AI Powered Storage Market Outlook:
AI Powered Storage Market size was valued at USD 29 billion in 2024 and is projected to reach USD 187.8 billion by the end of 2037, expanding at a CAGR of 18.6% during the forecast timeline from 2025 to 2037. In 2025, the industry size of AI powered storage is estimated at USD 35.7 billion.
The supply chain of the AI powered storage sector intersects varied industrial tiers, such as semiconductor fabrication, raw material extraction, assembly, and distribution. According to the Bank for International Settlements, the hardware forms one of five core layers in the AI ecosystem. Additionally, the producer price index (PPI) for final-demand goods increased by 1.2% YoY up to November 2024, while that of services increased by 3.7%. The consumer price index (CPI) has exhibited a modest increase during the same period due to stable average prices.
On the trade and investment front, the U.S. import/export price index has demonstrated that the global shipments of storage hardware components have remained sensitive to exchange rate trends and trade tariffs. These indices highlighted that components such as printed circuit boards and memory modules have undergone volatility due to disruptions in regional supply chains and tariff disagreements. Despite this, manufacturers have increasingly leveraged AI to lower downtime. The trends highlight that the AI storage market is not just shaped by end user demand, but by strategic adaptation of the supply chain to balance the rising upstream costs with infrastructure resilience.
AI Powered Storage Market Growth Drivers and Challenges
Growth Drivers
- Proliferation of edge AI workloads in autonomous and mission-critical systems: The surging deployment of AI in autonomous vehicle and defense applications has contributed to intensifying the requirement for AI-optimized storage systems. Recent major investments include the one highlighted by the European Defense Fund (EDF) of €190.8 million in 2024 to bolster the AI-driven autonomous systems. Additionally, the U.S. Department of Defense (DoD) has intensified the funding for Project Maven, prioritizing edge compute platforms where the requirement for storage that is fault-tolerant remains critical. The AI-powered storage with capabilities such as in-situ processing is vital to handle unstructured data volumes, and indicates the growth curve of the market.
- Real-time AI model training and inference in hyperscale HPC environments: The gradual shift towards real-time AI model training in hyperscale environments has ensured that the demand for self-optimizing storage systems has catalyzed. In terms of recent investments, the U.S. Department of Energy invested over USD 100 million via its Exascale Computing Project to develop storage solutions for large-scale scientific modeling that is supported by AI. Such major workloads require petabyte-scale storage, which bolsters the market’s growth. Additionally, another supportive factor has been the active deployment of storage platforms that are able to manage I/O workloads across GPUs via enterprises such as NVIDIA and Argonne National Laboratory.
Technological Trends Shaping the Global AI Powered Storage Market
The advent of AI-native intelligence has driven the consistent demand for storage capabilities. The global manufacturing industry has experienced an improvement of over 38% in predictive maintenance outcomes through the integration of AI-augmented storage on blockchain systems. These trends have incentivized the storage solution developers to secure immutable storage ledgers. The table below highlights the key technological trends shaping the market:
|
Trend |
Statistic / Example |
Industry / Impact |
|
AI driven predictive maintenance |
41% improvement in manufacturing predictive maintenance using AI enabled storage |
Manufacturing: Reduced downtime; higher throughput |
|
AI + Blockchain for fraud prevention |
61% of blockchain identity systems use AI; fraud detection costs cut by 37% in BFSI |
Finance: Improved integrity, reduced fraud; HSBC, Mastercard pilot integrations |
|
Edge optimized intelligent storage |
51% of enterprises in India have deployed AI in IT operations; 42% report doubled storage needs |
Telecom/IT: Meets performance demands, supports telco and 5G workloads |
AI Powered Storage Pricing Trends (2019-2024)
The market has experienced dynamic price shifts due to demand-side pressure and supply-side innovations. The prices have experienced varying degrees of change depending on the region. For instance, the prices have dropped in North America and Europe but increased in Asia Pacific. The integration of AI has been vital in optimizing storage management, reducing the total cost of ownership for vendors and customers alike. The table below highlights the pricing changes over a period of 5 years:
|
Region |
Price Trend (2019–2024) |
CAGR Impact |
Key Drivers |
|
North America |
↓ 5.8% YoY; $100K → $80K avg unit price |
-4.7% |
AI-automation, hyperscaler dominance |
|
Europe |
↓ 7–10% overall |
-6.2% |
Cloud-led scale efficiencies |
|
Asia-Pacific |
↑ 15.5% (2022–2024); avg unit: $70K → $80.5K |
+6.8% |
5G rollout, edge AI demand |
Challenges of the AI Powered Storage Market
- Thermal constraints in AI optimized storage at edge and micro data centers: A major bottleneck impacting the market is the bottlenecks associated with the deployment of AI powered storage systems due to their high thermal footprint. The large thermal footprint is attributed to the high throughput of AI inference workloads. Edge and micro data centers tend to lack advanced cooling infrastructure that can handle dense NVMe arrays and storage modules, which in turn leads to constraints in thermal management.
