TECH SUPPLIER Jul 2021 - Market Forecast - Doc # EUR146492721

European Enterprise Infrastructure Storage Forecast, 2021–2025: Flash Adoption Accelerates

By: Andrew BussResearch Director - European Enterprise Infrastructure, Pavel RolandResearch Director, Storage, Systems & Infrastructure Solutions, CEMA, Silvia CossoAssociate Research Director, European Storage


Unlike previous global crises that triggered significant declines in spending on storage infrastructure, the COVID-19 pandemic emphasized a different phase in technology penetration in life and in business. The sudden shift of most "normal" activities to remote mode triggered further digitization of business and consumer activities, which expanded the hardware infrastructure base. However, in an industry-shaping twist, this expansion concentrated in cloud service provider datacenters that tend to utilize server-based architectures for their storage needs and services. However, the European external enterprise storage systems (ESS) market also felt the impact of this demand, declining at 8%, a relatively light weakness compared with previous crises, and broadly in line with the performance of other parts of the IT infrastructure such as servers and storage. Furthermore:

  • The external enterprise storage systems market will return to growth in 2021 as end-user spending will increase by 7.4% to reach $7.0 billion.
  • The external ESS market will grow at a compound annual growth rate (CAGR) of 1.6% from 2020 to 2025, and will oscillate between growth in 2021, 2023, and 2024, and slight declines in 2022 (1.3%) and 2025 (0.3%).
  • The all-flash array (AFA) segment will grow at a CAGR of 8.5%, accounting for 60.7% external ESS sales in 2025 (up from 43.8% in 2020). In Europe, the AFA segment is being strongly adopted, having already surpassed the value of hybrid flash arrays (HFA) in 2020. The HFA segment will continue to be pressured, declining at a CAGR of 4.4% to a share of 27.5% in 2025.
  • The HDD-only segment will decline at a CAGR of 7.4%, accounting for just 11.8% share of the external ESS market in 2025.

This IDC Market Forecast provides historical data (2020) and forecast data (2021–2025) for the European external enterprise storage systems (ESS) markets. The forecast represents an annual view of the quarterly forecast released in June 2021 in IDC's Quarterly Enterprise Storage Systems Tracker. The forecast and historical data focus on end-user consumption of three categories of enterprise storage systems — external OEM, internal OEM, and "other," which covers cumulative shipments of systems sold directly to customers by original design manufacturers (ODMs). For each category, IDC has estimated value (end-user spending), terabytes, and price per gigabyte.

"As an agile and flexible IT infrastructure becomes more important for businesses to be competitive, storage is becoming an integral enabler of a modern enterprise infrastructure across core and edge to cloud," said Andrew Buss, research director, European Enterprise Infrastructure at IDC. "Enterprise storage continues to evolve to become more agile through software-defined architectures, seamless hybrid-cloud integration, increased automation, and AIOps, as well as a shift to flexible consumption with 'storage as a service' delivery models."



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