On cloud nine: Outsourcing data storage and cloud computing has boosted industry revenue

The Data Storage Services industry has performed well over the past five years, primarily due to growing internet traffic, the increasing prominence of cloud computing and the rising number of businesses outsourcing data storage. Cloud computing has reduced companies' storage and computing costs, as capacity can be easily scaled up or down depending on demand. In contrast, firms that maintain servers in-house incur considerable capital expenditure and utilities costs. As a result, demand for outsourced data storage services has grown over the past five years. This trend has supported industry firms, with revenue anticipated to expand at an annualised 12.4% over the five years through 2018-19, to reach $2.5 billion. Revenue is projected to grow by 7.2%...read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 14-19
12.4%
Forecast Growth 19-24
Profit
Employment
3,047
Businesses
741

Industry Threats & Opportunities

  • Outsourcing trends and the increasing use of cloud computing will support industry revenue
  • Industry players have upgraded their data storage service facilities to meet rising demand
  • Improved domestic web accessibility is anticipated to increase industry participation
  • Industry Report - Industry Key Buyers Chapter

    The Data Storage Services industry has low market share concentration, with the industry’s four largest players are expected to account for under 40% of revenue in 2018-19. Over the past five years, concentration has increased as firms have expanded their data centre footprint. Larger companies benefit from significantly reduced marginal costs, as cooling and security costs are shared across a greater number of servers. Additionally, the number of employees required to manage each server falls as the size of a data centre increases. These economies of scale favour larger industry companies, increasing the industry’s market share concentration...purchase to read more.

    Additional Insights for the Data Storage Services Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Data Storage Services Industry are

  • Highly trained workforce
  • Ability to compete on tender
  • Economies of scale
  • IBISWorld analysts also discuss how external factors such as Capital expenditure on computer software and Demand from information media and telecommunications in the Data Storage Services industry impact industry performance..

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    What's in this report

    What is the Data Storage Services Industry?

    Industry companies mainly provide electronic information storage and retrieval services. The industry provides electronic information storage, such as cloud services, which enable third parties to upload, download, back up and access files and systems over the internet. The industry excludes web hosting services, which primarily provide access to information stored on the internet as a means to disseminate information.

    Industry Products
  • Co-location storage
  • Cloud storage
  • Managed storage
  • Industry Activities
  • Computer data physical storage and retrieval services
  • Electronic information physical storage and retrieval services
  • Data centre operation and management
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Capital expenditure on computer software
  • Demand from information media and telecommunications
  • Capital expenditure by the public sector
  • Internet connections

  • Current Performance
  • Industry structure
  • Cloud computing
  • Security concerns
  • Chart: Revenue Growth

  • Industry Outlook
  • Outsourced IT infrastructure
  • High competition
  • Energy efficiency
  • Table: Data Storage Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Data Storage Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Public Administration and Safety
  • Finance
  • Consumers

  • Key Selling Industries
  • Computer and Electronic Office Equipment Manufacturing
  • Wired Telecommunications Network Operation

  • Products & Services
  • Cloud storage
  • Co-location storage
  • Managed storage
  • Chart: Data Storage Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • ICT companies
  • Finance and insurance firms
  • Governments
  • Other
  • Manufacturing companies
  • Chart: Major Market Segmentation for the Data Storage Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Data Storage Services

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Data Storage Services Industry

  • Industry Globalization
    Equinix Australia Pty Limited, IBM A/NZ Holdings Pty Limited, Global Switch Australia Holdings Pty Limited,
  • Table: Equinix Australia Pty Limited - financial performance
  • Table: IBM A/NZ Holdings Pty Limited - financial performance
  • Table: Global Switch Australia Holdings Pty Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Data Storage Services Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Data Storage Services Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Co-Location
  • Outsourced data centre in which a business can rent server space and space for other computing hardware.
  • Data Centre Rack
  • A steel structure that is used to house servers and other computing equipment.
  • Latency
  • The time delay between accessing data online and the data arriving at the end user's location.
  • Rack Density
  • The number of servers that are housed in a single rack.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Data Storage Services market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Data Storage Services:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Data Storage Services market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Data Storage Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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