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The global cloud storage market size was USD 61.15 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with cloud storage witnessing a negative impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a significant growth of 24.7% in 2020 as compared to the average year-on-year growth during 2017-2019. The market is projected to grow from USD 76.43 billion in 2021 to USD 390.33 billion in 2028 at a CAGR of 26.2% during the 2021-2028 period. The rise in CAGR is attributable to this markets demand and growth, returning to pre-pandemic levels once the pandemic is over.

Cloud storage is a model that stores and provides the management of data on the internet through cloud computing. According to the Cisco Global Cloud Index Forecast 2015-2020, 92% of the business workloads are likely to be processed on cloud data centers. This shows that the market is expected to have unprecedented growth in the upcoming years. Also, the global market is set to show significant growth driven by the outbreak of COVID-19. Market players are offering storage services to support organizations in remote location management. For instance, in July 2020, Google Cloud announced its strategic partnership with a cloud content management company, Box, Inc. The partnership would help them in focusing on supporting clients for transforming on the remote workspace.

Adoption of Distributed Work Environment Owing to Spread of Novel Coronavirus to Drive Market Growth

As organizations are shifting towards a distributed work environment, cloud-based solutions are empowering the workforce to collaborate and stay connected. To enable organizations to securely manage the stored data and support remote working amid the COVID-19 pandemic, companies are offering various cloud storage solutions to deal with the current unprecedented situation. For instance, Microsoft Corporation is offering extended Microsoft Azure cloud credits, increased Windows benefits, and other services for critical care and non-profit organizations such as health support, public safety, food and nutrition, and others. Similarly, Amazon and Salesforce have teamed up to provide cloud-based contact center services to customers under the challenging circumstances of the pandemic. Thus, the onset of coronavirus would fuel the adoption of these solutions across all industries.

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Emergence of Analytics, Mobility, and Social Media is a Vital Trend

Cloud analytics has given new opportunities to market players in the sectors where users require analytical insights for decision making. Considering the massive computing power, the requirement for additional storage to support big volumes of data is increasing exponentially. Enterprises are leveraging platforms and delivering advanced storage technologies with more accessibility and flexibility.

Similarly, social media analytics has influenced end-users to adopt automated storage services to offer real-time enhanced customer experience. For instance, in October 2020, Facebook LLC collaborated with a cloud service provider called Backblaze, to securely transfer the social media photos and videos over cloud encrypted storage. Backblaze offers 10GB free capacity to users and also provides personal safeguarding, file sharing, and the ability to manage and modify the content. These technological trends are likely to boost the market value.

Exponential Growth in Data Volumes to Surge Demand for New Storage Capacity

The advent of remote sensing technologies, Internet of Things (IoT), and advanced video systems such as 4K resolution cameras has led to the generation of high-capacity data. As a result, there is a growing demand for this type of storage technologies and networking. Similarly, the rising adoption of artificial intelligence (AI) is likely to surge the usage of storage to improve data protection services. For instance, in February 2021, California-based start-up NextBillion AI announced its collaboration with Google Cloud to enhance time-to-market solutions using cloud SQL and cloud storage. This collaboration is expected to offer data security and 99% uptime for NextBillion AI clients.

Additionally, machine learning and autonomous systems such as autonomous vehicles are likely to drive the adoption of cloud computing services including data storage for providing real-time assistance. For instance, in February 2021, connected car provider, Ford, announced its strategic partnership with Google Cloud to accelerate the connected vehicle experience. The company is shifting toward autonomous and driverless cars and is aiming to offer an enhanced experience by integrating AI, machine learning, cloud, and other technologies.

Stringent Government Laws and Legal Obligations to Restrict Market Growth

Data privacy and confidentiality are the most essential elements of the cloud storage ecosystem. Mandatory rules and laws imposed by governments on using cloud services and other legal obligations are likely to limit the market growth. For instance, the Government of India has made a provision in the Information Technology Act 2000, that any unlawful act regarding the computing models/transactions containing confidential information will be subjected to punishment. Such regulations and laws imposed by governments across the world are projected to act as a barrier to the growth of the market. Also, data breaches are likely to pose a threat to service providers which may restrict the market growth.

High Data Security of Storage Models to Augment This Segments Growth

By the component, the market is bifurcated into storage models and services. The storage model segment is expected to hold the maximum cloud storage market share. There are three categories of storage models offered by players including object storage, file storage, and block storage. Each of the storage models offers its own advantages and use cases. The object storage sub-segment is likely to lead during the forecast period. The file storage cloud sub-segment is expected to showcase maximum CAGR owing to its increased storage capacity. For instance, in February 2021, a file cloud storage provider, Nasuni Corporation, announced its partnership with Google Cloud owing to the massively growing demand for enterprise file storage.

Storage models cater to the fundamental requirements of enterprises such as data security, availability, and durability. These factors are driving their adoption across businesses. Whereas, services play an essential role in maintaining proper connectivity and data flow thus the services segment is projected to exhibit significant growth in the upcoming years. It is further bifurcated into managed and professional services, out of these, the professional services sub-segment is expected to lead the market.

Benefits of Private and Public Cloud in Single Hybrid Cloud to Drive its Demand

Based on the deployment type, the market is classified into private cloud, public cloud, and hybrid cloud. Among these, the public cloud segment is expected to account for a major market share. The most adopted way of implementing cloud computing services is public clouds. The cloud infrastructure such as storage and servers are operated and owned by a third-party cloud service provider (CSP) and delivered over the Internet. Microsoft Corporations Microsoft Azure and Google Inc.s App Engine are some examples of public cloud storage. Public cloud deployments are usually used to provide online office applications, web-based emails, storage and development, and testing applications.

