Market Size of Software-Defined Storage Industry
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 15.55 Billion |
| Market Size (2029) | USD 46.68 Billion |
| CAGR (2024 - 2029) | 24.59 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Software-Defined Storage Market Analysis
The Software-Defined Storage Market size is estimated at USD 15.55 billion in 2024, and is expected to reach USD 46.68 billion by 2029, growing at a CAGR of 24.59% during the forecast period (2024-2029).
The software-defined storage (SDS) enables organizations to abstract storage resources from the hardware platform, offering flexibility, efficiency, and faster scalability. In the software-designed data center (SDDC) architecture, resources can be easily automated and orchestrated rather than residing in siloes. The need to improve efficiency and business processing with data drives the demand for SDS solutions in small and medium-sized enterprises.
Due to the competitive environment, companies have shifted their focus toward new technology to have a competitive edge. SDS usage helps minimize the cost by automating process controls and replacing traditional hardware with software.
The booming volume of unstructured data across various enterprises augments the demand for a scalable storage architecture that is reliable and secure. In addition, with the proliferation of IoT globally, the data generated at the edge is rapidly increasing. The SDS model addresses these needs by increasing deployment flexibility and enabling organizations to use the software with any storage platform through a single interface.
Due to this technology's advantages over traditional storage methods, enterprises or IT organizations undergoing digital transformation will likely adopt SDS for their data storage needs. However, the need for more skilled operators to manage the transition toward SDS and security concerns will hinder the market's growth.
The key vendors in the market have been rolling out SDS software solutions with enhanced data protection and reliability, owing to the growing requirements of large companies in the banking and telecom sectors.
The COVID-19 pandemic resulted in private and public sectors shifting from traditional channels to digital channels to enable citizens, businesses, and public sector staff to access public services and securely share data from remote locations. Software-defined storage has proven its importance for businesses during the pandemic and is anticipated to see continued growth in data storage post-pandemic.
Software-Defined Storage Industry Segmentation
Software-defined storage (SDS) is one of the new technologies trending in the enterprise storage market. SDS may separate storage software from hardware, thus cutting down on storage costs in terms of capital cost and operation expenditure. Hence, enterprises are slowly shifting toward software-defined storage.
The software-defined storage market is segmented by type (block, file, object, and hyper-converged infrastructure), size of enterprise (small and medium enterprise and large enterprise), end-user industry (BFSI, telecom and IT, government, and other end-user industries), and geography (North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa).
The market size and forecasts are provided in terms of value (USD) for all the above segments.
| By Type | |
| Block | |
| File | |
| Object | |
| Hyper-converged Infrastructure |
| By Size of Enterprise | |
| Small and Medium Enterprise | |
| Large Enterprise |
| By End-user Industries | |
| BFSI | |
| Telecom and IT | |
| Government | |
| Other End-user Industries |
| By Geography | |
| North America | |
| Europe | |
| Asia | |
| Latin America | |
| Middle East and Africa |
Software-Defined Storage Market Size Summary
The software-defined storage (SDS) market is poised for significant growth, driven by the increasing need for flexible, efficient, and scalable storage solutions. SDS technology allows organizations to abstract storage resources from hardware platforms, facilitating automation and orchestration within software-defined data centers. This shift is particularly beneficial for small and medium-sized enterprises seeking to enhance efficiency and streamline business processes. The growing volume of unstructured data and the proliferation of IoT devices are further propelling the demand for SDS, as businesses require reliable and secure storage architectures. Despite the advantages, challenges such as the need for skilled operators and security concerns may impede market growth. Key vendors are responding by offering SDS solutions with enhanced data protection and reliability, particularly in sectors like banking and telecommunications.
The banking, financial services, and insurance (BFSI) sector is a major contributor to the SDS market, driven by the need for secure and scalable storage capabilities to manage exponential data growth. SDS solutions enable BFSI organizations to handle large data sets, ensure data security with encryption, and facilitate data backup and recovery. The sector's competitive nature and ongoing digital transformation efforts are accelerating the adoption of SDS. In the Asia-Pacific region, rapid data growth and the rise of online payments are boosting the demand for SDS solutions. Emerging economies like China and India present significant opportunities for SDS suppliers as they transition from traditional hardware to modern storage solutions. The market is fragmented, with major players like IBM, Oracle, and NetApp continuously innovating and expanding their offerings to maintain a competitive edge.
Software-Defined Storage Market Size - Table of Contents
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1. MARKET INSIGHTS
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1.1 Market Overview
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1.2 Industry Attractiveness - Porters Five Forces Analysis
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1.2.1 Bargaining Power of Suppliers
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1.2.2 Bargaining Power of Buyers
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1.2.3 Threat of New Entrants
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1.2.4 Threat of Substitutes
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1.2.5 Intensity of Competitive Rivalry
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1.3 Industry Value Chain Analysis
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1.4 Assessment of Impact of Macroeconomic on the Market
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2. MARKET SEGMENTATION
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2.1 By Type
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2.1.1 Block
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2.1.2 File
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2.1.3 Object
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2.1.4 Hyper-converged Infrastructure
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2.2 By Size of Enterprise
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2.2.1 Small and Medium Enterprise
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2.2.2 Large Enterprise
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2.3 By End-user Industries
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2.3.1 BFSI
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2.3.2 Telecom and IT
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2.3.3 Government
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2.3.4 Other End-user Industries
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2.4 By Geography
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2.4.1 North America
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2.4.2 Europe
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2.4.3 Asia
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2.4.4 Latin America
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2.4.5 Middle East and Africa
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Software-Defined Storage Market Size FAQs
How big is the Software-Defined Storage Market?
The Software-Defined Storage Market size is expected to reach USD 15.55 billion in 2024 and grow at a CAGR of 24.59% to reach USD 46.68 billion by 2029.
What is the current Software-Defined Storage Market size?
In 2024, the Software-Defined Storage Market size is expected to reach USD 15.55 billion.
