Home > > Semiconductor And Electronics > > AI Powered Storage Market Size, Trends, Report | CAGR of 26.4%
Id: CBI_1741 | Pages: 312 | Format : PDF | Published : | Author : Pawan Chasta | Category : Semiconductor And Electronics
AI Powered Storage Market size is estimated to reach over USD 160.85 Billion by 2031 from a value of USD 24.72 Billion in 2023 and is projected to grow by USD 30.80 Billion in 2024, growing at a CAGR of 26.4% from 2024 to 2031.
AI-powered storage refers to specialized infrastructure designed to support machine learning (ML) and artificial intelligence (AI) workloads by managing and processing vast data volumes with speed and efficiency. These storage systems are equipped with high-performance, scalable options to handle the massive datasets generated by AI applications, ensuring quick data access and seamless processing. They incorporate advanced features like data reduction through deduplication and compression, as well as tiering, to enhance efficiency and minimize costs.
These systems also prioritize robust data security, employing access control measures and encryption to protect sensitive information. Integration with AI frameworks further simplifies data management, providing streamlined access and processing capabilities. This enables organizations to accelerate the development and deployment of AI and ML applications, ensuring optimal performance across diverse use cases.
End-users of AI-powered storage include enterprises in industries such as technology, healthcare, finance, and research, where managing and analyzing large datasets is critical for innovation and operational efficiency. These systems form a foundational element for advancing AI-driven solutions and optimizing data-intensive workloads.
The rapid growth of edge computing and IoT ecosystems is driving the demand for advanced storage solutions that process and manage data closer to the source. With billions of IoT devices generating massive amounts of data, traditional centralized storage systems face latency and bandwidth limitations. AI-powered storage solutions address these challenges by enabling real-time data management, filtering, and analysis directly at the edge, minimizing the need for continuous data transmission to centralized servers.
This capability is particularly vital for applications like autonomous vehicles, where split-second decision-making is required, as well as smart cities and industrial automation, where seamless connectivity and real-time monitoring are essential. By reducing latency and optimizing bandwidth usage, these intelligent systems enhance operational efficiency and enable IoT-driven innovations. As edge computing adoption grows, AI-driven storage technologies are becoming critical enablers for efficient and scalable data management in decentralized architectures further driving AI powered storage market growth.
Organizations frequently operate storage solutions sourced from multiple vendors, leading to significant interoperability issues when integrating AI-powered systems. Each vendor often employs proprietary protocols, architectures, and interfaces, making it difficult to achieve seamless communication and compatibility across platforms. AI-powered storage solutions must adapt to diverse hardware and software configurations, requiring extensive customization and integration efforts.
This lack of standardization not only increases deployment time but also elevates operational complexity and costs, especially in large-scale environments like data centers or hybrid cloud infrastructures. Furthermore, inconsistencies in data formats and communication protocols hinder the efficiency of real-time analytics and predictive maintenance, limiting the full potential of AI-driven technologies. These interoperability issues create barriers for organizations aiming to modernize their storage infrastructure while maintaining their existing multi-vendor setups, slowing down the AI powered storage market demand.
The healthcare sector is witnessing a surge in data-intensive applications such as genomics, medical imaging, and drug discovery, driving the need for efficient storage and retrieval solutions. Genomics research, for instance, generates massive datasets from DNA sequencing, requiring storage systems capable of handling petabytes of data while ensuring quick access for analysis. Similarly, medical imaging technologies like MRI and CT scans demand high-capacity storage solutions for real-time data retrieval and processing.
AI-powered storage systems address these constraints by offering faster data management, enabling healthcare providers to leverage advanced analytics for personalized medicine and improved patient outcomes. In drug discovery, AI-driven storage enhances the ability to process and analyze vast chemical and biological datasets, accelerating research timelines. As healthcare increasingly relies on data-driven decision-making, AI-optimized storage systems present a significant growth opportunity, aligning with the sector's push for innovation and efficiency. Thus, the aforementioned factors drive the AI powered storage market opportunities.
Based on the component, the market is segmented into Hardware (Storage Devices, AI Accelerators, Networking Equipment), Software (Storage Management, AI Algorithms), and Services (Consulting, Integration, Support & Maintenance).
The hardware segment held the largest revenue of 43.50% of the total AI powered storage market share in 2023.
The software segment is expected to grow at the fastest CAGR during the forecast period.
Based on the storage system, the market is segmented into Direct Attached Storage (DAS), Network Attached Storage (NAS), and Storage Area Network (SAN).
The Storage Area Network segment accounted for the largest revenue of the total AI powered storage market share in 2023.
The Network attached storage segment is expected to grow at the fastest CAGR during the forecast period.
Based on storage architecture, the market is segmented into File Based, Block Storage, and Object Based.
The object-based storage segment held the largest revenue share in 2023.
The file-based storage segment is expected to grow at the fastest CAGR during the forecast period.
Based on deployment mode, the market is segmented into On-Premise, Cloud-Based, and Hybrid.
The cloud-based segment held the largest revenue share in 2023.
The hybrid segment is expected to grow at the fastest CAGR during the forecast period.
Based on application, the market is segmented into Data Analytics, Real-Time Streaming, Backup & Recovery, Predictive Maintenance, and Others.
