Enterprise External OEM Storage Systems Market By Product Type (External Disk Storage, NAS, SAN); By Deployment Model (On-Premise, Hybrid Cloud, Managed/As-a-Service); By End User (Large Enterprises, Mid-Sized Businesses, Public Sector, Cloud-First Organizations); By Geography, Segment Revenue Estimation, Forecast, 2024–2030

Introduction And Strategic Context

The Global Enterprise External OEM Storage Systems Market will witness a steady CAGR of 5.4%, valued at about 41.2 billion dollars in 2024, and on track to reach 56.8 billion dollars by 2030, according to Strategic Market Research.

 

This segment covers hardware solutions—typically from third-party original equipment manufacturers—that are designed to support enterprise-level data management, backup, and disaster recovery, all outside the core server chassis.

 

Why does this market matter so much right now? Enterprise data volumes are compounding faster than ever. Digital transformation, cloud migration, hybrid IT environments, and regulatory compliance requirements have forced even risk-averse industries to rethink their storage backbone. At the same time, the explosion in AI workloads and analytics has fundamentally changed how businesses treat their data—making high-performance, scalable, and reliable storage non-negotiable.

 

From a strategic perspective, external OEM storage systems have shifted from being a back-office IT concern to a boardroom agenda item. CIOs and CTOs now see storage as an enabler of growth, not just a cost center. The market’s relevance has intensified thanks to the rising adoption of edge computing, multi-cloud strategies, and next-generation enterprise applications—all of which demand low-latency, resilient, and instantly accessible data infrastructure.

 

Key market drivers in this space include a surge in unstructured data, stricter data governance policies, and ongoing supply chain uncertainties that have put a premium on vendor diversity and flexible procurement. On the flipside, cybersecurity threats have raised the bar for system reliability, encryption, and recovery, forcing OEMs to double down on data integrity features. The pandemic years also made it painfully clear that business continuity hinges on storage infrastructure that can be managed and scaled remotely, without direct human intervention.

 

The stakeholder map for this market is diverse. Major OEM vendors, cloud service providers, large enterprises (banking, healthcare, manufacturing, government), and specialized channel partners are all in the mix. Investors are keeping a close eye as well, with recurring revenue models and managed storage services gaining traction.

 

Market Segmentation And Forecast Scope

The enterprise external OEM storage systems market is best understood by examining the key decision layers where enterprises evaluate infrastructure performance, scalability, and long-term cost of ownership. For this market, segmentation is structured across four primary dimensions: by product type, by deployment model, by end user, and by region. These dimensions reflect how buyers select storage architectures based on workload criticality, compliance requirements, and modernization roadmaps.

By Product Type

• External Disk Storage Systems: External disk storage remains widely deployed in legacy and transitional enterprise environments due to its operational simplicity, direct backup utility, and predictable performance in traditional infrastructure stacks. It continues to be used in organizations prioritizing straightforward expansion and compatibility with older systems.

• Network-Attached Storage (NAS): NAS solutions are gaining momentum as enterprises increase adoption of file-based sharing, distributed collaboration, and content-heavy workflows. As organizations modernize internal collaboration environments and support multi-department access patterns, NAS adoption is accelerating, particularly where file services and ease of access are key priorities.

• Storage Area Networks (SAN): SAN remains the most performance-oriented sub-segment, dominating in enterprise settings that require high-speed data transfer, low latency, and centralized control. Industries such as financial services and healthcare continue to lean on SAN for mission-critical applications, virtualization-heavy environments, and high-availability requirements. In 2024, SAN is estimated to represent ~42% of market share, supported by ongoing investments in virtualized workloads and business-critical enterprise applications.

 

By Deployment Model

• On-Premise: On-premise deployments remain highly relevant, especially within regulatory-intensive sectors where compliance, data sovereignty, and governance are non-negotiable. Many enterprises continue to maintain on-site storage infrastructures for sensitive workloads requiring tight control, predictable performance, and internal audit alignment.

• Hybrid Cloud: Hybrid deployment is emerging as the fastest-growing model as enterprises seek to balance cost, control, and scalability. Hybrid architectures allow organizations to keep sensitive workloads on-site while leveraging cloud elasticity for backup, archival, analytics, or burst demand scenarios. This model is expected to deliver the strongest CAGR through 2030, driven by buyer preference for flexibility, reduced vendor lock-in, and responsiveness to unpredictable data growth.

• Storage-as-a-Service (Managed): Fully managed models are expanding as enterprises look to reduce operational burden and shift toward service-led infrastructure consumption. Increased availability of managed options—paired with bundled monitoring, security features, and lifecycle services—is helping accelerate adoption, particularly among organizations seeking predictable spending and simplified administration.

