Cloud Object Storage Market

Increasing demand for data security and compliance by various enterprises is driving the market growth

The rising requirement for data security and compliance by various companies is a key factor propelling growth of the cloud object storage market. The market for cloud object storage is anticipated to develop as a result of consumer demand for quick data transfers, data recovery, and data availability without downtime. For instance, IBM Cloud Object Storage gives a scalable, secure location to back up important data and allows for the easy and cost-effective storage of an unlimited amount of data. It also enables quick data transfer.

As a result, cloud object storage is becoming more and more competitive with traditional storage in terms of effectiveness and price. During the forecast period, market growth is anticipated to be fueled by the expanding trend of digitalization around the world and rising need for systems that are affordable.

Large volumes of data have been gathered as a result of remote sensing, IoT usage, and better video quality such as 4K or 8K resolution cameras. The need for cloud-based networking and storage technology is growing as a result. Similar to this, it is anticipated that the expanding use of artificial intelligence (AI) will raise storage requirements in order to enhance data security. For instance, a California start-up called NextBillion Al and Google Cloud worked together in February 2021 to use cloud SQL and storage to reduce the time it takes to market products.

The collaboration intends to provide data security and 99.9% uptime for clients of NextBillion artificial intelligence.

Additionally, the use of cloud computing services, such as data storage for real-time support, is probably being driven by connected gadgets and autonomous systems like self-driving cars. For instance, Ford Motor Company, a producer of linked cars, teamed up with Google Cloud in February 2021 to enhance the user experience for connected cars. With autonomous and driverless cars, the company is pushing towards digitization. Through the integration of machine learning, automation, and cloud technologies across vehicles, the company hopes to provide a better experience. These elements are anticipated to push the market in the direction of a higher growth trajectory.

The expanding need from various enterprises for data security and protection is a key factor fueling the market's expansion. In addition, it is projected that the market for cloud object storage would expand in response to the growing demand for quick data transfers. In the next five years, as of June 2020, 95% of IT workload is anticipated to be on the cloud, according to respondents in LogicMonitor's Cloud 2025 poll. This indicator indicates that the market will likely have significant growth in the years to come.

However, worries about piracy can prevent the market from growing.The expanding need from various enterprises for data security and protection is a key factor fueling the market's expansion. In addition, it is projected that the market for cloud object storage would expand in response to the growing demand for quick data transfers. In the next five years, as of June 2020, 95% of IT workload is anticipated to be on the cloud, according to respondents in LogicMonitor's Cloud 2025 poll. This indicator indicates that the market will likely have significant growth in the years to come.

However, worries about piracy can prevent the market from growing.Thus, driving the Cloud Object Storage market revenue.

Cost efficiency remains a pivotal driver for the Global Cloud Object Storage Market Industry. Organizations increasingly recognize the financial advantages of cloud storage compared to traditional on-premises solutions. By leveraging cloud object storage, companies can reduce capital expenditures associated with hardware and maintenance. This shift is particularly evident in small to medium-sized enterprises, which may lack the resources for extensive IT infrastructure. As the market evolves, the cost-effectiveness of cloud solutions is likely to attract more businesses, further propelling the Global Cloud Object Storage Market Industry. The anticipated growth from 7.6 USD Billion in 2024 to 25.6 USD Billion by 2035 underscores this trend.

The exponential increase in data generated globally drives the Global Cloud Object Storage Market Industry. In 2024, the market is projected to reach 7.6 USD Billion, reflecting the rising demand for scalable storage solutions. Organizations across various sectors, including healthcare and finance, require efficient data management systems to handle vast amounts of information. This trend is expected to continue, as data generation is anticipated to grow at an unprecedented rate, necessitating robust cloud storage solutions. The Global Cloud Object Storage Market Industry is thus positioned to benefit from this surge in data volume, as businesses seek to optimize their storage capabilities.

