The global cloud storage gateway market was valued at US$927.195 million in 2020 and is projected to expand at a CAGR of 19.43% over the forecast period to reach US$3,214.214 million by 2027.
A Cloud storage gateway aids the connectivity between a cloud storage infrastructure to any information technology environment and facilitates the storage, encryption, as well as replication of data. Primary factors driving the growth of the market encapsulate the high availability of data, availability for use on-demand, cost-effectiveness, the ability to function, and flexibility in choosing providers as per the requirement. The growth of the market has been creating lucrative opportunities for vendors of these services. However, key restraining factors to this market growth are huge capital investment and lack of skilled personnel. Regionally, the Americas are expected to dominate the cloud storage gateway market over the projected period due to the high adoption of cloud storage gateways by SMBs.
The burgeoning demand for low-cost data backup, protection across every company, and storage is the cause of the growing use of cloud storage across various industries, including healthcare, BFSI, media, and entertainment. Vast spending on cutting-edge IT solutions, proper knowledge of the use of cloud-based solutions, and a rise in acceptance of cloud storage gateways are additional drivers driving the growth of the cloud storage market. As cloud storage does not require an on-premise data center or other maintenance/service fees, it requires a low initial investment. Further, according to Cisco, businesses that encourage the BYOD practice among their employees might save up to US$ 350 per user annually. Further, in accordance with the Financial Impact of the BYOD study, workers begin with their tasks as soon as they are assigned to them, doing them quicker and gaining a few extra minutes. The demand for a cloud storage gateway is expected due to this development, as it enables a company to migrate its workload to the cloud.
Healthcare Industry offers Potential Growth
The healthcare industry is gradually moving towards Health information technology, which provides crucial life-saving functions, consists of connected networked systems, and makes use of wireless technologies, leaving such systems more susceptible to data breaches. Further, the healthcare industry is one of those industries which was impacted severely by the data breach. This impact is mainly due to the significantly low IT budget compared to the other private firms. According to the US Department of Health and Human Services, the healthcare industry has continued to lead the number of incidents. Additionally, according to HIPAA, healthcare data breaches are reported more than once on a daily basis. For instance, at Yuma Regional Medical Centre in Arizona, the hospital recently disclosed that it went through a ransomware attack that exposed the data of over 700,000 individuals. The necessity for a cloud storage gateway has thus increased because the healthcare sector deals with extremely sensitive and personal data and relies on encryption for the protection of that data. For instance, King Hamad University Hospital and Bahrain Oncology Centre encountered storage space issues due to the exponential rise in their on-site storage requirements, primarily due to the annual increase in medical image storage. In June 2022, KHUH decided to use AWS for the storage of medical image data in the cloud, foreseeing the rising demand for cloud storage.
Thus, the cloud storage gateway market is projected to undergo an immense opportunity in the future, due to the increasing database in the healthcare sector and the shift towards the cloud for the protection of the database.
Privacy and security concerns are predicted to act as restraints for the growth in the cloud-based storage gateway market. The most significant components of the cloud storage ecosystem are data security and confidentiality. It is forecasted that strict government policies and restrictions on cloud computing would limit market expansion. For instance, the Indian government added a provision in the Information Technology Act declaring that any illegal activity with regard to computing models that contain private information will be punished. Such laws and rules could thus constrain development in the market.
Due to the rising adoption of software as a service, infrastructure as a service, and platform as a service by enterprises to handle virtual work, the COVID-19 pandemic has catalyzed the demand for cloud-based storage. According to a cloud survey conducted by EY-NASSCOM in February 2022, 67% of large enterprises increased their cloud adoption, while only 38% of small organizations started their cloud journey. During the pandemic, small and medium-sized businesses dominated the market.
Frequently Asked Questions (FAQs)
Q1. What will be the cloud storage gateway market size by 2027?
A1. The cloud storage gateway market is projected to reach a total market size of US$3,214.214 million in 2027.
Q2. What is the size of the global cloud storage gateway market?
A2. Cloud Storage Gateway Market was valued at US$927.195 million in 2020.
Q3. What are the growth prospects for the cloud storage gateway market?
A3. The global cloud storage gateway market is projected to grow at a CAGR of 19.43% during the forecast period.
Q4. What factors are anticipated to drive the cloud storage gateway market growth?
A4. Primary factors driving the cloud storage gateway market growth encapsulate the high availability of data, availability for use on-demand, cost-effectiveness, the ability to function, and flexibility in choosing providers as per the requirement.
Q5. Which region holds the largest share of the cloud storage gateway market?
A5. The Americas are expected to dominate the cloud storage gateway market over the projected period due to the high adoption of cloud storage gateways by SMBs.
1.1. Market Overview
1.2. Covid-19 Scenario
1.3. Market Definition
1.4. Market Segmentation
2. RESEARCH METHODOLOGY
2.1. Research Data
3. EXECUTIVE SUMMARY
3.1. Research Highlights
4. MARKET DYNAMICS
4.1. Market Driver
4.2. Market Restraints
4.3. Porters Five Forces Analysis
4.3.1. Bargaining Power of End-Users
4.3.2. Bargaining Power of Buyers
4.3.3. Threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis
5. GLOBAL CLOUD STORAGE GATEWAY MARKET, BY TYPE
5.2. Pure Software
5.3. Virtual Appliance
5.4. Physical Appliance
6. GLOBAL CLOUD STORAGE GATEWAY MARKET, BY DEPLOYMENT
7. GLOBAL CLOUD STORAGE GATEWAY MARKET, BY INDUSTRY VERTICAL
7.7. Consumer Electronic
7.8. Media and Entertainment
8. GLOBAL CLOUD STORAGE GATEWAY MARKET, BY GEOGRAPHY
8.2. North Americas
8.2.1. United States
8.3. South America
8.4.1. United Kingdom
8.5. Middle East and Africa
8.5.1. Saudi Arabia
8.6. Asia Pacific
8.6.4. South Korea
9. COMPETITIVE ENVIRONMENT AND ANALYSIS
9.1. Major Players and Strategy Analysis
9.2. Emerging Players and Market Lucrativeness
9.3. Mergers, Acquisitions, Agreements, and Collaborations
9.4. Vendor Competitiveness Matrix
10. COMPANY PROFILES
10.1. Agosto Inc.
10.2. Amazon Web Services, Inc.
10.3. Ctera Network Ltd.
10.4. Dell Inc.
10.5. Hewlett Packard Enterprise Development L.P
10.6. Oracle Corporation
10.7. Riverbed Technology
10.8. Rackspace Hosting, Inc.
10.9. Microsoft Corporation
10.10. Alibaba Group
Amazon Web Services, Inc.
Hewlett Packard Enterprise Development L.P
Rackspace Hosting, Inc.
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