Two recently published reports, one by MarketsandMarkets and another from Allied Market Research, estimate that the cloud storage market will more than double within the next five years. MarketsandMarkets expects the cloud storage industry to grow from $78.6 billion (USD) in 2022 to $183.7 billion by 2027, while Allied Market Research estimates the market will reach $222.25 billion by 2027. Driving the demand is the increasing need for easy access to files and data for remote workers, along with increasing data volumes for businesses and the savings related to cloud storage solutions.
According to Allied Market Research, there has been a significant shift to hybrid cloud storage as a primary deployment model, as businesses require the flexibility to switch between private and public cloud storage. The cost of private cloud continues to be a major deterrent for mass adoption, while the risk of open threats in public cloud have driven many industries such as banking, healthcare, and government to look towards hybrid solutions. Ultimately, adoption of cloud storage is expected to increase significantly over the next five years due to its low investment cost, since it does not require any sort of on-location data center and related maintenance or personnel.
The report also stated that several industries including BFSI, retail, healthcare, manufacturing, telecommunication & IT, and media & entertainment have adopted cloud services at a rapid pace. Currently, North America is a dominant market for cloud storage and some of the industry’s primary providers, such as Microsoft, are investing heavily in the region.
Demand continues to rise for low-cost data storage and faster data accessibility, which makes cloud storage appealing for many businesses, small and large. One of the major factors expected to hamper the market growth to a certain extent remains to be security. Still, it is expected that small- and medium-sized enterprises will be adopting cloud storage in the coming years, driving much of the growth in the market. Also contributing to market growth are the need for high-performance computing and an influx of data as companies invest more into business intelligence (BI) platforms.
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