Global Storage Software Market Trends, Forecast Report 2025-2037
Storage Software Market size was over USD 28.7 billion in 2024 and is set to reach USD 69.6 billion by the end of 2037, witnessing around 7.5% CAGR during the forecast period i.e., between 2025-2037. In 2025, the industry size of storage software is evaluated at USD 29.7 billion.
The Producer Price Index (PPI) for software publishing is a key economic indicator of the sector. The U.S. Bureau of Labor Statistics data highlights that the PPI steadily increased from 2022 to 2024, reflecting an increase of 8.3%. The PPI’s rise highlights increasing costs of labor and production in software engineering and R&D activities. On the consumer side, the Consumer Price Index (CPI) for software and IT-related services (CUUR0000SEEE01) highlights a parallel trend. There has been a 6.4% increase in average consumer costs between 2022 and 2024, highlighting growing end user price sensitivity.
The storage software market’s supply chain is primarily digital, but also depends on physical infrastructure such as semiconductors, servers, and data centers. As per the U.S. Census Bureau and International Trade Administration, the imports of server components and network devices expanded by 12.4% annually in 2023, with economies in APAC such as China, Taiwan, and South Korea accounting for over 65% of the component supply. Additionally, the exports of software-related intellectual property have also grown. The trade balance is impacted by the rising global demand for customized storage software. With a growing push to invest in digital economies, the market’s growth is projected to exhibit an upward curve by the end of 2037.
Storage Software Sector: Growth Drivers and Challenges
Growth Drivers
- Surge in the adoption of NVMe over Fabrics (NVMe-oF) protocols: A significant driving force of the global storage software market is the rapid adoption of NVMe over NVMe-oF. Unlike traditional protocols, NVMe-oF leverages PCIe-based communication in comparison to high-speed fabrics, including Random Direct Memory Access (RDMA). This leads to considerable improvements in bottleneck reduction. Additionally, the evolution has created an acute requirement for sophisticated storage software that is capable of effectively managing complex data traffic, while also ensuring that the integrity is not impacted in distributed environments.
- Rising demand to manage the complexity of multi-cloud data management: With a rising number of enterprises adopting multi-cloud strategies to avoid vendor lock-in, the complexity of managing distributed data storage across cloud environments that are homogenous has surged. The challenge creates opportunities, with major platforms such as AWS, Azure, and Google Cloud requiring advanced storage software solutions that are capable of data orchestration and automated tiering. Features such as AI-driven data placement and auto-tiering have emerged as essential components to reduce the cost of cloud storage, and in turn bolster the innovation in software-defined storage platforms. Hence, storage software vendors that are focusing on policy-based data management solutions are poised to leverage the growth opportunities within the sector.
AI and ML Impact on the Global Storage Software Market
The convergence of AI and ML is a driving force in advancing storage software solutions, benefiting the market’s expansion. Leading companies leveraging AI and ML have accelerated product design, whilst streamlining operations. The technological shift is pivotal for the future of the market, as it contributes to an exponential increase in storage demand reinforced by the proliferation of big data. The table below highlights the successful use case of AI and ML integration:
|
Company |
Integration of AI & ML |
Outcome |
|
Pure Storage |
AI-driven workload simulation for product design |
Reduced product development time by 31% |
|
IBM |
AI-based supply chain optimization |
Achieved 20% reduction in logistics and inventory costs |
|
NetApp |
AI-powered predictive maintenance and quality analytics |
Improved product quality by 14%, reduced system downtime by 17% |
|
Dell Technologies |
Machine learning for automated tiering and dynamic resource allocation |
Increased operational efficiency by 24%, lowered storage costs by 13% |
Cybersecurity Risks in the Global Storage Software Market
Due to the connected nature of the market, companies operating in the storage software sector are facing an escalating percentage of cyberthreats. Major cyber threats lead to considerable financial losses for companies. For instance, in 2024, major customers of Snowflake, such as Advance Auto Parts and Ticketmaster faced targeted data breaches. The table below highlights notable cyberattacks and remedies to mitigate them.
|
Company |
Cyber Attack Type |
Impact |
Remedies |
|
Snowflake |
Data Breach |
Data stolen from 160+ clients |
Multi-factor authentication; audits |
|
CDK Global |
Ransomware |
$1B+ losses; 15,100 dealerships down |
Threat detection; incident response |
|
Dropbox |
Data Breach |
User data exposed |
Access controls; automated audits |
|
Marks & Spencer |
Ransomware |
£61M loss; operational downtime |
Zero-trust architecture; employee training |
Challenges
- Complex data integration across hybrid environments: As enterprises are rapidly adopting multi-cloud infrastructures, storage software providers face impediments in integrating heterogeneous data sources and storage platforms. To ensure consistency in data accessibility as well as security, sophisticated orchestration capabilities are required. This creates an additional hurdle due to the increase in operational costs.
