Network Attached Storage Market Outlook 2031
The global network attached storage market size was valued at USD 25.70 Billion in 2022 and is projected to reach USD 71.84 Billion by 2031, expanding at a CAGR of 12.1% during the forecast period 2023 - 2031. The growth of the market is attributed to the increasing awareness about product features, such as flexibility & scale-out, and economical installation & maintenance costs.
Demand to access data within the corporate network at any time and from any location is driving the network attached storage market. Growing adoption of small and virtual office environments has created the need for remote access to data. This factor is expected to drive the market.
Network Attached Storage (NAS) is a device that is used to store and retrieve data from a central disk volume. These devices are connected to a Local Area Network (LAN) and are utilized by multiple authorized users at the same time to store and access their data reliably and securely. NAS devices are flexible and are used to meet the needs of additional storage.
Business operation is a prerequisite to maintain the backup of confidential data of NAS devices. They are a suitable storage solution. These devices backup targets and files to store copies of data, thus increasing their adoption by business enterprises. Moreover, NAS devices have data compression ability, which aids in storing a duplicate copy of data. The efficiency of the searching capability is improved by reducing the number of duplicate entries. Data deduplication helps to replace duplicate files on the NAS network by tagging files referring to the original file.
The research report finds that the COVID-19 pandemic had a positive impact on the network attached storage (NAS) market. The pandemic has accelerated the adoption of remote work, leading to a surge in the demand for NAS solutions. Businesses shifted to remote work setups, which increased the need for secure and efficient data access and storage solutions, thereby driving the demand for NAS. Increased reliance on digital platforms and online services during the pandemic boosted data generation. This created the need for scalable and reliable storage solutions such as NAS to accommodate the growing data storage requirements.
Artificial Intelligence Impact on Network Attached Storage Market
Artificial intelligence (AI) has a significant impact on the network attached storage (NAS) market. Businesses leverage AI algorithms to gain actionable intelligence, identify patterns, and make data-driven decisions. AI-powered analytics is integrated with NAS solutions to extract valuable insights from stored data. This enhances the value proposition of NAS solutions and drives their adoption. AI automates various aspects of data management within NAS systems. This includes tasks such as data classification, deduplication, indexing, and metadata management. The automation provided by AI simplifies data management processes, improves efficiency, and reduces manual effort. For instance,
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In October 2021, Dell Technologies, a US-based company, introduced a NAS solution, namely, Dell EMC Power Scale Solution. This advanced solution combines AI and machine learning capabilities to support various workloads, including modern AI, ML-based tasks, consolidation, and traditional file archives.
Network Attached Storage Market Dynamics
Major Drivers
Increasing usage of NAS for big data analytics and data mining applications is driving the network attached storage market. Companies in industries, such as healthcare, finance, and e-commerce, use NAS to store and analyze large volumes of data for insights and decision-making. NAS solutions provide a centralized storage platform that enables seamless remote access and collaboration, presenting an opportunity for NAS vendors to cater to this growing demand. For instance,
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In September 2021, Amazon.com Inc., through its AWS business subsidiary, introduced the Amazon MSK Connect zone redundancy storage system. This new system boasts extended compatibility that enhances Kafka Connect efficiency. It features multiple backup zones that span container applications on the Azure Kubernetes Services, which adds an extra layer of redundancy and ensures data safety.
Growing adoption of 4G and 5G technologies, along with the rising consumer inclination towards smartphones, tablets, and laptops, has led to the generation of a large volume of data. This is expected to have a positive impact on the growth of the network attached storage market.
Existing Restraints
Rising security concerns are expected to hamper the market growth. Increasing volume of data stored on NAS solutions has led to concerns about data security and privacy. Businesses are hesitant to adopt NAS solutions, due to the risk of data breaches and cyberattacks, which has a negative impact on the growth of the market.
Complexity of implementation and management of network attached storage is expected to restrain the market growth. NAS solutions are complex to implement and manage, requiring specialized IT skills and resources. This complexity makes it difficult for businesses to adopt NAS solutions, especially for small and medium-sized businesses with limited IT resources.
Emerging Opportunities
Growing adoption of cloud-based NAS solutions is expected to create lucrative opportunities in the market. Adoption of cloud-based NAS solutions is rising, due to their scalability, cost-effectiveness, and ease of management. This presents an opportunity for NAS providers to offer cloud-based storage solutions and capitalize on the increasing demand for cloud storage. Moreover, the rising adoption of cloud NAS file storage as a service is driving the NAS market. Companies such as Dropbox and Google Drive offer cloud-based NAS solutions, allowing users to store and access their data from anywhere with an internet connection.
