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The cloud storage market size was valued at USD 90.17 billion in 2022 and is projected to grow from USD 108.69 billion in 2023 to USD 472.47 billion by 2030, exhibiting a CAGR of 23.4% during 2023-2030. North America dominated the global market with a share of 47.36% in 2022.
In the market study, we have considered cloud storage solutions offered by market players such as Amazon Web Services Inc' Amazon Simple Storage Service (S3) object storage, file storage including Amazon Elastic File System, Amazon FXs for Windows File Server, Amazon FXs for Lustre and Amazon Elastic Block Storage. Similarly, Oracle Corporation's file, block and object storage, archive storage, flash local storage and storage gateway, Google LLC's Filestore, Cloud archival storage, persistent disk, local SSD block storage, and cloud object storage.
The growth of the cloud storage is driven by several factors, such as the growing volume of unstructured data and increased demand for advanced technologies such as the internet of things, artificial intelligence, analytics, automation and others. Cloud storage stores and manages data on the internet and can be delivered on-demand and as per pay and use model. Also, cloud-based storage provides global scalability, agility, remote access and durability to data storage.
In June 2020, as per LogicMonitor's Cloud 2025 survey respondents, 95% of the IT workload will be on the cloud in the next five years. This factor indicates that the market is likely to showcase remarkable growth in the coming years. Also, the global market is to witness significant growth driven by the COVID-19 pandemic.
Market players are providing storage services to businesses to manage their remote employees. For instance, in April 2022, Amazon launched EC2 Console that users can automatically attached Amazon EFS file system to new Amazon EC2 instances created from configure storage section.
Adoption of Distributed Work Environment Owing to Spread of COVID-19 to Drive Market Growth
The impact of COVID-19 is expected to result in considerably high market growth during the analysis period. The market's growth is attributed to the significant adoption of storage services owing to virtual work and the growing volume of data. The market observed a significant growth rate of 13.7% in 2020 compared to 9.3% in 2019.
Cloud-based solutions enable employees to collaborate and stay connected as firms move toward a remote work environment. The COVID-19 pandemic accelerated the adoption of cloud storage with the increased proliferation of collaboration and conferencing applications by the remote workforce.
In August 2020, PWC stated cloud spending grew by 37% in the first quarter of 2020. Furthermore, it stated that spending is expected to rise in the next 12 months across pharmaceuticals and biotechnology industries, forestry and paper products, automobiles, beverages and food, household and personal use products, chemicals, banks, and other financials, constructions, and IT and Telecommunications.
Hence, market players are focussing on offering scalable and cost-effective storage solutions to tackle increased network traffic and unprecedented data growth. For instance,
Thus, partnerships and collaborations fuel the market growth during the COVID-19 pandemic. The growing data volume, surges the demand for cloud infrastructure. The increasing investment by prominent market players to develop data centers worldwide in response to the COVID-19 pandemic is anticipated to drive the market in coming years.
Thus, the growing investment by cloud providers to develop data centers is expected to create significant market opportunities for market growth post-pandemic period.
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Rising Use of Social Media and Analytical Platforms to Propel Market Growth
The Cloud analytics creates ample opportunities for cloud providers due to the increasing demand for analytical insights for decision-making across various industries. The demand for additional data storage to support a massive data volume is growing exponentially due to the substantial computing power. Enterprises leverage platforms and deliver advanced storage technologies with more accessibility and flexibility.
Similarly, social media analytics encouraged end-users to adopt cloud-based automated data storage services to provide real-time improved customer experience. For instance, in October 2020, Facebook LLC partnered with a Cloud service provider, Backblaze. The partnership focused on transferring the social media videos and images over the cloud-based encrypted storage to maintain security and privacy. These technological trends are expected to fuel the market size in the coming years.
Exponential Growth in Data Volumes to Surge Demand for New Storage Capacity
Remote sensing, the adoption of Internet of Things (IoT), and improved video quality such as 4K or 8K resolution cameras have resulted in the collection of large amounts of data. As a result, demand for cloud-based storage and networking technology is increasing. Similarly, the growing use of artificial intelligence (AI) is projected to increase storage demand to improve data security.
For example, in February 2021, NextBillion AI, a California-based start-up, collaborated with Google Cloud to improve time-to-market solutions using cloud SQL and storage. The partnership aims to offer data protection and 99 percent uptime for NextBillion artificial intelligence clients.
Additionally, connected devices and autonomous systems such as self-driving cars are likely to drive the adoption of cloud computing services, including data storage for providing real-time assistance.
For instance, in February 2021, Ford Motor Company, a connected car manufacturer, partnered with Google Cloud to improve the customer experience with connected vehicles. The company is moving towards digitalization with automatic and driverless cars. The company aims to offer an enhanced experience by implementing machine learning, automation and cloud across vehicles. Such factors are expected to drive the market towards a higher growth trajectory.
