Indian External Storage Systems Market Declines 6.0% Y/Y in 1Q21 at $83 Million

As per International Data Corporation‘s Worldwide Quarterly Enterprise Storage Systems Tracker 1Q21 release, India’s external storage market witnessed a decline of 6.0% Y/Y by vendor revenue and stood at $83.0 million in 1CQ21.

Witnessed Y/Y growth in storage spending from BFSI, professional services, and manufacturing verticals, while saw a sharp decline in telecommunications, media, and government verticals in 1Q21.

“The pandemic has accelerated the digital transformation initiatives but to drive successful transformation organizations need to modernize their applications/infrastructure; provide seamless access to data; continuous optimization, and next-gen security all with ease of management and at a reduced cost. Enterprises are in search of intelligent infrastructure platform which can enable them in their transformation journey,” says Dileep Nadimpalli, research manager, enterprise infrastructure, IDC India.

Adoption of AFAs is evident, contributing 40.5% to the overall external storage systems market in 1Q21. Increased uptake of AFA specifically from banking organizations contributed to Y/Y growth in this period. It is expected this market to grow further as a majority of the enterprises are preferring only AFA for all their primary workloads.

Entry-level storage systems grew by 11.5% Y/Y due to increased investments from banking, government, and manufacturing organizations in 1Q21. Mid-range and high-end storage segments witnessed a Y/Y decline but expecting strong uptake of these storage segments in the near future.

Major vendors analysis

Dell Technologies continued to be the market leader in this market with a 27.0% market share by vendor revenue, followed by HPE and NetApp. Both HPE and NetApp have witnessed significant Y/Y growth in 1Q21.

Forecast
This external storage systems market is expected to grow at a single-digit CAGR for the 2020-2025 period. The analyst firm forecasts that spending is expected to grow Y/Y in CY21 due to uptake from government, BFSI, and telecommunication verticals.