The GCC and Levant Data Storage Market, By Applications (Consumer Data Storage Devices (Hard Disk Drive (HDD), Solid State Devices (SSD), Memory Cards, Optical Disk, USB Flash Drives), Enterprise Data Storage Devices (Flash Storage and Hard Disks, Cloud-based Storage, Software-defined Storage and Hyper-converged Infrastructure)), By End Users (Residential and Commercial (SME Enterprise, Large Enterprise)), By Industry Verticals (BFSI, Healthcare, Government, Telecom and IT, Defense and Aerospace and Education) and By Regions (GCC (UAE, Kuwait, Saudi Arabia, Oman, Qatar and Bahrain) and Levant (Turkey, Israel, Egypt, Lebanon, Jordan, Cyprus and Rest of Levant)- GCC and Levant Forecast to 2027”, is expected to be valued at US$ $ 8,556.4 million by 2027, exhibiting a CAGR of 14.4% during the forecast period (2020-2027), as highlighted in a report published by Coherent Market Insights.
Data storage is the process of recording information in a storage medium such as compact disc, cloud, memory card, HDD, SDD, and more. Electronic data storage needs electric power to store and retrieve data. Technological advancements in information and social technology have led to growth in data storage. Small and medium-sized enterprises (SMEs) are increasingly leveraging big data and the internet of things (IoT)-enabled services to expand their presence in the storage market. GCC and Levant data storage market focuses on two major regions namely GCC and Levant.
The GCC and Levant data storage market was valued US$ 2,937.5 Mn in 2019 and expected to reach US$ 8,556.4 Mn by 2027.
Constantly declining prices of consumer storage devices are expected to boost growth of the GCC and Levant data storage market during the forecast period
Continuously declining prices of consumer storage devices such as SDD and HDD are major driving factors for market growth. Technological advancements in 3D NAND technology has been key in the consumer storage industry. As a result of this, SDD capacities have significantly increased, while its prices have reduced. Growing presence of regional players in the market is further cementing competition and in turn, reducing average selling prices of consumer storage devices. Hence, these factors are expected to support the GCC and Levant data storage market growth over the forecast period.
High growth of storage flash array market can provide major business opportunities
Storage flash arrays are storage systems that contain solid-state units rather than a hard disk. Flash-based devices minimize data access time and enhance an application’s performance speed. Data storage solutions vendors are expected to leverage huge benefits from the growing storage flash array market owing to the demand for solid-state drives (SSD) and memory cards.
Rising complexities created by data-incentive applications are expected to restrain growth of the GCC and Levant data storage market during the forecast period
Data-intensive applications such as simulation and modeling create huge amounts of complex data. In order to store and process this data, high-performance solutions that can manage escalating data capacities are of utmost importance. Hence, vendors in the enterprise data storage market have an opportunity to introduce high-performance computing solutions with
Rising adoption of cloud computing
Key companies in the market are focused on providing enhance cloud computing solutions by collaborating with each other. For instance, in June 2014, IBM Corporation announced plans to build a cloud eco-system in Cairo by providing computing expertise to 100 companies based in Egypt. The objective of this strategic move is to propel growth of cloud computing applications, expertise, and knowhow for ‘Applications as a Service (AAS)’ in the market, which in turn would drive innovation and IT development in the region.
Massive shift of data centers towards cloud infrastructure
The IT sector in Lebanon is growing rapidly in Middle East. The promising performance of the sector is mainly attributed to increasing investment in broadband connectivity and telecommunication infrastructure in the country. SMEs dominate the IT market in Lebanon. Most of these companies are engaged in development of mobile applications and software. Lebanon has massive shit of data centers towards cloud infrastructure among enterprises. Various cloud services offerings such as IaaS, PaaS, and SaaS have witnessed traction in recent years. This growth in adoption of cloud services is mainly due to various advantages offered by the cloud infrastructure, including pay as peruse and increased scalability and flexibility.
Increasing awareness with the help of technical conferences
Major companies in Jordan are focused on organizing technical conferences to enhance awareness regarding data storage among end users. In March 2015, Optimiza and Microsoft Jordan co-organized an event that was aimed at exhibiting the benefits of cloud computing platform for business organizations and educating IT professionals in the country about Microsoft Azure—the company’s cloud computing platform.
In December 2014, Kuwait released executive regulations for its Foreign Direct Investment (FDI) Law, No. 116 of 2013, which removed a 49% foreign ownership cap on most non-oil businesses operating in the state. In line with this, IBM Corporation commenced operations in Kuwait through its wholly-owned facilities. The firm has announced plans for further expansion by partnering with local industry players in order to introduce cloud computing services in the country.
In May 2015, United Business Group (UBG) partnered with IBM Cloud to transform its business into a managed service provider. As per the agreement, IBM and UBG will provide a flexible hybrid cloud platform to Kuwait-based enterprises.
One of the significant limitations of Kuwait in the ICT sector is the absence of an independent regulatory body. Due to this, the country was ranked 72 in terms of Networked Readiness Index (NRI) by The World Economic Forum's Networked Readiness Index (NRI).
Key players operating in the GCC and Levant data storage market are Nexenta Systems, IBM Corporation, EMC Corporation (Dell Inc.), Microsoft Corporation, Hitachi Data Systems (Hitachi Ltd), VMware, Inc., Sandisk Corporation, Hewlett Packard Enterprise Co., Open Text Corp., DataDirect Networks (DDN), and NetApp Inc.