Object-Based Storage Market

Global Object-Based Storage Market Size (2024 to 2032)

The global object-based storage market was worth USD 6.70 billion in 2023. The global market is predicted to reach USD 7.60 billion in 2024 and USD 20.93 billion by 2032, growing at a CAGR of 13.5% during the forecast period.

The explosive data generated by large businesses and individuals gives rise to a need for file and object-based storage. The amount of data being generated around the world is growing exponentially with most of it being unstructured data including photos, videos, audio files, and other media which creates huge market opportunities for the object-based storage market. Conventional data storage technologies such as file storage cannot handle large amount of daily data such as music, videos, web apps, sensor data, etc. Cloud object storage technology has become an essential technology providing better scalability, faster data recovery, better recovery and greater cost efficiency. In addition, the explosion of data in the world, the digitization of daily activities and the rise of all data-related applications, such as the Internet of Things and business data analysis, should have a positive impact on market growth.

MARKET DRIVERS

File- and object-based storage is also worth it compared to block storage. File and object-based storage reduces the need for expensive proprietary hardware. They do not require administration overhead to manually move data between different tiers. File- and object-based storage allows data to be automatically routed to the appropriate storage in a single tier with different levels of protection. These aspects are driving demand in the global object-based storage market.

The increase in Internet traffic and user generated data is one of the reasons contributing to the growth of the object-based storage market and the North American region has the highest amount of IP traffic in the world.  

In addition, the region is also home to major object-based storage providers, including IBM, Dell and others. This factor contributes to greater penetration of object-based storage in the region.

The change in business strategy is also prompting the BFSI sector to adapt and innovate its services. Banking service providers around the world are embracing cloud storage solutions. According to the American Bankers Association, most of the new core banking projects launched by 2020 will be in the cloud. Additionally, according to the US Census Bureau, the country recorded USD 146.2 billion in e-commerce retail sales during the second quarter of 2019, indicating the need for object-based storage because it works best for unstructured data such as web, social media, video, email, etc.

MARKET RESTRAINTS

However, file and object-based storage suffers from performance issues. Businesses are trying to speed up storage, but due to the large amount of data being generated, scalable performance is difficult to achieve. Companies try to increase their capacity to improve performance, but this leads to higher costs. Additionally, integrating object-based storage into the corporate infrastructure is also a challenge.

Impact of COVID-19 on the Global Object-Based Storage Market

The coronavirus pandemic has disrupted business activities around the world. Due to the global foreclosure, the corporate sector suffered a significant loss in terms of output, with a major impact on the manufacturing, BFSI and retail sectors. The shutdown hit manufacturing companies hard, as nearly all factories shut down. Many commodity manufacturing companies are also unable to continue production due to a lack of manpower amid the pandemic. Therefore, there is also a slight decline in the market for object-based data storage due to COVID-19.

REPORT COVERAGE

REGIONAL ANALYSIS

The market in North America is expected to grow at a substantial rate during the forecast period due to increased adoption of analytics by organizations on the cloud marketing platform in the region. Additionally, the adoption of advanced marketing techniques to improve business is driving the market for object-based storage business in North America. The Asia-Pacific market is supposed to see significant expansion during the outlook period. It is estimated that the region will create exciting opportunities in the market for object-based storage solutions in the near future. Factors such as increasing urbanization, industrial development, and advancement in technology are driving the demand for this object-based storage in the Asia Pacific.

North America is the top revenue-generating region in the next-generation data storage market. The increasing volume of unstructured data in various industries and rapid advances in technology have led to increased demand for secure, reliable, and cost-effective storage infrastructure in this locale. North America, being the first to adopt advanced data storage technologies, foreseen to occupy the largest market share in future.

KEY PARTICIPANTS IN THE GLOBAL OBJECT-BASED STORAGE MARKET

The major companies operating in the global object-based storage market include Dell EMC Corporation, Oracle Corporation, International Business Machines Corporation, Amazon Web Services, Inc., Hewlett-Packard Enterprise, Alibaba Cloud Computing Company, Cisco Systems, Hitachi Data Systems, Datadirect Networks, Netapp, Inc., Microsoft Corporation, and Google LLC.

RECENT HAPPENINGS IN THE GLOBAL OBJECT-BASED STORAGE MARKET

• In April 2019, Google launched a new cold file storage service at its Cloud Next conference that is likely to support the existing Nearline and Coldline services to store infrequently utilized data at an affordable cost. Google's new object storage service uses the same APIs as other storage classes and allows users to redundantly store data in Availability Zones, with an annual durability of eleven-nine.

• In November 2019, Scality added an Azure Blob API connector to give Microsoft Azure Stack Hub and Edge customers the ability to scale using their on-premises Ring object storage. Target deployments for Azure Stack with Scality storage include offshore oil and gas platforms or remote military bases that have limited connectivity to send data to the public and to government agencies or businesses in regulated industries that need to maintain data on site.

DETAILED SEGMENTATION OF THE GLOBAL OBJECT-BASED STORAGE MARKET INCLUDED IN THIS REPORT

This research report on the global object-based storage market has been segmented and sub-segmented based on the component, implementation, company size, end-user, and region.

By Component

• Software

• Services

By Implementation

• Cloud

• On-Premises

By Company Size

• Small and Medium-Sized Enterprises

• Large Enterprises

By End-User

• Banking

• Financial Services and Insurance (BFSI)

• IT and telecommunications

• Social Media Platforms

• Others

By Region

• North America

  • The United States

  • Canada

  • Rest of North America

• Europe

  • The United Kingdom

  • Spain

  • Germany

  • Italy

  • France

  • Rest of Europe

• The Asia Pacific

  • India

  • Japan

  • China

  • Australia

  • Singapore

  • Malaysia

  • South Korea

  • New Zealand

  • Southeast Asia

• Latin America

  • Brazil

  • Argentina

  • Mexico

  • Rest of LATAM

• The Middle East and Africa

  • Saudi Arabia

  • UAE

  • Lebanon

  • Jordan

  • Cyprus