Market Trends of Canada Data Center Storage Industry
IT and Telecommunication Segment Holds the Major Share
- The COVID-19 pandemic has seen the economic impact of companies that entered the digital transformation early, either by offering digital products and services or by leveraging digital processes, more economically than their peers that gradually embraced digital transformation.
- In the early days of the pandemic, after years of increasing adoption, public cloud adoption became mainstream. The Canadian public cloud market revenues were expected to continue to total USD 5,213.5 million, projected to increase by 46.42% from 2023 to 2027. Revenue is expected to grow to USD 16.4 billion by 2027 for the fourth year in a row. It is worth noting that the public cloud market revenue has increased steadily in recent years.
- Cloud storage in Canada is growing due to the increasing demand for cost-effective data backup, storage, and protection across all businesses and the need to manage data generated by the increasing use of mobiles.
- Cloud infrastructure offers capabilities such as increased scalability and flexibility to better serve your customers with minimal downtime. Enterprises are migrating from traditional complex infrastructures to cloud infrastructures, and data center usage is expected to increase during the forecast period.
- Further, telecommunications has evolved and started using a hybrid cloud structure, which combines public and private cloud structures. The usage of this hybrid cloud structure helps telecommunication companies manage the sudden surge in traffic. The implementation of hybrid cloud services helps the telecom industry deploy its cloud services instantly, leading to lower downtime. The increased bandwidth speeds increased data consumption on mobiles from 1.5 GB in 2016 to 4.8 GB in 2022, and it is expected to reach around 8.6 GB by 2029. Such instances in the market are expected to create more need for data centers, resulting in rising demand for data center storage solutions in the coming years.
Understand The Key Trends Shaping This Market
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Hybrid Storage is Expected to Hold a Significant Market Share
- The combination of on-premises and cloud storage solutions is called hybrid storage in data centers. This approach leverages the strengths of both environments, offering the flexibility to store and manage data on-site and in the cloud.
- Canadian regulations on data protection and hybrid storage make it easier for organizations to retain control of sensitive data by keeping them in a private location while still leveraging the cloud over certain workloads. The issues relating to data sovereignty and observance of privacy legislation are addressed in this directive.
- Canada has a strong focus on innovation and adopting new technologies. Hybrid storage allows advanced technologies such as artificial intelligence (AI) and analytics to be adopted more easily. This makes integrating on-premises infrastructure with cloud services easy, supporting diverse data processing needs.
- According to the government of Canada's Smart Cities Challenge, which was launched in 2017, more than 225 municipalities expressed an inclination to explore the plan's advantages by filing their applications, demonstrating interest in developing more smart regions in the future. The emergence of 5G services in smartphones and other faster network technologies is giving rise to the wider deployment of smart devices that are controlled by apps in smartphones. The number of 5G users is expected to increase from 7% in 2021 to about 62% by 2025, further contributing to data consumption and network evolution over the forecast period. Such improvements in the market propel the growth of data centers and, consequently, the demand for DC storage in the country.
- The key players in the market focus on improving the data center storage solutions to meet the market demand. In May 2023, Infinidat, a prominent provider of enterprise storage solutions, announced the launch of two prominent new solutions. The solutions include the launch of InfuzeOS Cloud Edition, which expands Infinidat’s support of hybrid cloud storage deployments and new InfiniSafe Cyber Detection for enterprise primary storage to better resist cyberattacks.
