Enterprise Server San Market

-Deployment Type -On-Premises -Cloud -Hybrid The “on-premises” deployment type segment is expected to remain the largest segment. Data control and security are the foremost priorities of the organizations that choose on-premises solutions. On-premise deployment involves hosting the SAN infrastructure in a local data center and has become the most favored choice for many organizations. These solutions confer full control over data and infrastructure, meeting security and compliance needs of user organizations. However, this installation requires a hefty investment for hardware, software, and expert staff to run and maintain the infrastructure.

The “cloud” deployment segment is expected to grow at the highest rate with the CAGR of 7.2%. Technologies including server-less computing and cloud computing are replacing the traditional data center. It offers organizations flexibility of scaling the infrastructure up and down based on their business requirements, thus the pay-as-you-go model. The cloud deployment delivers SAN services through cellular connectivity and helps in reducing cost by paying for the resources an organization uses. The “hybrid” deployment segment is expected to grow and register the third-highest CAGR in the Enterprise Server San Market.

The Enterprise Server San Market is segmented by Form Factor into Rackmount, Blade, Disk-to-Disk, and Hybrid. In 2023, the Rackmount segment held the largest market share of 45%, followed by Blade with 30%, Disk-to-Disk with 15%, and Hybrid with 10%. The Rackmount segment is expected to continue to dominate the market in the coming years, due to its versatility and scalability. The Blade segment is expected to grow at a faster rate than the other segments, due to its compact size and high performance.

The Disk-to-Disk segment is expected to remain stable, while the Hybrid segment is expected to grow at a moderate rate.

Storage Media The storage media segment is a crucial component of the Enterprise Server San Market, encompassing various technologies used to store and retrieve data on enterprise servers. Key storage media types include Hard Disk Drives (HDDs), Solid State Drives (SSDs), and Hybrid storage solutions. HDDs have traditionally dominated the market due to their cost-effectiveness and high storage capacities. However, the advent of SSDs has brought about significant advantages in terms of speed, reliability, and power consumption. As a result, SSDs are rapidly gaining traction in the enterprise segment, driven by the need for faster data processing and real-time analytics.

Hybrid storage solutions combine HDDs and SSDs to offer a balance between cost and performance. They utilize SSDs for frequently accessed data and HDDs for bulk storage, providing an optimal blend of speed and capacity. The growing adoption of hybrid storage is expected to fuel market growth in the coming years. In 2023, the Enterprise Server San Market for Storage Media was valued at USD 12.3 billion, with SSDs accounting for the largest share of revenue. The market is projected to reach USD 17.1 billion by 2032, expanding at a CAGR of 4.2% during the forecast period.

The Connectivity segment plays a pivotal role in the Enterprise Server San Market, influencing data transfer speeds, reliability, and scalability. Fibre Channel (FC) held a dominant position in 2023, accounting for nearly half of the market revenue. Its long-standing presence and established ecosystem continue to drive its popularity. Ethernet (iSCSI, NFS) has gained significant traction due to its cost-effectiveness and ease of deployment, capturing a sizable market share. InfiniBand, known for its high bandwidth and low latency, caters to demanding applications such as High-Performance Computing (HPC) and Artificial Intelligence (AI).

NVMe-over-Fabrics (NVMe-oF) is an emerging technology that leverages NVMe's high-speed capabilities over Ethernet or Fibre Channel networks, offering potential for future growth in the Enterprise Server San Market. Market data suggests that the Connectivity segment is expected to witness steady growth in the coming years, driven by increasing data volumes, cloud adoption, and the need for efficient and reliable data transfer solutions.

The Enterprise Server San Market is segmented by Capacity into Less than 100 TB, 100-500 TB, 500-1,000 TB, and More than 1,000 TB. Among these segments, the More than 1,000 TB segment is expected to witness the highest growth during the forecast period. The growth of this segment can be attributed to the increasing demand for high-capacity storage solutions by enterprises. Enterprises are increasingly adopting cloud computing and virtualization technologies, which require large amounts of storage capacity. Additionally, the growing adoption of big data analytics and artificial intelligence (AI) applications is also driving the demand for high-capacity storage solutions.

In 2023, the More than 1,000 TB segment is expected to account for around 45% of the Enterprise Server San Market revenue.