Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
A storage area network refers to a high-speed network, which interconnects and presents a shared band of storage devices to various servers. SANs are typically helpful in backup and disaster recovery settings. SANs are used to enhance the capacity of mass storage devices such as optical jukeboxes, tape libraries, and disk arrays that have access to servers. Increasing volumes of critical data being accumulated in the global business environment have led to an increased need for better performances, manageability, availability, and security of data storage assets among enterprises. Furthermore, many enterprises are focused on implementing specialized storage networks that can aid businesses in attaining operational efficiencies.
The global Storage Area Network (SAN) Market was accounted for US$ 17,823.4 Mn in terms of value in 2019 and is expected to grow at CAGR of 3.5% for the period 2020-2027.
Market Dynamics- Drivers
- Rising demand for efficient backup operations is expected to drive growth of the global storage area network (SAN) market during the forecast period
Previously, in a conventional approach, LAN was used for data back-up and restore functions that are particularly slow and majorly impact efficiency of the whole operation. On the contrary, in SAN approach, data moves smoothly across the SAN to tape devices as it does not utilize critical server I/O or CPU resources. Several issues can be improved with the integration of high-performance backup and restore capabilities with data availability and device sharing. This includes performance degradation, extended downtime periods, and shrinking backup windows. However, increase in the overall server efficiency with server-less backup offered by SAN architecture is fueling adoption of SAN across various verticals. Thus, these factors are expected to drive growth of the market in the near future.
- Growing adoption of SANs among SMEs is expected to propel the global storage area network (SAN) market growth over the forecast period
Increasing usage of SANs among small and medium-sized enterprises (SMEs) is expected to boost the market growth, especially in emerging economies. This adoption of SANs among smaller organizations is mainly driven by the benefits offered by SANs such as flexibility, shared storage, and centralized control, in order to share capacity between multiple hosts. As a result of this, major SAN solution providers are constantly focused on products that are easy to use and are cost-effective for smaller enterprises, which in turn, is expected to boost the global storage area network (SAN) market growth over the forecast period.
North America held dominant position in the global Storage Area Network (SAN) market in 2019, accounting for 36.8% share in terms of value, followed by Europe and Asia Pacific, respectively
Figure 1: Global Storage Area Network (SAN) Market Share (%), in terms of Value, By Region, 2019
Market Dynamics- Restraints
- Major challenges associated with interoperability are expected to hamper the global storage area network (SAN) market growth over the forecast period
Several standards have been developed for FibreChannel technology. Different interpretations of these standards by vendors have resulted in development of products that sometimes cannot work together on the same network. Such issues related to interoperability are impacting growth of the SAN market globally. Hence, these factors are expected to hamper the global storage area network (SAN) market growth over the forecast period.
- Increasing adoption of cloud-based storage services in emerging economies is expected to restrain growth of the global storage area (SAN) market during the forecast period
Previously, storage and servers were purchased as separate IT infrastructure components by various groups within the IT department and under different parts of the IT budget. However, increasing adoption of cloud-based platforms has altered the approach. Furthermore, rising adoption of virtualization techniques in server and storage has provided a massive shift in procurement and deployment of data center infrastructure. Many enterprises are moving towards purchasing individual physical servers connected to SANs to modular reference architectures, which include every component needed to operate various applications. Thus these factors are expected to restrain growth of the global storage area (SAN) market in the near future.
- Rising penetration of e-commerce websites can provide significant growth opportunities
Growing proliferation of e-commerce websites has increased adoption of online channels among consumers. These e-Commerce applications are highly resource-intensive, owing to the kind of requests that are processed simultaneously per second. Thousands of customers visit, make orders and pay, per second, and all this information is needed to be stored in the database for later retrieval. SANs are being used to store information about high traffic databases, owing to high performance and rapid I/O characteristics.
- Growing demand for extending remote data application capabilities of SANs can offer major business opportunities
Currently, the demand for SANs from enterprises with remote data replication capabilities extended beyond campus environments and the limited distance ranges of SCSI has been witnessing a significant increase. This trend is supported by development of advanced technologies such as SONET (Synchronous Optical Networking) and ATM (Asynchronous Transfer Mode). For instance, SONET offers a 50- millisecond recovery time, along with extremely high resiliency, making it a preferred choice over other transport technologies including FibreChannel.
Figure 2: Global Storage Area Network (SAN) Market Value (US$ Mn), 2017 - 2027
The global Storage Area Network (SAN) market was valued at US$ 17,823.4 Mn in 2019 and is forecast to reach a value of US$ 23,471.8 Mn by 2027 at a CAGR of 3.5% between 2020 and 2027.
- North America Trend
After several years of fiscal gloom, optimism is returning to the IT sector in North America. IT enterprises are intensifying spending on services along with hiring new workforce. IT enterprises are preparing to speed ahead rapidly with projects in potential areas of big data, mobile, and the cloud. In March 2015, the U.S. government offered to augment its IT investment for the third year in a row. Moreover, the U.S. Government is investing significantly in shared services and cloud services for IT requirements, hence total expenditure on in-house IT solutions to result in comparatively lower growth.
- Latin America Trends
A number of companies in Latin America are focused on cost reduction and converting capital expenditure into operational expenditure. Growing adoption of outsourcing concepts is expected to offer major growth opportunities for IT infrastructure outsourcing services in the region. Frequent introduction of new concepts in the IT sector such as big data, cloud computing, and bring your own device (BYOD) has made it challenging and complex for companies to manage their own data. Hence, these companies are dependent upon IT infrastructure outsourcing service providers to streamline tasks related to data storage and management.
In global Storage Area Network (SAN) Market, by End-User, Large Enterprises sub-segment dominated the global market in 2019, accounting for 79.3% share in terms of value, followed by SMEs.
Key players involved in the global storage area network (SAN) market are IBM Corporation, Brocade Communications Systems, Inc., Dell Inc., QLogic Corporation, Citrix Systems, Inc., Hitachi Data Systems, NetApp, Inc., Hewlett-Packard Company, DataCore Software, NEC Corporation, Nutanix, and Cisco Systems, Inc.
- Major companies are focused on mergers and acquisitions, in order to gain a competitive edge in the market. For instance, in Brocade Communications Systems, Inc., a U.S.-based provider of semiconductor devices, Brocade Communication System Inc., a data storage company.
- Key players in the market are involved in product launches, in order to expand product portfolio. For instance, in January 2017, Hitachi Data Systems introduced its next-generation line-up storage system Hitachi Adaptable Modular Storage (AMS) 2000 Series.