Worldwide Enterprise External OEM Storage Systems Market Spending started with a weak 0.9% increment in Q1 2024 but expected to grow an average of 4.5% over a 5-year period, according to IDC
The external enterprise storage systems (ESS) market was relatively weak as expected in the first quarter of 2024 growing at just 0.9% compared to last year, completing the cycle of weak performing quarters which were partially impacted by unfavorable comparisons with strong sales of 2022 and early 2023. We believe that the market now has reached its turning point and growing demand for storage systems will outweigh inhibiting factors such as continuous concerns about possibility of economic slowdown, political uncertainty, fiscal policies, and software-defined market dynamics.
Positive developments and drivers for growing demand include increasing demand for flash storage (typically, all-flash arrays) to support projects related to artificial intelligence, both for training and inferencing, demand for dedicated infrastructure as a service solution and improvements in macroeconomic environment. For 2024 we expect a pent-up demand after a period of slowdown with market growing 7.4% year-over-year.
