Storage as a Service (StaaS) Market - Forecasts from 2024 to 2029

Storage as a Service (StaaS) Market - Forecasts from 2024 to 2029

The storage as a service (STaaS) market is expected to grow at a CAGR of 32.93% over the forecast period to reach a market size of US$62.779 billion by 2029 from a valuation of US$8.558 billion in 2022.

The provision of a remote storage facility and structure to companies by an external party to give access to data and efficient storage of software applications through the medium of an internet network by eliminating the need for physical storage facilities is referred to as storage as a service (STaaS). Cloud backup, cloud archiving, and standalone and platform-attached storage are the dominant types of STaaS services being consumed by large, medium, and small-scale enterprises in the market.

The need for cost-effective, flexible, and scalable storage solutions is driving the demand for STaaS solutions since enterprises can pay for the storage, they need on a subscription basis instead of investing and maintaining their storage infrastructure. The enhanced storage service offered by STaaS is resulting in the substitution of conventional storage methods with STaaS which is expected to result in the substantial growth of the STaaS market.

Storage as a service (staas) market drivers:

Rise in the volume of data generated by companies

The exponential growth in the amount of data generated by companies fueled by the globalization and digitalization of business operations is resulting in the need for effective storage solutions that can be accessed by the company through online mediums. A survey conducted by Zippia revealed that approximately 90% of the aggregate data generated by the world through all times can be attributed to the data generated in the previous two years and that the amount of international data generated by the corporate sector that is stored in cloud majorly increased from 45% in 2018 to 60% in 2022.

In addition, the establishment of data retention policies by corporate regulatory departments is generating the need for periodic retention of data for a wide range of years. For instance, the Companies Act created by the Indian legislation requires companies to digitally store the data and accounts generated by companies for 8 years. In addition, the Basel III standards specify that companies belonging to the prescribed group of industries must retain their data for 7 years. Therefore, the growing need for data retention and the voluminous growth in the data generated by companies operating in different industries is driving the demand for storage as service solutions and services.
Extensive adoption of cloud services and cloud computing

The rise in the adoption rates of cloud services and cloud computing services is further stimulating the demand for STaaS services as it aids in fortifying and unifying the cloud infrastructure by easy integration. A report generated by Flexera, a software company in the US revealed that approximately 93% of the companies are utilizing a minimum of one service based on cloud in 2023 with the average number varying from 4.8 in enterprises of large size and 2.2 among SMEs.

In addition, it was also estimated that the cloud infrastructure spending increased by 40% in the IT sector resulting in the adoption of hybrid cloud networks by more than 58% of the companies in 2022 increasing by 51% from 2021. The World Economic Forum also stated that approximately 65% of corporate organizations around the world are innovating their business model to integrate cloud computing. Therefore, the growth in the adoption of cloud computing and services is expected to drive the demand for the STaaS market over the forecast period.

Storage as a service (staas) market challenges:

The data portability and security limitations associated with certain STaaS services can hinder market growth.

Certain companies and enterprises are reluctant the adopt of STaaS solutions due to their concerns over being locked into a specific provider or platform which leads to complications in moving and transmitting their data to a different provider which could be particularly challenging if the data is stored in a proprietary format that is not easily compatible with other platforms or systems.

In addition, the uncertainties about the security measures implemented into STaaS services are leading to the restricted use of STaaS to store sensitive or confidential data in the cloud by some operating enterprises, particularly in industries with strict data privacy and security regulations. However, the recent advancements in security and compliance features of STaaS services by major companies such as Intel can overcome this limitation.

By end-users, the BFSI sector is anticipated to contribute significantly to the development of the STaaS market.

The expansion of data generated by the BFSI sector and the importance of data-driven decision-making in companies operating in this sector will promote the demand for STaaS and other cloud services in this industry. The average amount of cloud deployment in the banking industry increased from 8.4 in 2020 to 10.9 in 2023 according to the IBM Corporation.

Asia Pacific region holds a significant share of the storage as a service market and is projected to expand during the forecasted period.

The rise in the importance of big data analytics and the increase in the adoption of hybrid and multi-cloud networks by companies operating in major economies such as China, Japan, South Korea, and Taiwan are expected to promote the growth of the STaaS market in the region.

The surge in consumption of disaster recovery and business continuity solutions and the expansion of the various end-user industries driven by the growth of companies will stimulate the need for STaaS solutions as an efficient and cost-effective method to store and archive the expanding business operations.

Storage as a service (staas) market Industry Updates:

October 2023- Nyriad® Inc., unveiled the introduction of UltraIOTM-as-a-Service. This marked the inception of an on-premise Storage-as-a-Service (STaaS) solution tailored to meet modern enterprises' escalating data management needs. Nyriad’s UltraIO-as-a-Service offering was crafted to address various challenges by offering flexible and easy-to-use STaaS options.
January 2023- ePlus Inc., an IT company operating in the US to provide specialized services and solutions announced the introduction of new storage as a service product under its Pure Storage's Managed Services Provider Program by using its Pure Storage Evergreen//One technology to offer adaptable storage models based on subscriptions.

Storage As A Service (STaaS) Market is segmented and analyzed as below:

By Type
Cloud Backup
Cloud Archiving
Standalone and Platform Attached Storage
By Enterprise Size
SME
Large
By End-User
BFSI
IT and Telecom
Retail
Healthcare
Public Sector
Education
Others
By Geography
North America
USA
Canada
Mexico
South America
Brazil
Argentina
Others
Europe
Germany
France
UK
Spain
Others
Middle East and Africa
Saudi Arabia
UAE
Israel
Others
Asia Pacific
China
Japan
India
South Korea
Indonesia
Taiwan
Others