USD 1.02 Billion
Report ID:
SQMIG45D2151 |
Region:
Global |
Published Date: May, 2025
Pages:
195
|Tables:
87
|Figures:
68
Global Scale Out NAS Market size was valued at USD 1.02 Billion in 2023 and is poised to grow from USD 1.2 Billion in 2024 to USD 4.33 Billion by 2032, growing at a CAGR of 17.4% in the forecast period (2025-2032).
The scale out NAS market is witnessing substantial growth as organizations across various sectors increasingly seek scalable and high-performance storage solutions. This demand is primarily fueled by the rise in data-intensive applications such as big data analytics, artificial intelligence (AI), and machine learning (ML), which require robust infrastructure to handle massive volumes of unstructured data. This growth trajectory is further supported by the global shift towards cloud computing and the adoption of software-defined storage (SDS), which decouples storage software from hardware, enabling efficient scaling and cost management.
Regionally, North America holds the largest market share due to the early adoption of cutting-edge technologies and the presence of major tech players. Meanwhile, Asia-Pacific is anticipated to grow at the fastest pace, driven by rapid digital transformation and expanding IT investments in countries like China and India. Europe continues to show steady growth, aided by strict data protection regulations and increased enterprise-level storage needs.
Deployment models are evolving as well, with on-premises solutions remaining dominant in 2024 due to data control and security advantages. However, cloud-based and hybrid models are quickly gaining traction as companies look for scalable and flexible alternatives. These market trends, coupled with growing investments in SDS and hybrid cloud infrastructure, are shaping the future landscape of the scale out NAS market, making it a key segment within the broader data storage ecosystem.
How Is AI Revolutionizing the Scale-Out NAS Market in 2024?
In 2024, the integration of Artificial Intelligence (AI) into the scale out NAS market is profoundly transforming data storage solutions. The escalating demand for AI-driven applications, such as machine learning and big data analytics, necessitates storage systems that are not only scalable but also intelligent and efficient.
AI technologies are being leveraged to optimize storage operations within scale out NAS systems. By employing AI algorithms, these systems can predict data access patterns, automate data tiering, and manage workloads more effectively. This leads to improved performance, reduced latency, and better utilization of storage resources, which is crucial for handling the vast amounts of unstructured data generated by modern enterprises.
Market snapshot - 2025-2032
Global Market Size
USD 1.02 Billion
Largest Segment
On-Premises
Fastest Growth
Cloud
Growth Rate
17.4% CAGR
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The scale out NAS Market is segmented into deployment, organization size, end-user industry and region. Based on deployment, the market is segmented into on-premises and cloud. Based on organization size, the market is segmented into large enterprises and small & medium enterprises. Based on end-user industry, the market is segmented into BFSI, healthcare, IT & telecom, retail and media and entertainment. Based on region, the market is segmented into North America, Asia-Pacific, Europe, Latin America, and Middle East & Africa.
The on-premises segment remains dominant in the scale out NAS market, primarily due to the longstanding reliance on physical storage infrastructure by many enterprises. Organizations that handle sensitive data or are subject to strict regulatory requirements prefer on-premises solutions for better control, security, and compliance. Industries like healthcare, finance, and government often favor on-premises deployments because of the need to retain data in-house to meet security standards and regulatory guidelines. Additionally, enterprises with legacy systems are still more inclined toward on-premises storage as they transition to more advanced technologies.
As per the global scale out NAS market analysis, the cloud segment, however, is experiencing rapid growth due to the shift toward digital transformation and the increasing adoption of hybrid and multi-cloud strategies. The scalability, cost-effectiveness, and flexibility of cloud-based solutions make them appealing for modern enterprises that require more dynamic and agile data storage solutions. Cloud storage also offers reduced upfront costs and better disaster recovery capabilities, which contribute to its growing popularity.
