In a recent research report, the market size is anticipated to surge from USD 78.6 billion in 2022 to an impressive USD 183.7 billion by 2027, reflecting a remarkable Compound Annual Growth Rate (CAGR) of 18.5% during this period.
The surge in demand for cloud storage is attributed to several factors, including the escalating need to provide ubiquitous access to data for the remote workforce, the continuous increase in data volumes across enterprises, and the compelling cost-saving benefits associated with low Total Cost of Ownership (TCO) offered by cloud storage solutions.
The report delves into the dynamics of the market, revealing that services are expected to play a pivotal role in the sector’s growth. These services, which include consulting, integration and implementation, and training, support, and maintenance, are integral both before and after the deployment of cloud storage solutions, providing comprehensive support to clients throughout various phases.
One of the standout segments driving growth is the Backup and Disaster Recovery application, projected to experience the highest CAGR during the forecast period. These applications play a critical role in safeguarding enterprise application data during disasters, offering benefits such as reduced costs, accelerated recovery processes, and the liberation of resources for other essential tasks. The adoption of disaster recovery and backup solutions is gaining momentum due to their reliability and the elimination of the need for costly hardware infrastructure.
Interestingly, the Middle East and Africa region are anticipated to witness the highest CAGR during the forecast period. The rise in demand for IT infrastructure, coupled with increased investments in technologies like cloud, AI, big data, and Business Intelligence (BI), is expected to contribute significantly to the growth of the cloud storage market in this region. Notably, cloud storage providers in the Middle East are strategically leveraging technology to control costs and enhance business operations. The presence of key sectors like BFSI, IT, media and entertainment, and energy and utilities further fuel the adoption of cloud-based storage solutions.
Major industry players, including AWS, Google, Microsoft, and Alibaba Cloud, are actively contributing to the growth of the cloud storage market. These companies are implementing strategic initiatives such as partnerships, collaborations, agreements, and new product launches to cater to the evolving demands and needs of the market.