Cloud Object Storage Market Size

Cloud Object Storage Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The cloud object storage market is valued at $6.7 billion in 2023 and is projected to reach $18.4 billion by 2032, exhibiting a CAGR of 11.68% from 2024 to 2032. The significant growth is attributed to the increasing reliance on cloud-based storage solutions due to the growing data volumes and the need for scalability and cost-effective storage solutions. The demand for cloud object storage is increasing, as it offers the scalability, flexibility, and scalability required for a cloud-based environment. The advent of big data, the Internet of Things, and the growing popularity of artificial intelligence and machine learning applications are the key trends driving the cloud object storage market. These trends require huge storage and processing power, which cloud object storage can provide. Amazon Web Services, Google Cloud, and Microsoft Azure are the major players in the market. These players are investing in developing new products and services and forming strategic alliances to strengthen their market position. Recent launches of new products and improvements in data security and data management capabilities have further strengthened their position in the market.

Regional Market Size

Regional Deep Dive

Cloud object storage market is experiencing significant growth across various regions. Increasing demand for scalable and cost-effective data storage solutions. Enterprises in North America are adopting cloud technology at a high rate. This is mainly due to the presence of major cloud service providers and a robust IT framework. The European region is undergoing stringent regulatory compliances, which is driving the adoption of cloud storage solutions that offer high data security and privacy. Meanwhile, the Asia-Pacific region is growing rapidly, due to the digital transformation initiatives and the increasing penetration of the Internet, especially in emerging economies. Middle East and Africa are experiencing a high growth in the modernization of IT systems. However, due to economic issues, the Latin American region is adopting cloud technology at a lower rate.

North America

• The hybrid cloud is transforming the market. Leading vendors, such as Amazon Web Services and Microsoft Azure, are offering services that combine on-premises and cloud-based storage.
• CHANGE IN RULES, such as the Californian Data Protection Act, are forcing companies to adopt cloud object storage solutions that enhance data protection and compliance.
• Artificial intelligence and machine learning are being combined with cloud storage services to optimize the management and retrieval of data.

Europe

• Object storage has been a significant contributor to the adoption of cloud storage, as organizations seek compliant and secure solutions for the management of personal data.
• The green cloud is the new way of doing business in Europe. Companies such as OVHcloud are at the forefront of a movement to reduce the carbon footprint of data centres by making them more energy efficient.
• The European Cloud Initiative aims at creating a unified cloud platform, interoperability and data sovereignty, which will lead to a greater use of cloud storage services throughout the European Union.

Asia-Pacific

• The digital revolution is in full swing in India and China, and the government’s Digital India and Made in China 2025 strategies are driving a high demand for cloud object storage.
• In the Middle East, the emergence of e-business and the development of the Internet is resulting in the creation of large amounts of data, and therefore the need for a scalable cloud solution to manage this data.
• Alibaba Cloud and Tencent Cloud are also expanding their business, and they are developing more cloud storage services that meet the special needs of local enterprises.

MEA

• The UAE Vision 2021 program has encouraged the use of cloud technology, with the government supporting the digital transformation and the use of cloud object storage.
• Having a data centre is no longer just a luxury. There is a burgeoning cloud industry in the region, and companies such as Gulf Data Hub and Khazna Data Centres are expanding their facilities to provide cloud services.
• Regulations are changing. The localization of data is a new law in Saudi Arabia.

Latin America

• The general law on data protection, which took effect on 1 January this year, is influencing the use of cloud services. Companies are looking for compliant solutions to manage personal data.
• Local cloud service companies such as UOL Diveo and Locaweb offer cloud object storage services to meet local requirements.
• The economic crisis is forcing companies to look for cost-effective cloud storage solutions, with greater interest in pay-as-you-go models and flexible costing structures.

Did You Know?

“By 2023, more than ninety percent of organizations will use some form of cloud service, with cloud object storage as a critical part of their data management strategies.” — Gartner Research

Segmental Market Size

Cloud object storage is a market that is growing rapidly. It is a storage system that is based on the principle of storing data in a highly scalable and cost-effective way. This type of storage plays a key role in helping companies manage large amounts of unstructured data. The market is driven by a number of factors, including the increasing adoption of cloud computing by companies in all industries, which requires a reliable storage option, and the growing need for data backup and disaster recovery solutions, as companies are increasingly focusing on data security.

The market for cloud computing is now in its mature stage of development, with the main players being Amazon Web Services, Google Cloud Platform and Microsoft Azure. These three companies have established a wide-ranging cloud computing platform, enabling them to provide many different services for various industries, such as media and entertainment, health and patient records, and e-commerce. Combined with the increasing trend for remote working and the drive towards digital transformation, the development of new technology such as artificial intelligence and machine learning, and the rise of big data, cloud object storage is now an essential part of any modern company’s IT strategy.

Future Outlook

The Cloud Object Storage Market is set to experience a CAGR of 11.16% from 2023 to 2032. This is due to the escalating demand for scalable and cost-effective storage solutions, particularly as companies migrate to cloud-based platforms. The cloud object storage market is set to grow at a CAGR of 11.16% from 2023 to 2032, thereby underscoring its critical role in the data management strategies of several industries such as e-commerce, finance, and healthcare.

The scalability of object storage will be further increased by the integration of artificial intelligence and machine learning in the data analysis process. Also, the increased importance of data security and the compliance with regulations such as the GDPR and the CCPA will lead to an increase in the use of secure cloud storage solutions. In addition, the hybrid cloud and the multi-cloud strategy will have a major impact on the market. The cloud object storage market will thus become the cornerstone of digital transformation initiatives, driving innovation and operational efficiency.