Global storage market hits record $33bn as firms upgrade systems

The global enterprise storage market recorded strong revenue growth during the fourth quarter of 2025, according to data published by the International Data Corporation (IDC).

The external OEM enterprise storage systems market reached $9.7 billion in vendor revenue, supported by positive performance from leading vendors and across most global regions.

The report found that the enterprise storage sector returned to a positive growth trajectory, despite being overshadowed by high double-digit expansion in the server market.

This recovery was driven in part by companies resuming delayed investments in storage infrastructure upgrades.

The market expanded by 5.5 per cent year-on-year in the fourth quarter of 2025, reflecting steady demand across segments.

Among product categories, all-flash arrays recorded the strongest growth at 18.1 per cent year-on-year, highlighting continued demand for high-performance storage solutions.

At the same time, hard disk drive arrays unexpectedly posted a 3.1 per cent increase, reversing previous declines.

In contrast, hybrid flash arrays declined by 6.7 per cent, indicating shifting preferences in storage technology.

By pricing segment, the midrange systems category led growth with an 8.5 per cent increase, accounting for 66 per cent of the total external storage market.

High-end systems, defined as those priced above $250,000, recorded growth of 5.4 per cent, while entry-level systems priced below $25,000 declined by 6.9 per cent.

For the full year 2025, the market grew 3.9 per cent compared with 2024, reaching a record $33.0 billion in annual revenue.

The report also highlighted that component shortages contributed to higher pricing levels, with capacity-related value rising.

As a result, the price per gigabyte increased by 5.5 per cent compared with the same quarter in 2024.

Despite relatively low fears of recession, the report warned that slow global economic growth and geopolitical tensions remain key risks for the sector.

Volatility in the prices of components such as solid-state drives, hard disk drives and dynamic random-access memory has also influenced market behaviour.

Some companies have sought to secure shipments in advance due to concerns over further price increases, while others have adjusted procurement strategies.

This includes a shift towards mixed storage solutions incorporating traditional hard disk-based platforms to manage costs more effectively.

“Storage demand would navigate between a continued increase on components prices and the growing infrastructure refreshing needs from companies of all sizes, we might see a positive 2026 for the market with end users trying to balance their CAPEX between hardware, software, management efficiency and as a service models in order to meet their needs,” said Juan Seminara, research director for worldwide enterprise infrastructure trackers.

Regionally, the market showed broad-based growth across most areas, with particularly strong performance in key economies.

China and the United States led expansion, with growth rates of 8.0 per cent and 6.9 per cent respectively.

Europe, the Middle East and Africa recorded growth of 4.3 per cent, while Latin America increased by 1.8 per cent, both slightly below the global average.

Elsewhere, Japan posted modest growth of 0.8 per cent, while Asia Pacific excluding Japan and China, along with Canada, recorded slight declines of 0.1 per cent and 0.8 per cent respectively.

In terms of vendor performance, Dell Technologies maintained its leading position in the market with a 23.7 per cent revenue share, gaining 0.3 percentage points.

Huawei ranked second with a 12.6 per cent share, supported by strong performance in the Chinese market.

NetApp secured third place with an 8.1 per cent share, driven by solid results in all-flash arrays.

Everpure placed fourth with a 7.1 per cent share, benefiting from double-digit quarterly growth.

IBM completed the top five with a 6.3 per cent market share.

The findings underscore a resilient yet evolving storage market, shaped by technological shifts, pricing pressures and changing enterprise investment priorities.