market was impacted positively. Owing to the growth of virtual working mode during the pandemic, the volume of data increased exponentially. Hence the requirement for cloud storage increased. As the off-premise storage options were out of the company's scope, cloud storage seemed an ideal choice due to cost and management reasons. The remote work environment also led to the surge of cloud-based storage, as it helped the employees stay connected with their companies. Remote conferencing applications were taking place in the global market, which accelerated the growth of cloud-native storage options. For instance, Microsoft witnessed a spike in its cloud services during the worldwide lockdown. Its product, Microsoft Teams, has more than 40 million daily users and is generating millions of meetings. Similar growth was seen in Power BI, as the government used it to prepare the Covid-19 stats dashboard for the citizens.
The growing usage of artificial intelligence (AI) has led to increased storage demands in order to improve data security. The internet of things (IoT) and high video quality cameras like 8k resolution have created and collected huge amounts of data. The use of cloud computing services, such as data storage for real-time help, is likely to be sparked by autonomous systems and linked gadgets like self-driving cars. Car companies are adopting such cloud services in order to improve the customer experience with connected vehicles. The aforementioned factors re expected to drive the market growth of cloud storage.
The most crucial components of the cloud storage ecosystem are data protection and confidentiality. The government's rigorous restrictions and rules on cloud use are anticipated to limit market expansion. Governments of various developing nations are putting penalties on activities related to transactions consisting of confidential data. Additionally, the risk of the company losing the data is inevitable as the data resides outside the company’s infrastructure. Immature handling of cloud data can also lead to the risk of a data leak. With increased security measures and constant checks, data leaks are decreasing. Although, developing and underdeveloped regions can face issues regarding the service provider’s data storage capability. Such privacy and security concerns are acting as a barrier to the growth of the cloud native storage market.
Startups and Small Medium size businesses prefer cloud-based storage options. In this era of digitalization, the upcoming players are reluctant to opt for on-premise storage options. Increased online transactions, operations, and communication will generate loads of data daily, leading to the accelerating demand for cloud storage. More than 50 percent of entrepreneurs across the globe are starting their businesses online. Hence, the need for data security and efficient storage will increase. Cloud storage service providers could grab this opportunity and begin to market themselves to the small players.
The study categorizes the cloud-native storage market based on component, deployment mode, enterprise size, and vertical at the regional and global levels.
By Component Outlook (Sales, USD Billion, 2019-2033)
Based on the vertical segment, the market is bifurcated into banking, financial services and insurance (BFSI), retail and consumer goods, telecommunications and IT, government and public sector, manufacturing, healthcare, and others. During the forecast period, BFSI segment is expected to grow at the highest CAGR.
The banking and finance industry has witnessed a digital revolution in recent years. Online banking, mobile wallets, online payments, net banking, and other services are rising. The storage models are highly effective because bank details are extremely confidential. Cloud service providers are collaborating with financial institutions to provide secured and reliable cloud services in order to ensure the smoothness of financial transactions.
The healthcare segment is expected to showcase significant growth in the coming years. Cloud services could store real-time health data of patients that could be accessed from anywhere at any time. Such digitalization in the healthcare segment can flourish the demand for cloud storage services and improve the efficiency of diagnosis for healthcare professionals. Similarly, other vertical-based segments are also investing in the cloud native storage services for their data management, which will aid in accelerating the growth of the industry.
Based on the regions, the global cloud native storage market has been segmented across North America, Asia-Pacific, Europe, South America, and the Middle East & Africa. North America will dominate the global cloud native storage market in 2021. Large numbers of data centers and cloud service providers, particularly in the United States, is the key reason for the North American dominance in the regional segment. With the growing trends of digital payments, smart homes are generating loads of data daily. The need for cloud storage is high to manage this exponential amount of data.
However, Asia-Pacific is estimated to hold the highest CAGR in the global cloud native storage market during the forecast period. Governments of the countries in this region are initiating digital transformations, accelerating the demand for cloud-based storage solutions. Developing economies like Singapore, South East Asia, India, South Korea and others are increasingly investing in the cloud storage market, significantly contributing towards its growth.
The global cloud native storage market is highly competitive, with key industry players adopting strategies such as product development, partnerships, acquisitions, agreements, and expansion to strengthen their market positions. Most market companies focus on expanding operations across regions, augmenting their capabilities, and building strong partner relations.
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