Technological advancements play a crucial role in shaping the Global Cloud Object Storage Market Industry. Innovations in artificial intelligence, machine learning, and data analytics are enhancing the capabilities of cloud storage solutions. These technologies enable organizations to optimize data management, improve retrieval times, and enhance overall efficiency. As businesses seek to leverage these advancements, the demand for sophisticated cloud object storage solutions is expected to rise. This trend aligns with the projected growth of the market, which is set to expand from 7.6 USD Billion in 2024 to 25.6 USD Billion by 2035, driven by the need for cutting-edge storage technologies.

Data security and compliance concerns are paramount in the Global Cloud Object Storage Market Industry. As organizations increasingly migrate sensitive information to the cloud, they face heightened scrutiny regarding data protection regulations. Cloud object storage providers are responding by implementing advanced security measures and compliance protocols to safeguard data integrity. This focus on security not only enhances customer trust but also drives demand for cloud storage solutions that meet regulatory standards. The Global Cloud Object Storage Market Industry is thus likely to see growth as businesses prioritize secure storage options to mitigate risks associated with data breaches and non-compliance.

The rising adoption of cloud services across various industries significantly influences the Global Cloud Object Storage Market Industry. As organizations transition to cloud-based solutions for enhanced flexibility and scalability, the demand for cloud object storage solutions intensifies. This trend is particularly pronounced in sectors such as retail and e-commerce, where companies require reliable storage for customer data and transaction records. The Global Cloud Object Storage Market Industry is expected to experience a compound annual growth rate of 11.68% from 2025 to 2035, indicating a robust shift towards cloud-based storage solutions. This adoption is likely to reshape how businesses manage and store their data.

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America Cloud Object Storage Market dominated this market in 2022 (45.80%). Consistent expansion has been facilitated by the presence of large corporations in the area, significant R&D investments on the part of technocrats, and better infrastructure.Further, the U.S. Cloud Object Storage market held the largest market share, and the Canada Cloud Object Storage market was the fastest growing market in the North America region.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: CLOUD OBJECT STORAGE MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe Cloud Object Storage market accounted for the healthy market share in 2022. To automate their work and maintain competitiveness in shifting business environments, companies all around Europe have already started concentrating on advancements like cloud, ML, AI, and the IoT.Further, the German Cloud Object Storage market held the largest market share, and the U.K Cloud Object Storage market was the fastest growing market in the European region.

The Asia Pacific Cloud Object Storage market is expected to register significant growth from 2023 to 2032. Due to the enormous scalability & speed of solutions in nations like China, India, and Japan, small and medium businesses are increasingly adopting cloud-based solutions, which is driving the industry in this field ahead. Moreover, China’s Cloud Object Storage market held the largest market share and the Indian Cloud Object Storage market was the fastest growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Cloud Object Storage market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Cloud Object Storage industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Cloud Object Storage industry to benefit clients and increase the market sector. In recent years, the Cloud Object Storage industry has offered some of the most significant advantages to medicine. Major players in the Cloud Object Storage market, including Hewlett-Packard Enterprise, Caringo Inc., Dell EMC, International Business Machines Corporation, International Data Corporation, Microsoft Corporation, Hitachi Data Systems, Data Direct Networks, Netapp, Inc., and Google, are attempting to increase market demand by investing in research and development Services.

An open-source time-series SQL database created by Timescale is intended to address large-scale and sophisticated queries. Customers may organise, store, analyse, and make sense of time series and machine data using the company's database, which is directly integrated into the query planner and execution engine and performs a variety of low-level distributed query optimisations to increase efficiency. Timescale, the organisation behind Timescale Cloud, a cloud-native PostgreSQL for time series, analytics, and events, announced the launch of a private beta for an object storage layer based on Amazon S3 that is consumption-based in November 2022.

A cloud storage platform created by CTERA enables cloud-driven IT companies to offer safe file services. With the help of the company's platform, distributed office and WFH users can store, access, and collaborate on files effectively from any device or location, replacing traditional storage and backup systems with a cloud file system powered by software-defined file services over object storage. This enables businesses to offer cutting-edge remote working solutions. A partnership between CTERA and Wasabi Technologies was announced in May 2022 to provide the midmarket with file services that are secure in the cloud.

Another SaaS product from Wasabi Hot Cloud Storage combines file and object storage.