Global Cloud Storage Gateway Market - Forecasts from 2024 to 2029

Global Cloud Storage Gateway Market - Forecasts from 2024 to 2029

The global cloud storage gateway market is anticipated to grow at a CAGR of 19.32% over the forecast period to reach US$6.443 billion by 2029, increasing from estimated value of US$2.664 billion in 2024.

A cloud storage gateway connects a cloud storage infrastructure to any information technology environment and facilitates data replication, storage, and encryption. Primary factors driving the market's growth include data availability, availability for use on-demand, cost-effectiveness, the ability to function, and flexibility in choosing providers.

The market's growth has created lucrative opportunities for vendors of these services. However, key restraining factors to this market growth are huge capital investment and a lack of skilled personnel.

Global Cloud Storage Gateway Market Drivers:

Emphasis on improving data-backup efficiency is driving the market growth.

The burgeoning demand for low-cost data backup, storage, and protection in enterprises is driving the growing use of cloud storage across various industries, including healthcare, BFSI, media, and entertainment. To further strengthen cloud adoption, governing agencies are implementing necessary investments, which are the additional driving factors for the cloud storage gateway market expansion.

As cloud storage does not require an on-premises data center or other maintenance/service fees, it requires a low initial investment. Additionally, according to Cisco’s “Financial Impact of BYOD”, on average, BYOD practices generate up to US$ 350 in revenue per mobile user annually. Further, as per the Financial Impact of the BYOD study, workers begin with their tasks as soon as they are assigned to them, doing them quicker and gaining a few extra minutes. With the growing prevalence of using personal devices for corporate work, the demand for data storage and processing platforms will increase, augmenting the overall market expansion.

Global Cloud Storage Gateway Market Restraints:

Concerns regarding data security will pose a challenge to the market growth.

Privacy and security concerns are predicted to pose a challenge to the cloud-based storage gateway market growth. The most significant components of the cloud storage ecosystem are data security and confidentiality. It is forecasted that strict government policies and restrictions on cloud computing will limit market expansion. For instance, the Indian government added a provision in the Information Technology Act declaring that any illegal activity concerning computing models that contain private information will be punished. Such laws and rules could thus constrain market development.

Global Cloud Storage Gateway Market Segmentation Analysis
The healthcare sector accounts for a significant share of the market.

The healthcare industry is gradually moving towards health information technology, which provides crucial life-saving functions, consists of connected, networked systems, and uses wireless technologies, leaving such systems more susceptible to data breaches. Further, the healthcare industry is one of those industries that was severely impacted by data breaches. According to the HIPAA journal, in 2023, on average, 373,788 healthcare data breaches occurred daily in the US. This impact is mainly due to the significantly low IT budget compared to other private firms.

For instance, Yuma Regional Medical Centre in Arizona recently disclosed that it suffered a ransomware attack that exposed the data of over 700,000 individuals. The necessity for a cloud storage gateway has thus increased because the healthcare sector deals with extremely sensitive and personal data and relies on encryption to protect it.

In June 2022, the King Hamad University Hospital (KHUH) collaborated with Amazon Web Service, where the latter would develop a cost-effective long-term medical image data storage solution. The hospital garnered nearly 1 million medical image studies by January 2022, which created a data volume of 44 TB.

Thus, the cloud storage gateway market is projected to experience immense opportunity in the future due to the increasing number of databases in the healthcare sector and the shift towards the cloud for database protection.

Global Cloud Storage Gateway Market Geographical Outlook

During the forecast period, North America will hold a significant market share.

North America will hold a considerable share of the market fuelled by the growing cloud computing environment followed by favorable investment for the same in major regional economies such as the United States and Canada. For instance, according to Amazon’s “AWS Economic Impact Study” report, since 2011, the company has invested US$108 billion in the US to develop cloud infrastructure.

Moreover, initiatives and schemes to bolster industrial automation have further paved the way for regional market expansion. For instance, the “U.S. Inflation Reduction Act” channels investments to industrial automation, energy transition, and smart infrastructure.

Furthermore, major players like Amazon are expanding their gateway platforms, acting as an additional driving factor. For instance, in June 2022, Amazon announced that its “AWS Storage Gateway,” a hybrid cloud storage service providing unlimited on-premises applications to unlimited storage on the cloud, will be available through resellers.

Global Cloud Storage Gateway Market Key developments
March 2023: Akamai Technologies Inc. formed a definitive agreement to acquire Ondat, which provides cloud-based storage technology with a Kubernetes-native platform for running business-critical applications across public, hybrid, and private cloud.
December 2022: Starwind launched a new gateway storage solution for Calamu as a part of the company’s “Virtual Tape Library” offerings. The cloud storage platform features cutting-edge data protection technology that safeguards a user’s backup data stored in the cloud against data breaches and ransomware.
July 2022: TD SYNNEX announced plans to distribute AWS’s storage gateway hardware appliance, a standalone server configuration for on-premises deployments. TD SYNNEX has been a global integrator for AWS storage gateway hardware appliances and aids in the deployment and migration services to move customers' data from on-premises storage to the cloud.
May 2021: Hewlett Packard Enterprise Company announced the advancement of its HPE storage to morph into cloud-native software-defined data services. The storage is available on GreenLake with operations such as cloud console, cloud data services, and HPE Alletra.

The Global Cloud Storage Gateway market is segmented and analyzed as:

By Type
Virtual Appliance
Physical Appliance
By Deployment
Public
Private
Hybrid
By Industry Vertical
Manufacturing
BFSI
Healthcare
Retail
Education
Consumer Electronics
Media and Entertainment
By Geography
North America
United States
Canada
Mexico
South America
Brazil
Argentina
Others
Europe
United Kingdom
Germany
France
Netherland
Spain
Italy
Others
Middle East and Africa
Saudi Arabia
UAE
Others
Asia Pacific
China
Japan
India
South Korea
Indonesia
Thailand
Taiwan
Others