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Cloud Services Driving Growth In The Storage Server Market: Strategic Insights Driving Storage Server Market Momentum in 2025
Storage Server
How Large Will the Storage Server Market Size By 2025?
In recent times, the market size of the storage server has seen exponential growth. A progression from $313.9 billion in 2024 to $378.38 billion in 2025, with a compound annual growth rate (CAGR) of 20.5%, is expected. The growth during the historical period is largely due to the escalated demand for data storage, increased usage of flash storage, surge in digital transformation, expansion of cloud computing, growing necessity for high-performance storage systems, and rising demand for servers.
How Big Is the Storage Server Market Size Expected to Grow by 2029?
In the next few years, the storage server market size is projected to experience significant growth, reaching $771.44 billion in 2029 with a 19.5% compound annual growth rate (CAGR). The anticipated growth can be attributed to factors such as increased use of e-commerce platforms, rising concerns over data safety and privacy, growing demand for personal cloud and home storage options, increased need for storage solutions and more utilization of hybrid and multi-cloud environments. Key trends for the predicted period include advancements in storage technology, introductions of innovative storage media, application of artificial intelligence and machine learning in storage technology, decentralized data storage practices, digital transformation initiatives, data analytics and real-time processing developments, preparation for quantum computing, and the adoption of hyper-converged infrastructure (HCI).
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Which Key Market Drivers Powering Storage Server Market Expansion and Growth?
Advancements in cloud services adoption are projected to fuel the expansion of the storage server market. Cloud services encompass a variety of online services that provide users the ability to use computing resources and software on demand, negating the need to own or control physical servers or structure. Factors such as disaster recovery and business continuity, scalability and flexibility, security and compliance, hybrid and multi-cloud approaches, digital transition and remote work, and security and compliance are significantly enhancing the growth of cloud services. Businesses find cloud storage servers as a cost-effective, scalable, and dependable solution for securely storing, managing, and accessing their data in the cloud. For example, as per the European Union, a significant 4.2 percentage points growth was observed in the cloud computing services usage by EU businesses in 2023 as compared to 2021, according to a Netherlands-based international organization. This increasing acceptance of cloud services is thus fostering the growth of the storage server market.
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Which Fast-Growing Trends Are Poised to Disrupt the Storage Server Market?
Leading companies in the storage server market are capitalizing on artificial intelligence (AI) technologies to stay ahead of the competition. A specialized enterprise storage server (ESS) created for AI incorporates sophisticated features and capabilities to meet the rigorous requirements of AI workloads. This generally includes extensive data manipulation, model training and inference tasks. For example, in August 2022, the US-based tech corporation International Business Machines Corporation, introduced the Enterprise Storage Server (ESS) 3500. This particular ESS 3500 is a spectrum-scale storage server that has been specifically optimized for AI workloads. It offers speedy storage for AI in aspects such as modeling and training by leveraging several storage varieties along with a superiorly fast controller CPU capable of up to 91 GB/sec sequential read.
What Are the Emerging Segments in the Storage Server Market?
The storage servermarket covered in this report is segmented -
1) By Type: Hyperscale Server Storage Area Network (SAN), Enterprise Server Storage Area Network (SAN)
2) By Application: Small And Medium Business, Large Business
3) By End-User: Banking Financial Services And Insurance (BFSI), Energy, Government And Defense, Healthcare, Information Technology (IT) And Telecommunications, Other End-Users
Subsegments:
1) By Hyperscale Server Storage Area Network (SAN): Rack-mounted Hyperscale SAN, Blade Hyperscale SAN, Modular Hyperscale SAN
2) By Enterprise Server Storage Area Network (SAN): Fibre Channel SAN, iSCSI SAN, FCoE SAN
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Who Are the Global Leaders in the Storage Server Market?
Major companies operating in the storage server market are Alphabet Inc., Microsoft Corporation, Dell Technologies Inc., Huawei Technologies Co. Ltd., Hitachi Ltd., Amazon Web Services, Intel Corporation, International Business Machines Corporation, Cisco Systems Inc., Oracle Corporation, Wistron Corporation, Fujitsu Limited, NVIDIA Corporation, Hewlett Packard Enterprise Development LP, Toshiba Corporation, NEC Corporation, HCL Technologies Limited, Wiwynn Corporation, Super Micro Computer Inc., NetApp Inc., GIGA-BYTE Technology Co. Ltd., Citrix Systems Inc., Pure Storage Inc., Trend Micro Inc., Nutanix Inc.
Which are the Top Profitable Regional Markets for the Storage Server Industry?
North America was the largest region in the storage server market in 2024. The regions covered in the storage server market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
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