The China tape storage market size was valued at USD 409 million in 2022 and is projected to reach USD 1,073 million by 2031, registering a CAGR of 11.3% during the forecast period (2023-2031).
Tape storage is a way of storing and retrieving magnetic tape data. The technology has been around for a long time and has changed to offer more storage space, faster transfer speeds, and more reliable connections. Tape storage is used in industries like healthcare, finance, media, and entertainment, where large amounts of data must be kept and accessed over long periods.
Growth in Industrialization
Growth in the industrial sector is being fueled by the Chinese government's "Made in China 2025" project, which intends to turn the nation into a high-tech manufacturing powerhouse. The project calls for using cutting-edge technology like robotics, big data analytics, and artificial intelligence, which produce vast volumes of data that must be stored and managed. Chinese businesses are turning to tape storage as a dependable and affordable solution for their data storage needs. One of the nation's biggest oil and gas firms, China National Petroleum Corporation, employs tape storage for backup and disaster recovery.
High Initial Investment
Although tape storage solutions are becoming more widely used in China, the significant upfront costs associated with implementing these solutions may act as a barrier to the market's expansion. For instance, a large-scale tape storage solution would have hefty up-front expenses for the necessary gear, software, and maintenance. One of the world's biggest oil and gas businesses is China National Petroleum Corporation (CNPC), which illustrates this. For its data center in Xinjiang, CNPC reportedly spent over 20 million yuan (about 3.1 million USD) on a tape backup and archive system. The solution comprised hardware, including robotic arms, disks, tape libraries, and backup and archiving software.
The Emergence of Higher Storage Capacity in Tape Storage
As businesses look for ways to store and handle ever-growing volumes of data, the development of tape storage with larger storage capacity presents a substantial opportunity for the Chinese industry. For instance, one of China's top technological companies, Huawei Technologies Co. Ltd., introduced the world's highest-capacity magnetic tape storage system in 2018, holding up to 180 petabytes of data. The ability to store enormous amounts of data in a small space makes this system attractive for long-term data archiving because it is economical and energy-efficient. Tape storage is expected to play a significant role in China's data storage landscape for the foreseeable future because of the advancement of superior tape storage technologies.
The China tape storage market is segmented based on component, capacity, technology, use case, industry vertical, and end-user.
The market is further segmented by component into Tape Cartridges, Tape Vault.
The Tape Cartridges segment domains segment dominates the market and is expected to grow at a CAGR of 11.1% during the forecast period.
By component, it is further segmented into LTO-1 to LTO-5, LTO-6, LTO-7, LTO-8, LTO-9, DDS-1, DDS-2, DDS-3, DDS-4, DLT IV
The LTO-8 dominated the market and is expected to register a CAGR of 11.7% over the forecast period.
The market is further segmented by capacity into Less than 1 T.B., 1 T.B. to 200 TB, 201 TB to 999TB, 1PB to 100PB, and More than 100 PB.
The 1 T.B. to 200 TB segment dominates the market and is expected to grow at a CAGR of 11.2% during the forecast period.
The market is further segmented based on use case into Archiving, Backup
The backup segment dominates the market and is expected to grow at a CAGR of 11.1% during the forecast period.
By end-user, it is further segmented into Cloud Providers, Data Centers, and Enterprises.
The data center dominated the market and is expected to register a CAGR of 11.2% over the forecast period.
The market is further segmented by industry vertical into I.T. and Telecom, BFSI, Media and Entertainment, Healthcare, Oil and Gas, Government and Defense.
The I.T. and Telecom segment dominates the market and is expected to grow at a CAGR of 9.9% during the forecast period.
Demand for tape storage increases as efforts to increase computing power to become a leading nation in a supercomputer volume increase. According to data from the top500.org, for instance, China continues to increase its use of supercomputers, and as of June 2020, it had over 227 supercomputers, up from 219 in June 2019. Additionally, the nation is actively working to advance beyond its international competitors in building data centers as the demand for more storage and processing power is fueled by applications for 5G, the Internet of Things, wearable technology, and artificial intelligence.
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