The storage as a service (STaaS) market is expected to grow at a CAGR of 32 percent over the forecast period to reach a market size of US$46 billion by 2028 from a valuation of US$6 billion in 2021
The provision of a remote storage facility and structure to companies by an external party to give access to data and efficient storage of software applications through the medium of an internet network by eliminating the need for physical storage facilities is referred to as storage as a service (STaaS). Cloud backup, cloud archiving, and standalone and platform-attached storage are the dominant types of STaaS services being consumed by large, medium, and small-scale enterprises in the market.
The need for cost-effective, flexible, and scalable storage solutions is driving the demand for STaaS solutions since enterprises can pay for the storage, they need on a subscription basis instead of investing and maintaining their storage infrastructure. The enhanced storage service offered by STaaS is resulting in the substitution of conventional storage methods with STaaS which is expected to result in the substantial growth of the STaaS market.
Rise in the volume of data generated by companies
The exponential growth in the amount of data generated by companies fueled by the globalization and digitalization of business operations is resulting in the need for effective storage solutions which can be accessed by the company through online mediums. A survey conducted by Zippia revealed that approximately 90% of the aggregate data generated by the world through all times can be attributed to the data generated in the previous two years and that the amount of international data generated by the corporate sector that is stored in cloud majorly increased from 45% in 2018 to 60% in 2022. In addition, the establishment of data retention policies by corporate regulatory departments is generating the need for periodic retention of data for a wide range of years. For instance, the Companies Act created by the Indian legislation requires companies to digitally store the data and accounts generated by companies for 8 years. In addition, the Basel III standards specify that companies belonging to the prescribed group of industries must retain their data for 7 years. Therefore, the growing need for data retention and the voluminous growth in the data generated by companies operating in different industries is driving the demand for storage as service solutions and services.