Global Cloud Storage Market Size, Share, Trends, COVID-19 Impact & Growth Forecast Report - Segmentation By Type (Solutions and Services), Deployment Model (Public Cloud, Private Cloud and Hybrid Cloud), Organization Size (Large Enterprises, Small and Medium-Sized Enterprises), Vertical and Region (North America, Europe, Asia Pacific, Latin America, Middle East & Africa) - Industry Analysis (2024 to 2029)

Updated On: January, 2024
ID: 8651
Pages: 170

Global Cloud Storage Market Size (2024 to 2029)

The global cloud storage market size is anticipated to grow from USD 60.41 billion in 2024 to USD 185.69 billion by 2029. The market is expected to move forward at a CAGR of 25.18% during the forecast period.

Cloud storage is an electronic data warehouse wherein digital information is stored on remote site servers. These offsite location servers are operated and managed by cloud storage services or computing providers. It is their responsibility to make sure that it is always accessible by using private or public internet connections. So, we can say that cloud storage is a virtual data storage mode. This eliminates the requirement for a personal information storage system or facility. It provides the company with benefits, including swiftness, cost-effectiveness, faster deployment, scalability, and durability at any given point in time and location. 

Current Scenario of the Global Cloud Storage Market

Cloud storage is used in cases involving analytics and data lakes, backup and disaster recovery, software development and testing, cloud data migration, compliance, cloud-native application storage, archive, hybrid cloud storage, data storage, ML, and IoT. To make things clearer, according to a study, approximately 100 zettabytes of data will be kept in the cloud, and total global data storage is expected to be 200 ZB by 2025. Currently, around 60 percent of the world's business data is collected and kept in the cloud. 

MARKET DRIVERS

The growing demand for cost-effective data storage and data protection across different organization types is driving the growth of the cloud storage market.

The growing amount of dynamic and unstructured data, the integration of modern technologies such as artificial intelligence and the Internet of Things, and the requirement for improved data availability and networking applications are fuelling these demands. So, the use of cloud storage has increased due to faster deployment, expandability, and flexibility. As per estimations, 72% of global organizations migrated from local data centers to the cloud, which considerably increased the demand for cloud storage services in the last few years. Apart from this, 76 percent of companies around the world work in multi-cloud environments, which comprise one shared and one private cloud. Interestingly, the majority of large organizations utilize multiple clouds, against which about 60 percent of small and 76 percent of mid-sized companies work on this type of cloud structure. This trend is likely to further accelerate and propel the market growth during the forecast period. 

Moreover, the rising demand for cost-effective data protection, storage and security and the mounting data generated by mobile technologies are boosting the growth rate of the cloud storage market. Besides this, hybrid cloud storage and architecture are expected to contribute significantly to industry development over the next five years. This is due to their flexibility in public and private cloud storage. 

The high application for hybrid cloud storage and the growing need for business mobility are further propelling the cloud storage market growth.

The rapid pace of digitalization and the need for easy and cost-effective implementation are other factors that influence the expansion of the cloud storage market. One of the benefits of this is the low total cost of ownership. It allows companies to execute the development and testing of new applications on the public cloud and on-premises systems and equipment to carry out complex operations. This brings down the testing and development expenditure of new application services or products. In addition, the expanding need for colocation service providers is providing potential prospects for the industry players. Several companies are progressively shifting to cloud hosting or hosting facilities to attain the desired combination of security, control, flexibility, and scalability. Hence, it is globally the most extensively accepted cloud strategy.

MARKET RESTRAINTS

Data security is a major limitation for the growth of the cloud storage market.

Despite advances in protection technologies for countering malicious attacks, data security measures can easily or with little effort be compromised. This continues to cause major losses for the company when critical data is pirated or stolen. As a result, data loss, breaches, and unauthorized access have been compounded, stressing the significance of implementing strong security actions or steps throughout the cloud environment. According to a 2024 study, there will be a 71 percent growth in cyberattacks in 2023. The attacks were carried out with the help of stolen credentials to access valid accounts. Online criminals were more focused on "logging in" than on hacking the corporate network by utilizing these valid account details. Thus, this weakness is hindering the cloud storage market.