 

By End User

• Large Enterprises: Large enterprises continue to represent the dominant end-user segment due to strict requirements around uptime, resilience, compliance, and data governance. Their scale of operations and mission-critical workloads sustain demand for high-performance external storage systems and structured vendor ecosystems.

• Mid-Sized Enterprises: Mid-sized firms are increasing adoption as advanced storage capabilities become more attainable through improved price-performance ratios and expanded managed service offerings. This segment is becoming a strategic growth lever for OEM vendors—particularly those offering simplified deployment, integrated security, and cloud connectivity.

• Public Sector & Government Agencies: Public sector adoption is rising as agencies modernize infrastructure to support digital service delivery, citizen platforms, and internal data consolidation. As procurement shifts toward more standardized architectures, vendors that can deliver compliance-ready solutions with strong service support are increasingly well-positioned.

 

By Region

• North America: North America remains the innovation and early-adoption hub, driven by a cloud-first technology ecosystem, high enterprise IT spending, and aggressive automation strategies. Strong demand persists across data-intensive verticals and large-scale modernization programs.

• Europe: Europe continues to be a major market driven by data privacy mandates, regulatory rigor, and a strong financial services footprint. Enterprises in the region are investing in external storage to meet governance requirements while supporting modernization through structured hybrid strategies.

• Asia Pacific: Asia Pacific is the primary growth engine, supported by rapid digital adoption and infrastructure scaling across China, India, and Southeast Asia. The region is seeing strong momentum from both greenfield enterprise builds and technology refresh cycles, contributing to the fastest expansion through the forecast period.

• Latin America and Middle East & Africa (LAMEA): While still earlier-stage in terms of overall market maturity, LAMEA is beginning to gain momentum through government-led digitalization programs, infrastructure investment, and multinational expansion. Adoption is rising particularly in modernization initiatives that require reliable storage foundations.

 

Forecast Scope

The forecast scope for this report covers market sizing from 2024 to 2030, using 2023 as the base year for estimation and incorporating historical data back to 2018. Revenue and volume estimates are tracked in USD and segmented across product type, deployment model, end user, and region. This structure enables a clear view of growth drivers by architecture and consumption model, while supporting scenario-based comparisons as enterprises accelerate modernization and hybrid adoption.

 

Market Trends And Innovation Landscape

Innovation in the enterprise external OEM storage systems market has picked up real momentum over the last few years. There’s a clear pivot happening—from hardware-centric approaches to more agile, software-defined, and service-oriented solutions.

First, the adoption of all-flash arrays and NVMe -over-Fabrics is reshaping what enterprises expect in terms of speed and latency. All-flash storage used to be a luxury for top-tier applications, but now it’s making its way into mainstream deployments as costs come down. NVMe technology is helping eliminate data bottlenecks—making analytics, AI, and real-time workloads much more practical at scale. What’s interesting here is how mid-market buyers are now demanding performance that, not long ago, was reserved for Fortune 500 budgets.

 

Another major trend is the rise of software-defined storage (SDS). Enterprises want the freedom to manage storage across on-premise, hybrid, and cloud environments—all through a single pane of glass. This shift is pushing OEMs to build in advanced automation, data tiering, and policy-based management. For many IT leaders, SDS is less about saving on hardware and more about controlling data sprawl and ensuring seamless scalability as business needs change.

 

Security and resilience are getting an upgrade as well. Ransomware attacks and strict data governance regulations have forced vendors to embed new layers of protection—such as immutable backups, continuous data replication, and built-in anomaly detection. There’s growing demand for systems that can bounce back instantly from cyber events or accidental data loss. OEMs are responding with AI-driven monitoring, predictive failure alerts, and faster restore capabilities.

 

Sustainability is quietly becoming a differentiator, too. Energy efficiency, e-waste reduction, and smart cooling are now being used as selling points—especially as ESG targets work their way into corporate IT procurement. We’re seeing more enterprises ask for proof of energy savings or lifecycle impact before greenlighting major storage investments.

 

On the ecosystem side, partnerships are reshaping the landscape. OEMs are teaming up with cloud providers, chipmakers, and security firms to offer bundled solutions that cut through complexity for end users. Some have even started rolling out managed storage services, where hardware, software, updates, and support are wrapped into a single monthly fee.

 

Finally, the market is seeing a wave of mergers and strategic investments as OEMs try to bolster their hybrid cloud and AI capabilities. Acquisitions of SDS startups and edge storage innovators have been especially common since 2022, signaling a market in transition.

 

Competitive Intelligence And Benchmarking

Competition in the enterprise external OEM storage systems market is intense but also highly nuanced. The leading companies each bring their own flavor to the table, from legacy hardware specialists to cloud-integrated disruptors and niche innovators.

