Next-generation Data Storage Market Size & Share 2023 to 2032
Market Size by Storage System (Direct-Attached Storage, Network-Attached Storage, Storage Area Network), by Storage Architecture (File & Object-based Storage, Block Storage), by Storage Medium, by Deployment Type, by End Use, Forecast.
Report ID: GMI5677
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Published Date: May 2023
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Report Format: PDF
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Authors:
Suraj Gujar, Ankita Chavan
Next-generation Data Storage Market Size
Next-generation Data Storage Market size was valued at over USD 57 Billion in 2022 and is anticipated to grow at a CAGR of over 10% between 2023 and 2032.
Next-generation Data Storage Market Key Takeaways
Market Size & Growth
Key Market Drivers
Challenges
Increasing number of internet users is growing the volume of digital data generated by platforms such as online payment gateways, websites, media & entertainment, IoT devices, and Artificial Intelligence (AI). This rise is fueling the demand for next-generation data storage, which allows businesses to store data and create databases as well as analyze future business data. It reduces data corruption & loss and allows for faster data recovery.
The rapid adoption of AI in several countries has resulted in a massive increase in digital data generated from activities such as customer service for banks, the use of robotics in manufacturing facilities, and enterprise decision-making, driving the demand for high data storage capacity. Major artificial intelligence users, such as the U.S. and China, are producing massive amounts of data from AI applications, boosting the global data economy. All of these factors contribute to the increasing demand for next-generation data storage.
Next-generation data storage technology includes advanced data storage products & solutions that deal with the growing file sizes and massive amounts of unstructured data. This technology securely manages large amounts of data while enabling cost-effective, reliable, secure, and fast data recovery. It also enables scalable storage and handling of large amounts of data generated by large corporations.
Security is a significant issue that must be addressed. If the data is stored somewhere, a third party may be able to obtain it. Many layers of security can prevent unauthorized access, such as encryption and reliance on third-party providers, but there is a limit to how well these measures can protect the data. Furthermore, the cost of maintenance & repair can make next-generation data storage a significant investment for businesses & organizations. The high cost of installation of next-generation data storage is a significant impediment to market growth as businesses & organizations may hesitate to invest in these systems due to financial constraints.
COVID-19 Impacts
The COVID-19 pandemic negatively impacted the next-generation data storage market due to the strict lockdowns and social distancing norms implemented to contain the virus spread. Economic uncertainty, a partial business shutdown, and low consumer confidence affected the demand for substation automation technology. During the pandemic, the supply chain was hampered along with logistics activities. However, with the relaxation of restrictions, the market growth is expected to pick up speed in the post-pandemic scenario.
Next-Generation Data Storage Market Trends
Explosive growth in digital data, significant advancements in IoT, the proliferation of smartphones, tablets & laptops, and the increasing penetration of high-end cloud computing are some of the key factors driving market growth. The deployment of next-generation data storage to boost general databases for future use and optimize databases in various verticals, such as BFSI, healthcare, and government, is expected to drive significant growth in the storage industry during the forecast period.
Rapid advancements in areas including Big Data, cloud computing, and mobile services are expected to boost market growth. Currently, traditional data storage technologies are incapable of handling the massive amounts of data generated every day, whereas next-generation data storage with benefits such as improved reliability, efficiency, and cost-effectiveness can meet the growing demand for data storage.
Next-Generation Data Storage Market Analysis
Based on end-use, the next-generation data storage market is segmented into BFSI, healthcare, retail, cloud service providers, government, IT & telecom, and others. The BFSI segment is expected to grow at a lucrative growth rate of over 12% between 2023 and 2032. Data creation through multiple touchpoints, such as mobile banking, digital wallets, and chatbot-supported customer assistance services, is currently at its peak in the banking sector.
To provide a seamless customer experience and facilitate frictionless backend processes, BFSI firms are increasingly adopting secure, fast, reliable & scalable data infrastructure. Furthermore, the growing need for financial institutions to make decisions based on databases to gain a competitive advantage is compelling them to implement smarter business platforms that are agile, adaptable, and feasible.
Based on storage architecture, the next-generation data storage market is divided into file & object-based storage and block storage. The file & object-based storage segment held a market value of over USD 20 Billion in 2022, which is attributed to the increasing demand to arrange large volumes of data in a structure. File storage is a hierarchical storage method for organizing & storing data on a computer hard drive or a Network-Attached Storage (NAS) device. Object storage is a type of computer data storage architecture that is intended to handle large amounts of unstructured data. Unlike block storage architecture, it defines data as distinct units that are accompanied by metadata and a unique identifier that can be used to locate & access each data unit. Due to the rapid adoption of IoT technologies and connected devices as well as the increased use of mobile & smart wearable devices, the demand for file & object-based storage is increasing.
