Forecast to 2023 for the global cloud storage market
Challenges, key vendors, drivers and trends for the next five years
The global cloud storage market is expected to grow at approximately 104 billion US dollars by 2023, at 25 percent of CAGR between 2017 and 2023. Major key players are Amazon Web Services, IBM Corporation, Microsoft Corporation, VMware Inc., HP Enterprise Company, Google Inc. and Oracle Corporation, all from the U.S.
Cloud storage allows enterprises to store data on remote servers that can be accessed through internet. These remote servers are maintained, operated and managed by cloud storage service providers. Cloud storage is basically a virtual mode of data storage. The data stored on cloud can be accessed and shared across devices through internet.
Major factors driving the growth of cloud storage market are high demand for hybrid cloud storage and growing need for enterprise mobility. Need for easy implementation of cloud storage systems is another factor fueling the growth of cloud storage market. The solution segment is further classified into primary storage, cloud storage gateway, data archiving, disaster recovery and back up storage.
Regional analysis of the global cloud storage market
The global cloud storage market, by geography, has been segmented into North America, Europe, Asia Pacific, Middle East and Africa (MEA), and South America. Asia-Pacific is projected to grow at the fastest rate during the forecast period.
In the global cloud storage market, Asia Pacific is anticipated to witness relatively faster adoption and hence the growth rate as compared with other regions. Within Asia Pacific, the reasons fueling the market growth are the growing demand for hybrid cloud storage, increasing need for enterprise data storage, and rising cloud-based applications.
Across Europe, countries including Germany, France and the U.K. are anticipated to drive the growth of cloud storage market. In Europe, the presence of several market players that provide cloud services have fueled the market growth. The presence of high end infrastructure ensures higher penetration of internet and hence better connectivity.
It has been observed that North America is estimated to account for the largest share of the market. The highest market share in North America region is attributed to early adoption of new technologies and larger investments in cloud based solutions.
Some factors hamper the growth of the cloud storage market
The cloud storage market has been segmented on the basis of solution, service, deployment and vertical. The managed services is expected to grow at the highest rate during the forecast period owing to better user experience. Managed services offer remote management of IT infrastructure and hence large number of companies are opting for managed services.
Data security is a major restraining factor in cloud storage. Due to rapid growth in malicious hacking technologies, data security is at risk and can lead to heavy losses for the company if critical data is hacked. Other restraining factors in cloud storage market would be regulatory compliance issues and lack of high network bandwidth for data transfer. These issues can cause hindrance in growth of cloud storage market.