logo

Scale-Out NAS Market Size (2024 - 2029)

The scale-out NAS market is experiencing significant growth, driven by the demand for high throughput, increased I/O capacity, and low latency. This market expansion is characterized by a shift from traditional storage solutions to software-defined infrastructures, which offer better scalability and cost management. The rise of Big Data Analytics further propels the need for advanced storage platforms that can handle vast amounts of data efficiently. However, the market's growth is somewhat constrained by the high licensing fees, increased utility costs, and the limited functionality of scale-out systems compared to established scale-up NAS systems.

Home Market Analysis Technology, Media and Telecom Research Information Technology Research IT Hardware Research Computer Hardware Components Research Storage Devices Research NAS Research Scale-Out NAS Industry Market Size

Market Size of Scale-Out NAS Industry

scale-out NAS market
Study Period 2019 - 2029
Base Year For Estimation 2023
CAGR 21.00 %
Fastest Growing Market Asia Pacific
Largest Market North America
Market Concentration Low

Major Players

web scale it market share

*Disclaimer: Major Players sorted in no particular order

Scale-Out NAS Market Analysis

The scale-out NAS market was valued at USD 16.2 billion in 2020, at a CAGR of 21% during the forecast period of 2021 - 2026. With relation to all enterprise products, including network storage, there is a trend towards reduced costs with greater features and capabilities. Traditional storage solutions are less attractive than in the past to end-users, who are now looking for better scalability. The trend is moving away from traditional storage systems to software-defined infrastructures which will allow managing much more storage capacity while maintaining integration and management costs under control.

  • Rising demand for high throughput rate, increased I/O (Input/output) capacity, and low latency is driving the market. Users administer the cluster as a single system and manage the data through a global namespace or distributed file system. Within a cluster array, files can be distributed and data can be clear across nodes for improved throughput. For instance, the three-strong Dell EMC X-Series scales up to 20PB with 144 nodes, with capacities from 12TB to 144TB per node and a claimed throughput of up to 200GBps. These features provide high processing which limit the usage of traditional storage solution.
  • Big Data Analytics drives the growth of Advanced Parallel Storage Platforms. The vast quantity of big data has no value unless it is tagged or analyzed. According to the Accenture study, 79% of enterprise executives agree that companies that do not embrace Big Data will lose their competitive position and could face extinction. So, a software component designed to store data across multiple networked servers and to facilitate high-performance access through simultaneous, coordinated input/output operations (IOPS) between clients and storage nodes is needed across industries.
  • For instance, Flytxt's big data analytics platform follows a hybrid architecture combining scale-out clusters running Hadoop with RDBMS and an in-memory database for real-time transactional data processing.
  • However, scale-out NAS systems carry fairly substantial licensing fees that are tacked onto the incremental costs associated with adding networking equipment. Also, there is a higher utility cost (Electricity and cooling) by which many enterprises hesitate to replace a substitute for traditional storage systems. Plus, scale-out systems tend to lack the functionality of well-established scale-up NAS systems which restraints the growth of the market.

Scale-Out NAS Industry Segmentation

Scale-out NAS market has been broadening from small enterprises to large businesses with the need for petabytes of storage that have been able to afford based on the requirement for specialized appliances deploying for narrow purpose missions. The deployment is mostly based on cloud and on-premise segments among industries such as BFSI, Healthcare, etc.

By Deployment
On-Premise
Cloud
By Organization Size
Large Enterprises
Small & Medium Enterprises
By End-user Industry
BFSI
Healthcare
IT & Telecom
Retail
Media and Entertainment
Other End-user Industries
Geography
North America
Europe
Asia-Pacific
Rest of the World
Need A Different Region Or Segment?
Customize Now

Scale-Out NAS Market Size Summary

The scale-out NAS market is experiencing significant growth, driven by the increasing demand for high throughput, enhanced I/O capacity, and low latency solutions. This market shift is largely due to the limitations of traditional storage systems, which are becoming less appealing to end-users seeking better scalability and cost-effective management. The transition towards software-defined infrastructures is enabling enterprises to manage larger storage capacities while keeping integration and management costs under control. The rise of Big Data Analytics is further propelling the market, as organizations recognize the necessity of advanced parallel storage platforms to handle vast amounts of unstructured data. This demand is prompting the development of innovative solutions that integrate seamlessly with cloud platforms, offering automated data tiering and enhanced hybrid cloud capabilities.

North America holds a dominant position in the scale-out NAS market, attributed to its early adoption of advanced analytics solutions and the presence of major market players like Dell EMC, IBM Corporation, and HP Development Company. The region's businesses, particularly in sectors such as professional services and manufacturing, are generating substantial amounts of unstructured data, fueling the demand for scalable storage solutions. The market is characterized by fragmentation, with both global players and new entrants vying for market share. Recent advancements, such as IBM's Elastic Storage 3000 and WekaIO's enterprise features, highlight the ongoing innovation in the sector. These developments are aimed at enhancing storage, data management, and protection solutions, catering to the evolving needs of enterprises across various industries.

Explore More

Scale-Out NAS Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Introduction to Market Drivers and Restraints

    3. 1.3 Market Drivers

      1. 1.3.1 Rising Need for High Throughput Rate, Increased I/O Capacity, and Low Latency

      2. 1.3.2 Growth of Advanced Parallel Storage Platforms Due to Big Data Analytics

    4. 1.4 Market Restraints

      1. 1.4.1 Higher Utility Cost With Substantial Licensing Fees

    5. 1.5 Value Chain Analysis

    6. 1.6 Industry Attractiveness - Porter's Five Force Analysis

      1. 1.6.1 Threat of New Entrants

      2. 1.6.2 Bargaining Power of Buyers/Consumers

      3. 1.6.3 Bargaining Power of Suppliers

      4. 1.6.4 Threat of Substitute Products

      5. 1.6.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Deployment

      1. 2.1.1 On-Premise

      2. 2.1.2 Cloud

    2. 2.2 By Organization Size

      1. 2.2.1 Large Enterprises

      2. 2.2.2 Small & Medium Enterprises

    3. 2.3 By End-user Industry

      1. 2.3.1 BFSI

      2. 2.3.2 Healthcare

      3. 2.3.3 IT & Telecom

      4. 2.3.4 Retail

      5. 2.3.5 Media and Entertainment

      6. 2.3.6 Other End-user Industries

    4. 2.4 Geography

      1. 2.4.1 North America

      2. 2.4.2 Europe

      3. 2.4.3 Asia-Pacific

      4. 2.4.4 Rest of the World

Scale-Out NAS Market Size FAQs

The Scale-Out NAS Market is projected to register a CAGR of 21% during the forecast period (2024-2029)

Dell EMC, Hewlett Packard Enterprise, Nasuni Corporation, NetApp, Inc. and IBM Corporation are the major companies operating in the Scale-Out NAS Market.

Scale-Out NAS Storage Market Report Snapshots

Scale Out NAS Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)