Network Attached Storage Market Size, Share & Industry Analysis, By Enterprise Type (SoHo: <10 FTEs, Mid-size: <1,000 FTEs, and Large Enterprise: >1,000 FTEs), By Storage Solution (Scale-up NAS and Scale-out NAS), and Regional Forecast, 2024-2032

The global network attached storage market size was valued at USD 34.62 billion in 2023. The market is projected to grow from USD 40.33 billion in 2024 to USD 129.52 billion by 2032, exhibiting a CAGR of 15.7% during the forecast period. North America dominated the global network attached storage market with a share of 42.4% in 2023. The Network Attached Storage Market in the U.S. is projected to grow significantly, reaching an estimated value of USD 36.09 billion by 2032, driven by Increasing Product Launches and Investments in Network Technologies. 

Network Attached Storage (NAS) is a data storage solution device connected to the network, that allows consumers authorized on the network and different clients to store and retrieve data from one central location. These devices have been quickly paving their way into the market due to the advent of Gigabit Ethernet and high-speed transport protocols. Network attached storage devices cater to several requirements, such as video data storage for law enforcement agencies, video data editing and retention in broadcasting environments, record maintenance and data analytics in the finance industry, and secure and cost-adequate storage in the healthcare industry, to name a few. Also, it is convenient for High-Performance Computing (HPC) requirements. Network attached storage manufacturers are targeting cloud storage services, such as OneDrive, Google Drive, and Dropbox as storage is NAS’s area of competence. Additionally, the price of NAS being cheaper than traditional private cloud storage is one factor driving the market`s growth.

Network-attached storage (NAS) is a storage solution that stores data in a central location and makes it accessible to authorized consumers and various clients on the network. Gigabit Ethernet and high-speed transport protocols brought these devices to the market. Network-attached storage devices meet various needs, such as video data storage for law enforcement, video data processing and storage in broadcast environments, records maintenance and data analysis in the financial industry, and secure and cost-effective storage in the medical field. It is also suitable for high performance computing (HPC) requirements. Since storage is part of his NAS specialty, network storage manufacturers target cloud storage services such as Google Drive, OneDrive, and Dropbox. Moreover, the lower price of NAS compared to traditional private cloud storage is also a factor driving the market growth.

The pandemic heavily impacted the NAS market due to increased investments in data storage solutions. There is a demand for effective storage solutions due to the daily increase in data. The manufacturers of network attached storage devices recognized this rising inclination. They made necessary investments, such as new product launches, enhancements to the existing network attached storage solutions, and relevant collaborations.

Network Attached Storage Market Trends

Rising Importance of Integration of NAS Devices with Cloud Platforms to Propel Market Growth

Seamless integration between effective cloud platforms and storage equipment becomes essential as NAS manufacturers heavily depend on cloud storage for data backup, synchronization, and remote access. This integration allows users to synchronize their data between a NAS device and a cloud service, thus increasing accessibility and redundancy of information. Network-attached storage devices allow users to access files on any device, whether a mobile phone, tablet, or computer, and are compatible with cloud services. Additionally, organizations are adopting cloud data storage to eliminate physical limitations and allow convenient and easy access to important documents, media files, and other data.

According to a industry experts, by 2025, more than 95% of all fresh digital data workloads will be shifted to cloud-based platforms, up from 30% in 2021. This strategy is also expected to drive the market during the forecast period.

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Network Attached Storage Market Growth Factors

Increasing Product Launches and Investments in Network Technologies is expected to Drive Market Growth

The penetration of intelligent internet technologies has provided an ideal platform for network attached storage devices. With increasing inclination toward digital transformation and the rise in the volume of electronic data, organizations are investing and launching new products to provide enhancements in data storage and security. For instance,

In September 2023, Huawei launched an all-flash OceanStor Pacific 9920 array and shared details about its compression and ransomware recovery. This system aims to qualify the application performance requirements for several virtual machines.

With the increasing data ecosystem, adequate storage becomes vital to store data efficiently. Thus, the rapid deployment of 5G and a rebound in data usage drives this market.

RESTRAINING FACTORS

Concerns Related to Data Theft and Server Breaches Hampers Market Growth

The primary restraining factors of the market include concerns related to data theft and server breaches. These concerns impact network attached storage devices’ adoption as end-users hesitate to invest. In addition to these factors, the traffic over the LAN and the lack of adequate infrastructure for data security hamper market growth. According to Cujo AI cybersecurity report in 2023, network attached storage devices are targeted by 100s of times more threats than an average device. Moreover, the software's migration cost hinders this market growth.

Network Attached Storage Market Segmentation Analysis

By Enterprise Type Analysis

Customized NAS Solutions to Attract Mid-Size Enterprises Leading to Their Dominance in the Enterprise-Type Space

Based on enterprise type, the market is distributed into SoHo: <10 FTEs, mid-size: <1,000 FTEs, and large enterprise: >1,000 FTEs. The mid-size segment leads the market and is expected to continue its dominance in the coming years. This demand is due to customized NAS solutions' availability, which provides them with scalable, effective, and low-cost storage.

