The cloud storage services market is projected to reach $128 billion by 2028.
The latest analysis from Omdia has found that the global cloud storage services market generated $57 billion in 2023, in directly billed revenue. Amazon Web Services (AWS) led the market with a commanding 30% share of the storage services revenue, followed by Microsoft and Google.
Among Chinese Tier 1 vendors, Alibaba dominated with a 6% global revenue share, closely followed by China Telecom, which has been aggressively expanding its presence in the Chinese services market over the past few years.
The analysis forms part of Omdia’s highly anticipated 2024 Storage Data Services Report, offering an in-depth breakdown of the cloud data storage services market. This comprehensive report tracks cloud data storage services across three core categories: object, networked block, and file storage.
Omdia forecasts robust growth for the global cloud data storage services market, projecting it to reach $128 billion by 2028, with a CAGR of 17% over the next five years.
Key factors driving this market expansion include the rise of remote work, ongoing digital transformation efforts, the proliferation of IoT devices, advances in data analytics, and the increasing need for scalable and cost-effective cloud solutions.
In 2023, the total storage capacity sold in cloud storage services amounted to a staggering 2,100 Exabytes. Amazon led in terms of global storage capacity consumed, accounting for approximately 38% of the market. Object storage, often referred to as cloud storage, dominated the services capacity sold, making up 70% of the total storage services capacity.
Commenting on the new report, Dennis Hahn, Omdia principal analyst said: “File storage is poised to be the fastest-growing segment, with an expected CAGR of 21% through 2028. This growth is largely attributed to the increasing use of file storage as high-performance storage in AI workloads.”
He added: “Despite object storage leading in capacity, storage services revenues are more evenly distributed among object, block, and file storage. This is due to higher per-capacity service charges for block and file storage from most vendors.”
The findings of Omdia’s 2024 Storage Data Services Report underscore a rapidly evolving market landscape, characterized by significant growth opportunities and shifts in storage technology preferences. As businesses maneuver through the intricacies of digital evolution and handling data, there’s a growing need for adaptable, top-notch cloud storage solutions.”
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