The Global Cloud Storage Market is expected to reach USD 170.02?billion by 2025, at a CAGR of 24.74% during the forecast period 2020-2025.
- Increasing demand for low-cost data backup, storage, and protection across all enterprises, coupled with the necessity to handle data generated by augmented usage of mobile technologies, favors the rate of adoption of cloud storage.
- According to a study published by CenturyLink, a telecommunications company, the cloud computing technology is expected to generate revenue of USD 411 billion by 2020, across the world.
- The increasing volume of data being uploaded on the servers of the enterprises has resulted in the need for high-end security, SSL, well-defined sharing, along with cost-effective options within the organization.For instance, on an average of approximately 60 million photos are uploaded daily by Instagram users, globally, and is rapidly increasing, owing to the company’s new policy associated with multiple uploads.
- The increasing automation in the fields of aerospace and defense coupled with the necessity to improve storing and sharing data on operations and soldiers over the army cloud is expected to drive the market over the forecast period. For instance, in June 2019, Indian Army announced its plans to expand its cloud computing network for storing and sharing operational and personnel information such as deployments, movement of formations and health and service records.
- Some of the prominent players in the market through strategic partnerships, mergers & acquisitions, research & developments have been able to further the technology. This is expected to fuel the demand for cloud storage over the forecast period. For instance, in September 2019, Facilis Technology announced that it had entered into a strategic partnership with Qualstar on Object Cloud storage solution.
- Also, the hybrid cloud deployment is occupying a continuously increasing share in the cloud market. According to RightScale 2018 State of the Cloud Survey Report, 81% of enterprises have a multi-cloud strategy and 51% of the enterprises with a hybrid strategy. This also is expected to boost the adoption of the cloud storage over the forecast period.
Scope of the Report
Cloud storage enables the user to store the data on the Internet through a cloud computing provider that manages and operates data storage as a service. The data which is stored in and is accessible from multiple distributed and connected resources. This report segments the market by Solution (Cloud Storage Gateway, Primary Storage, Backup Storage, Data Archiving), Service (Managed Services, Professional Services), Deployment (Private Cloud, Public Cloud, Hybrid Cloud), End-User, and Geography.
Key Market Trends
BFSI Sector is Expected to Hold a Significant Share
- Banks, in order to improve the revenue generation, increase customer insights, contain costs, deliver market-relevant products quickly and efficiently, and help monetize enterprise data assets, have started digitizing their working by introducing online portals through which a user can directly complete his work without any need for a bank official’s intervention. This has resulted in a massive surge in the generation of data which is propelling such institutions to have cloud storage in place.
- The cloud enables the bank to synchronize the enterprise; to break down operational and data silos across risk, finance, regulatory, customer support, amongst others and more importantly, it allows such institutions to combine such massive data sets in one place, and can apply advanced analytics for integrated insights.
- JPMorgan Chase in its 2018 annual report stated that the company had hit average mobile customers mark of 33.3 million, a number that was by 11% with Total active digital customers being 49.3 million. This in itself is indicative of the fact of banking institutions could need solutions like cloud storage to handle such amounts of data.
- According to Accenture in 2019, the Digital-only banks operating in the U.K. could amass a total of 35 million customers globally within a period of 12 months. This in itself is indicative of the fact that such an increase would require solutions like cloud storage to handle the surge thereby boosting the growth of the cloud storage over the forecast period.
- Also, the increasing initiatives from the government or related regulatory bodies pertaining to the storage of large volumes data are propelling the institutions to opt for cloud storage. As Financial services organizations worldwide in order to store and retain large volumes of communications are under increasing pressure from MiFID II, MAR, Dodd-Frank and FX Code of Conduct as regulations mandate recording of greater numbers of regulated users, asset classes, channels & devices.
- The increasing data breaches in the banking sector is propelling the banks to adopt cloud storage that allows them to store data in a space managed and owned by the bank or a third party that offers better security to the end-user. This is expected to boost the adoption of the cloud storage over the forecast period.
North America is Expected to Hold the Largest Share
- North America is expected to hold a significant share owing to early adoption of new technologies, huge investments in R&D for the cloud-based solutions, and enhanced IT infrastructure. Moreover, cheap and secure storage options result in rapid industrial development.
- Some of the prominent players in the region through research and development have been able to further the technology. This is expected to boost the adoption of cloud storage throughout the forecast period.
- For instance, in February 2018, Google opened its first Google Cloud Platform (GCP) region in Canada, with reduced prices for Google Cloud Storage infrequent access and cold storage classes, as well as its Nearline Storage features, for users in the region.
- A survey by Cisco reported that 69% of the IT decision makers favor BYOD as an optimistic addition to workplace policy as it saves workers time. In the United States IT sector, it was estimated that in the past three years, BYOD adoption witnessed an increase of 44.42%. Hence, with the growing number of mobile workers in organizations and workplaces, there has been a subsequent rise in the data generated and managed. This is expected to boost the cloud storage market’s growth over the forecast period.
the competitive rivalry in the cloud storage market is high owing to the presence of some major players such as Microsoft, IBM, Oracle, amongst others. Their ability to continually innovate their offerings has allowed them to gain a competitive advantage over others. Through strategic partnerships, research and developments, and mergers & acquisition these players have been able to gain a greater footprint in the market.
- In July 2019 - IBM announced major upgrades to its IBM Spectrum Discover unified metadata management, Cloud Object Storage, Spectrum Plus data protection and VersaStack converged infrastructure platform with an eye on the cloud and modern workloads.
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