Cloud Storage Gateway Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Cloud Storage Gateway Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The cloud storage gateway market is expected to grow at a CAGR of 24.77% over the forecast period. The need for a cloud storage gateway is expanding due to the rising demand for cloud storage and the increase in enterprise data. Cloud services are in high order among businesses, including small, midsize, and large enterprises. They are backing up their vital data due to the cost-effectiveness of cloud storage.

Key Highlights

• The growing demand for low-cost data backup, protection across all companies, and storage is the cause of the rising use of cloud storage across industries, including BFSI, healthcare, media, and entertainment. Increased spending on cutting-edge IT solutions, knowledge of the use of cloud-based solutions, and increased acceptance of cloud storage gateways are additional drivers propelling the growth of the cloud storage market. Since cloud storage does not require an on-premise data center or other maintenance or service fees, it requires a low initial investment.
• Additionally, according to Cisco, businesses that encourage BYOD among their employees might save up to USD 350 annually. Further, according to the Financial Impact of BYOD study, workers begin tasks as soon as they are given them, doing them more quickly and gaining a few extra minutes. The demand for cloud storage gateway rises due to this development, which enables a company to migrate its workload to the cloud.
• Growth in demand for low-cost data storage, backup, and data protection has augmented the development of the market among several small groups, including small, medium, and large enterprises. In addition, several Industry verticals such as BFSI, retail, healthcare, and public sector with a large customer base tend to store critical business information of stakeholders in cloud storage, owing to data privacy and client information.
• Privacy and security concerns are projected to act as restraints for cloud-based storage. The essential components of the cloud storage ecosystem are data security and confidentiality. It is anticipated that stringent government policies and restrictions on cloud computing will limit market expansion. For instance, the Indian government included a provision in the Information Technology Act declaring that any illegal activity with computing models that contain private information or data will be punished. Such laws and rules could impede development.
• Due to the expanding adoption of infrastructure as a service, software as a service, and platform as a service by enterprises to handle virtual work, the COVID-19 pandemic has increased the demand for cloud-based storage. According to an EY-Nasscom cloud survey conducted in February 2022, 67 percent of large enterprises increased their cloud adoption, while only 38 percent of small organizations started their cloud journey. During the pandemic, small and medium-sized businesses will dominate the market.

Key Market TrendsHealthcare Industry offers Potential Growth

• The healthcare industry is moving towards Health information technology, which provides critical life-saving functions, consists of connected, networked systems, and leverages wireless technologies, leaving such systems more vulnerable to data breaches.
• Moreover, the healthcare industry is one of the industries which was impacted badly by the data breach. This impact is mainly due to the low IT budget compared to other private firms. According to the U.S. Department of Health and Human Services (HHS), the healthcare industry continues to lead in the number of incidents. Moreover, according to HIPAA, healthcare data breaches are reported more than once daily. For instance, at Yuma Regional Medical Center in Arizona, the hospital recently disclosed that it was struck by a ransomware attack that exposed the data of 700,000 individuals.
• The necessity for a cloud storage gateway is increased because the healthcare sector deals with sensitive and personal data and relies on encryption to protect that data. For instance, King Hamad University Hospital (KHUH) and Bahrain Oncology Center encountered storage space issues due to the exponential rise of their on-site storage requirements, mainly due to the yearly increase in medical image storage. In June 2022, KHUH decided to use AWS to store medical image data in the cloud, foreseeing the demand for cloud storage.
• Thus, the cloud storage gateway market is expected to witness an immense opportunity in the future, owing to the increasing database in the healthcare industry and the shift towards the cloud for protecting the database. This protection is necessary because the stolen data can be used maliciously to put patients in a terrible financial predicament.

Asia- Pacific to Witness Fastest Growth

• Asia-Pacific cloud storage witnesses the growing demand due to the increasing application of cloud computing and advancements in the hybrid cloud deployment model. Some other factors, such as increasing internet penetration, growth of IoT, increasing adoption of hybrid cloud storage, and the growing need to reduce capital and operating expenses, are expected to improve cloud storage in the Asia-Pacific region.
• The rising investments in cloud services by India, South Korea, Japan, Singapore, and others may propel the industry growth in this region. Adopting the cloud storage gateway helps reduce data redundancy and resourcefully utilizes bandwidth. All the benefits associated with storing Big data on the cloud, such as data encryption, data recovery, etc., will lead to the growth of the cloud storage gateway market.
• The opportunity for the cloud service market lies in the developing economies as they gradually grow to become the hub for IT services. In addition, a substantial increase in the number of small and medium enterprises is expected to lead to the increased adoption of cloud services in the Asia-Pacific region, enhancing the demand for Cloud storage gateway.
• Owing to this, governments across countries in the region have taken several measures to promote data security. For instance, the government strongly supports the need for data masking in India. In June 2022, India proposed a data protection law in parliament. In response to that, an India-US agreement had made under the Cloud Act, including protections against surveillance and safeguards against unbridled government access to data.

Competitive Landscape

The cloud storage gateway market is highly fragmented because many players are operating in the market globally. The Cloud Storage Gateway key players are highly focusing innovation in production technologies to improve efficiency and shelf life. This market's best long-term growth opportunities can be captured by ensuring ongoing process improvements and financial flexibility to invest in the optimal Cloud Storage Gateway industry strategies. Some major players are ABB, Amazon Web Service, CTERA Networks, EMC, Emulex, Microsoft, NetApp, Agosto, Maldivica, and Nasuni, amongst others. Product launches, high expense on research and development, partnerships and acquisitions, etc., are the prime growth strategies these companies adopt to sustain the intense competition. Some of the recent developments are:

• In May 2021, Hewlett Packard Enterprise Company introduced the advancement of its HPE storage to transform into cloud-native software-defined data services (SDDS). The new storage is available on GreenLake and operations such as cloud data services, cloud console, and HPE Alletra.
• In March 2021, Oracle Corporation launched new Cloud Lift Services to help customers quickly migrate through its tools and engineering resources. The new platform removes critical barriers and offers single contact points, high speed, and more. This development is helping accelerate customer growth through Google Cloud support.

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