AI Powered Storage Market Insights, 2031
The global AI powered storage market size was valued at USD 15.6 billion in 2021, and is projected to reach USD 162.5 billion by 2031, growing at a CAGR of 26.7% from 2022 to 2031.
Rise in adoption of cloud-based application and services and adoption of robotics in warehousing is boosting the growth of the global market. In addition, the increase in the need for real-time analytics in industries like finance, healthcare, and retail, has led to the demand for AI storage solutions that offer faster data retrieval and processing speeds, driving the AI powered storage market demand. However, lack of professionals in AI hardware and irregularity of AI algorithms is hampering the AI powered storage market growth.
On the contrary, increase in demands of Al for high performance computing data is expected to offer remunerative opportunities for expansion during the AI powered storage market forecast.
The AI-powered storage technology is gaining popularity due to growing demand of artificial intelligence (AI) and machine learning (ML). AI-powered storage utilizes advanced analytics which creates increased demand for business infrastructure. Moreover, it plays a crucial role in digitization and adoption of connected devices. Furthermore, the AI powered storage market size is anticipated to grow at a significant rate due to increased data volumes and rise in adoption of artificial intelligence services.
Segment Review:
The AI powered storage market share is segmented into component, it is bifurcated into hardware and software. By storage system it is segmented into direct attached storage, network attached storage, and storage area network. By storage architecture, it is bifurcated into file and object based storage, and object storage. By storage medium, it is bifurcated into hard disk drive and solid state drive. By end-user, it is segregated into enterprises, government bodies, cloud service providers and telecom companies. By enterprise, it is divided into BFSI, healthcare, media and entertainment, retail, consumer goods, manufacturing, and others. By manufacturing, it is categorized into food & beverages, industrial machinery & heavy equipment, high-tech & consumer electronics, automotive, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
On the basis of component, the hardware segment dominated the AI powered storage Industry growth in 2021 and is expected to maintain its dominance in the upcoming years due to digitalization is expected to evolve and boost up in the aftermath of the COVID-19 pandemic. Furthermore, various organizations are adopting AI-powered storage for protection and safety purposes as a backup. However, the software segment is expected to witness highest growth owing to it saves money and time and decreases danger, which is anticipated to offer profitable increase and opportunities for the market in the imminent years.
By Component
The software segment is expected to witness highest growth owing to it saves money and time and decreases danger, which is anticipated to offer profitable increase and opportunities for the market in the imminent years.
Depending on region, North America dominated the artificial intelligence oowered storage market in 2021. This is attributed to growing developments in technology and digitalization of market in this region leading to adoption of AI-powered storage to protect critical data of organizations. However, Asia-Pacific is expected to witness highest growth in the upcoming years, owing to increased cyber threats and rapid shift toward cloud-based platforms in this region. However, Asia-Pacific is expected to witness significant growth during the forecast period, owing to growing economies such as India and China and cloud native countries like Japan.
By Region
The Asia-Pacific is expected to witness significant growth during the forecast period, owing to growing economies such as India and China and cloud native countries like Japan.
Competitive Analysis:
The Key players in the AI powered storage industry include Advanced Micro Devices, Amazon Web Services, CISCO, Dell Technologies, Fujitsu, Google, Hitachi, HPE, Intel Corporation, Lenovo, Micron Technology, Microsoft, NetApp, IBM, Pure Storage, Samsung Electronics, and Toshiba. Market share is influenced by factors such as the adoption of AI technologies, the need for large-scale data storage, and advancements in hardware and software integration. The competition among these key companies shapes the market dynamics and drives innovation in the AI powered storage sector.
Recent Product Lunches in the Market:
- On March 25, 2025, Itron partnered with NVIDIA and Microsoft to bring AI and GenAI to the smart grid edge. This collaboration aims to enhance grid resilience, disaster management, consumer engagement, and operational efficiency. By integrating NVIDIA's Jetson Orin Nano and AI Enterprise platforms, and Microsoft's GenAI Copilot technology, Itron's solutions will leverage advanced AI capabilities to optimize utility operations and provide real-time insights.