Stringent Laws and Regulations Associated with Privacy and Data Security May Impede Market Growth
Data privacy and confidentiality are the most vital elements of the cloud storage ecosystem. The stringent government laws and regulations on using the cloud are expected to restrict market growth. For example, the Government of India made a provision in the Information Technology Act 2000. According to the provision, any unlawful activities related to the computing models/transactions consisting of confidential data or information will be subjected to a penalty. Such rules and regulations enforced by governments are likely to hamper market growth.
As the data resides outside the company's infrastructure, it is apparent that the company may loss control over data. Even though the concerns are largely psychological and hypothetical, due to the lack of awareness of cloud services, especially in developing and underdeveloped regions, consumers may have genuine concerns regarding the service provider's capability and operational processes. Privacy and security concerns are projected to act as barriers to adopting cloud-based storage.
High Data Security Feature to Augment Storage Models Growth
Companies offer various storage models including file, object, and block storage and services in the market. The storage models, including block storage, object storage and file storage, are projected to hold the maximum market share in 2022. Block storage is expected to hold a major market share due to increased demand for reliable and high-performance storage during the forecast period.
The file storage cloud is anticipated to grow with the highest CAGR owing to its increased storage capacity. For instance, in February 2021, Nasuni Corporation, a file cloud data storage provider, collaborated with Google Cloud. The increased demand for enterprise file storage played a vital role in the partnership.
Storage models help organizations tackle fundamental requirements such as availability, data security, and durability. These factors are projected to drive the adoption of cloud-based data storage among enterprises.
At the same time, services such as training, installation, support, maintenance and others help maintain connectivity and data flow, which is expected to drive the demand for services in coming years.
Public Cloud Segment to Dominate Stoked by Rising User Spending
Based on type, the market is divided into public cloud, private cloud and hybrid cloud deployment. The public cloud segment accounted a major market share in 2022 due to growing public cloud spending. The growing end-user spending in the public cloud will accelerate market growth in the coming years.
The private cloud is expected to exhibit steady growth during the projected period owing to the improved security offering and protection of confidential data.
The hybrid cloud is projected to gain sturdy growth due to increased demand for hybrid deployment as enterprises can benefit from private and public deployments. Thus, the surge in demand for hybrid cloud storage due to data security, flexibility, and agility will likely to foster market growth. Organizations will rely on multiple public clouds, private cloud legacy platforms, and on-premises to fulfill the infrastructure needs. The hybrid multi-cloud provides control and visibility over the infrastructure, which helps to access and secure files. These factors are expected to increase the demand for hybrid cloud-based storage.
Growing Demand for Cost-Effective Data Storage Solutions to Drive Demand for Cloud Across SMEs
Large enterprises and small and medium-sized enterprises are deploying cloud storage for managing the data. Large enterprises are expected to account for a maximum revenue share in 2022 due to the increased demand for cloud-based storage to manage large amount of remote workforce and data.
The growing adoption of infrastructure as a service, software as a service, and platform as a service by the organizations to manage the virtual work during the COVID-19 pandemic accelerated the demand for cloud-based storage. For instance, in February 2022, as per the EY-Nasscom cloud survey, 67% of the large organizations accelerated cloud adoption, while 38% of small organizations embarked on their cloud journey.
The small and medium enterprises are expected to showcase a higher growth rate during the forecast years. According to Flexera 2021, State of the Cloud Report, 86% of respondents stated that small and medium-sized enterprises adopted the cloud higher than planned during COVID-19, likely to drive market growth.
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Rapid Digitalization to Drive the Demand for Cloud adoption in BFSI Industry
By vertical, the market is split into banking, financial services and insurance (BFSI), healthcare and life science, IT and Telecommunication, manufacturing, government and public sector, media and entertainment, retail and consumer goods, and others are adopting cloud storage.
The BFSI industry is set to gain traction owing to the digitalization of banking financial services and insurance services such as online banking, mobile wallets, digital payment, net banking and others. This factor drives the demand for secure storage models. The market players are offering secure storage solutions to the banking and financial institutions, which is expected to surge the partnership and collaborations between cloud providers and financial service providers. For instance, in February 2021, Global Financial Services partnered with Google Cloud. The collaboration aimed to tackle data and security threats of its banking infrastructure using an AI-based platform.
Healthcare and life sciences are anticipated to showcase a remarkable growth rate. Cloud services help get real-time health data insights and minimize the IT complexities with storage solutions. The patient's data stored in the cloud can be accessed from anywhere and at any time. Besides, the growing adoption of advanced technologies such as virtual reality and augmented reality in healthcare generates a huge volume of data per day. Thus, digitalization in the healthcare and life science industry creates a demand for scalable data storage. The market players are focusing on introducing cloud-based services to the healthcare industry to improve the productivity of healthcare professionals.
For instance, in November 2022, Change Healthcare transitioned to cloud-based storage and imaging. Such a growing introduction of advanced services is expected to drive the market across this industry.
