Market Insight- Global Flash-based Array Market 2017-2027
Flash-based array refers to a repository, drive, and system, which facilitates storage of information/data on conventional disk memory devices as well as flash for a long period of time. There are two types of products in flash-based array namely hybrid flash array and all-flash array. All-flash array (AFA) is a network-based storage system that utilizes flash media to fulfill the requirements of performance and capacity of data delivery and storage. AFA is developed flash-based and SSD-based architecture. Furthermore, hybrid flash array (HFA) is external storage that utilizes HDDs and SDDs to fulfill the requirements of performance and capacity. HFA incorporates flash memory and spinning disk to provide cost effective storage systems.
The global flash-based array market was valued for US$ 27,888.8 Mn in 2019.
Market Dynamics- Driver
- Ability to provide high-end performance is expected to drive growth of the global flash-based array market during the forecast period
High performance capabilities are one of the major reason for boosting the adoption of flash-based array. Hybrid flash-based array and all-flash array are developed with SSD technology, enabling them with relatively higher speed data mobility as compare to conventional storage devices such as HDD. Furthermore, HDD causes unavoidable overhead cost of scanning disk. In fact, the fastest 15 RPM HDD may not be able to survive with high-traffic environments since it would need extra RAM, disk, and caching to function properly in high-traffic environments. This, in turn, increases overall hardware costs. Since SSD has no physical tracks or sectors and thus has no physical seek limits, it facilitates faster storage and accessibility of data than HDD and also offers high performance capabilities for enterprise data storage. According to NetApp’s input/output operations per second (IOPS) comparative study, HDD delivers 40–180 IOPS (Input output per second) and SSD offers 1000 IOPS. This vast performance difference between HDD and SSD is a major factor driving growth of the global flash-based array market.
- Capability flash array of high performance transactional workloads is expected to propel the global flash-based array market growth over the forecast period
High performance transactional workloads across various sectors such as financial, e-Commerce, government sectors, and travel industry need high transaction rates with low response times for day-to-day business transactions. The conventional storage system fails to fulfill these requirements and thus, these industries are gradually shifting towards flash array storage systems for their critical business applications. For instance, NetApp EF-Series all flash arrays have been installed by Universal-Investment, which is a Germany-based investment company. After installation, the company has witnessed 100% performance improvement and has been enabled to deliver reliable financial services to customers.
North America region dominated the global flash-based array market in 2019, accounting for 34.3% share in terms of value, followed by Europe, and Asia Pacific respectively
Source: Coherent Market Insights
Market Dynamics- Restraints
- High upfront cost of flash array is expected to restrain growth of the global flash-based array market during the forecast period
Upfront cost of all-flash array is higher than cost of traditional storage systems. Initially, the enterprises need to invest a minimum of US$ 200,000 or more for installation. However, this is not suitable for small and medium-sized enterprises due to stringent budget constraints. This leads into small- and medium-sized organizations adopting traditional storage system, which in turn, is expected to restrain the global flash-based array market over the forecast period.
- Incompatible with all types of workloads are expected to hinder the global flash-based array market growth over the forecast period
Hybrid flash-based array is not compatible with all workloads, as it fails to provide low latency. Hybrid arrays offer better performance and do not result in lag time for customers because the algorithms used for hybrid arrays are different for HDD and SSD, and this creates latency issue in data delivery. Moreover, efficacy level changes whenever application load change to additional data is stored to disc. Hybrid flash arrays are suitable for some workloads, while other workloads require traditional storage systems, which in turn, are expected to hamper the global flash-based array market over the forecast period.
- Growing requirement for real-time data processing is expected to pose lucrative business opportunity
Increasing incorporation of cloud-computing, Internet of Things, machine learning, artificial intelligence, mobile devices, and cognitive systems are increasing the demand for real-time data processing, in order to deliver efficient services anytime and anywhere in the shortest time possible. Hence, this growing demand for real-time data processing is expected to present lucrative business opportunities in the near future.
- Growing demand for innovative flash solutions for unstructured data and big data is expected to provide major growth opportunity in the near future
Increasing penetration of big data and unstructured data has increased the demand for novel storage systems to store data for extended period of time. According to Coherent Market Insight’s analysis, unstructured data and big data volumes are expected exhibit a 44% CAGR in the near future. Furthermore, requirement of competent storage systems for big data and unstructured data is providing lucrative business opportunities. For instance, in March 2016, Pure Storage introduced Flashblade Array to target unstructured and big data, file-access workloads, where other vendors are yet to offer such solutions.
Source: Coherent Market Insights
Global flash-based array market, by storage capacity segment, between 500 TB to 1 PB sub-segment was accounted for 25.8% market share in 2019 and is expected to grow at a CAGR of 17.5% between 2019 and 2027.
Source: Coherent Market Insights
- Established storage system vendors are gaining significant traction in the market
The flash array start-ups started gaining significant traction initially, owing to introducing innovation of new products such as flash-based SSD, which is a non-movable drive that stores data on sold-state flash memory. Furthermore, start-ups delivered innovation in terms of technical development, which compelled established storage system vendors to include flash options in their storage products portfolio to sustain their propositions in the market.
- High competition in data storage market is a major trend in the market
The global flash-based array market is highly competitive where large storage system vendors such as Dell, HP, IBM, EMC, NetApp, and more are offering competitive solutions. This highly competitive environment is prompting continuously focus on ease of use, performance, reliability and scalability, prices, and global distribution channel. As a result, these vendors are introducing new features and offerings and reducing prices to sustain their position in the market.
Value Chain Analysis
Key companies operating in the global flash-based array market are Tintri, Inc., Hitachi Data Systems Corporation, IBM Corporation, Tegile Systems, Inc., Oracle Corporation, Kaminario Inc., Fujitsu Limited Pure Storage, Inc., Dell EMC, Hewlett Packard Enterprise Development LP, Huawei Technologies Co. Ltd., and NetApp, Inc.
- Key companies in the market are focused on product launch, in order to expand their product portfolio. For instance, in January 2017, Dell EMC introduced a framework called ProDeploy Client Suite, which has different service levels, training, and certification. It allows customer the flexibility to choose specific services according to their need.
- Major market players are involved in product launch, in order to gain competitive edge in the market. For instance, in July 2018, Tintri, Inc. introduced flash-based virtual workflow efficiency tool.