The data analytics segment accounted for the largest revenue share in 2023.
The real-time streaming segment is expected to grow at the fastest CAGR during the forecast period.
Based on the end-user industry, the market is segmented into IT & Telecom, BFSI, Healthcare, Automotive, Media & Entertainment, and Others.
The IT & telecom segment held the largest revenue share in 2023.
The automotive segment is expected to grow at the fastest CAGR during the forecast period.
The regions covered are North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America.
Asia Pacific region was valued at USD 7.27 Billion in 2023. Moreover, it is projected to grow by USD 9.07 Billion in 2024 and reach over USD 48.26 Billion by 2031. Out of these, China accounted for the largest share of 33.8% in 2023. The Asia-Pacific region is emerging as the fastest-growing market for AI-powered storage, with China, Japan, and India at the forefront. This rapid development is fueled by the increasing adoption of IoT devices, and smartphones, and the rise in the adoption of cloud computing services. Government initiatives promoting digital transformation and smart city projects are further influencing market trends. Industries in this region are leveraging AI-powered storage systems to manage the exponential rise in data volumes.
North America is estimated to reach over USD 52.92 Billion by 2031 from a value of USD 8.22 Billion in 2023 and is projected to grow by USD 10.23 Billion in 2024. North America dominates the AI-powered storage market, with a substantial share. The United States leads in adoption due to the rapid integration of AI with storage solutions across various industries, including healthcare, IT, and finance. Enterprises in this region are increasingly investing in advanced technologies to safeguard critical data and enhance operational efficiency. Additionally, the trend of adopting AI-powered systems for predictive analytics and security management is gaining traction.
Europe holds a significant position in the global AI-powered storage market, driven by stringent data privacy regulations such as GDPR and a strong focus on secure data management. Countries like Germany, the United Kingdom, and France are leading in the adoption of advanced storage systems integrated with AI capabilities to improve data processing and compliance. Recent analysis highlights a growing trend of deploying AI-driven storage in sectors such as banking and manufacturing to streamline operations.
The Middle East & Africa region demonstrates steady growth in the adoption of AI-powered storage systems, particularly in sectors like oil & gas, telecommunications, and healthcare. The UAE and Saudi Arabia are leading the market by investing in innovative storage technologies to support digital transformation goals aligned with national agendas like Vision 2030. The growing reliance on AI-driven data management to enhance operational efficiency is shaping market trends in this region.
Latin America represents an emerging market for AI-powered storage, with Brazil and Mexico contributing significantly to the region’s development. The increasing adoption of cloud services, coupled with a growing IT sector, is fostering the deployment of advanced storage systems. Government initiatives to modernize digital infrastructure and support industrial digitization are positively influencing market trends.
The AI Powered Storage market is highly competitive with major players providing products and services to the national and international markets. Key players are adopting several strategies in research and development (R&D), product innovation, and end-user launches to hold a strong position in the global AI Powered Storage market. Key players in the AI Powered Storage industry include –
Product Enhancements:
Acquisitions & Mergers:
Partnerships & Collaborations:
Report Attributes | Report Details |
Study Timeline | 2018-2031 |
Market Size in 2031 | USD 160.85 Billion |
CAGR (2024-2031) | 26.4% |
By Component |
|
By Storage System |
|
By Storage Architecture |
|
By Deployment Mode |
|
By Application |
|
By End-User Industry |
|
By Region |
|
Key Players |
|
North America | U.S. Canada Mexico |
Europe | U.K. Germany France Spain Italy Russia Benelux Rest of Europe |
APAC | China South Korea Japan India Australia ASEAN Rest of Asia-Pacific |
Middle East and Africa | GCC Turkey South Africa Rest of MEA |
LATAM | Brazil Argentina Chile Rest of LATAM |
Report Coverage |
|
AI Powered Storage Market size is estimated to reach over USD 160.85 Billion by 2031 from a value of USD 24.72 Billion in 2023 and is projected to grow by USD 30.80 Billion in 2024, growing at a CAGR of 26.4% from 2024 to 2031.
The AI Powered Storage Market report includes segmentation by component (Hardware, Software, Services), storage system (Direct Attached Storage, Network Attached Storage, Storage Area Network), storage architecture (File Based, Block Storage, Object Based), deployment mode (On-Premise, Cloud-Based, Hybrid), Application (Data Analytics, Real-Time Streaming, Backup & Recovery, Predictive Maintenance, Others), and end-user industry (IT & Telecom, BFSI, Healthcare, Automotive, Media & Entertainment, Others).
The Software segment is expected to grow at the fastest CAGR during the forecast period. Software solutions, including storage management tools and AI algorithms, enable intelligent data handling and real-time processing, driving the adoption of AI-driven storage across various industries.
Key players in the AI Powered Storage Market include Dell Technologies Inc. (USA), Hewlett Packard Enterprise (HPE) (USA), IBM Corporation (USA), Pure Storage (USA), Western Digital Corporation (USA), Seagate Technology Holdings PLC (Ireland), NetApp, Inc. (USA), Cisco Systems, Inc. (USA), Tintri, Inc. (USA), and VAST Data (USA).