The surge in demand for video streaming and over-the-top services (OTT) accelerated the adoption of cloud-based storage services across telecom service providers. Similarly, government and public sector, manufacturing, retail and consumer goods, among other industries, are actively investing in cloud-based data management services and software, which is expected to fuel the market across these industries.
North America Cloud Storage Market Size, 2022 (USD Billion)
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The market is studied across regions including North America, South America, Europe, the Middle East and Africa and Asia Pacific each region is studied across countries.
North America generated maximum revenue in 2022. The U.S. holds the major part in the global cloud storage market share attributed to the presence of major cloud providers and a large number of data centers. Further, the growing adoption of smart home devices, connected devices, video streaming services, and digital payments generates heaps of data every day. These huge volumes of data create the demand for cloud data storage across the U.S.
Canada is expected to grow with the highest CAGR during the forecast period owing to growing investment by organizations to implement cloud-based services and solutions. According to January 2021, CDW Cloud Report, more than half of enterprises (52%) in Canada have already made a plan on making investments in cloud-based infrastructure and services to ensure consistent service delivery. COVID-19, which forced many enterprises to recognize the drawbacks of on-site solutions and data centers, fueled the adoption. (Do not disclose)
South America is expected to witness steady growth owing to growing investment by Brazil, Argentina, Chile, and Columbia governments to improve digitalization across the countries. COVID-19 pandemic surged the adoption of digital technologies, smartphones and digital banking across the region.
For instance, in October 2020, Mastercard stated that 40 million people from Latin America opened bank accounts amid the pandemic. Further, in October 2020, IT spending in Latin America is expected to grow by 7.7% in 2021, and the IT industry rose by 5.5% in 2020. These factors are anticipated to propel market growth.
Europe is likely to gain a significant market share due to government initiatives to fuel cloud adoption across organizations and governments. In December 2021, as per Eurostat, 68% of the European Union enterprises used cloud computing services to store files 2021, and 42% of the enterprises used cloud computing across the organization.
Besides, 75% of enterprises in Sweden and Finland adopted cloud computing in 2021. The increased adoption of cloud computing across Nordics is expected to create new market opportunities for the European cloud storage market growth in the coming years.
The Middle East and Africa are projected to show potential market growth in coming years owing to growing investment by cloud providers to establish data centers across the region. For instance, Oracle Corporation launched the cloud region in Saudi Arabia in 2021, Abu Dhabi in 2022, and Dubai and Jeddah in 2020. Similarly, the rising smartphone penetration and improved network connectivity across the region are expected to foster market growth.
Asia Pacific is anticipated to showcase the highest growth rate during the projected period. The growing investment by developing economies such as India, Japan, Singapore, South East Asia, South Korea, and others contribute to market growth. The government initiatives to drive digital transformation across the countries fuel the adoption of cloud technology across the region.
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For instance, in July 2021, the Deloitte report 'The imperative cloud Asia Pacific's unmissable opportunity, stated that public cloud spending was USD 19.45 billion in 2020 is expected to rise to USD 67.64 billion by 2024 in China. It also stated that the total Asia Pacific annual spending on public cloud is expected to reach USD 116.06 billion in 2024 from USD 43.14 billion in 2020. These factors are expected to fuel the demand for cloud-based storage across the Asia Pacific countries.
Key Market Players to Enhance their Product Offerings and Adopt Partnership Strategies to Achieve Organizational Goals
Being a fragmented market, key market players such as Amazon Web Services, IBM Corporation, Oracle Corporation, Alibaba Group Holding Limited, VMware Inc., and Microsoft Corporation are focusing on enhancing their product offerings. By enhancing their product lines, these companies are ensuring to increase the revenue share. Also, it is likely to enable them to take advantage of the market opportunities across different sectors. Strategic partnerships are likely to promote the business expansion of market players. For instance,
An Infographic Representation of Cloud Storage Market
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The global cloud storage market analysis highlights leading regions globally for offering a better understanding to the user. Furthermore, the market report provides insights into the market outlook with the latest industry growth trends and analyzes technologies deployed at a rapid pace at the global level. It further offers some drivers and restraints, helping the reader gain in-depth knowledge about the market.
CAGR of 23.4% from 2023 to 2030
Value (USD billion)
Component; Type; Enterprise Type; Vertical; and Region
By Enterprise Type
As per Fortune Business Insights, the market stood at USD 90.17 billion in 2022.
Fortune Business Insights says that the market is expected to reach USD 472.47 billion by 2030.
A growth of 23.4% CAGR will be observed in the market during the forecast period (2023-2030).
Within verticals, the BFSI is expected to lead the market during the forecast period.
Exponential growth in data volumes is the key market driver.
Amazon Web Services, Inc., VMware, Inc., IBM Corporation, Microsoft Corporation, and Dell, Inc. are some of the top companies in the market.
North America is expected to hold a major share during the forecast period because of the presence of various key players.
North America accounted for USD 42.71 billion in 2022 in revenue.
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