- On March 24, 2025, Unifyr launched Unifyr+, the first centralized AI-powered partner engagement platform designed to streamline channel relationships. This platform aims to simplify interactions between channel partners and vendors by providing a single hub for managing vendor content, leads, deals, training, and events. Unifyr+ leverages AI to enhance partner engagement and improve the efficiency of multi-vendor ecosystems.
Recent Partnerships in the Market:
- On March 19, 2024, Teradyne Robotics partnered with NVIDIA to bring AI capabilities to robotics, enhancing applications in industrial automation. This collaboration includes the integration of NVIDIA's accelerated computing into Teradyne's cobots and autonomous mobile robots (AMRs), significantly improving their efficiency and functionality.
- On January 29, 2025, Verinext partnered with Lucidity to make cloud block storage more affordable with AI-driven automation. Their collaboration introduces a completely automated 'NoOps' solution, which can save businesses up to 70% on cloud storage costs and significantly increase data throughput speed.
Technology Insights:
The AI-powered storage market size is anticipated to witness rapid growth, driven by the rise in the demand for cloud-based services and advancements in artificial intelligence (AI) and machine learning (ML) technologies. The increase in the generation of vast amounts of data by businesses has led to the surge in the need for efficient, cost-effective storage solutions. AI and ML technologies are transforming storage systems by automating data management, improving performance, and optimizing resource allocation. These innovations allow storage systems to dynamically adapt to changing workloads, predict future storage requirements, and reduce operational costs. In addition, AI-powered storage systems can analyze and manage data in real-time, enabling smarter decision-making and faster access to information. By leveraging AI and ML algorithms, these systems can identify patterns in data usage, predict failures, and automate routine tasks, which significantly enhances both the reliability and efficiency of storage infrastructure. This intelligent automation not only reduces human intervention but also minimizes downtime, ensuring businesses can continue to operate smoothly.
For instance, on March 4, 2025, DoiT established a $250 million fund to accelerate AI-driven cloud operations. This fund aims to acquire companies specializing in autonomous cloud optimization, AI-driven CloudOps, and cloud reliability, performance, and security. This initiative is part of DoiT's strategy to enhance its AI-powered cloud management capabilities.
Furthermore, the upsurge in the demand for cloud-based services has led to the development of AI storage solutions. As more organizations migrate to the cloud, the need for scalable, secure, and efficient storage options is on the rise. AI-driven storage solutions deliver these benefits by optimizing the use of cloud resources, reducing costs, and improving data management across distributed environments.
Moreover, the increase in the adoption of AI-powered storage systems are expected to capture a significant share of the AI powered storage technology market as businesses seek more advanced and cost-effective solutions. These intelligent systems support a wide range of applications, from data analytics and business intelligence to enhanced cybersecurity. As AI and ML continue to evolve, the storage market is expected to witness greater innovations, providing businesses with the tools they need to manage and leverage their data more effectively.
For instance, on February 25, 2025, NTU Singapore and TrinaSolar are collaborating to advance AI-powered smart energy storage solutions. This partnership aims to enhance the efficiency, reliability, and economic viability of renewable energy applications. By leveraging AI-driven tools, they plan to improve investment decisions, system stability, and optimization algorithms for diverse energy storage applications.
Top Impacting Factors:
Rise in Adoption of Cloud-based Application and Services
One of the major drivers of AI powered storage market is the rise in adoption of cloud-based applications and services. Cloud based applications have brought a massive revolution in the business industry, especially during COVID-19 pandemic. Many enterprises are adopting cloud-based platforms as it offers unlimited flexibility and reliability. Moreover, it offers great adaptability and is environment friendly which further drives the market growth. The AI-powered storage is extensively adopted owing to the digitalization of the markets after the pandemic. Enterprises are shifting all their workload to cloud based applications to ease remote working.
