Network Attached Storage Market Size and Share Analysis by Product Type (Enterprise/ High-End, Midmarket, Low-End), Storage Solution (Scale-Up Storage, Scale-Out Storage, Object Storage), Deployment (On-Premise, Remote/Cloud, Hybrid), End User (BFSI, IT & Telecom, Healthcare, Retail & E-Commerce, Manufacturing, Consumer Goods & Retail) - Global Industry Revenue Estimation and Demand Forecast to 2030

Market Overview

The network attached storage market size stood at USD 22,850 million in 2022, and it is expected to grow at a compound annual growth rate of 13.55% during 2022–2030, to reach USD 63,151 million by 2030.

The market for NAS is driven by the surge in the usage of smart devices, the internet of things (IoT), and 5G networks, which leads to the generation of huge volumes of unstructured data, such as photographic, audio, video, and text files. By 2025, around 80% of the world’s digital information will be unstructured. As such information needs to be stored and secured, the demand for network-attached storage will increase around the world.

Earlier, enterprises and personal desktops were the primary sources of digital information. But, with technological advancements, data generation has taken a major shift toward smart devices, such as mobile phones, laptops, and tablets, which are now used by the majority of the population around the world. Hence, with the increasing dependence of people on these digital devices, the volume of digital information is increasing at a high rate, which will lead to exponential growth in the NAS industry. Also, with increasing demand for new technologies such as machine learning and artificial intelligence, the volume is rising at a high rate. Machine information is being stored from sensors in different areas such as smart homes, autonomous vehicles, weather tracking devices and more. This will lead to rise in the demand for scalable network attached storages.

Increasing Threat to Information Security

With increase in the volume of data, its theft and unauthorized access have become major concerns for enterprises as well as individuals. Companies have to be prepared for ransomware, virus, malware, and DDoS attacks. This can be done with the help of a complete end-to-end recovery plan and NAS backup devices. With these, when any ransomware attack encrypts the information, a company can quickly restore all its previously saved versions and get back to operating as quickly as possible, without paying any ransom. Hence, significant growth is expected in the network-attached storage market with the increase in cyberthreats, as this technology provides secure and scalable storage solutions for different needs.

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Rising Demand for Data Centers

The need for data centers around the world is increasing at a significant rate due to the boom in the usage of advanced computer technologies. Owing to this, the demand for network-attached storage (NAS) is growing. Organizations have multiple NAS units on-premises, but now, these solutions are being used as an edge data center. Due to the rising need for social, mobile, analytics, and cloud services around the world, many new facilities are needed to store the gathered information. Furthermore, with the increasing research and development investments in these facilities in developed countries, such as the U.S. and Germany; and the establishment of next-generation centers, which are more technologically advanced and efficient in terms of managing information, the market for network-attached storages will prosper.

Impact of COVID-19 Pandemic on Network Attached Storage Market

The market has witnessed a positive impact of COVID-19 due to the growing adoption of hybrid working models by enterprises, which raises the requirement for remote access to enterprise software, programs, applications, and information logs for employees. NAS provides 24/7 and remote data availability, which is apt when the team is dispersed and there are remote users, a situation that was experienced by all enterprises during the COVID-19 pandemic.

The usage of mobile healthcare devices, such as fitness trackers, sleep trackers, and vital sign trackers, also surged because of the pandemic. This has increased the generation of data from these devices, due to which the demand for network-attached storage has risen significantly.

In 2022, North America Dominated Global Market

North America was the largest market, with a share of around 40% of the global revenue, in 2022. The adoption of cloud-based data centers, significant investments in research and development, and increase in the use of the IoT technology in smart devices in the U.S. and Canada contribute to the regional growth.

Moreover, due to the significant advancements in technologies and adoption of smart devices, such as mobile phones, health trackers, and laptops, in India, China, Japan, South Korea, and Malaysia, NAS demand in APAC is expected to grow significantly during the forecast period. Additionally, due to the increase in the penetration of small, micro, and medium enterprises in the region, the volume of unstructured data is growing, which is creating the need for efficient storage solutions, for proper and secured backup. Around 98% of the enterprises in the region are MSMEs.

