Australia’s enterprise storage market is set to shrink by 7.5 per cent in 2020 as a result of customer spending cuts driven by the coronavirus pandemic.
According to a report by GlobalData, the wide scale postponement of new office set-ups due to the pandemic will also have a negative impact on the market during the year.
However, the market is predicted to enter a “a quick recovery” next year and then grow by a compound annual growth rate (CAGR) of 5.7 per cent between 2019 and 2024.
Small-to-medium-sized businesses will generate the majority share of revenues for the enterprise storage market in Australia through 2024.
Meanwhile, large enterprises will become the fastest growing segment due their digital transformation strategies and high capacity storage requirements, the analyst firm said.
“As enterprises re-prioritise 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,” said Nidhi Gupta, technology analyst at GlobalData.
Although storage hardware will still dominate the revenue figures for Australia’s overall storage market until 2024, software-defined storage platforms and applications will start to close the gap.
As more enterprises begin to rely on cloud services, the demand for storage from cloud service providers and data centre companies will emerge, GlobalData said.