Enterprise cloud storage spending is projected to more than double by 2028, reaching $128 billion from $57 billion in 2023, as reported by Omdia in its annual Storage Data Services report. This surge reflects a robust expansion driven primarily by the increasing adoption of cloud infrastructure and platform-as-a-service (IaaS and PaaS) solutions.
Among cloud service providers, AWS leads the storage segment with a 30% share of total revenue, followed by Microsoft Azure at 22% and Google Cloud at 14%. AWS also commands a significant 38% share of capacity consumed, bolstered by its dominant position in object storage, which is widely regarded as the most prevalent data repository in the cloud ecosystem.
According to Dennis Hahn, principal analyst at Omdia, hyperscaler storage revenue shares align closely with the quarterly distribution of total cloud services revenue, forecasted to approach $700 billion in 2024 by Gartner. Omdia anticipates cloud storage spending to near $70 billion in 2024 alone, reflecting continued robust growth and investment in cloud infrastructure.
The industry has navigated through an optimization phase following a period of aggressive cloud investment, which drove a notable 30% year-over-year increase in storage spending in 2022. This growth contrasts with the more subdued 10% growth observed the previous year, underscoring evolving enterprise strategies and economic conditions impacting cloud expenditure.
Looking ahead, Omdia forecasts an 18% year-over-year growth for the cloud storage market in the coming year, driven by increased focus on data-driven AI technologies and analytics. Hahn highlights that analytics and generative AI applications are pivotal in reshaping cloud storage consumption patterns, emphasizing the critical role of data management and storage infrastructure in supporting advanced AI initiatives.
Overall, as enterprises embrace AI-driven innovations, including large language models and analytics tools, cloud storage solutions are expected to play a pivotal role in enabling scalable, efficient, and cost-effective data management strategies across diverse industries.