Adoption of Robotics in Warehousing
Enterprise warehouses have been striving to maintain pace with the huge growth in online shopping in the course of the COVID-19 pandemic, however warehouse automation robotics could assist. Enterprises have confronted diverse troubles in the wake of the pandemic, which includes exertions shortages, manufacturing shutdowns and delayed transit times. Thus, many enterprises have adopted robotics to eliminate these challenges. This in turn drives the AI powered storage market as these robotic devices stores the information to streamline the warehousing process efficiently reducing the turnaround time.
For instance, on January 28, 2025 , Ambi Robotics launched AmbiStack, an AI-powered robotic stacking solution designed for warehouse operations. AmbiStack optimizes both inbound and outbound material handling by using advanced AI vision systems and Sim2Real reinforcement learning. This solution aims to improve efficiency, reliability, and worker safety while reducing costs by autonomously stacking items densely onto pallets and into containers.
Opportunity:
Adoption of Al for high performance computing data
The integration of Artificial Intelligence (AI) into High-Performance Computing (HPC) data processing is opening significant AI powered storage market opportunities in the market. As organizations continue to produce vast amounts of data, there is increase in need for more efficient, scalable, and intelligent storage solutions that can handle the demands of AI workloads, especially in fields like machine learning, deep learning, and big data analytics.
For instance, on March 18, 2025, Nvidia, in collaboration with storage industry leaders, has unveiled a new class of enterprise infrastructure designed for the age of AI. This infrastructure integrates Nvidia's accelerated computing with enterprise storage to power AI agents with near-real-time business insights. It features Nvidia Blackwell GPUs, BlueField-3 DPUs, Spectrum-X networking, and Nvidia AI Enterprise software.
HPC is used for solving complex computational problems that require immense processing power, often involving large datasets. AI applications, particularly in industries like healthcare, finance, and scientific research, generate and rely on massive volumes of data, which must be stored, processed, and accessed at high speed. The synergy between AI and HPC is crucial, as AI algorithms require faster data access and real-time processing, while HPC environments benefit from intelligent storage solutions to efficiently manage their increasing data storage demands.
For instance, on March 12, 2025, Pure Storage launched FlashBlade//EXA, a powerful data storage platform designed for AI and high-performance computing (HPC) workloads. FlashBlade//EXA offers unmatched performance, scalability, and efficiency, making it ideal for handling the demanding requirements of AI and HPC environments.
AI storage solutions are addressing this challenge by using machine learning algorithms and predictive analytics to optimize data management, access, and retrieval. These solutions intelligently prioritize workloads, predict storage needs, and streamline data movement across different storage layers. This leads to improved performance, lower latency, and better resource utilization, which are crucial for running AI-driven applications at scale.
Moreover, AI in storage systems enhances fault tolerance, data security, and system reliability by detecting anomalies or potential failures before they happen, ensuring continuous availability of critical data. As the demand for AI and HPC capabilities increases, the AI-powered storage market will continue to innovate. Companies will strive to develop more intelligent, adaptive, and high-performance storage solutions to meet the evolving needs of AI workloads. This opportunity is set to transform how organizations approach data storage in AI-driven environments, driving both technological advancements and market growth.
Application Insights:
The AI-powered storage market is expected to witness substantial growth as enterprises increasingly adopt artificial intelligence (AI) and machine learning (ML) technologies to manage and optimize data storage solutions. AI-driven analytics are playing a pivotal role in transforming how storage systems are designed, managed, and utilized.
AI-driven storage solutions employ smart algorithms that evaluate both historical and real-time data, forecasting storage requirements and streamlining processes. These systems detect patterns like maximum storage demand, data access rates, and redundancy needs, guaranteeing effective resource distribution. The capability to predict future storage requirements enables companies to scale their infrastructure flexibly without excessive provisioning, leading to significant cost reductions.
For instance, on June 19, 2024, Pure Storage launched several new innovations in AI and machine learning, including Evergreen//One AI storage as-a-service, automated anomaly detection, and a generative AI copilot. These advancements aim to simplify AI training and inferencing while enhancing storage efficiency.