Other limiting factors in the cloud storage market would be regulatory compliance and the lack of a large bandwidth for data transmission. Moreover, higher salaries and more qualified staff are needed to build advanced SaaS applications, so companies will find it difficult as the recruitment process is slowed down to reduce expenditure. These problems hamper the growth of the cloud storage market.

Impact Of COVID-19 On the Global Cloud Storage Market

Overall, COVID-19 had a positive impact on the cloud storage market. This forced the companies to transition their work and employees to online mode, and the demand for cloud-based solutions surged thereafter. Also, many industry players collaborated with cloud-based contact service centers for the convenience of their customers. Besides this, in December 2020, Oracle Cloud was utilized to drive the COVID-19 vaccination campaign across the United States. Other governments around the world have also taken such steps or measures. This global outbreak acted as the real accelerator or motivation, which caused rapid adoption in several industries. As per a study, the proportion of companies accepting artificial intelligence with data management went up to 91 percent in 2022 from 70.3 percent in 2020. Hence, the investment in cloud storage rose significantly post-COVID-19.

REPORT COVERAGE

REPORT METRIC

DETAILS

Market Size Available

2023 to 2029

Base Year

2023

Forecast Period

2024 to 2029

CAGR

25.18%

Segments Covered

By Type, Organization Size, Deployment, Model, Vertical, and Region

 

Various Analyses Covered

Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities

Regions Covered

North America, Europe, APAC, Latin America, Middle East & Africa

 

Market Leaders Profiled

AWS (USA), IBM (USA), Microsoft (USA), Google (USA), Oracle (USA), HPE (US), Dell EMC (US), VMware (US), Rackspace (USA), Dropbox (US), and others.

 

SEGMENT ANALYSIS

Global Cloud Storage Market Analysis By Type

The solutions segment of the cloud storage market is growing significantly because of its cost-efficiency, expandability, and adaptability. This makes them a preferred choice for the industry players. So, due to these benefits, solutions like public cloud storage allow fast accessibility, affordability, and the capacity to increase or decrease based on requirements. Hence, these are essential features for market players wanting to maximize their data storage and administrative operations. 

Global Cloud Storage Market Analysis By Organization Size

The large enterprise segment accounts for more than half of the market share of cloud storage. This growth is due to the increase in the need for cloud computing services arising from remote working and the demand to enhance business operations, especially in large enterprises. These big companies are quickly accepting cloud services because of their fast availability. It allows them to administer and reduce capital spending and functional costs, along with improving data creation through websites and mobile apps. Furthermore, 

Global Cloud Storage Market Analysis By Deployment Model

The public cloud segment holds a major share of the cloud storage market. The reason behind this growth is the increased consumer spending on publically available cloud services. The rapid infusion of financing from the public sector is another factor fueling the segment's development. State administration and other establishments are again now experiencing heightened interest in cloud adoption to provide people services in the isolated and socially distanced age. This resulted in a higher adoption rate in the public sector, particularly for government-to-citizen (G2C) services. Moreover, to build trust among partners, clients, and governments, environmental sustainability has become an industry requirement in the last 12 months. Besides this, companies are employing the public cloud to capitalize on the advantage of lowering carbon emissions. So, as per the estimates, expenditure on this is projected to be over 45 percent of enterprise spending in 2026. However, the hybrid cloud segment has already reached a considerable level but is quickly penetrating further across several industries. 

Global Cloud Storage Market Analysis By Vertical

The banking, financial services, and insurance (BFSI) segment is the major revenue generator for the cloud storage market. This segment is driving forward because of the consistently increasing demand for safe storage facilities or systems, swift digitalization, and the rising application of e-wallets, online payments, and net banking. In addition, there is a rising preference for enterprise platforms that have intelligence, flexibility, agility, and expandability due to the mounting pressure on banking institutions to make informed decisions to be one step ahead of the competition. Also, big companies are building data centers nearby to accelerate the acceptance of different cloud storage models, enhance client service quality, and administer running costs for higher profits in the BFSI industry. Therefore, the segment's growth is driven by cost-effectiveness, flexibility, and better security. 

REGIONAL ANALYSIS

The Asia-Pacific region is expected to grow faster due to rapid developments in India and China's manufacturing and services sectors. In addition, India's public cloud services industry has experienced phenomenal growth in the last two years. As per a survey, around 93 percent of Asian companies 2024 are projected to increase the amount of data stored in the public cloud by 8 percent from the previous year. It also stated that about 47 percent of respondents spent the majority of cloud storage expenditure on data recovery and operation costs. But Australia and Japan had an even bigger percentage mix of more than 50 percent. 