As per the global scale out NAS market forecast, the large enterprises segment continues to dominate the market. These organizations typically require extensive data storage solutions to manage vast amounts of data across multiple departments, locations, and operations. Large enterprises often have the capital, resources, and IT infrastructure to deploy robust and scalable on-premises or hybrid storage solutions. They rely heavily on scale-out NAS systems for applications requiring high availability, scalability, and performance. Industries such as finance, healthcare, and telecommunications, which generate massive volumes of data, are leading consumers of scale-out NAS solutions.
As per global scale out NAS market outlook, small & medium enterprises represent the growing segment in the market. As SMEs increasingly embrace digital transformation and cloud technologies, they are moving away from traditional storage models toward more scalable, cost-effective cloud-based solutions. The affordability, flexibility, and scalability of scale-out NAS solutions make them appealing to SMEs, particularly those that need to store and access large volumes of data but do not have the resources to maintain on-premises infrastructure.
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As per regional forecast, North America remains the largest scale-out NAS solutions due to its highly developed technology infrastructure and the increasing reliance on data storage solutions across various industries. In the U.S. and Canada, enterprises are increasingly adopting scale-out NAS due to the rapid growth of unstructured data in sectors such as media, entertainment, healthcare, finance, and IT services. The growing demand for reliable and scalable storage solutions driven by the rise of big data, artificial intelligence (AI), and machine learning is further accelerating the growth of the market.
The U.S. leads in the scale out NAS market, with major players in IT, healthcare, and entertainment adopting these solutions for data storage, backup, and archiving purposes. With the rapid adoption of cloud technologies, the U.S. continues to drive the demand for flexible storage systems that can scale according to the growing data needs of various sectors.
The demand for scale-out NAS in Canada is also on the rise, fueled by digital transformation in industries such as retail, telecommunications, and government sectors. With businesses increasingly looking to optimize storage and ensure data accessibility, scale-out NAS solutions are gaining traction in the region.
As per regional outlook, the Asia-Pacific (APAC) region is poised for rapid growth in the scale out NAS market due to the region’s increasing focus on technological advancements, data-driven industries, and large-scale IT infrastructure. Countries like Japan, South Korea, and China are investing heavily in next-generation technologies, which increases the demand for robust, scalable, and efficient storage solutions capable of managing vast amounts of unstructured data.
Japan is a frontrunner in the adoption of scale-out NAS, driven by its robust technology ecosystem and the need for scalable storage solutions in sectors like automotive, healthcare, and electronics. The rise of IoT, AI, and digitalization of manufacturing in Japan is contributing to an increase in data production, further driving the need for scale-out NAS solutions.
As per industry analysis, South Korea’s technological advancements, particularly in 5G networks and smart manufacturing, are accelerating the adoption of scale-out NAS solutions. As the country expands its infrastructure for data-driven technologies, there is a growing need for high-performance storage systems capable of handling large volumes of data across multiple industries such as electronics, telecommunications, and entertainment.
Europe is experiencing significant scale out NAS market growth, with major technological advancements across sectors such as automotive, manufacturing, and research. The demand for scalable and flexible data storage solutions is increasing as industries move toward Industry 4.0 and adopt technologies such as IoT, artificial intelligence, and big data analytics. Countries like Germany, the UK, and Italy are leading the way in adopting scale-out NAS solutions, as businesses strive to keep pace with rapidly growing data volumes and ensure high availability and reliability of their data infrastructure.
Germany’s advanced automotive and manufacturing industries generate vast amounts of unstructured data, driving the need for scalable and efficient storage solutions. The country’s push towards digitalization and smart manufacturing is further propelling the demand for scale-out NAS systems.
The UK is seeing increasing adoption of scale-out NAS, particularly in its financial and technology sectors. As organizations look for ways to optimize their data storage needs in the cloud, scale-out NAS solutions are becoming more popular for managing and scaling data storage effectively.
Italy’s manufacturing and research sectors are rapidly digitalizing, leading to an increase in the generation of unstructured data. To keep up with these growing data demands, businesses in Italy are increasingly turning to scale-out NAS systems to ensure efficient and scalable data storage solutions.
