The global data center storage area network (SAN) market will increase at a compound annual growth rate (CAGR) of about 22% between 2016 and 2020, according to a new report from Technavio Research.

Growing adoption of cloud-based storage and the need for better utilization of data center storage systems has raised the demand for data center SAN offerings, which provide block level data storage for applications running on networked servers.

SAN is increasingly gaining traction among organizations because it provides enhanced flexibility, availability and performance compared with direct-attached storage (DAS) systems, the report notes.

The Americas dominate the data center SAN market, with the region having the highest number of data center facilities. Most of the data centers in the U.S. are extending existing facilities with more rack cabinets and storage systems to cope with the growing demands for data, the report says.

“Product innovations in this market are expected to boost the market growth during the forecast period,” Rakesh Panda, lead analyst, ICT at Technavio Research. “Vendors are constantly innovating in packaging, formulations, and are even inventing new ways to increase consumption of their products.”

For example, flash-based SAN storage systems will see increased deployment among enterprise data center operators in the upcoming years, Panda said.

The major players in the global data center SAN market include Brocade, Cisco, Dell, EMC, HP, Huawei, Lenovo and NetApp, Technavio says.

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