Global Next-Generation Data Storage Market Outlook, 2030

The explosive growth of digital data across various industries, including healthcare, BFSI, IT & telecom, and e-commerce, has significantly driven the need for next-generation storage solutions. With the proliferation of technologies such as artificial intelligence (AI), the Internet of Things (IoT), and big data analytics, enterprises are generating vast amounts of unstructured and structured data that require efficient storage, management, and retrieval systems. Traditional storage methods, such as hard disk drives (HDDs) and tape storage, are increasingly being replaced by advanced storage solutions, including solid-state drives (SSDs), cloud storage, hyper-converged infrastructure (HCI), and network-attached storage (NAS). The growing adoption of cloud computing has further fueled market expansion, as businesses seek scalable, on-demand storage solutions that provide flexibility and security. Additionally, enterprises are prioritizing storage solutions that support faster data access, lower latency, and higher performance to enhance operational efficiency. Moreover, cybersecurity concerns and stringent data regulations such as the General Data Protection Regulation (GDPR) have pushed organizations to invest in secure and compliant storage solutions. The integration of AI-driven data management tools and blockchain-based security features in next-generation storage systems has further improved data protection and accessibility. As businesses continue to undergo digital transformation, the need for high-capacity and high-performance storage infrastructure is expected to drive sustained growth in the next-generation data storage market.

According to the research report, “Global Next-Generation Data Storage Market Outlook, 2030” published by Bonafide Research, the Global Next-Generation Data Storage market is anticipated to grow at more than 7.4% CAGR from 2024 to 2030 . The continuous expansion of data-driven technologies, cloud computing, and artificial intelligence has created a pressing need for efficient and scalable data storage infrastructure. Organizations are shifting away from traditional storage solutions in favor of next-generation technologies such as NVMe-based SSDs, software-defined storage (SDS), and hybrid cloud storage to improve data accessibility, speed, and security. The market growth is further supported by the rise in demand for energy-efficient storage solutions, which help reduce operational costs while maintaining high performance. Additionally, industries such as healthcare, banking, and retail are increasingly adopting advanced storage systems to support high-volume transactions, real-time analytics, and regulatory compliance requirements. Government initiatives promoting digital transformation and investments in data centers are also expected to drive the adoption of next-generation storage technologies. Furthermore, emerging trends such as edge computing, 5G connectivity, and multi-cloud strategies are influencing the evolution of the market, encouraging businesses to invest in innovative storage architectures. As organizations continue to prioritize digital transformation and IT modernization, the global next-generation data storage market is expected to witness sustained expansion over the coming years.

Market Dynamics

Market Drivers

Surging Data Volumes from AI, IoT, and Cloud Computing Applications The proliferation of AI, IoT, and cloud services is generating massive amounts of unstructured data, driving the demand for high-performance, scalable, and energy-efficient storage solutions.



Rising Need for High-Speed, Secure, and Cost-Effective Storage Solutions Enterprises require advanced storage infrastructure that offers low latency, high throughput, and strong encryption to manage critical workloads efficiently while reducing operational costs.

Market Challenges

High Initial Investment and Complex Implementation of Advanced Storage Technologies Deploying next-generation storage solutions requires significant capital expenditure and expertise, making it challenging for small and medium-sized enterprises (SMEs) to adopt.

Growing Concerns Over Data Security, Privacy, and Compliance Regulations With increasing cyber threats and stringent data protection laws, businesses must ensure compliance with evolving regulations, adding complexity to storage management.

Market Trends

Adoption of Software-Defined Storage (SDS) and Hyperconverged Infrastructure (HCI) Organizations are increasingly shifting to SDS and HCI solutions to achieve greater flexibility, automation, and centralized data management across hybrid cloud environments.

Integration of AI and Machine Learning for Intelligent Data Management AI-driven storage solutions are enhancing data classification, deduplication, and predictive analytics, optimizing storage performance and reducing costs.

Segmentation Analysis

Solid-state drives (SSDs) have emerged as the dominant storage technology in the next-generation data storage market, largely due to their superior speed, reliability, and energy efficiency compared to traditional hard disk drives (HDDs).

Solid-state drives (SSDs) have emerged as the dominant storage technology in the next-generation data storage market, largely due to their superior speed, reliability, and energy efficiency compared to traditional hard disk drives (HDDs). SSDs leverage flash memory technology, eliminating mechanical components and enabling faster data transfer rates, reduced latency, and improved system performance. The rapid adoption of AI, big data analytics, and high-performance computing (HPC) applications has further accelerated demand for SSDs, as these technologies require quick access to large datasets. Moreover, the declining cost of NAND flash memory has made SSDs more affordable for both consumer and enterprise applications. SSDs are increasingly being integrated into enterprise data centers, cloud storage infrastructures, and edge computing environments to support high-speed processing and real-time analytics. Additionally, the shift toward non-volatile memory express (NVMe)-based SSDs has further improved performance and efficiency, enabling businesses to handle massive data workloads with lower power consumption. The rising adoption of SSDs in high-end gaming, multimedia production, and financial transactions has also contributed to their market dominance. As the need for faster, more durable, and energy-efficient storage solutions continues to rise, SSDs are expected to maintain their leadership position in the next-generation data storage market.

The IT & telecom sector is the largest contributor to the next-generation data storage market, primarily due to its extensive data generation, processing, and storage needs.