The private cloud segment is likely to showcase steady growth during the forecast period. In private cloud deployments, services are provided on a private network and the hardware and software are dedicated completely to an organization. This ensures more safety of the data stored. The hybrid cloud segment is anticipated to gain rapid growth during the forecast period. Enterprises implementing hybrid cloud can gain benefits from both private and public deployments. For instance, businesses can use public clouds for low-security needs and high volumes of data.

Advanced Storage Capabilities to Boost Small and Medium Enterprises Segment Growth Rate

Based on the enterprise size, the market is bifurcated into large enterprises and small & medium enterprises (SMEs). The large enterprises segment is expected to account for a maximum revenue share owing to the availability of IT infrastructure, substantial technological investments, and digital adoption. The small and medium enterprises segment is projected to exhibit a higher growth rate in the forecast years. The advent of advanced cloud storage capacities has enabled small and-mid sized enterprises to optimize their spending on data computing infrastructure. This is likely to drive market growth.

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Rapid Digitalization to Drive the Demand for Cloud Storage in BFSI Industry

By vertical, the market is categorized into banking, financial services and insurance (BFSI), IT and telecommunication, government and public sector, manufacturing, healthcare, and life science, retail and consumer goods, media and entertainment, and others.

The BFSI industry contains large volumes of consumer data and tends to provide efficient services to customers. The growing implementation of digitalization is driving the demand for this type of storage to offer services such as web fund transfer, payment gateways, digital wallets, and other related services. For instance, in February 2021 Global Financial Services collaborated with Google Cloud services to prevent security threats against its banking infrastructure using its AI-powered platform.

The healthcare and life sciences segment is expected to exhibit a remarkable growth rate during the forecast period. Cloud services enable healthcare providers to achieve real-time data insights and reduce IT complexities with precise data storage solutions. For instance, in December 2020, Amazon Web Services launched HIPAA-eligible HealthLake, cloud storage and data management service for healthcare and life science organizations. The HealthLake helps in reducing healthcare workers time in transforming health data and analyzing it in real-time.

The surging demand for over-the-top services (OTT) and other digital natives have influenced telecom service providers in adopting this type of storage services. Similarly, manufacturing, government, and public sector, retail and consumer goods, and other industries are actively investing in cloud data management services. For instance, according to the State of Manufacturing Report 2017, 90% of manufacturing companies leveraged cloud-based productivity applications. This is likely to boost the market growth.

North America Cloud Storage Market Size, 2020 (USD Billion)

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The market has been divided into five major regions including North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America. The regions are further divided into countries.

North America is projected to dominate the market throughout the forecast period. According to Cisco's regional cloud traffic trends, it is estimated to generate the highest cloud traffic among other regions. The United States holds the major market share attributed to the significant adoption of e-commerce, electronic signatures, and other digital services that generate heaps of data each day. North America being a mature market would ensure to continue the use of these storage services.

Asia Pacific is expected to showcase a rapid growth rate during the forecast period. Developing economies such as India and China have made significant contributions in facilitating the region's adoption of cloud-driven technologies. For instance, according to GSMA Intelligence 2018, Asia Pacific registered 67% mobile social media penetration and 61% online service index score for e-government. Owing to these growing digitization trends, businesses are turning towards cloud-based data analytics to identify customer behavior. All of these would lead to an increase in data consumption and generation which would further drive the demand for storage.

Europe is expected to gain a significant share of the market. As per the statistical office of the European Union, 26% of the European Union enterprises leveraged cloud computing in 2018 for storing files in electronic form and hosting email services. The report also states that about 18% of the enterprises used the public cloud, whereas, 11% were using the private cloud for their exclusive infrastructure usage in 2018. This is likely to drive the Europe cloud storage market growth.

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The Middle East and Africa is anticipated to show potential market growth during the forecast period. According to the Cisco Cloud Index 2015-2020, the region is expected to show the highest cloud traffic growth rate of approximately about 41% CAGR. The rapid growth is attributed to the rising migration towards cloud architecture due to its ability to replace traditional data centers and manage more workloads. Similarly, Latin America is projected to exhibit steady growth. According to the Cisco Digital Readiness Report 2018, Latin American countries such as Brazil, Mexico, and Argentina are at the middle stage of digital readiness.

Key Market Players to Enhance their Product Offerings and Adopt Partnership Strategies to Achieve Organizational Goals

Being a fragmented market, key market players such as Amazon.com, Inc., IBM Corporation, Dell, Inc., and Microsoft Corporation are likely to expand their product offerings. By expanding their product lines, these companies are ensuring to increase the revenue share. Also, it is likely to enable them to take advantage of the market opportunities across different sectors. Strategic partnerships are likely to promote the business expansion of market players. For instance, in August 2019, IBM Corporation enhanced its software portfolio to make it cloud-native and compatible to run on Red Hat OpenShift.

An Infographic Representation of Cloud Storage Market

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The cloud storage market report highlights the leading regions across the world to offer a better understanding of the user. Furthermore, the report provides insights into the latest industry trends and analyzes technologies that are being deployed at a rapid pace at the global level. The report examines various paradigm shifts associated with the transformation of the software. It further highlights some of the growth-stimulating factors and restraints, helping the reader to gain in-depth knowledge about the market.

ATTRIBUTE

DETAILS

Study Period

2017-2028

Base Year

2020

Forecast Period

2021-2028

Historical Period

2017-2019

Unit

Value (USD Billion)

Segmentation

Component; Deployment; Enterprise Size; Vertical; and Geography

By Component

By Deployment

By Enterprise Size

By Vertical

By Region

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Cloud Storage Market Size, Share, Growth | Industry Report 2028