Additionally, in developing countries, primarily India, the government is taking many initiatives to promote the digitalization of industries. In this regard, it has already begun bringing government documentation processes and publicly accessible information online and providing internet connectivity in rural areas. This will increase the generation of unstructured data in the country, thereby driving the need for NAS.

On-Premises NAS Solutions Holding Largest Share

Among all the deployment modes, on-premises category is expected to hold the largest share in the forecast years. This deployment mode allows companies to store all the crucial data on their own servers, which ensures high information security and also offers the leverage of scaling the storage for any dynamic requirement.

However, players in the market also offer solutions with end-to-end disaster recovery functionality, as most enterprises are moving toward cloud-based storages. But, getting the data stored locally or at some other location connected to the company’s servers is a feasible option, because retrieving it from a cloud storage can take a significant time, due to the limitations of the bandwidth. Moreover, with the cloud, companies might not get enough time to back it up. Hence, working with and recovering the information from a local server would also decrease the downtime for any business.

Additionally, the hybrid category would be the fastest-growing in the segment because companies are moving more toward a mix of on-site, off-site, and cloud backup solutions, without having to increase the complexity of management.

Midmarket NAS Solutions To Hold Largest Share

Due to the rapid growth in the rate of digitalization and advancements in all kinds of IT products, midmarket category is expected to hold the largest share in the forecast period. These solutions are commonly used by SMEs; hence, their growth influences the advance of the market. A few small enterprises are also using these NAS storage as a media server, to store their media and stream video files, music, and photos directly from their storage device, internally or externally, via the internet. These devices are widely in use among SMEs as they are easily manageable, scalable, and cost-effective.

The demand for low-end products is also expected to increase at a significant rate in developing countries, including India and Brazil, due to the rapidly growing technology sector. In contrast, high-end category will see a steady growth in demand in developed countries, such as the U.S. and Canada.

Scaleup NAS Held Largest Market Share

Scaleup NAS division held the largest revenue share in 2022. The adoption of scaleup solutions is growing at homes, mid-sized offices, hotels, educational institutions, shopping malls, and retail stores, where the data generated is not highly critical and vast and the only requirement is to store it. These storages consist of a pair of controllers and multiple shelves of drives for storage. The scaleup solution is a conventional separate system with limited storage and memory. If more memory is required, additional shelves of drives can be added to the system. The solution offers the benefit of lower costs compared to scale-out solutions.

However, the scale-out NAS category will be the fastest-growing in the forecast period. These solutions are mainly used by large enterprises as they adapt to the organization’s dynamic needs and provide a high performance and high-file-count workloads with low latency. They are used in the BFSI, healthcare, and government sectors, where the volume of data generated is enormous and it has to be totally safe from ransomware.

With the increasing importance of IT security in the future, the scale-out category is expected to advance at a significant rate and outdo the scale-up category by 2030 in terms of revenue. In addition, many key players in the market, such as QNAP Systems Inc., Western Digital Corporation, and Synology Inc., are developing products that will strengthen the overall data security and performance with features such as RAID disk replacement and two-factor verification on information usage.

Major Players Providing NAS Solutions:

• Dell Inc.
• Synology Inc.
• NetApp Inc.
• iXsystems Inc. (TrueNAS)
• Hewlett Packard Enterprise
• Hitachi Vantara LLC
• NETGEAR
• International Business Machines Corporation (IBM)
• QNAP Systems Inc.
• Seagate Technology Holdings plc
• Buffalo Technology

Market Size Breakdown by Segment

This fully customizable report gives a detailed analysis of the market from 2017 to 2030, based on all the relevant segments and geographies.

Based on Product Type

• Enterprise/ High-end
• Midmarket
• Low-end

Based on Storage Solution

• Scale-Up Storage
• Scale-Out Storage
• Object Storage

Based on Deployment

• On-premise
• Remote/Cloud
• Hybrid

Based on End User

• Banking, Financial Services, and Insurance (BFSI)
• IT & Telecom
• Healthcare
• Retail & E-commerce
• Manufacturing
• Consumer Goods & Retail
• Others (Energy, Education & Research, Logistics, Aerospace & Defence, Automotive Food Processing, Government)

Geographical Analysis

• North
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
• Asia-Pacific
  • Japan
  • China
  • India
  • South Korea
  • Australia
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • Saudi Arabia
  • South Africa