AI Powered Storage Market Size, Share, and Trends 2024 to 2033

AI Powered Storage Market (By Storage System: Direct Attached Storage (DAS), Network Attached Storage (NAS), Storage Area Network (SAN); By Storage Architecture: File Based, Object Based; By Storage Medium: Hard Disk Drive (HDD), Solid State Drive (SSD); By End-User: Enterprise, Telecom Companies, Cloud Service Providers (CSPs), Government Bodies) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2024-2033

  • Last Updated : July 2024
  • Report Code : 4572
  • Category : ICT

AI Powered Storage Market Size and Forecast

The global AI powered storage market size was USD 22.93 billion in 2023, calculated at USD 28.71 billion in 2024 and is expected to reach around USD 217.34 billion by 2033, expanding at a CAGR of 25.22% from 2024 to 2033. The increasing demand for managing vast amounts of enterprise data is driving the demand for the AI powered storage market.

AI Powered Storage Market Size 2024 to 2033

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AI Powered Storage Market Key Takeaways

  • The North America AI powered storage market size reached USD 8.25 billion in 2023 and is expected to attain around USD 79.33 billion by 2033, poised to grow at a CAGR of 25.40% between 2024 and 2033.
  • North America led the AI powered storage market with the largest revenue share of 36% in 2023.
  • Asia Pacific is expected to witness the fastest growth in the market during the forecast period.
  • By storage system, the direct attached storage (DAS) segment dominated the market with the largest share in 2023.
  • By storage architecture, the file-based segment dominated the market with the largest share in 2023.
  • By storage medium, the hard disk drive (HDD) segment projected the highest market size in 2023.
  • By end-user, the enterprise segment has held a major revenue share of 32% in 2023.

U.S. AI Powered Storage Market Size and Growth 2024 to 2033

The U.S. AI powered storage market size was exhibited at USD 5.78 billion in 2023 and is projected to be worth around USD 55.93 billion by 2033, poised to grow at a CAGR of 25.47% from 2024 to 2033.

U.S. AI Powered Storage Market Size 2024 to 2033

North America led the AI powered storage market with the largest market size in 2023. The growth of the market in the region is attributed to the early adoption of artificial intelligence into the end-user industries, which is driving the growth of the AI powered storage market. The higher availability of the major market players that are adopting AI in the storage of vast amounts of data is driving the growth of the market. The rising investment in research and development activities in the further development of AI technologies and research on the use of AI in organizational operations are accelerating the growth of the AI powered storage market in the region.

AI Powered Storage Market Share, By Region, 2023 (%)

Asia Pacific is expected to witness the fastest growth during the forecast period. The growth of the market is owing to rising industrialization, and the growing use of artificial intelligence in various industries is driving the growth of the AI powered storage market. Additionally, the rising penetration of internet users and the adoption of social media applications are driving the growth of the market.

Market Overview

AI-powered storage is specifically designed for the storage of the vast amount of data generated by artificial intelligence and machine learning workloads. AI storage includes scalable storage options, high performance, options for managing large amounts of data volumes produced by artificial intelligence applications, data processing, and guaranteeing quick access. AI storage efficiently helps data security and encrypts data privacy. The integration of artificial intelligence manages and maintains data processing and access and aims in the development of AI and ML applications. The increasing use of AI in the various end-use industries is driving the growth of the AI powered storage market.

  • The Cloud storage is forecasted to increase by 100 zettabytes, and approximately 60% of the organizational data is kept in the cloud.
  • 54.62% of the consumers are using three different cloud service providers. Google Drive has about 1 billion users, and Dropbox has over 700 million users claimed.
  • As per the IDC reports, the worldwide AI industry, including hardware, software, and services, will reach $900 billion in 2026 with a CAGR of 18.6% in the time period 2022-2026.
  • The cloud application market has reached the value of $153.6 billion and is expected to reach $168.6 billion by 2025.
  • Nearly 200 zettabytes of data will be stored in the cloud by 2025, as per Cybercrime Magazine.

