Hardware Storage Market size is anticipated to grow substantially over 2023-2032 impelled by the increasing volume of digital data across various companies. Digital data has emerged as the most crucial resource for enterprises in the last 5 years. In 2023, over 3.5 quintillion bytes of data are estimated to be generated every day. In addition, digital data is anticipated to grow at an annual rate of 47% over the next 10 years. This is giving rise to the requirement for data collection devices across the globe.
Another factor affecting the hardware storage market is the soaring adoption of smartphones and internet services. Smartphones and laptops are no longer considered inferior versions of dominant computing devices. Mobile devices have surpassed PCs as the most commonly used web access devices around the world. Customers are storing rich media content on mobile devices, which has nurtured the demand for small-size high-performance storage devices.
A key trend shaping the hardware storage market is the emergence of big data technologies and IoT devices. These technologies have allowed various new sources for data generation and provided several tools & solutions to collect and evaluate large amounts of data. As enterprises, devices, and automobiles are becoming intelligent and interconnected, the data generated is speculated to increase rapidly. This has increased the demand for new and innovative analytical solutions to extract meaningful insights from the data collected. Hence, the exponential expansion of digital data is expected to drive the growth of the market.
Recently, during the Russia-Ukraine war, the market experienced a rapid disruption in demand and supply in the affected regions. The conflict increased the data theft risks and hampered the security of confidential information, especially in the U.S. Many data storage companies faced higher power costs and operating costs due to sanctions put on data flow from these countries. However, the development of new end-to-end encryption storage systems is boosting product adoption.
Based on application, the healthcare segment is projected to amass substantial gains by 2032 as a result of the increasing use of electronic health records (EHRs) caused by the digitalization of medical systems increasing the need for sufficient storage space for the safety and convenience of information. Additionally, stringent data privacy regulations, such as Health Insurance Portability and Accountability Act (HIPAA) and General Data Protection Regulation (GDPR), are fueling the market growth.
The network attached storage (NAS) segment holds a major share in the hardware storage market. NAS-based systems are used extensively in SMEs due to their cost-effective nature. Direct Attached Storage (DAS) is used for small private cloud installations and large databases. Storage Area Networks (NAS) are mainly used in media-sharing devices that allow several server systems to access a shared pool of data.
Regionally, North America is foreseen to lead the hardware storage market on account of the strong presence of large players, such as Dell, EMC, and IBM. These companies invest highly in the development of advanced IoT technologies and big data platforms. The data generated by IoT devices has increased the demand for high-performance storage devices. The U.S. has invested highly in establishing supportive business infrastructure, which has accelerated the expansion of the hardware storage industry in the region.
The Asia Pacific hardware storage market is also expected to grow significantly over the forecast timeline. This growth can be attributed to the increased IT hardware spending in the APAC region. Moreover, the introduction of data localization regulations has fostered market progression.
The key players in the hardware storage market are Dell, Toshiba, IBM, EMC, Symantec (Gen Digital), Hitachi, Micron Technology, HP, SanDisk, Huawei, Western Digital, Seagate Technologies, NetApp, Coho, Jeda Networks, and PernixData, among others. Technological advancement and growing competition have driven market players to develop inexpensive solutions to gain a competitive edge in the sector. These companies are conducting strategic acquisitions to increase their industry share.