India's external storage market witnessed a 14.8% YoY growth in Q2 CY 2021: IDC

The external storage systems market is expected to grow at a single-digit compounded annual growth rate for the 2020 – 2025 period.

India’s external storage market witnessed a growth of 14.8% year-over-year (YoY) by vendor revenue and stood at $73.7 million in Q2 2021 (April – June), as per the latest quarterly enterprise storage systems tracker by IDC.

The quarter witnessed YoY growth in storage spending from the government, and manufacturing verticals, while it observed a sharp decline in contribution from BFSI, professional services, and telecommunications verticals during the period, it said.

“Enterprises are forced to change their existing IT architectures to be adaptive and efficient while securing the workloads. Additionally, workloads are getting distributed to the edge, which is even more complicating things for organisations,” says Dileep Nadimpalli, Senior Research Manager, Enterprise Infrastructure, IDC India.

The adoption of All-Flash Arrays (AFA) was evident, contributing 34.4% to the overall external storage systems market in Q2 2021, said the tracker. The emergence of NVMe flash media would further drive the AFA market due to better cost vs. performance ratio across verticals. HDD arrays too saw strong growth in Q2 2021 due to uptake of backup appliances for data protection needs, it further said.

Entry-Level storage systems grew by 65.4% YoY due to increased investments from banking, government, professional services, and manufacturing organisations in Q2 2021. The high-end storage segment witnessed a YoY decline, however, this segment would see an uptake in the next couple of quarters, IDC predicted.

Dell Technologies continued to be the market leader in the external storage systems market with a 26.7% market share by vendor revenue, followed by HPE and NetApp in Q2 2021. Hitachi and IBM saw a YoY decline in Q2 2021, the market study reported.

IDC India Forecast

The external storage systems market is expected to grow at a single-digit compounded annual growth rate (CAGR) for the 2020 – 2025 period. Furthermore, the external storage systems spending is expected to grow YoY significantly in 2H 2021 due to large data localisation projects in BFSI segment and large government deals, as per IDC forecast.

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