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    US Cloud Object Storage Market

    ID: MRFR/ICT/14202-HCR
    100 Pages
    Garvit Vyas
    October 2025

    US Cloud Storage Market Research Report: By Component (Solution, Service), By Deployment Model (Private, Public, Hybrid) and By Vertical (Retail, IT and Telecommunication, Healthcare, BFSI) - Forecast to 2035

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    US Cloud Object Storage Market Infographic
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    US Cloud Object Storage Market Summary

    As per MRFR analysis, the US cloud object-storage market Size was estimated at 1824.0 USD Million in 2024. The US cloud object-storage market is projected to grow from 2036.86 USD Million in 2025 to 6144.0 USD Million by 2035, exhibiting a compound annual growth rate (CAGR) of 11.67% during the forecast period 2025 - 2035.

    Key Market Trends & Highlights

    The US cloud object-storage market is experiencing robust growth driven by evolving technological needs and strategic shifts in data management.

    • The largest segment in the US cloud object-storage market is the enterprise segment, which continues to dominate due to its extensive data storage requirements.
    • The fastest-growing segment is the small and medium-sized enterprises (SMEs), reflecting a rising trend towards cloud adoption among smaller businesses.
    • There is an increasing emphasis on data security and compliance, as organizations prioritize safeguarding sensitive information in the cloud.
    • Key market drivers include the growing demand for scalable storage solutions and the shift towards cost-effective data management strategies.

    Market Size & Forecast

    2024 Market Size 1824.0 (USD Million)
    2035 Market Size 6144.0 (USD Million)

    Major Players

    Amazon Web Services (US), Microsoft (US), Google (US), IBM (US), Oracle (US), Alibaba Cloud (CN), DigitalOcean (US), Wasabi Technologies (US)

    US Cloud Object Storage Market Trends

    The cloud object-storage market is currently experiencing a transformative phase, driven by the increasing demand for scalable and flexible storage solutions. Organizations across various sectors are recognizing the advantages of cloud-based storage, which offers enhanced accessibility and cost-effectiveness. This shift is largely influenced by the growing volume of data generated by businesses and consumers alike. As data continues to proliferate, the need for efficient storage solutions becomes paramount. Companies are increasingly adopting cloud object-storage to manage their data more effectively, allowing for seamless integration with existing IT infrastructures. Moreover, advancements in technology are propelling the cloud object-storage market forward. Innovations such as artificial intelligence and machine learning are being integrated into storage solutions, enabling smarter data management and analytics. This evolution not only enhances operational efficiency but also provides organizations with valuable insights into their data usage patterns. As a result, the cloud object-storage market is poised for sustained growth, with businesses seeking to leverage these technologies to optimize their storage capabilities and drive digital transformation initiatives. The future landscape appears promising, as more enterprises recognize the strategic importance of cloud object-storage in their overall data management strategies.

    Increased Adoption of Hybrid Cloud Solutions

    Organizations are increasingly gravitating towards hybrid cloud models, which combine on-premises infrastructure with cloud object-storage. This trend allows businesses to maintain control over sensitive data while leveraging the scalability of cloud solutions. As companies seek to balance security and flexibility, hybrid approaches are becoming more prevalent.

    Focus on Data Security and Compliance

    With the rise in data breaches and regulatory requirements, there is a heightened emphasis on security within the cloud object-storage market. Companies are prioritizing solutions that offer robust encryption, access controls, and compliance with industry standards. This focus on security is likely to shape purchasing decisions moving forward.

    Integration of Advanced Analytics

    The integration of advanced analytics tools into cloud object-storage solutions is gaining traction. Organizations are looking to harness the power of data analytics to derive insights from their stored information. This trend suggests a shift towards more intelligent storage solutions that not only store data but also provide actionable insights.

    US Cloud Object Storage Market Drivers

    Regulatory Compliance and Data Governance

    The cloud object-storage market is significantly influenced by the need for regulatory compliance and data governance. Organizations are increasingly required to adhere to stringent regulations regarding data protection and privacy, such as the CCPA and GDPR. Compliance with these regulations necessitates robust data management practices, which cloud object-storage solutions can provide. Companies are investing in storage systems that offer advanced security features, including encryption and access controls, to ensure compliance with legal requirements. This focus on regulatory compliance is likely to drive growth in the cloud object-storage market, as businesses seek solutions that not only meet their storage needs but also align with regulatory standards. The ability to demonstrate compliance can enhance an organization's reputation and build trust with customers, further incentivizing the adoption of cloud object-storage solutions.

