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Australia’s enterprise storage revenue will maintain 5.7% CAGR until 2024

Australia’s enterprise storage revenue will maintain 5.7% CAGR until 2024

Following a decline in 2020, enterprise storage revenue in Australia will stage a quick recovery in 2021 and post 5.7% CAGR (Compound Annual Growth Rate) over the forecast period 2019-2024, driven by the need among enterprises for efficient storage power to support their digital transformation initiatives, according to GlobalData, a leading data and analytics company. 

The company forecasts enterprise storage revenue in Australia to decline by 7.5% Y-o-Y in 2020, following the ICT spending cuts seen among enterprises in response to the COVID-19 crisis. Slowdown or postponements of new office set-ups due to the pandemic will also have a negative impact on the market during the year.  

Nidhi Gupta, the Technology Analyst at GlobalData, explained for Finbold:

“As enterprises re-prioritize their investments on disruptive technologies like big data, artificial intelligence, automation and blockchain technologies as a part of their digital transformation strategies, the need for storage power necessary to capture huge data sets that these technologies are typically associated with will also help drive growth in Australian storage market over the forecast period.” 

In addition, with more and more enterprises beginning to rely on cloud services, the demand for storage in the coming years will emerge from cloud service providers and data center companies.  

The demand for remote accessibility

While storage hardware/resources has been the largest revenue contributing segment for the overall storage market in Australia and will remain so through the forecast period, there has been a growing traction towards software defined storage platforms and applications in recent times.   

Benefits such as freedom from hardware vendor lock-in, remote accessibility, high level of flexibility and scalability of storage power, and interoperability with legacy storage infrastructure are driving the popularity of software defined storage market in the country.   

Ms. Gupta concludes: “Although SMEs will continue to generate majority share of revenues for enterprise storage market in Australia through 2024, large enterprises, given their long-term digital transformation strategies and high capacity storage requirements, will be the fastest growing segment for enterprise storage in the country.”  

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Jeremy is a content crafter and has experience in writing about finances and digital assets for over 5 years. At Finbold.com he covers news related to finance, regulations, startups and cybersecurity on a daily basis.