SoHo and large enterprises are expected to maintain steady and similar growth in the coming years. The rise in variety of smart city projects is fueling the growth of global data centers. This rise is further expected to bolster the demand for NAS solutions across the large and SoHo enterprises.

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By Storage Solution Analysis

Scale-up NAS Devices Dominate Owing to Economic Viability and Efficiency

Based on storage solution, the market is distributed into scale-up NAS and scale-out NAS. The scale-up NAS segment is leading the market owing to the lower cost associated with licensing and the addition of equipment such as networking and better efficiency.

The scale-out NAS devices are expected to grow with the highest CAGR in the coming years. The finding states that the capability of scale-out NAS devices to support high-capacity, high-performance, and high-file-count workloads with low latency is expected to contribute to the growing popularity of these solutions.

REGIONAL INSIGHTS

By region, the market is analyzed across five regions, namely North America, South America, Europe, Middle East & Africa, and Asia Pacific.

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North America dominated the market in 2022, with the most prominent part in the overall network attached storage market share. The region has witnessed a rise in demand for NAS solutions due to increased digital infrastructure, connected devices, increasing adoption of artificial intelligence (AI)-based solutions, and the volumes of data from enterprises. In addition, NAS plays a critical part in the data center storage space. Thus, the presence of large numbers of data centers in the U.S. proves to be one of the essential factors for the sale of NAS across the region.

Asia Pacific is expected to grow with a promising CAGR during the forecast period. This positive growth rate is expected due to the increasing capacity volume within the decentralized storage networks, with hundreds of petabytes being onboarded, which might create demand for NAS.

Europe maintains a steady growth in generating revenue for the NAS market compared to other regions across the globe. The increasing push from governmental bodies to invest in emerging technologies has created demand for NAS devices across the region.

The MEA and South American region is expected to grow gradually in recent years. This is due to the recent shift from traditional storage systems to NAS solutions across both regions. NAS has emerged as a cost-effective solution for storing and handling high data volumes for end users. 

List of Key Companies in Network Attached Storage Market 

Leading Companies Adopting Relevant Business Strategies to Benefit the Market Positively

The key market companies have focused on several business growth strategies, such as product launches and relevant partnerships. These strategies help them to strengthen their position in the market landscape. In addition, these players are also focusing on several essential business strategies, such as global expansion to increase their customer base, a strategic shift to a service-oriented (recurring) business model, and investments in no-code/low-code technologies and generative AI, which leads to product efficiency.

List of Key Companies Profiled:

• Dell Technologies Inc. (U.S.)


• IBM Corporation (U.S.)


• QNAP Systems, Inc. (Taiwan)


• Hitachi Vantara LLC (Hitachi Ltd.) (Japan)


• Western Digital Corporation (U.S.)


• Seagate Technology Holdings plc (Ireland)


• Synology Inc. (Taiwan)


• Buffalo Americas, Inc. (U.S.)


• NetApp, Inc. (U.S.)


• NetGear, Inc. (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• January 2024:  Ugreen collaborated with Intel to launch UGREEN NASync network attached storage devices. This product lineup comes with automated decision-making ability and storage efficiency.


• September 2023: QNAP launched a network expansion card, QXG-10G2T 10 GbE, dedicated to users that need simultaneous data access with lower latency. These end-users can be professional videographers, photographers, or part of a collaborative team. This new launch is a dual-port, advanced, 5-speed 10 GbE (RJ45) network expansion card, which acts as a cost-effective and energy-efficient solution for several networking needs. The card enhances the workflow efficiency of both NAS and PC users by offering them a seamless experience.


• August 2023: Buffalo introduced a product transition to While Supplies Last for its TeraStation 6000 and 5010 Series NAS product families. The company also aims to transform the new TeraStation 5020 Series product family. All transformed products will be sold through the company’s authorized sales channels.


• June 2023: Synology introduced a new addition to the entry-level J Series, the 2-bay DiskStation DS223j. This launch is focused on catering to the needs of home office and small teams. The DS223j is a NAS that uses the company’s intuitive DiskStation Manager and features several options and applications for everyday data storage and management, including video surveillance, file syncing and sharing, and backup.


• April 2023: Seagate collaborated with QNAP Systems Inc. to deliver its complete portfolio of edge-to-cloud enterprise storage offerings. These products are dedicated to SMBs and content creators and include a wide range of advanced solutions, such as QNAP’s high-capacity NAS solutions with Exos E series JBOD systems, Seagate Lyve Cloud, Seagate’s IronWolf Pro Hard Drives (HDD).


• March 2023: IBM partnered with Cohesity, a data security and backup provider, to incorporate Cohesity’s data protection functionality into the company’s storage product suite. This new launch, Storage Defender, has been developed to protect customers' organizations’ critical information better.

REPORT COVERAGE

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The report delivers a detailed analysis of the market. It captures vital aspects such as key companies, their leading product offerings, a detailed average selling price analysis, and the solutions' leading applications. In addition, the report provides insights into the market trends and highlights key industry developments. Besides, the report is a complete ensemble of several factors that contributed to the growth of this market in recent years.

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