    Shift Towards Cost-Effective Data Management

    Cost management remains a critical focus for organizations in the cloud object-storage market. As businesses seek to optimize their IT budgets, the shift towards cost-effective data management solutions is becoming increasingly pronounced. According to recent data, organizations can save up to 40% on storage costs by migrating to cloud object-storage systems compared to traditional on-premises solutions. This financial incentive is compelling many companies to adopt cloud-based storage, as it not only reduces capital expenditures but also minimizes ongoing maintenance costs. Furthermore, the pay-as-you-go pricing model offered by many cloud providers allows businesses to align their storage expenses with actual usage, enhancing financial predictability. This trend towards cost-effective data management is likely to continue shaping the cloud object-storage market, as organizations prioritize budget-friendly solutions that do not compromise on performance.

    Growing Demand for Scalable Storage Solutions

    The cloud object-storage market is experiencing a notable surge in demand for scalable storage solutions. As organizations increasingly generate vast amounts of data, the need for flexible storage options becomes paramount. This trend is particularly evident in sectors such as healthcare and finance, where data volumes are projected to grow by over 30% annually. Companies are seeking cloud object-storage solutions that can seamlessly scale to accommodate their expanding data needs without incurring prohibitive costs. The ability to dynamically adjust storage capacity allows businesses to optimize their operational efficiency while managing expenses effectively. This growing demand for scalable solutions is likely to drive innovation and competition within the cloud object-storage market, as providers strive to offer more robust and adaptable services to meet customer requirements.

    Increased Focus on Data Accessibility and Collaboration

    In the cloud object-storage market, the emphasis on data accessibility and collaboration is becoming increasingly vital. Organizations are recognizing the importance of enabling their teams to access and share data seamlessly, regardless of location. This trend is particularly relevant in industries such as technology and media, where collaboration is essential for innovation and productivity. Cloud object-storage solutions facilitate real-time data sharing and collaboration, allowing teams to work together more effectively. As remote work becomes more prevalent, the demand for accessible storage solutions is likely to grow. Companies are investing in cloud object-storage systems that support collaborative workflows, which may enhance overall operational efficiency. This increased focus on data accessibility and collaboration is expected to drive further adoption of cloud object-storage solutions across various sectors.

    Emergence of Artificial Intelligence and Machine Learning

    The integration of artificial intelligence (AI) and machine learning (ML) technologies is poised to transform the cloud object-storage market. These advanced technologies enable organizations to analyze vast amounts of data more efficiently, unlocking valuable insights that can drive decision-making. As AI and ML applications become more prevalent, the demand for cloud object-storage solutions that can support these technologies is likely to increase. Companies are seeking storage systems that can handle the high data throughput required for AI and ML workloads, which may lead to innovations in storage architecture. Furthermore, the ability to leverage AI and ML for data management can enhance operational efficiency and reduce costs. This emergence of AI and ML in the cloud object-storage market suggests a future where intelligent storage solutions become the norm, driving further advancements in the industry.

    Market Segment Insights

    By Service: Professional Services (Largest) vs. Managed Services (Fastest-Growing)

    In the US cloud object-storage market, the service segment is prominently represented by Professional Services, which holds a substantial share due to its comprehensive offerings that include consulting, implementation, and integration. Managed Services, while smaller in comparison, is swiftly capturing market attention and showcases a growing preference among businesses for outsourcing their cloud storage management needs, driving competition and innovation in the sector. Growth trends indicate a strong inclination towards Managed Services as organizations prioritize efficiency and scalability. The shift towards hybrid cloud solutions and increasing data management complexities compel businesses to seek expertise in cloud strategies. Consequently, providers of Managed Services are experiencing rapid adoption, enhancing their service portfolios to meet evolving customer needs, ensuring a dynamic growth trajectory in the market.