Dell Technologies remains a heavyweight, consistently holding one of the largest shares in the global market. Its edge comes from end-to-end portfolio depth—blending high-performance storage arrays, unified data management tools, and tight integration with enterprise virtualization stacks. Dell has doubled down on automation and AI-driven management in its latest releases, making its platforms attractive for IT teams under pressure to do more with less.

 

Hewlett Packard Enterprise (HPE) has carved out its position through its GreenLake consumption model. Rather than selling just boxes and drives, HPE has moved aggressively into storage-as-a-service, allowing clients to scale usage up or down and pay only for what they need. This approach is resonating with both cost-conscious and innovation-driven organizations—especially those experimenting with hybrid cloud.

 

NetApp is another key player, particularly among customers moving toward cloud and hybrid setups. Its real differentiator lies in cloud data services, cross-platform management, and mature data fabric strategies. NetApp’s partnerships with major hyperscalers —AWS, Azure, Google Cloud—help its clients bridge traditional on-premise storage with cloud-native environments.

 

Hitachi Vantara brings Japanese engineering rigor and a reputation for bulletproof reliability. It’s especially favored in mission-critical, regulated sectors like financial services and public utilities. Hitachi’s focus on vertical-specific solutions, deep analytics, and AI-based data management sets it apart in the high-uptime market segment.

 

IBM, with its long legacy in enterprise IT, remains relevant by evolving its storage portfolio alongside its cloud, AI, and security offerings. IBM’s Spectrum suite and FlashSystem solutions are now positioned as hybrid-ready, featuring advanced cyber resilience and seamless integration with Red Hat OpenShift and other modern workloads.

 

Pure Storage has built a name as the pure-play flash innovator. Known for its simplicity, ease of scaling, and all-inclusive subscription model, Pure has captured mindshare among digital-native firms and fast-growing enterprises looking to move away from legacy complexity. Its evergreen architecture and aggressive software updates continue to drive customer loyalty.

In the broader landscape, there’s a surge of regional OEMs and upstart vendors targeting specific use cases—think edge storage for IoT, data sovereignty for public sector, or sustainability-driven deployments. These players don’t have the scale of the top five, but they’re nimble and often price-competitive.

 

Regional Landscape And Adoption Outlook

Regional dynamics in the enterprise external OEM storage systems market are anything but uniform. Each region brings its own set of drivers, barriers, and opportunities—shaped by digital maturity, regulatory climate, industry mix, and IT investment cycles.

North America continues to set the pace for technology adoption and innovation. With a dense concentration of Fortune 500 enterprises, hyperscale data centers, and leading cloud providers, the region invests heavily in next-gen storage infrastructure. Regulatory pressure around data privacy, particularly in sectors like healthcare and finance, has driven demand for high-availability, encrypted storage platforms. At the same time, the move to hybrid and multi-cloud setups is especially pronounced in the US and Canada. Many enterprises here are shifting from capex-heavy on-premise hardware to flexible, managed, and service-based models.

 

Europe, while slightly more conservative on tech refresh cycles, is defined by its regulatory rigor and strong public sector presence. The General Data Protection Regulation (GDPR) has made data governance a central IT priority, influencing storage procurement across industries. In markets like Germany, the UK, and the Nordics, there’s strong demand for on-premise and hybrid systems that guarantee data residency. Sustainability targets are starting to influence buying as well, with energy-efficient and low-carbon solutions being actively promoted by OEMs and governments alike.

 

Asia Pacific is where the growth story gets interesting. Fast digitization in China, India, and Southeast Asia is driving big investments in both greenfield data centers and modernized storage infrastructure. Many enterprises are leapfrogging legacy architectures and going straight to high-performance, scalable systems. Demand is coming not just from banks and telecom, but also from a new generation of e-commerce, gaming, and fintech companies. There’s also a noticeable rise in public-private partnerships aimed at expanding national cloud and storage capacity.

 

In Latin America and the Middle East & Africa, the market is still emerging but starting to accelerate. Large-scale government digital transformation programs in Brazil, Mexico, Saudi Arabia, and the UAE are sparking demand for enterprise-grade storage. Multinational OEMs are partnering with local channel players to serve these markets, offering modular and cost-sensitive solutions that can adapt as digital infrastructure matures. However, challenges like inconsistent connectivity, skill gaps, and price sensitivity remain persistent barriers in some areas.

Across all regions, two themes are gaining ground: the rise of regional data centers (to meet sovereignty and compliance needs) and the growth of managed storage services for organizations lacking deep in-house IT resources.

 

End-User Dynamics And Use Case

End-user needs in the enterprise external OEM storage systems market are evolving fast—and not just in terms of raw capacity. Each end-user group brings its own set of priorities, from uptime to compliance, speed, and cost control.

