APAC Next Generation Storage Market Size

APAC Next Generation Storage Market Analysis

The Asia Pacific next-generation storage market is estimated to register a CAGR of 14.3% over the forecast period (2021 - 2026). The market is expected to gain momentum owing to the increasing demand for high scalable, fast, and economical storage solutions during the forecast period.

• Rapid technological advancements and the increasing volume of unstructured data across different verticals/industries have created the need for secure, reliable, and cost-efficient storage infrastructure in the Asia-Pacific region. In the current scenario, enterprises face challenges posed by the escalating data volumes, velocity, and variety, leading to increased demand for efficient storage solutions.
• Next-generation storage solutions are computing devices used to store, port, and extract data files and objects quickly and efficiently. Moreover, companies are increasingly moving towards using cloud technology for their day-to-day business operations. Humongous amounts of data are generated through the cloud platform that may be required for future reference. Therefore, robust and efficient storage solutions are required by the companies that are anticipated to drive the market growth over the forecast period.
• E-commerce is gaining traction worldwide, and the Asia Pacific region is no expectation to it. The growth in e-commerce activity across the region is also one of the critical factors for the regional market growth. Countries such as China, India, Japan, and South Korea, among others, are the key contributors to the growth of the e-commerce industry across the region. According to the World Economic Forum, e-commerce in China represents more than 50% of the global retail e-commerce sales. Moreover, according to the East Asia Forum, e-commerce sales in China stood at USD 2.3 trillion in 2020. Increasing internet usage for consumer purchases generates large amounts of crucial data, resulting in the increasing adoption of next-generation data storage solutions.
• The Asia-Pacific region presents a significant opportunity for next-generation storage solution vendors. The outbreak of the COVID-19 pandemic has escalated the trend of remote operations and online working. Increased usage of the internet in private and public organizations, as well as by individuals, is creating demand for smart storage solutions. Given the criticality of data generated through the internet, companies are highly inclined to invest in next-generation storage solutions, which is also driving market growth.
• Growth in the Asia-Pacific next-generation storage market is primarily driven by government initiatives to develop and promote digitalization. For instance, in May 2021, the Japanese government announced financial support to companies and municipalities to establish data centers in around five regional cities.
• Further, factors such as the growing demand for data storage in small to medium enterprises (SMEs) and the increasing proliferation of smartphones, laptops, and tablets in the Asia-Pacific region have augmented the demand for a next-generation storage solution.