    Professional Services: Dominant vs. Managed Services: Emerging

    Professional Services are integral to the success of the US cloud object-storage market, offering essential consulting and strategic guidance that helps organizations navigate cloud deployment effectively. These services are characterized by their depth of expertise and personalized approaches, positioning providers as trusted partners in digital transformation. In contrast, Managed Services are an emerging force, appealing to businesses seeking to reduce operational burdens. By taking over cloud storage management, these service providers enable organizations to focus on core competencies, enhancing efficiency and ensuring cost savings. As both segments evolve, the interplay between the established reliability of Professional Services and the innovative agility of Managed Services defines the competitive landscape of the market.

    By Organization Size: Large Enterprises (Largest) vs. Small & Medium Enterprises (Fastest-Growing)

    In the US cloud object-storage market, Large Enterprises command a significant share, reflecting their extensive data storage needs and established infrastructure. With substantial budgets, they lean towards comprehensive solutions that offer robustness and scalability, leading to their dominance in the market. In contrast, Small & Medium Enterprises (SMEs) are rapidly growing, leveraging the cloud for flexibility and cost-effectiveness, thus reflecting a favorable shift towards more agile storage solutions that cater to their evolving requirements. The growth trajectory for these segments diverges significantly. Large Enterprises benefit from established relationships with leading cloud providers and ongoing investments in innovation, ensuring a steady demand for advanced storage capabilities. Meanwhile, SMEs are driven by factors such as digital transformation, the increasing adoption of remote work, and the necessity for affordable storage solutions. This dynamic landscape highlights the distinct needs and opportunities present within these segments, setting the stage for future market developments.

    Large Enterprises (Dominant) vs. Small & Medium Enterprises (Emerging)

    Large Enterprises are characterized by their considerable budgets and vast data management requirements, making them the dominant force in the US cloud object-storage market. They typically demand high-capacity solutions that provide enhanced security, reliability, and integration capabilities with other enterprise systems. This focus allows them to effectively manage large volumes of data which are essential for their operations. In contrast, Small & Medium Enterprises (SMEs) represent the emerging segment, showing rapid adoption of cloud-based storage due to its cost efficiency and scalability. SMEs are increasingly turning to these solutions to support their growth initiatives, benefit from technological advancements, and maintain competitive agility in a digital-first environment.

    By Cloud Deployment: Public Cloud (Largest) vs. Hybrid Cloud (Fastest-Growing)

    In the US cloud object-storage market, Public Cloud holds the largest market share, driven by its scalability, flexibility, and cost-effectiveness. It effectively caters to a variety of industries, offering seamless integration with existing applications. Hybrid Cloud, while currently smaller in share, is rapidly gaining traction due to rising demand for combined on-premises and cloud solutions that enhance data security and compliance without sacrificing accessibility. Growth trends in the US cloud object-storage market illustrate a clear shift towards Hybrid Cloud solutions as organizations recognize the need for a balance between public accessibility and private security. Factors such as increasing data volumes, regulatory pressures, and the necessity for disaster recovery are propelling Hybrid Cloud adoption, making it the fastest-growing segment as businesses seek solutions that cater to their diverse storage needs.

    Public Cloud (Dominant) vs. Hybrid Cloud (Emerging)

    Public Cloud remains the dominant player in the US cloud object-storage market, primarily due to its broad appeal, offering instant scalability and reduced infrastructure costs for businesses. This segment is characterized by pay-as-you-go pricing models, enabling organizations to only pay for the storage they consume. In contrast, Hybrid Cloud is emerging as a viable option for businesses that require a tailored storage solution. It combines the benefits of both public and private deployment, providing enhanced flexibility and compliance with data regulations. As companies increasingly grapple with complex data management issues, the Hybrid Cloud segment is poised for significant growth, appealing to those needing a hybrid approach to storage that balances cost with security.

    By End User: BFSI (Largest) vs. IT & Telecommunication (Fastest-Growing)

    In the US cloud object-storage market, the distribution of market share among end user segments shows BFSI as the largest segment, reflecting its substantial demand for secure and scalable storage solutions. Following closely, Social Media Platforms and Healthcare contribute significantly, while IT & Telecommunication and Others are emerging players with competitive shares. Each segment's growth varies, driven by unique industry requirements and digital transformation strategies. Growth trends indicate that BFSI is focusing on regulatory compliance and data security, which propels its demand for robust cloud storage. On the other hand, the IT & Telecommunication sector is witnessing rapid adoption of cloud solutions due to advancements in technology and an increased need for efficient data management. Social Media Platforms also continue to expand their storage capabilities to accommodate rising user-generated content, while Healthcare increasingly relies on cloud services to streamline operations and enhance patient data management.