North America is the leading cloud storage market and is anticipated to drive forward in the coming years. This is due to the presence of a large pool of companies like AWS, Google, IBM, and Microsoft. Other factors growing the regional market are the intense rate of data creation and investment in data centers. Moreover, the extensive application ability and the emergence of next-generation technologies are believed to propel regional demand. Also, according to a study, the population in North America in 2021 was affected by a minimum of one account breach. One in two individuals in the region experienced an account breach.

Europe's cloud storage market is poised to grow significantly during the forest period. The regional industry's progress is due to Software as a Service (SaaS) and the demand for cheaper alternatives to traditional IT applications. In contrast, organizations in the area are seeking solutions that provide them with faster development as well as the launch of apps and products. Along with the US, the UK had a higher number of victims of online crime per million internet users around the world. Also, there was a 50 percent spile in cyberattacks in the Netherlands after 2020.

The Middle East and Africa cloud storage market is expected to drive at a steady pace in the projection period. This is attributable to the rising need for expandability and adaptability of IT infrastructure, considering the recent regional conflicts. Another major pattern in the MEA is the acceptance of multi-cloud strategies.

KEY PLAYERS IN THE GLOBAL CLOUD STORAGE MARKET

Companies playing a significant role in the global cloud storage market include AWS (USA), IBM (USA), Microsoft (USA), Google (USA), Oracle (USA), HPE (US), Dell EMC (US), VMware (US), Rackspace (USA) and Dropbox (US).

RECENT HAPPENINGS IN THE GLOBAL CLOUD STORAGE MARKET

  • In April 2024, NetApp broadened its collaboration with Google Cloud to provide a way for companies to use their data for generative AI and other hybrid cloud workloads. Moreover, earlier, they also launched the Flex service level. This is for the Google Cloud NetApp Volumes without any size limitations. Besides this, NetApp will further release a glimpse of its GenAI toolkit for source building for retrieval augmented generation utilizing the Google Cloud Vertex AI platform. 

  • In October 2023, IBM launched its new Storage Scale System 6000, built to accommodate large data volumes and AI work requirements. It facilitates users with up to 7M IOPs and as fast as 256GB/s output for fixed storage workloads per system in a four-rack unit (4U) footprint. Also, it is conditioned for the storage of routinely generated unstructured and semi-structured data and speeds up the company's digital footprint in the hybrid environment.

DETAILED SEGMENTATION OF THE GLOBAL CLOUD STORAGE MARKET INCLUDED IN THIS REPORT

This research report on the global cloud storage market has been segmented and sub-segmented based on the type, organization size, deployment model, vertical, and region. 

By Type

  • Solutions

  • Services

By Organization Size

  • Large enterprises

  • Small and Medium-sized Enterprises (SMEs)

By Deployment Model

  • Public Cloud

  • Private Cloud

  • Hybrid Cloud

By Vertical

  • Banking, Financial Services and Insurance (BFSI)

  • Healthcare and Life Sciences

  • Telecommunications and Information Technology-Enabled Services (ITES)

  • Government and Public Sector

  • Manufacturing

  • Consumer Goods and Retail

  • Media And Entertainment

By Region

  • North America
  • Europe
  • Asia-Pacific
  • Latin America
  • The Middle East and Africa

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Frequently Asked Questions

What is the current size of the global cloud storage market?

The global cloud storage market is anticipated to be worth USD 60.41 bn in 2023.

Which regions contribute the most to the global cloud storage market share?

Major contributors to the global cloud storage market share include North America, Europe, Asia-Pacific, and emerging markets in Latin America and the Middle East.

What are the key factors driving the growth of the global cloud storage market?

Growth in the global cloud storage market is driven by factors such as increasing data generation, the adoption of hybrid and multi-cloud strategies, and the need for scalable and cost-effective storage solutions.

How has the COVID-19 pandemic influenced the global cloud storage market?

The COVID-19 pandemic has accelerated the adoption of cloud storage solutions, as organizations prioritize remote collaboration, data accessibility, and business continuity in the face of disruptions.

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