Market Size of Cloud Storage Gateway Industry
| Study Period | 2019-2029 |
| Market Size (2024) | USD 6.27 Billion |
| Market Size (2029) | USD 18 Billion |
| CAGR (2024 - 2029) | 23.47 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Cloud Storage Gateway Market Analysis
The Cloud Storage Gateway Market size is estimated at USD 6.27 billion in 2024, and is expected to reach USD 18 billion by 2029, growing at a CAGR of 23.47% during the forecast period (2024-2029).
The Internet of Things (IoT) Gateway market is experiencing significant growth, driven by the surging demand for IoT due to the billions of devices connecting to smart networks. IoT gateways are critical components in IoT product and service deployments, helping enterprises securely connect their sensors, devices, and applications across cloud networks and manage them remotely. By adopting a gateway, companies can reduce the effort they spend on enabling the communication channel between edge devices and cloud apps.
- The importance of storage gateways is also evident in the telecom sector. The IoT generates additional messaging on telecommunication networks, requiring gateways to aggregate the messages and ensure low latency and security. For example, in March 2022, Ericsson launched the Local Packet Gateway, which enables communication service providers (CSPs) to enable new 5G edge use cases, manage user data traffic on the premises, and simplify lifecycle management in the operations phase. This will benefit CSPs by lowering the cost of infrastructure deployments in the project phase.
- According to a report by McKinsey, large enterprises are rapidly turning towards cloud technologies and are willing to switch 60% of their environment to the cloud by 2025. The cloud computing market is expected to surpass 1 trillion USD by 2028. This accelerating adoption of cloud services will create high demand for Cloud Storage Gateway Market.
- However, safeguarding data from online intrusion is a significant challenge for Cloud Gateway providers. Trust needs to be built between gateway providers and their clients when transferring files between on-premises and cloud-based systems using a centralized Secure File Transfer solution.
- The COVID-19 pandemic highlighted the need for digitalization, and many organizations turned to cloud adoption for remote working and data storage. Amazon Web Services and Microsoft Azure became popular choices for many businesses. As organizations rebound and climb out of the crisis, the adoption of cloud technologies is expected to continue growing.