    BFSI (Dominant) vs. IT & Telecommunication (Emerging)

    The BFSI segment in the US cloud object-storage market stands out as a dominant player due to its critical need for secure and compliant data storage solutions. Financial institutions are rapidly adopting cloud technology to improve operational efficiency and meet regulatory standards, with an emphasis on data integrity and security. Conversely, the IT & Telecommunication sector is emerging as a key player, driven by the rise of 5G and the need for enhanced data processing capabilities. This sector's demand for scalable and flexible storage options is increasing, as companies look to optimize their infrastructure and support the growing volume of data from digital services and applications.

    Get more detailed insights about US Cloud Object Storage Market

    Key Players and Competitive Insights

    The cloud object-storage market in the US is characterized by intense competition and rapid innovation, driven by the increasing demand for scalable and secure data storage solutions. Major players such as Amazon Web Services (US), Microsoft (US), and Google (US) dominate the landscape, each employing distinct strategies to enhance their market positioning. Amazon Web Services (US) continues to lead with a focus on expanding its service offerings and enhancing customer experience through continuous innovation. Microsoft (US) emphasizes integration with its existing software ecosystem, leveraging its Azure platform to provide seamless cloud solutions. Google (US) is concentrating on artificial intelligence (AI) capabilities, aiming to differentiate its services through advanced analytics and machine learning functionalities. Collectively, these strategies contribute to a competitive environment that is both dynamic and multifaceted.

    In terms of business tactics, companies are increasingly localizing their operations and optimizing supply chains to enhance service delivery and reduce latency. The market structure appears moderately fragmented, with a mix of established giants and emerging players like DigitalOcean (US) and Wasabi Technologies (US) carving out niches. The collective influence of these key players shapes pricing strategies and service offerings, fostering an environment where innovation is paramount.

    In October 2025, Amazon Web Services (US) announced the launch of its new "S3 Intelligent-Tiering" feature, which automatically moves data between two access tiers based on changing access patterns. This strategic move is significant as it not only enhances cost efficiency for customers but also positions AWS as a leader in intelligent data management solutions. By automating data storage decisions, AWS strengthens its value proposition in a market increasingly focused on operational efficiency.

    In September 2025, Microsoft (US) unveiled its "Azure Blob Storage" enhancements, which include improved security features and integration with its AI tools. This development is crucial as it aligns with the growing emphasis on data security and compliance, particularly in regulated industries. By enhancing its storage solutions, Microsoft reinforces its commitment to providing comprehensive cloud services that meet diverse customer needs.

    In August 2025, Google (US) expanded its cloud storage capabilities by introducing a new tier of storage optimized for machine learning workloads. This initiative is particularly relevant as it caters to the rising demand for AI-driven applications, positioning Google as a frontrunner in the intersection of cloud storage and AI technology. Such strategic advancements not only attract new customers but also deepen existing relationships with enterprises focused on digital transformation.

    As of November 2025, the competitive trends in the cloud object-storage market are increasingly defined by digitalization, sustainability, and AI integration. Strategic alliances among key players are shaping the landscape, fostering innovation and enhancing service offerings. The shift from price-based competition to a focus on technological advancement and supply chain reliability is evident. Moving forward, competitive differentiation will likely hinge on the ability to innovate and adapt to evolving customer demands, with a strong emphasis on sustainable practices and advanced technological integration.

    Key Companies in the US Cloud Object Storage Market market include

    Industry Developments

    Recent developments in the US Cloud Storage Market have seen increasing competition among leading companies, including Amazon, Microsoft, and Google, all vying for a share of the expanding demand driven by digital transformation. SAP and Oracle are enhancing their cloud services portfolios, focusing on integration and AI capabilities. In October 2023, Oracle announced a strategic partnership with a cybersecurity firm to bolster its cloud security offerings, responding to escalating data privacy concerns. Additionally, Backblaze launched new backup solutions aimed at small and medium-sized businesses, reflecting the growing segment of organizations seeking cost-effective cloud storage options.

