01 Apr 2020

India’s External Storage Market Grows 6.0% YoY in 4Q19 Due to Increased Investments from Banking and State Government Entities, IDC India Reports

NEW DELHI, 1st April, 2020 – As per IDC’s latest Worldw i de Quarterly Enterprise Storage Systems Tracker 4Q19 release, India’s external storage market witnessed a growth of 6.0% Year-over-Year (YoY) by vendor revenue and stood at USD 91.0 million in 4Q19. Banking, professional services, government, manufacturing, and telecommunications industries contributed 81.2% to the overall external storage market in 4Q19.

“India witnessed back to back strong growth rates for the last couple of years, but COVID-19 outbreak would act as a major barrier for storage market growth in CY 2020. COVID-19 would have a negative impact on verticals such as manufacturing, transportation, construction, personal and consumer services, etc. However, we can expect positive growth from healthcare, insurance and telecommunications verticals,” says Dileep Nadimpalli, Research Manager, Enterprise Infrastructure, IDC India.

All-Flash Arrays (AFA) witnessed a growth of 6.1% YoY, which contributed 28.8% to the overall external storage systems market in 4Q19. The advent of real-time applications, which need high performance with minimal latency is expected to drive the growth for All-Flash Arrays (AFA) in the near future.

Midrange storage systems grew by 13.5% YoY due to increased investments from Banking and Government organizations in 4Q19. The entry storage segment witnessed degrowth of 12.6% YoY growth, while the High-end storage segment saw marginal growth in 4Q19.

As a growing requirement in the digital economy, organizations are opting for automation technologies, which are self-healing even at the infrastructure layer and consumption-based pricing to lower their CAPEX and to avoid unwanted over-provisioning of infrastructure. To address these needs some of the major vendors are embedding machine learning/deep learning to infrastructure and have started offering consumption-based pricing.

Major Vendors Analysis

Dell Technologies continued to be the market leader with a 25.6% market share by vendor revenue, followed by Hewlett Packard Enterprise with a 14.9% market share in 4Q19. Dell Technologies witnessed a marginal YoY growth, while all other major vendors saw a decline in terms of YoY market share in 4Q19.

IDC India Forecast

The external enterprise storage systems market is expected to grow at a single-digit compounded annual growth rate (CAGR) for the 2019 – 2024 time period. Large technology refresh projects along with multiple digital transformation initiatives and incorporation of emerging third platform technologies and innovation accelerators such as IoT, AI, big data, etc. across organizations would drive storage demand in the near future.

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About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of International Data Group (IDG), the world's leading tech media, data and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC  and LinkedIn. Subscribe to the IDC Blog for industry news and insights: http://bit.ly/IDCBlog_Subscribe.

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