The U.K. tape storage market size was valued at USD 323 million in 2022 and is projected to reach USD 593 million by 2031, registering a CAGR of 7.6% during the forecast period 2023-2031.
Tape data storage uses digital recording to store digital data on magnetic tape. Tape drives write and read data. Digital information storage's oldest notion is tape storage. It's an affordable, secure, scalable tape storage technique for long-term data storage. Tape storage offers longevity, low cost, and large data storage capacity.
Tape storage used by Data volumes and large organizations drives market expansion. Ransomware attacks on company networks also drive market expansion. Industrialization also drives market expansion. Tape storage requires expensive initial investments, which may slow industry expansion. Higher tape storage capabilities are expected to boost the tape storage market. The tape storage industry is predicted to grow due to the increased need for data storage and security due to advanced technologies and applications.
Extensive Rise in Data Volumes
Financial institutions use tape storage to store data safely and cheaply as data volumes climb. The Bank of England stores financial data for market operations on tape, while many U.K. banks and financial institutions store transaction records and other sensitive data. Due to its high capacity and cost-effectiveness, U.K. banks and financial institutions store transaction records and other sensitive data on tape. Lloyds Banking Group and Barclays have tape-based backup systems for their data centers.
The large expenditure for tape storage solutions may constrain the market expansion in the U.K. Small firms may find it difficult to finance tape libraries or backup systems, and continuing maintenance and management expenses may be prohibitive. Tape storage may also become less desirable due to the growth of cloud storage and other alternative storage choices. These elements have influenced the U.K. tape storage market's sluggish expansion. Although some businesses have discovered that tape storage offers long-term cost savings compared to other storage options, surveys show that cost is a major barrier to adoption.
Rise in Demand for Data Storage and Security
U.K. industries with particular data storage and security needs include the healthcare and financial sectors. To comply with laws governing the storage and distribution of patient information, for instance, the healthcare sector needs safe data storage. Similarly, banking institutions need secure storage to safeguard private financial information. Data storage and security suppliers now have the opportunity to deliver tailored solutions as a result of these sector-specific needs. For instance, the U.K.'s National Health Service (NHS) declared in 2021 that it would collaborate with Microsoft to create a cloud-based healthcare data platform allowing the safe exchange of patient information throughout the NHS.
The U.K. 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 dominates the market and is expected to grow at a CAGR of 7.0% 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 7.6% 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 6.9% 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 6.9% during the forecast period.
By end-user, it is further segmented into Cloud Providers, Data Centers, and Enterprises.
The Cloud providers dominated the market and are expected to register a CAGR of 6.3% 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 6.1% during the forecast period.
The market for tape storage is driven by the rollout of faster internet connections and increased business spending in the U.K. Additionally, it is anticipated that I.T. services will continue to be outsourced in the coming years, increasing demand for tape storage nationwide. On January 31, 2020, the U.K. left the European Union (Brexit). Due to this aspect, businesses and cloud service providers are concerned about how to store data. On the other hand, it is anticipated that the growth in investments across technologies, including IoT, A.I., and 5G applications, will continue. This element offers lucrative potential for adopting tape storage in businesses to address data storage and security issues.
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