Large enterprises are still the main buyers of high-end, scalable storage platforms. For these organizations, data is both an asset and a risk. Their storage decisions are closely tied to business continuity, legal requirements, and digital transformation goals. Many are investing in systems that offer instant failover, automated tiering, and deep integration with virtualization or containerization frameworks. What’s changed in the last couple of years? There’s more demand for flexible consumption models. Instead of buying equipment outright, some enterprises are shifting to storage-as-a-service—paying monthly for guaranteed performance and automatic upgrades.

 

Mid-sized businesses are catching up. As their data needs grow, they’re looking for solutions that offer the power of enterprise-grade systems without the management complexity or the sticker shock. Many are attracted to unified platforms that combine backup, disaster recovery, and analytics under one roof. For mid-sized firms, managed storage services are appealing because they reduce IT staffing needs and free up resources to focus on core business.

 

Public sector agencies—especially in healthcare and government—are a unique segment. Compliance, security, and data residency are absolute musts, but budgets are tighter and procurement cycles longer. These organizations tend to favor OEMs that can provide certified solutions, local support, and robust audit trails. Adoption of hybrid models is picking up as agencies try to balance cost control with service reliability.

 

A growing segment consists of cloud-first organizations, including digital-native companies, e-commerce players, and SaaS providers. For them, speed and flexibility are everything. They often demand elastic storage that can scale with usage spikes, deep API integrations for automation, and advanced security controls to meet industry standards.

 

Here’s a realistic use case: A global logistics company facing a spike in data from IoT devices deployed across its fleet needed to overhaul its data infrastructure. They chose a hybrid external OEM storage solution, combining high-speed SAN for critical real-time analytics and scalable NAS for long-term archiving. By integrating AI-powered monitoring, the firm reduced data retrieval times by 30 percent and cut unplanned downtime almost entirely. IT staff could proactively manage capacity and performance from a single dashboard, while business users gained faster access to the insights driving fleet optimization.

 

Recent Developments + Opportunities & Restraints

Recent Developments (Last 2 Years)

• Major OEMs have accelerated the rollout of next-generation all-flash arrays with built-in ransomware protection, aiming to meet demand for ultra-fast and resilient storage across global enterprises.

• Leading vendors have launched storage-as-a-service offerings in partnership with top cloud providers, targeting customers looking for subscription-based, fully managed infrastructure.

• Several strategic mergers and acquisitions have occurred, with established players acquiring software-defined storage (SDS) startups to expand their hybrid and multi-cloud capabilities.

• Advancements in AI-driven storage analytics have emerged, allowing IT teams to detect anomalies, predict hardware failures, and optimize performance in real time.

• Sustainability initiatives are front and center, with manufacturers introducing low-power architectures and closed-loop recycling programs for aging storage hardware.

 

Opportunities

• Growth in hybrid cloud adoption is opening up new revenue streams for OEMs, particularly those who can deliver seamless, policy-driven data mobility between on-premise and cloud environments.

• AI and machine learning workloads are fueling demand for ultra-low-latency, high-throughput storage platforms—creating room for innovation in both hardware and intelligent management layers.

• Emerging markets in Asia Pacific, Latin America, and the Middle East are shifting from basic storage to advanced, enterprise-class solutions, driven by digital transformation mandates.

 

Restraints

• High upfront costs and complex migration processes remain significant barriers for many mid-sized organizations considering enterprise-grade storage upgrades.

• A shortage of skilled IT professionals capable of managing and securing advanced storage systems is slowing adoption, especially outside North America and Western Europe.

 

7.1. Report Coverage Table

Report Attribute	Details
Forecast Period	2024 – 2030
Market Size Value in 2024	41.2 Billion USD
Revenue Forecast in 2030	56.8 Billion USD
Overall Growth Rate	CAGR of 5.4% (2024 – 2030)
Base Year for Estimation	2024
Historical Data	2019 – 2023
Unit	USD Million, CAGR (2024 – 2030)
Segmentation	By Product Type, Deployment Model, End User, Geography
By Product Type	External Disk Storage, NAS, SAN
By Deployment Model	On-Premise, Hybrid Cloud, Managed/As-a-Service
By End User	Large Enterprises, Mid-Sized Businesses, Public Sector, Cloud-First Organizations
By Region	North America, Europe, Asia-Pacific, Latin America, Middle East & Africa
Country Scope	U.S., Canada, Germany, UK, France, China, India, Japan, Brazil, UAE, etc.
Market Drivers	- Accelerating hybrid and multi-cloud adoption - Rising demand for high-performance, resilient storage - Growing unstructured data and analytics needs
Customization Option	Available upon request