North America Tape Storage Market

Market Overview

The North America tape storage market size was valued at USD 1,764 million in 2022 and is projected to reach USD 2,975 million by 2031, registering a CAGR of 6.0% during the forecast period (2023-2031).

Tape storage uses digital recording to store data on magnetic tape. Tape drives write and read data. It's one of the oldest ways to store digital data, but it's still popular since it's inexpensive, safe, and versatile for long-term data that are rarely used but still significant. Tape storage is cheap, durable, and holds a lot of data.

Highlights

• Tape cartridges dominate the market by component. 
• The LTO-8 dominates the market by technology.
• 1 T.B. to 200 TB dominates the market by capacity.
• By use case, backup holds a major share of the market.
• Data center dominates the market by the end-user.
• I.T. and Telecom sector dominates the market by industry vertical.

Market Dynamics

North America Tape Storage Market Drivers

Growth in the Adoption of Tape Storage by Large Enterprises

Tape storage is dependable and affordable, so large companies have employed it for years. Tape storage is still popular due to its high volume, long lifespan, and low cost per G.B. The growth of large tape storage users in North America has fuelled the industry. LTO is developed and promoted by the LTO Program consortium. The LTO Program reported 114,997 petabytes (P.B.) of LTO tapes supplied worldwide in 2020, with most going to North America. Enterprise Strategy Group research indicated that 60% of North American firms use tape storage for backup and archiving, and 35% aim to utilize it more in the next 12–18 months.

North America Tape Storage Market Restraints

High Initial Investment

The cost of setting up a tape storage system is high at first, which is a big reason why some groups don't use them. 

In North America, government agencies must store voluminous amounts of data for extended periods. However, due to limited budgets, some organizations may be unable to promptly pay the high costs of implementing a tape storage system. This can cause individuals to rely on outmoded, less secure storage methods.

North America Tape Storage Market Opportunities

The Emergence of Higher Storage Capacity in Tape Storage

As data continues to grow, the need for storage options with more space is growing. Tape storage is a good way to meet this need. The healthcare business makes a lot of data, like patient records, medical images, and research data. With higher-capacity tape storage solutions, healthcare companies can store more data on tape and rely less on expensive cloud storage solutions. This can be especially helpful for smaller healthcare groups with limited funds.

Regional Analysis

The tape storage market is segmented by country into US, Canada, and Mexico. The U.S. dominated the market with a CAGR of 5.8% during the forecast period.

The United States, Canada, and Mexico are all in North America. In this part of the world, the tape storage business is always changing. Total spending on tape storage is growing quickly in both the U.S. and Canada. In 2022, North America had the biggest share of the tape storage market. This is because this region supports big investments in digital content and is home to big players in the market like IBM, Dell Technologies Inc., and HPE. The market is growing because many people are working on tape storage technology in the area, and they are still investing and doing research and development on new storage technologies. For example, in December 2020, IBM and Fujifilm worked together to set a new tape storage world record. These companies reached 317 gigabytes per square inch of storage space. The market is also growing because companies spend a lot on storage, and North America has a high-end technology market.

Segmental Analysis

The North America tape storage market is segmented based on component, capacity, technology, use case, industry vertical, end-user, and country.

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 5.6% 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 6.1% 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 5.7% 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 6.2% 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 5.8% 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 5.9% during the forecast period.

Recent Developments

• February 2023- The Adoption of Open Telecom Network Architectures was Hastened by Dell Technologies
  January 2023- Dell PowerEdge Servers of the Next Generation Offer Advanced Performance and Energy Efficient Design
• May 2023- Cadence Design Systems, Inc. (Nasdaq: CDNS) uses IBM Cloud HPC to develop its chip and system design software faster, leveraging high-performance computing (HPC). IBM (IBM: NYSE) made the announcement.