Based on deployment type, the next-generation data storage market is bifurcated into on-premises and cloud. The on-premises segment held a dominant market share in 2022 and is anticipated to grow at over 8% CAGR from 2023 to 2032. The high performance of on-premises storage solutions drives the segment. Due to its low cost and backup & recovery capabilities, on-premise next-generation data storage is best suited for small-sized businesses. The growing need to manage large volumes of data, both structured and unstructured, is a critical factor promising growth prospects for the on-premises segment.
North America is the dominant region in the global next-generation data storage market with over 35% share in 2022. The region is a pioneer in the adoption of advanced data-storage technologies. The U.S. has a high concentration of both global companies and consumers. In addition, the proliferation of hyper-scale data centers, which are primarily used by cloud computing companies and social network providers, has increased rapidly. These factors contribute to the region’s dominance in the market.
Next-generation Data Storage Market Share
Some of the major players operating in the next-generation data storage market are:
These players focus on strategic partnerships and new storage system launches for market expansion. Furthermore, these players are heavily investing in research to introduce innovative storage systems and garner maximum revenue in the market.
Next-Generation Data Storage Industry in News:
The next-generation data storage market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD Million from 2018 to 2032, for the following segments:
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By Storage System
By Storage Architecture
By Storage Medium
By Deployment Type
By End-use
The above information is provided for the following regions and countries:
Research methodology, data sources & validation process
This report draws on a structured research process built around direct industry conversations, proprietary modelling, and rigorous cross-validation and not just desk research.
Our 6-step research process
1. Research design & analyst oversight
At GMI, our research methodology is built on a foundation of human expertise, rigorous validation, and complete transparency. Every insight, trend analysis, and forecast in our reports is developed by experienced analysts who understand the nuances of your market.
Our approach integrates extensive primary research through direct engagement with industry participants and experts, complemented by comprehensive secondary research from verified global sources. We apply quantified impact analysis to deliver dependable forecasts, while maintaining complete traceability from original data sources to final insights.
2. Primary research
Primary research forms the backbone of our methodology, contributing nearly 80% to overall insights. It involves direct engagement with industry participants to ensure accuracy and depth in analysis. Our structured interview program covers regional and global markets, with inputs from C-suite executives, directors, and subject matter experts. These interactions provide strategic, operational, and technical perspectives, enabling well-rounded insights and reliable market forecasts.
3. Data mining & market analysis
Data mining is a key part of our research process, contributing nearly 20% to the overall methodology. It involves analysing market structure, identifying industry trends, and assessing macroeconomic factors through revenue share analysis of major players. Relevant data is collected from both paid and unpaid sources to build a reliable database. This information is then integrated to support primary research and market sizing, with validation from key stakeholders such as distributors, manufacturers, and associations.
4. Market sizing
Our market sizing is built on a bottom-up approach, starting with company revenue data gathered directly through primary interviews, alongside production volume figures from manufacturers and installation or deployment statistics. These inputs are then pieced together across regional markets to arrive at a global estimate that stays grounded in actual industry activity.
5. Forecast model & key assumptions
Every forecast includes explicit documentation of:
✓ Key growth drivers and their assumed impact
✓ Restraining factors and mitigation scenarios
✓ Regulatory assumptions and policy change risk
✓ Technology adoption curve parameter
✓ Macroeconomic assumptions (GDP growth, inflation, currency)
✓ Competitive dynamics and market entry/exit expectations
6. Validation & quality assurance
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Our triple-layer validation process ensures maximum data reliability:
✓ Statistical Validation
✓ Expert Validation
✓ Market Reality Check
Trust & credibility
Verified data sources
Trade publications
Security & defense sector journals and trade press
Industry databases
Proprietary and third-party market databases
Regulatory filings
Government procurement records and policy documents
Academic research
University studies and specialist institution reports
Company reports
Annual reports, investor presentations, and filings
Expert interviews
C-suite, procurement leads, and technical specialists
GMI archive
13,000+ published studies across 30+ industry verticals
Trade data
Import/export volumes, HS codes, and customs records
Parameters studied & evaluated
Every data point in this report is validated through primary interviews, true bottom-up modelling, and rigorous cross-checks. Read about our research process →