Worldwide All Flash Array Industry to 2025 - North America is Expected to Hold Major Market Share

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Dublin, Oct. 22, 2020 (GLOBE NEWSWIRE) -- The "All Flash Array Market - Growth, Trends, and Forecasts (2020 - 2025)" report has been added to ResearchAndMarkets.com's offering.

The global all-flash array market is projected to grow at a CAGR of 26.3% during the forecast period from 2020 to 2025. The increase in data generated by the enterprise, coupled with the growing adoption of cloud technology, is expected to drive the market. Moreover, with big data and analytics, the data access and processing patterns demand a higher storage performance, along with increased concurrency (Big Data aggravates the data mobility issues); The NVMe-based SSD is gaining traction in the market studied.

The adoption of flash storage is highly dependent on its benefits, such as power consumption, increasing performance, and ease of maintenance, which have been boosting the adoption rate. Mission-critical applications, including real-time analytics and demanding database systems, can be performed easily with flash storage systems. Furthermore, developments, such as Non-Volatile Memory Express (NVMe), have further aided an increased market for enterprise all-flash storage.

The shortages and higher prices for memory and storage products to service the increase in data center demand are prevalent as of March 2020. With the electronics supply chain in China and South Korea starting to recover, amidst a decline in COVID-19 cases, the supply chain gap is expected to reduce. The SSD suppliers with factories, third-party assemblers, or source materials in Wuhan, witnessed an impact from the coronavirus outbreak. The factories were running at significantly low utilization attributable to laborers' slow return amidst the virus-based restrictions. Factories had experienced shortages of materials as their current inventories were depleted.

Key Market Trends

BFSI is Expected to Hold Significant Share

Financial services firms are witnessing challenges concerning rapid changes arising from transformation to become truly digital businesses. Retail and investment banking, insurance companies, and brokerages have been serving customers who demand higher service levels through mobile and application interfaces. This raises the need for speed and reducing read/write times. Banks have been coping with previously unseen scale and pace of data growth while consolidating and managing such data from a data and IT perspective. Also, with the demand for offering an improved performance (IOPS), low latency, and higher availability across new business services, the sector has fueled the adoption for all-flash arrays.

  • For instance, Huawei's OceanStor Dorado series of AI-powered all-flash arrays are specifically designed to cater to the financial industry. The offering includes a set of unique technologies that deliver the superior IOPs speeds and lowest latency numbers in such domains. Bank V, an eastern Russia-based bank, found that its branch network grew to over 700 branches. As transaction volumes expanded, there's a need to integrate different systems, which usually lead to greater complexity. Huawei's offered its OceanStor Dorado, an existing data center architecture featuring, 400,000 IOPS at one millisecond of latency despite the data centers being separated by a 40km distance. This helped in addressing concerns about performance and business continuity.

  • Post-deployment, Bank V experienced a stable performance across critical areas, such as frequent creation of snapshots, switching services between active-active storage systems, reconstruction of data following disk failure, and during de-duplication and compression. Chevron Federal Credit Union resorted to all-flash arrays from Pure Storage. The company had been facing issues with mass-storage systems that were complex to manage and expensive to scale. Further, the lagging storage performance, slowed response times on critical member-facing applications, and legacy storage became complex to manage and challenging to expand. Post-deployment of all-flash arrays resulted in response times for customer-facing applications to have improved by 70%.

  • Moreover, the Dell EMC VMAX3 all-flash array storage added the National Bank of Kuwait (NBK) to provide a 24/7 availability and a superior support application performance. As per the deployment, NBK revealed that it also implemented Dell EMC VMAX3 All-Flash Array (AFA) for reliability, availability, and serviceability (RAS) technology, improved storage efficiency, and simplified management. NBK integrated Dell EMC's non-disruptive migration (NDM) technology with the storage solutions, designed specially to streamline data mobility between storage systems on hosted applications.

North America is Expected to Hold Major Market

With the increasing investments related to big data and related services, the adoption of the all-flash array is accentuating the growth of this region. For example, American multinational, Intel is finding significant value in big data analytics. Also, in line with such developments, major players in the AFA market, such as NetApp and Pure Storage, among others, are housed in the region. Multiple product launches suggest that North America holds a significant share of the market studied. Moreover, the United States acts as headquarters for other prominent players in the market such as Dell Inc., IBM Corporation, Net App Inc., etc.

  • Owing to the presence of the highest number of data centers, booming healthcare, information technology, BFSI, retail, and media industries the region holds a significant share of the all-flash array market. According to the cloud scene, the number of data centers from both the US and Canada is 2,646 which is the highest in the world. This is expected to drive the demand for the all-flash array market.

