Global Network Attached Storage (NAS) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Network Attached Storage (NAS) Market Analysis

The Network Attached Storage (NAS) Market is estimated to grow at a CAGR of about 19.5% during the forecast period 2021-2026. The COVID-19 pandemic has increased the demand for cloud-based solutions, owing to remote working models being adopted by enterprises. The pandemic has also acted as a catalyst for the growth of data usage. Enterprises across various end-user industries, especially telecom companies across emerging nations, have witnessed a surge in data usage due to lockdowns imposed by the governments. In such times, organizations are seeking an established and secured data storage solution.

• Further, the COVID-19 pandemic has forced an unprecedented and unpredictable state of emergency on various levels. In these times of crisis, data has been assisting enterprises with the better decision-making process. Having consistency is the only solution to ensure that the insights generated by analyses are useful and actionable.
• It is estimated that more than 80% of midmarket and enterprise organizations are using NAS for some tier of storage in exceeding capacity when compared to other storage types, such as DAS (Direct Attached Storage) and SAN (Storage Area Network). The major factors driving the market include - explosion in unstructured data, increasing the footprint of scale-out NAS in enterprise IT systems, and focus on network virtualization and software-defined NAS.
• The increasing adoption of NAS systems in enterprise environments is driving vendors toward creating customized NAS solutions for businesses aiming at NAS as a full-fledged data management solution.
• The integration of on-premise NAS with cloud storage is expected to gain traction in the future, facilitating total control over the data in the NAS and in backing up and archiving data in the cloud. Several vendors are involved in integrating the existing NAS system with the popular cloud storage services, like Amazon S3 especially, for storage provisioning.
• The ease of access, reasonably low cost, and high capacity are some of the significant features attracting the enterprise. It also provides a performance advantage over DAS in many cases, especially when multiple devices need to access storage. NAS may also be more effective than SAN for some workloads depending on network traffic factors and storage communication protocol preferences.
• The growing cloud adoption can hinder the studied market growth; however, the integration of on-premise NAS with cloud storage is expected to gain traction in the future, facilitating total control over the data in the NAS and in backing up and archiving data in the cloud.
• In July 2021, Taiwan -based network-attached storage (NAS) manufacturer QNAP announced that it had addressed a critical security vulnerability that could have enabled attackers to compromise its NAS devices' security. The improper access control vulnerability tracked as CVE -2021 - 28809 was found by the TXOne IoT/ICS Security Research Labs in HBS 3 Hybrid Backup Sync, which is QNAP's disaster recovery and data backup solution. The security issue was caused by buggy software that does not correctly restrict the attackers from gaining access to the system resources enabling them to escalate privileges, execute commands remotely, or read sensitive info without authorization.

Network Attached Storage (NAS) Industry Segments

Network Attached Storage (NAS) is a networked appliance containing storage drives that provide file-based storage services to devices throughout a network. It also helps other servers avoid serving data to other servers on the network, which occurs with Direct-attached Storage (DAS). The market is segmented by type, end-user Industry (BFSI, IT and telecom, healthcare, retail, media and entertainment, and other end-user industries).

The study tracks the key market parameters, underlying growth influencers, and major vendors operating in the industry. The study also tracks the impact of COVID-19 on the overall Global Network Attached Storage (NAS) Market and its performance.

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Network Attached Storage (NAS) Market Trends

This section covers the major market trends shaping the Network Attached Storage (NAS) Market according to our research experts:

Increasing Adoption of Cloud Hindering the Growth of the Market

• The deployment of these solutions over the cloud offers greater convenience, as the service vendor is responsible for providing maximum uptime, data security, and periodic updates, thus decreasing the total cost of ownership.
• These network-attached storage devices have been providing a convenient means of offloading and creating data backups from the computers while maintaining remote access to the files. These units are storing information in a centralized location and providing access for authorized on-site and network access using secure dedicated IP addresses. These devices offer various features that are handy and versatile to meet the needs of home users and small and large businesses.
• The current market trends, including the delivery of these solutions on the pay-as-you-go model and SaaS models, wherein the service vendors also assume the responsibility of maintaining data and application information, are further driving the adoption of these solutions.
• Moreover, this mode has recorded an increase in deployment in small-/medium-scale businesses, as it cuts down the capital expenditure involved in building the required infrastructure on their premises. This continuing trend is significantly hindering the growth of the market.
• In Jan 2020, QNAP also announced its new budget-friendly two-bay NAS aimed at home users supporting hardware accelerated media playback. The TS-251D stores up to 32 TB of data and can be further expanded with a PCIe card to add SSD caching or other options.

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