The global cloud storage market size is projected to rise from USD 83.41 billion in 2022 to USD 376.37 billion by 2029 at a CAGR of 24% during the forecast period. Fortune Business Insights™ has provided this information in its latest research report titled, “Cloud Storage Market Forecast, 2022-2029.” As per the report, the global market size stood at USD 70.19 billion in 2021.
Drivers & Restraints
Rising Adoption of Artificial Intelligence and Video Analytics to Accelerate Growth
The increasing adoption of various innovative technologies, such as artificial intelligence (AI), remote sensing, and advanced video systems, such as 4K resolution cameras is set to propel the demand for cloud type of storage solutions in the near future. In addition to that, the utilization of analytics-driven platforms is helping companies in the generation of a large amount of data. They prefer hybrid storage solutions more than conventional ones. However, government agencies are constantly deploying strict norms on the usage of cloud services because of confidentiality and data privacy issues. It may hinder growth.
Increasing Data Volumes to Bolster Cloud Storage Market Growth
Cloud storage is a platform for the storage of data. The incorporation of internet-of-things (IoT), artificial intelligence (AI), machine learning (ML), and analytics in cloud storage facilities may enable manufacturers to attract consumers. Furthermore, as companies shift to online mediums for conducting business, the volume of data created is rising rapidly. These factors may drive the global market growth.
BFSI Segment to Grow Steadily Fueled by Need for Improving Consumer Experience
Based on the vertical, the IT and telecommunication segment generated 18.0% in terms of the cloud storage market share in 2020. The BFSI segment is anticipated to lead in the forthcoming years as the industry deals with large volumes of customer data on regular bases. It delivers efficient services to the customers. To serve them better, they require cloud storage technology as it poses as a transformative digital solution. This solution provides a high level of scalability, agility, and data security to the industry. These advanced systems not only improve consumer experience and revenues, but also enhance the operational efficiency. These factors are set to drive the growth of the BFSI segment in the near future.
Presence of Major Cloud Service Providers to Enhance Market Growth in North America
North America is expected to dominate the cloud storage market share because of the presence of major cloud service providers. The industry size in North America stood at USD 34.3 billion in 2029 and is expected to gain a major portion of the global share in the upcoming years. Furthermore, the rising adoption of digital payments, video streaming services, connected devices, and smart home devices may propel market progress.
In Asia Pacific, the rising investment in cloud services by India, South Korea, Singapore, Japan, and others may propel the industry’s growth. Moreover, the rising government initiatives for driving digital transformation may enhance cloud storage service adoption. These factors may bolster market growth.
In Europe, the rising government initiatives may fuel cloud adoption across organizations, thereby boosting product demand. For example, as per Eurostat’s information in December 2021, nearly 68% of the enterprises in Europe used cloud storage technology to store files, and 42% of the enterprises utilized the storage system across organizations. These factors may enhance industry progress.