Storage Software Market: Key Insights
| Report Attribute | Details |
|---|---|
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
7.5% |
|
Base Year Market Size (2024) |
USD 28.7 billion |
|
Forecast Year Market Size (2037) |
USD 69.6 billion |
|
Regional Scope |
|
Storage Software Segmentation
Software Type (Data Protection & Recovery, Storage Virtualization)
The data protection & recovery segment in the storage software market is projected to hold a dominant revenue share of 52.6% throughout the forecast timeline. The segment’s expansion is attributed to the stringent data privacy regulations worldwide. GDPR of the European Union and CCPA of the U.S. are examples of two such regulations that have mandated strong data backup to prevent data loss. To comply with the regulations, the demand for storage software solutions, and within it, data protection and recovery services is predicted to soar by the end of 2037. Additionally, the U.S. NIST has reported that organizations that have implemented robust data recovery strategies reduce downtime by over 58%.
Deployment Type (Cloud, On-Premise, Hybrid)
Hybrid deployment models in the storage software market are projected to expand their revenue share during the forecast timeline. The surge of hybrid deployment is attributed to the flexibility it offers to balance the control of on-premise with the scalability of cloud. Hybrid models are gaining popularity in federal organizations, with the U.S. Government Accountability Office reporting that over 60% of federal agencies adopted hybrid cloud strategies by the end of 2024. Additionally, with a greater number of enterprises seeking data sovereignty, the hybrid deployment is poised to increase.
Organization Size (Large Enterprises, Small & Medium Enterprises)
The SME segment is projected to exhibit robust growth during the anticipated timeline. SMEs across the world are proactively investing in cost-effective storage solutions to keep pace with digital transformation. For instance, the Small Business Administration has noted that since 2023, more than 70% of SMEs have bolstered cloud adoption. The segment’s expansion highlights a broader trend of the rising importance of tailored storage solutions that can cater to SMEs.
Our in-depth analysis of the global storage software market includes the following segments:
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Software Type |
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Deployment Type |
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Organization Size |
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Vertical |
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Customize this ReportStorage Software Industry - Regional Scope
North America Market Forecast
The North America storage software market is estimated to hold a leading revenue share of 40.6% by the end of 2037. The dominance of the regional market is propelled by a heightened demand for data protection and recovery solutions, as enterprises strive to meet strict regulatory standards such as HIPAA. Additionally, the U.S. market has been at the forefront of the AI race, creating a heightened requirement for storage software to manage big data.
The U.S. storage software market is poised to expand during the forecast timeline. A major factor in the regional market is the rising demand from industries such as BFSI, healthcare, and AI. Additionally, the continuous investment in cybersecurity infrastructure and a surging preference for cloud-based storage models have accelerated the market’s development. In terms of growth, Rubrik reported a considerable 47% annual revenue increase in its fourth fiscal quarter of 2024, totaling at USD 258.0 million. These figures indicate the growth opportunities in the U.S. storage software market.
Asia Pacific Market Forecast
The APAC storage software market is poised to register the fastest expansion, rising at a CAGR of 12.2% throughout the forecast period. A major driver of the APAC market is the surge in smart city initiatives as well as large-scale digital infrastructure projects. Economies such as China, India, Singapore, etc., are investing in building the next-generation IT ecosystems, which create the demand for storage software solutions. The Asian Development Bank has highlighted that there has been a heightened funding towards data center expansion in the present decade, which is poised to create sustained demand for storage software to handle rising data volumes.
The China storage software market is estimated to maintain its dominant share in APAC. The market is reinforced by the strong governmental support for data sovereignty policies. As per the MIIT of China, initiatives, including Digital China, are driving the demand for localized, secure storage software solutions. Additionally, the country has been at the forefront of creating a strong digital economy, which is expected to create lucrative leads for storage software deployment throughout the forecast timeline.
Companies Dominating the Storage Software Landscape
The global storage software market is transitioning from growth to early maturity. The sector remains competitive and has leading players such as IBM, Dell Technologies, HPE, etc. These companies have been expanding cloud-based offerings to expand their revenue share. Key players from China are leveraging localized solutions tailored for the needs of regional enterprises. The table below highlights the major players in the storage software market:
|
Company Name |
Country |
Market Share (%) (2024) |
|
IBM Corporation |
USA |
13.3% |
|
Dell Technologies Inc. |
USA |
11.4% |
|
Hewlett Packard Enterprise (HPE) |
USA |
10.6% |
|
NetApp, Inc. |
USA |
7.9% |
|
Hitachi Vantara Corporation |
Japan |
6.2% |
|
Fujitsu Limited |
Japan |
xx% |
|
Huawei Technologies Co., Ltd. |
China |
xx% |
|
Micron Technology, Inc. |
USA |
xx% |
|
Western Digital Corporation |
USA |
xx% |
|
Software AG |
Germany |
xx% |
|
NEC Corporation |
Japan |
xx% |
|
Samsung SDS |
South Korea |
xx% |
|
Tata Consultancy Services (TCS) |
India |
xx% |
|
DXC Technology |
Australia |
xx% |
|
Axiata Group Berhad |
Malaysia |
xx% |
In the News
- In March 2024, IBM introduced Spectrum Fusion, which is a hybrid cloud storage platform designed to unify cloud and on-premise storage management. IBM reported that the launch contributed to a more than 13% increase in cloud storage revenue in the first quarter of 2024.
- In January 2024, Dell Technologies released the PowerStoreOS 3.o. The new solution boosts AI-driven storage automation, with the company reporting a growth of over 10% in new customer acquisition in the first quarter of 2024.
Author Credits: Abhishek Verma
- Report ID: 2976
- Published Date: May 29, 2025
- Report Format: PDF, PPT