  • North America spends a significant amount on IT infrastructure, owing to the presence of prominent information technology industry and key vendors' presence. The region is home to a thriving BFSI industry where organizations are ready to spend on IT infrastructure to cater to the needs of their customers. For instance, JP Morgan set up a budget of USD 11.4 billion as a technology budget for fiscal 2019, Bank of America has set an amount of USD 10 billion IT spending budget. This is expected to positively influence the all-flash array market. The region also accounts for a prominent share of global spending on cloud solutions. According to Tata Communications, the US spending on cloud security solutions is expected to reach USD 1,928 million by 2021.

  • Amidst the coronavirus outbreak, OpenVault, a United States-based broadband company, suggested that the broadband consumption for March 2020 reached 400 GB per subscriber, registering an increase of 11% in comparison to a monthly record of 361 GB, in January 2020. In addition, the company also projects a new coronavirus-influenced run rate of 460 GB per subscriber per month for the next few months. Such increased use of internet connections indicates a greater utilization of private and public cloud services in the connected data center environment. This is also suggestive of growth potential across data center infrastructure in order to meet increased demand.

Competitive Landscape

The all-flash array market is in consolidated format owing to the presence of a few key vendors who share a significant share of the market. The innovation drives the market in the product offerings, and each vendor is investing in innovation. Key players include Kaminario, Dell Technologies, Hewlett Packard Enterprise, NetApp Inc., and IBM Corporation.

May 2020 - Dell launched midrange all-flash enterprise storage arrays. The PowerStore featured seven times faster and three times lower latency than previous Dell EMC midrange storage arrays. It was designed explicitly with the faster NVMe (non -volatile memory express) protocol and supported storage -class memory through Intel Optane solid-state drives. With this launch, Dell improved the data reduction ratio from 3:1 to 4:1 with a machine -learning engine helping enterprises automate labor-intensive processes, for instance, initial volume placement, data migrations, and load balancing.

  • February 2020 - IBM announced that its non-mainframe storage array products from entry-level to high-end will come under the FlashSystem brand, with product configurations that range from three drives to multiple petabytes in a single system and hybrid/multi-cloud connectivity. All FlashSystem arrays will run IBM's Spectrum Virtualize software, which incorporates storage virtualization functionality that can pool storage from more than a claimed 500 products from other suppliers.

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Key Topics Covered:

1 INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Study Assumptions

2 RESEARCH METHODOLOGY

3 EXECUTIVE SUMMARY

4 MARKET DYNAMICS
4.1 Industry Attractiveness - Porter's Five Force Analysis
4.1.1 Bargaining Power of Suppliers
4.1.2 Bargaining Power of Buyers
4.1.3 Threat of New Entrants
4.1.4 Threat of Substitute Products
4.1.5 Intensity of Competitive Rivalry
4.2 Pre-requisites/Consideration for choosing All-Flash Array

5 MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increasing Number of Data Centers
5.1.2 Ease of Management and Maintenance
5.2 Market Restraints
5.2.1 Initial Cost Involved
5.2.2 Lower Write Cycles

6 MARKET SEGMENTATION
6.1 By Type
6.1.1 Traditional
6.1.2 Custom
6.2 By End-User Application
6.2.1 IT and Telecom Industry
6.2.2 BFSI
6.2.3 Healthcare
6.2.4 Government
6.2.5 Other End-User Applications
6.3 Geography
6.3.1 North America
6.3.1.1 United States
6.3.1.2 Canada
6.3.2 Europe
6.3.2.1 United Kingdom
6.3.2.2 Germany
6.3.2.3 France
6.3.2.4 Rest of Europe
6.3.3 Asia-Pacific
6.3.3.1 China
6.3.3.2 Japan
6.3.3.3 South Korea
6.3.3.4 India
6.3.3.5 Rest of Asia-Pacific
6.3.4 Rest of the World
6.3.4.1 Latin America
6.3.4.2 Middle-East & Africa

7 COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Kaminario Inc.
7.1.2 Dell Inc.
7.1.3 Hewlett Packard Enterprise Development LP
7.1.4 NetApp Inc.
7.1.5 Violin Systems LLC
7.1.6 IBM Corporation
7.1.7 Fujitsu Ltd.
7.1.8 Pure Storage, Inc.
7.1.9 Western Digital Corporation
7.1.10 Huawei Technologies Co., Ltd.

8 INVESTMENT ANALYSIS

9 FUTURE OF THE MARKET

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