AI Powered Storage Market Growth Factors

  • The rising integration of modern technologies, such as artificial intelligence and machine learning, and various end-use industries, such as banking and finance, healthcare, manufacturing, and others, are driving the growth of the market.
  • AI helps in the analysis and storage of vast amounts of organizational data and makes proactive decisions. It helps minimize the threat of data loss, which can actively help several industries store their data efficiently, contributing to the growth of the AI powered storage market.
  • The integration of AI storage into the organization enhances operational efficiency, minimizes the risk of human errors, and reduces the manual storage process, which drives the market's growth.
  • AI-powered storage also helps secure data and advances security measures, such as real-time threats and anomaly detection, to safeguard sensitive data from cyberattacks.
  • The ongoing research on the innovation and launch of further technological advancements in artificial intelligence is further driving the growth of the AI powered storage market.

AI Powered Storage Market Scope

Report Coverage Details
Market Size by 2033 USD 217.34 Billion
Market Size in 2023 USD 22.93 Billion
Market Size in 2024 USD 28.71 Billion
Market Growth Rate from 2024 to 2033 CAGR of 25.22%
Largest Market North America
Base Year 2023
Forecast Period 2024 to 2033
Segments Covered Storage System, Storage Architecture, Storage Medium, End-User, and Regions
Regions Covered North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa

 

AI Powered Storage Market Dynamics

Driver

The increasing demand for efficient data storage

The rising amount of data from several end-use industries creates the demand for efficient storage systems that drive the demand for AI in the storage market. The integration of AI into the storage system is revolutionizing the overall system. It helps in improving security and performance and allows intelligent data management.

The growing amount of organizational data is difficult to manage by the traditional solution of data storage and drives the demand for intelligent data storage solutions like AI storage; the AI provides cost-effectiveness, security, scalability, privacy concerns, enhanced efficiency, and retrieval and data storage. AI could help with predictive maintenance, increased security, better automation, and integration with cloud services. It helps in identifying patterns and data insights from the operations to make informed decisions. AI in data storage helps organizations be competitive in the market, which boosts the growth of the AI powered storage market.

Restraint

Lack of skilled professionals

The unavailability of skilled professionals to handle modern technologies such as artificial intelligence and machine learning and the cost of installing these technologies are restraining the growth of the AI powered storage market.

Opportunity

Trends in the AI storage system

The adaptation of AI-driven predictive analysis on the storage solution and the adoption of machine learning in the storage analytics for predicting storage demand and potential issues optimize data placement before they impact the organizational performance. Further, AI storage automates manual tasks. It automated tasks like capacity scaling, data tiering, and performance optimization. Additionally, AI in storage also works against data leaks and various security issues; it detects potential security issues in real time and increases cyber security.

Storage System Insights

The direct attached storage (DAS) segment dominated the AI powered storage market and had the largest share in 2023. The growth of the market is attributed to the rising adoption of direct-powered storage, which is driving the demand for the segment. Direct attached storage is directly connected to the computer without the requirement of a network. The direct-attached storage is connected directly or indirectly. It is not connected with any type of fiber channel or Ethernet switches. The directly attached storage is directly connected to the card plugged into the internal computer bus.

It connects directly with interfaces like serial advanced technology attachments (SATA), small computer system interfaces (SCSI), serial attached SCSI (SAS), internet SCSI, or FC (iSCSI). Direct attached storage provides enhanced performance compared to networked storage due to there being no transverse to a network. These systems are less complicated, easy to install and implement, and cost-efficient.

Storage Medium Insights

The hard disk drive (HDD) segment had the largest AI powered storage market share in 2023. An HDD is also known as a hard disk drive that can be used in laptops and computers to store data. HDDs are traditionally used for storing internal data on the hard disk; they are non-volatile storage devices that can retain data without power being supplied to them. HDDs have several advantages, such as better performance, capacity, portability, lifespan, and cost-effectiveness. HDDs have 20 terabytes of storage.

Storage Architecture Insights

The file-based segment dominated the AI powered storage market and had the largest share in 2023. The file-based storage is the data storage type stored in the folder structure. The file is stored in the file-based storage in the nested structure. File-based storage is the traditional method of storing data on computers and laptops. This type of storage is used to maintain and manage manageable structured or organizational data for efficient storage in the disk drive of the server.