    The market has experienced significant mergers and acquisitions; in September 2023, Veeam acquired a competitor to expand its enterprise cloud backup solutions, while Dropbox entered a collaboration with Salesforce to enhance customer workflows. Moreover, the market valuation of various companies has surged, impacting growth prospects, with most reporting increases in revenues attributed to heightened adoption of cloud storage solutions. In July 2022, Wasabi made headlines by securing a substantial investment to fuel expansion into the enterprise sector. All these activities underline a dynamic and rapidly evolving US Cloud Storage Market landscape, shaped by technological advancements and user demands.

    Future Outlook

    US Cloud Object Storage Market Future Outlook

    The cloud object-storage market is projected to grow at 11.67% CAGR from 2024 to 2035, driven by increasing data generation, demand for scalability, and cost efficiency.

    New opportunities lie in:

    • Development of hybrid cloud solutions for enhanced data management.
    • Integration of AI-driven analytics for optimized storage utilization.
    • Expansion of edge computing capabilities to reduce latency in data access.

    By 2035, the market is expected to achieve substantial growth, reflecting evolving technological demands.

    Market Segmentation

    US Cloud Object Storage Market Service Outlook

    • Professional Services
    • Managed Services

    US Cloud Object Storage Market End User Outlook

    • Social Media Platforms
    • BFSI
    • IT & Telecommunication
    • Healthcare
    • Others

    US Cloud Object Storage Market Cloud Deployment Outlook

    • Public Cloud
    • Private Cloud
    • Hybrid Cloud

    US Cloud Object Storage Market Organization Size Outlook

    • Large Enterprises
    • Small & Medium Enterprises (SMEs)

    Report Scope

    MARKET SIZE 2024 1824.0(USD Million)
    MARKET SIZE 2025 2036.86(USD Million)
    MARKET SIZE 2035 6144.0(USD Million)
    COMPOUND ANNUAL GROWTH RATE (CAGR) 11.67% (2024 - 2035)
    REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
    BASE YEAR 2024
    Market Forecast Period 2025 - 2035
    Historical Data 2019 - 2024
    Market Forecast Units USD Million
    Key Companies Profiled Amazon Web Services (US), Microsoft (US), Google (US), IBM (US), Oracle (US), Alibaba Cloud (CN), DigitalOcean (US), Wasabi Technologies (US)
    Segments Covered Service, Organization Size, Cloud Deployment, End User
    Key Market Opportunities Integration of advanced security features to enhance data protection in the cloud object-storage market.
    Key Market Dynamics Rising demand for scalable solutions drives innovation and competition in the cloud object-storage market.
    Countries Covered US

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    FAQs

    What is the expected market size of the US Cloud Object Storage Market in 2024?

    The US Cloud Object Storage Market is expected to be valued at 1.82 USD billion in 2024.

    What will be the projected market value of the US Cloud Object Storage Market by 2035?

    By 2035, the overall market is anticipated to reach a valuation of 7.05 USD billion.

    What is the expected CAGR for the US Cloud Object Storage Market from 2025 to 2035?

    The expected CAGR for the US Cloud Object Storage Market from 2025 to 2035 is 13.077%.

    Which key players dominate the US Cloud Object Storage Market?

    Major players in the US Cloud Object Storage Market include Amazon Web Services, Microsoft, IBM, and Google among others.

    What are the projected revenues for Professional Services in the US Cloud Object Storage Market by 2035?

    The Professional Services segment is valued at 2.88 USD billion by 2035.

    How much is the Managed Services segment expected to be valued at in 2035?

    The Managed Services segment in the US Cloud Object Storage Market is projected to be valued at 4.17 USD billion in 2035.

    What are the key growth drivers for the US Cloud Object Storage Market?

    Increasing data generation and the need for efficient storage solutions are key growth drivers for the market.

    What challenges does the US Cloud Object Storage Market currently face?

    The market faces challenges such as data security concerns and compliance with regulations.

    How does regional competition influence the US Cloud Object Storage Market?

    Regional competition impacts service offerings and pricing strategies within the US Cloud Object Storage Market.

    What opportunities exist in the US Cloud Object Storage Market for new entrants?

    Emerging trends such as increased cloud adoption and hybrid storage solutions present opportunities for new entrants.

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