The IT & telecom sector is the largest contributor to the next-generation data storage market, primarily due to its extensive data generation, processing, and storage needs. The rapid expansion of cloud computing, big data analytics, and digital transformation initiatives has led to an increased reliance on advanced storage solutions capable of handling vast amounts of structured and unstructured data. Telecom companies process enormous amounts of real-time data from mobile networks, customer interactions, streaming services, and IoT devices, requiring highly scalable, low-latency, and high-performance storage solutions. The rise of 5G technology has further intensified data storage demands, as telecom operators need to manage ultra-fast data transmission, network function virtualization (NFV), and edge computing workloads. Cloud storage plays a crucial role in the IT & telecom industry, with companies increasingly adopting hybrid and multi-cloud storage models to ensure data accessibility, security, and scalability. Next-generation storage technologies such as software-defined storage (SDS), hyper-converged infrastructure (HCI), and non-volatile memory express (NVMe)-based SSDs are widely being integrated into IT & telecom ecosystems to support high-speed data access and processing. The telecom sector is also seeing a growing need for distributed storage solutions to facilitate seamless content delivery, optimize bandwidth usage, and enhance network efficiency. Furthermore, AI and machine learning (ML) are being deployed to optimize storage resource management, predictive analytics, and cybersecurity measures, ensuring efficient storage operations. As data volumes continue to grow, IT & telecom companies are expected to invest heavily in next-generation data storage solutions to enhance operational efficiency, improve customer experiences, and ensure regulatory compliance. With the rise of digital services, the expansion of data centers, and the increasing adoption of AI-driven automation, the IT & telecom industry's demand for advanced storage technologies will continue to accelerate in the coming years.

Large enterprises are the dominant users of next-generation data storage solutions, given their complex IT infrastructures, high data processing requirements, and stringent security needs.

Large enterprises are the dominant users of next-generation data storage solutions, given their complex IT infrastructures, high data processing requirements, and stringent security needs. These organizations generate, store, and analyze vast volumes of business-critical data across multiple locations, requiring advanced storage solutions that offer scalability, speed, and reliability. Industries such as finance, healthcare, manufacturing, and e-commerce rely on robust storage technologies to handle real-time transactions, large-scale analytics, and customer data management. The growing integration of artificial intelligence (AI), machine learning (ML), and Internet of Things (IoT) technologies has further amplified the need for high-performance storage systems that can support high-speed processing and seamless data retrieval. Large enterprises are increasingly adopting hybrid cloud storage strategies, combining on-premise infrastructure with cloud-based solutions to optimize flexibility, cost efficiency, and disaster recovery capabilities. The shift toward hyper-converged infrastructure (HCI) has also gained traction, as it enables enterprises to consolidate computing, storage, and networking into a single, unified system. Moreover, cybersecurity and compliance concerns have pushed companies to invest in secure storage solutions with encryption, access control, and real-time monitoring features to prevent data breaches and ensure regulatory compliance. Emerging technologies such as blockchain-based storage, AI-driven automation, and data deduplication are further enhancing storage efficiency, allowing enterprises to optimize data usage while reducing operational costs.

Regional Analysis

North America region dominates the next-generation data storage market, primarily due to the region's advanced IT infrastructure, high cloud adoption rates, and strong presence of leading technology providers.

North America region dominates the next-generation data storage market, primarily due to the region's advanced IT infrastructure, high cloud adoption rates, and strong presence of leading technology providers. Major cloud service providers, including Amazon Web Services (AWS), Microsoft Azure, and Google Cloud, have heavily invested in state-of-the-art data storage solutions to support the growing demand for cloud computing and data-intensive applications. Additionally, North America is home to numerous enterprises that prioritize digital transformation, leading to increased investments in AI-powered storage, hybrid cloud solutions, and software-defined storage (SDS). The presence of strict data security and privacy regulations, such as the California Consumer Privacy Act (CCPA) and the Health Insurance Portability and Accountability Act (HIPAA), has further driven demand for secure and compliant data storage solutions. The region's growing focus on edge computing, 5G deployment, and AI-driven automation has also contributed to the rising adoption of next-generation storage technologies. Moreover, the increasing reliance on remote work and digital services has led to higher data storage requirements, pushing organizations to upgrade their storage infrastructure. As North America continues to lead in cloud computing and enterprise data management, the demand for next-generation data storage solutions is expected to remain strong in the coming years.

Key Developments

• March 2024: A leading cloud storage provider launched an AI-powered storage optimization platform for enterprises.
• May 2024: A major SSD manufacturer introduced ultra-fast, high-capacity NVMe storage solutions for data centers.
• August 2024: A top tech company partnered with a software-defined storage firm to enhance hybrid cloud storage offerings.

Considered in this report
* Historic year: 2018
* Base year: 2023
* Estimated year: 2024
* Forecast year: 2029

Aspects covered in this report
* Next-Generation Data Storage Market with its value and forecast along with its segments
* Country-wise Next-Generation Data Storage Market analysis
* Various drivers and challenges
* On-going trends and developments
* Top profiled companies
* Strategic recommendation

By Storage Type
• Solid-State Drives (SSD)
• Hard Disk Drives (HDD)
• Cloud Storage
• Software-Defined Storage (SDS)
• Network-Attached Storage (NAS)

By End-User
• IT & Telecom
• BFSI
• Healthcare
• Government & Public Sector
• Retail & E-commerce
• Manufacturing

By Enterprise Size
• Large Enterprises
• Small & Medium Enterprises (SMEs)