The object-based segment is expected to have the fastest growth rate during the forecast period. The rising adoption of object-based storage by various organizations for managing unstructured data is driving the expansion of the segment. Object storage is preferably used to back up digitized data such as unstructured media, digital communications, and web content such as image files, videos, sensor data, and web pages produced by the Internet of Things (IoT). Object storage is also used to achieve data that does not change, such as static files, large volumes of pharmaceutical data, images, music, and video files.

End-User Insights

The enterprise segment dominated the AI powered storage market with the largest revenue in 2023. The growth of the segment is attributed to rising industrialization, and the large enterprise database that drives the demand for the efficient management of data storage is driving the demand for the efficient storage technologies that drive the growth of the AI powered storage market.

AI Powered Storage Market Share, By End-User, 2023 (%)

The rising investments in the development of industrialization and the growing adoption of artificial intelligence in industrial use for better performance. Artificial intelligence provides real-time data from various business sources. The adoption of AI into organizational work helps automate tasks and minimize human interventions.

  • For instance, as per the International Data Corporation (IDC) Worldwide Semiannual Enterprise Infrastructure Tracker: Workloads. Enterprise is spending about $7.2 billion on storage and compute hardware infrastructure for supporting workloads in 2H23, representing 7.8 of overall spending on IT infrastructure.

AI Powered Storage Companies

AI Powered Storage Market Companies

  • Samsung Electronics
  • Toshiba
  • Hitachi
  • Lenovo
  • NVIDIA
  • Dell Inc.
  • Intel Corporation
  • NetApp
  • IBM Corporation
  • Micron Technology Inc.
  • Hewlett Packard Enterprise Development LP
  • Huawei Technologies Co. Ltd.

Recent Developments

  • In May 2024, Huawei launched the A800 AI storage system specifically to fuel the AI training on multi-petabyte datasets, having features like scale-out architecture, which supports petabytes-per-second bandwidth, and 100 million IOPS.
  • In May 2024, NetApp®, a leading player in intelligent data infrastructure organizations, announced the launch of new leading AFF A-Series systems that can fuel the demand of the IT workloads customers face, including VMware, GenAI, and enterprise databases.
  • In May 2022, IBM launched the Elastic Storage System 3500, a specifically designed 2U storage server for AI training workloads.  The latest server storage has a maximum capacity of 36TB of NVMe storage and 24 drive bays.
  • In May 2024, Hewlett Packard Enterprise introduced the HPE Cray Storage Systems C500, a midrange and entry-level system for AI and HPC compute clusters.
  • In January 2024, Supermicro introduces optimized storage solutions for machine learning and artificial intelligence by the use of WEKA and AMD software for training faster AI and offering greater insights.
  • In November 2024, DDN®, a leading player in multi-cloud data management and artificial intelligence (AI), launched the next-generation DDN Infinia; it is the defined storage platform that uses two decades of engineering in the file system, AI-based optimization, and data orchestration integrating together to enhanced generative AI and computing.

Segments Covered in the Report

By Storage System

  • Direct Attached Storage (DAS)
  • Network Attached Storage (NAS)
  • Storage Area Network (SAN)

By Storage Architecture

  • File Based
  • Object Based

By Storage Medium

  • Hard Disk Drive (HDD)
  • Solid State Drive (SSD)

By End-User 

  • Enterprise
  • Telecom Companies
  • Cloud Service Providers (CSPs)
  • Government Bodies

By Geography

  • North America
  • Asia Pacific
  • Europe
  • Latin America
  • Middle East & Africa

Frequently Asked Questions

The global AI powered storage market size is expected to increase USD 217.34 billion by 2033 from USD 22.93 billion in 2023.

The AI powered storage market is anticipated to grow at a CAGR of over 25.22% between 2024 and 2033

The major players operating in the AI powered storage market are Samsung Electronics, Toshiba, Hitachi, Lenovo, NVIDIA, Dell Inc., Intel Corporation, NetApp, IBM Corporation, Micron Technology Inc., Hewlett Packard Enterprise Development LP, Huawei Technologies Co. Ltd., and Others.

The driving factors of the AI powered storage market are the increasing demand for efficient data storage and rising integration of modern technologies.

North America region will lead the global AI powered storage market during the forecast period 2024 to 2033.

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