Scope of Network Attached Storage Market Report
The report on the global network attached storage market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
Attributes
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Details
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Report Title
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Network Attached Storage Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Design (1 bay to 8 bays, 8 bays to 12 bays and more than 20 bays), Deployment Types (On-Premise and Cloud Based), Storage Solutions (Scale-up, Scale-out), and Applications (Home/Consumer NAS, BFSI, Telecom & IT, Healthcare, Retail & Consumer Goods, Government and Media & Entertainment)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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Buffalo Inc.; Dell Inc.; EMC Corporation; Hewlett-Packard; Hitachi Data Systems Corporation; IBM Corporation; LSI Corporation; NetApp Inc.; NetGear Inc.; Overland Storage Inc.
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Network Attached Storage Market Segment Insights
Designs Segment Analysis
On the basis of designs, the network attached storage market share is segmented into 1 bay to 8 bays, 8 bays to 12 bays, and more than 20 bays. The 1 bay to 8 bays segment is expected to account for a significant market share during the forecast period.
Rising adoption of 1-bay to 8-bay NAS solutions by SMEs, homes, education centers, and media and consulting service providers is expected to drive the segment. The large amount of data generated in these industries is increasing the demand for 1-bay to 8-bay NAS solutions.
Deployment Types Segment Analysis
Based on deployment types, the network attached storage market share is divided into on-premise and cloud-based. The cloud-based segment is anticipated to account for a considerable market share during the forecast period. Growing adoption of cloud-based solutions across several industry verticals is driving the segment. For instance,
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In July 2020, QNAP Systems, Inc., a Taiwan-based corporation that delivers and designs high-quality network attached storage, announced the launch of a software-defined cloud-native solution. The software enables cloud deployment through subscription.
The on-premise segment is projected to expand at a high CAGR during the forecast period. Heavy investment of large enterprises in ICT infrastructure and their growing need for solutions that provide high data security are some factors that have led to the adoption of on-premise solutions. However, companies are gradually shifting from on-premise solutions to cloud-based solutions, owing to the low operational cost of cloud-based solutions.
Storage Solutions Segment Analysis
On the basis of storage solutions, the network attached storage market share is bifurcated into scale-up and scale-out. The scale-up segment is anticipated to acquire a large market share in terms of revenue during the forecast period. SMEs are involved in a moderate volume of data generation and transfer, which has encouraged them to adopt scale-out solutions. Additionally, these solutions are cost-effective as compared to scale-out solutions, which is driving the scale-up segment.
Applications Segment Analysis
Based on applications, the network attached storage market is divided into home/consumer NAS, BFSI, telecom & IT, healthcare, retail & consumer goods, government, and media & entertainment. The BFSI segment is anticipated to expand at a high CAGR during the forecast period. The banking sector accounts for a large number of monetary transactions, which makes data security a major concern for this sector.
NAS devices offer secured and cost-effective data storage solutions. This, in turn, boosts business productivity and improves the operational efficiency of the BSFI sector. NAS solutions enable backup and safekeeping of data while consuming low power. Thus, such factors are proliferating the growth of this segment.
Regional Analysis
In terms of regions, the market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is projected to account for a large market share during the forecast period. The presence of major NAS providers and the rising adoption of cloud-based technology in countries such as the US and Canada are boosting the market in this region. Rising investments and launches by public and private companies for wireless technologies in the region are expected to drive the market in the region. For instance,
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In September 2021, a US-based company named PAC Storage introduced an all-flash network attached storage solution, ‘U.2 NVMe’. This storage solution is specifically designed for on-premises use and handles low-latency workloads from various applications, including big data, high-performance computing, and entertainment. This solution is able to optimize scalability and performance by adding more nodes.
The market in Asia Pacific is anticipated to expand at a substantial CAGR during the forecast period. Rapid growth in the network infrastructure sector and increasing use of portable devices to access the data are expected to spur the regional market growth. Rising demand for cost-effective, fast, and easily accessible methods to share media files is propelling the market in this region.
Segments
The global network attached storage market has been segmented on the basis of
Designs
- 1 bay to 8 bays
- 8 bays to 12 bays
- more than 20 bays
Deployment Types
Storage Solutions
Applications
- Home/Consumer NAS
- BFSI
- Telecom & IT
- Healthcare
- Retail & Consumer Goods
- Government
- Media & Entertainment
Regions
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key players
Competitive Landscape
Some key players in the global network attached storage market include Buffalo Inc.; Dell Inc.; EMC Corporation; Hewlett-Packard; Hitachi Data Systems Corporation; IBM Corporation; LSI Corporation; NetApp Inc.; NetGear Inc.; and Overland Storage Inc.
Companies are focusing on product innovations to improve their offerings and acquire a large consumer base. For instance,
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In March 2020, Western digital corporation entered into a contract with Acronis, a global leader in cyber protection. Under this contract, the former company is expected to deliver its Ultrastar Data60 and Ultrastar Data102 high-capacity hybrid storage platforms. This is expected to support the long-term expansion plans of the latter company in a cost-effective manner.