AI Powered Storage Market Size and Forecast:
| Report Attribute | Details |
|---|---|
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
18.6% |
|
Base Year Market Size (2024) |
USD 29 billion |
|
Forecast Year Market Size (2037) |
USD 187.8 billion |
|
Regional Scope |
|
AI Powered Storage Market Segmentation:
Offerings Segment Analysis
The software segment of the market is slated to hold a 58.6% revenue share during the forecast timeline. A major factor in the segment's expansion is the surging adoption of intelligent storage management platforms that use AI algorithms for automation. Additionally, as enterprises are shifting to AI powered storage software, the requirement for advanced software to unify data pipelines across heterogeneous systems has intensified. In 2024, a report was released by NIST highlighting that over 66% of AI deployments were reliant on storage orchestration layers to efficiently manage the data velocity.
Storage Systems Segment Analysis
The network attached storage (NAS) segment is slated to account for a dominant revenue share of 37.6% by the end of 2037. A key driver is their greater adoption due to the accessibility offered across enterprise networks. NAS systems are particularly suited for distributed storage. Another major contributing factor to the segment’s expansion is the large-scale growth exhibited in IoT and edge computing. Additionally, with smart city programs deployed across numerous economies, the scope of adopting NAS remains high due to its ability to efficiently handle heterogeneous data.
Our in-depth analysis of the global market includes the following segments:
| Segment | Subsegment |
|
Offerings |
|
|
Storage Systems |
|
|
Storage Architecture |
|
|
Storage Mediums |
|
Vishnu Nair
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AI-Powered Storage Market Regional Analysis:
North America Market Insights
The North America AI powered storage market is set to account for a leading revenue share of 35.8% during the forecast timeline. The U.S. federal government has significantly invested in AI infrastructure, including storage solutions. Agencies such as the National Science Foundation, the Department of Energy, and the National Telecommunications and Information Administration have remained at the forefront of improving the AI framework in the regional market. In Canada, the collaborative efforts to improve the regional capacity to support hyperscale data centers have driven sustained demand for storage solutions.
The U.S. the market is slated to register a major revenue share in North America. A key factor propelling the sector’s growth is the early adoption of AI solutions. Additionally, DARPA has initiated pilot deployments to explore advanced storage technologies for AI applications. The U.S. market is impacted by the increasing enterprise adoption and regional data hubs generating increasing demand for data processing.
Asia Pacific Market Insight
The APAC AI powered storage market is slated to capture a leading revenue share of 23.7% during the forecast timeline. The regional market’s expansion has been supported by the rapid digital transformation and heightened adoption of AI in varied enterprises. Countries such as Japan have established AI supercomputing zones, such as the AI Bridging Cloud Infrastructure to support large0-scale research and storage requirements. In the Singapore market, the smart nation initiative has focused on the expansion of public cloud AI storage to bolster commercial services. The favorable trends are poised to ensure the sustained growth of the sector in APAC.
The China market is poised to expand its revenue share during the anticipated timeline. The regional market’s expansion is supported by mega-projects pushing for technological self-reliance. The 14th 5-Year Plan of China has highlighted considerable investments in AI data centers and has supported the steady demand for storage stacks. Additionally, the China AI ecosystem seeks to expand its global position with major generative AI solutions such as DeepSeek released in 2025. These developments are slated to drive a sustained demand for storage solutions in the regional market.
AI Powered Storage Market Players:
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
The market is projected to account for a leading revenue share during the forecast timeline. The advent of rising AI driven analytics and cloud-integrated solutions has heightened the demand for advanced storage solutions. Opportunities are expected to be rife in emerging regional markets such as India and Canada. The table below highlights the major players in the market:
|
Company Name |
Country |
Estimated Market Share (%) |
|
Dell Technologies |
USA |
14.8 |
|
IBM Corporation |
USA |
12.6 |
|
NetApp, Inc. |
USA |
10.3 |
|
Hewlett Packard Enterprise (HPE) |
USA |
9.9 |
|
Hitachi Vantara |
Japan |
7.4 |
|
Toshiba Corporation |
Japan |
xx% |
|
Samsung Electronics |
South Korea |
xx% |
|
Western Digital Corporation |
USA |
xx% |
|
Seagate Technology |
USA |
xx% |
|
Fujitsu Limited |
Japan |
xx% |
|
NEC Corporation |
Japan |
xx% |
|
Micron Technology |
USA |
xx% |
|
Infosys Limited |
India |
xx% |
|
Malaysian Communications and Multimedia Commission (MCMC) – (Tech Division) |
Malaysia |
xx% |
|
Canon Australia Pty Ltd |
Australia |
xx% |
Below are the areas covered for each company in the AI powered storage market:
Recent Developments
- In June 2024, IBM launched its FlashSystem AI accelerator, which has combined high-speed NVMe storage with embedded AI capabilities for real-time data analytics. The launch has aligned with the growing enterprise demand for AI-powered infrastructure to support cloud-native applications.
- In March 2024, Dell Technologies launched the PowerStore 7000 series, which is an AI-enhanced array optimized for hybrid cloud environments. The system’s AI-powered data reduction and automated resource management has bolstered storage efficiency by over 22%.
- Report ID: 3796
- Published Date: Jun 13, 2025
- Report Format: PDF, PPT
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