In addition, AI-driven storage solutions offer proactive monitoring and management of storage devices by detecting potential system failures or bottlenecks before they impact performance, ensuring high availability and minimizing downtime. By leveraging machine learning, these storage systems can adapt to changing workloads and optimize performance in real-time, enhancing operational agility for businesses.
Furthermore, AI enhances data security within storage environments by identifying unusual access patterns or potential security breaches, triggering immediate actions to mitigate risks. With AI-powered analytics, organizations can ensure data integrity and compliance with industry regulations, by providing detailed logs and automated audit trails. These insights empower businesses to make data-driven decisions, improve operational efficiency, and maintain robust, secure, and scalable storage infrastructures. The growing demand for data storage coupled with AI’s ability to optimize this process is set to revolutionize the future of enterprise data management.
For instance, on December 19, 2024, Microsoft outperformed Amazon and Google in the cloud AI market. This achievement is attributed to Microsoft's robust AI infrastructure, including Azure AI services, which offer superior performance, scalability, and security for demanding AI workloads12. Microsoft's collaboration with NVIDIA has also played a significant role in enhancing its AI capabilities.
Key Benefits for Stakeholders:
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the AI powered storage market analysis from 2021 to 2031 to identify the prevailing AI powered storage market opportunities.
- The AI powered storage market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the AI powered storage market segmentation assists to determine the prevailing AI powered storage market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- AI powered storage market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global AI powered storage market trends, key players, market segments, application areas, and market growth strategies.
AI Powered Storage Market Report Highlights
| Aspects | Details |
 Market Size By 2031 | USD 162.5 billion |
 Growth Rate | CAGR of 26.7% |
 Forecast period | 2021 - 2031 |
 Report Pages | 343 |
 By Component |
|
 By Storage System |
|
 By Storage Architecture |
|
 By Storage Medium |
|
 By End User |
|
 By Region |
|
 Key Market Players | Lenovo, Toshiba, Pure Storage, Hitachi, IBM Corporation, Dell Technologies Incorporated, Alphabet (Google Inc.), hpe, Cisco Systems Inc., Amazon Web Services, Fujitsu, Micron Technology, Samsung Electronics, Microsoft Corporation, Intel Corporation, NetApp, Advanced Micro Devices |
Analyst Review
Based on insights of various CXOs of leading companies, the AI-powered storage market is witnessing high growth in recent years. The industry is undergoing enormous adoption of AI-powered storage due to increased adoption of artificial intelligence and process automation. However, high costs of creation and deployment is challenging the growth of the market. Regardless of upcoming challenges, the market is growing faster than ever owing to increased utilization of cloud storage. As a result of this, a lot of investments are being made in the market to meet the rising demand which is further propelling the market growth.
Moreover, adoption of robotics in warehousing optimizes the process automation further drives the market growth. In addition, improved data security and dependability enabled by smart features reduces loss of any data. These factors are fuelling the market growth.
For instance, in March 2022, HPE announced significant advancements to HPE GreenLake, the company’s flagship offering that enables organizations to modernize all their AI driven applications and data, from edge to cloud.
The global AI powered storage market size was valued at USD 15.6 billion in 2021, and is projected to reach USD 162.5 billion by 2031.
The global AI powered storage market is projected to grow at a compound annual growth rate of 26.7% from 2022-2031 to reach USD 162.5 billion by 2031
The key market players operating in AI powered storage market are Advanced Micro Devices, Amazon Web Services, CISCO, Dell Technologies, Fujitsu, Google, Hitachi, HPE, Intel Corporation, Lenovo, Micron Technology, Microsoft, NetApp, IBM, Pure Storage, Samsung Electronics, and Toshiba.
Depending on region, North America dominated the market in 2021. This is attributed to growing developments in technology and digitalization of market in this region leading to adoption of AI-powered storage to protect critical data of organizations.
Rise in Adoption of Cloud-based Application and Services, Adoption of Robotics in Warehousing.
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