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Surge in Unstructured Data Volumes
Rising Adoption of Cloud-Based Applications
High Deployment and Maintenance Costs
Complexity in Managing Large-Scale NAS Networks
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The competitive landscape of the global scale out NAS industry in 2024 is marked by intense innovation, strategic partnerships, and product differentiation, with key players focusing on AI integration, enhanced scalability, and performance optimization. Major companies like Dell Technologies, NetApp, Huawei, and IBM continue to lead the market by leveraging their robust R&D capabilities and global reach. These players are prioritizing AI-enabled storage, data tiering automation, and cloud-NAS hybrid deployments to meet evolving enterprise demands.
As per market strategies, NetApp in April 2024 launched its new ONTAP AI-integrated NAS solution, developed in collaboration with NVIDIA, aimed at optimizing workloads in data-heavy environments like healthcare and autonomous systems.
The scale out NAS market is experiencing a wave of innovation driven by agile startups that are reimagining data storage for the AI, big data, and remote collaboration era. These newer companies emphasize cloud-native scalability, AI readiness, and real-time accessibility across distributed environments.
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, key drivers of market growth include exponential growth of unstructured data. Rising demand for high throughput rate, increased I/O (Input/output) capacity, and low latency is driving the market. Additionally, ensuring data security and privacy in real-time communication applications is paramount, and addressing these concerns can be challenging. The need for high quality communication with low latency communication also puts pressure on the network infrastructure. The market is mainly operated by the exponential increase of data. With digital changes in businesses, it is necessary to scale and flexible storage solutions. Scale-out NAS system organizations easily enable expanding storage capacity as the data volume increases.
Report Metric | Details |
---|---|
Market size value in 2023 | USD 1.02 Billion |
Market size value in 2032 | USD 4.33 Billion |
Growth Rate | 17.4% |
Base year | 2024 |
Forecast period | 2025-2032 |
Forecast Unit (Value) | USD Billion |
Segments covered |
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Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
Companies covered |
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Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the Scale Out NAS Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Scale Out NAS Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
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Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Scale Out NAS Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Scale Out NAS Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
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Global Scale Out NAS Market size was valued at USD 1.02 Billion in 2023 and is poised to grow from USD 1.2 Billion in 2024 to USD 4.33 Billion by 2032, growing at a CAGR of 17.4% in the forecast period (2025-2032).
The competitive landscape of the global scale out NAS industry in 2024 is marked by intense innovation, strategic partnerships, and product differentiation, with key players focusing on AI integration, enhanced scalability, and performance optimization. Major companies like Dell Technologies, NetApp, Huawei, and IBM continue to lead the market by leveraging their robust R&D capabilities and global reach. These players are prioritizing AI-enabled storage, data tiering automation, and cloud-NAS hybrid deployments to meet evolving enterprise demands. 'NetApp Inc.', 'Dell Technologies Inc.', 'Hewlett Packard Enterprise (HPE)', 'Huawei Technologies Co., Ltd.', 'Ugreen', 'Hitachi Vantara LLC', 'IBM Corporation', 'Western Digital Corporation', 'QNAP Systems, Inc.', 'Synology Inc.', 'Pure Storage, Inc.', 'Infortrend Technology, Inc.'
As industries like media, healthcare, and IoT continue to generate massive amounts of unstructured data, the demand for storage solutions capable of managing these growing volumes has significantly increased. Unstructured data comprising videos, images, and audio files requires scalable and flexible storage systems, making scale-out NAS an ideal solution. Companies can easily expand their storage as their data grows, without needing a complete overhaul of their existing systems. For example, sectors like the media and entertainment industry, which handle high-definition video content, rely on scale-out NAS for continuous, real-time data access and storage expansion.
Integration of Artificial Intelligence and Machine Learning: Artificial Intelligence (AI) and Machine Learning (ML) technologies are increasingly being integrated into scale-out NAS systems. These technologies help improve data management by predicting workloads, automating data tiering, and offering intelligent analytics. For example, AI-powered systems can automatically move data between high-performance and lower-cost storage tiers based on usage patterns, improving efficiency and reducing operational costs.
What is Driving the Growth of the Scale Out NAS Market in North America?
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