External Storage Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2026-2035)

External Storage Market Overview

The external storage market development is driven by surging concerns over data security. Of late, the demand for storage management is growing as it ensures that the data is available to users whenever they need it. With technology becoming more sophisticated, the requirement for large file transfers and backups is continuing to grow, further driving the need for high-speed external storage devices. The rise in the number of data centers and the subsequent need for data storage HDDs and platforms in enterprises to store, optimize, and monetize data will favor the market. According to industry reports, there were nearly 11,800 data centers across the globe in March 2024.

External Storage Market Growth

The strong commitment towards offering reliable and cost-effective storage solutions will increase the external storage market share. In March 2025, Taiwan-based Silicon Power launched its Endura series for a new SSD lineup comprising four models, E55, E60, ED90, and ES75. Deployed with advanced 3D TLC NAND technologies, these SSDs offer storage solutions to cater to diverse user needs. The rapid surge in the number of IoT sensors and edge devices across the globe has led to the increasing data volumes. The higher demand for advanced electronic devices led by the growing preference for miniaturized components will define the industry growth.

Key Trends and Recent Developments

External Storage Market Trends

The rising technological integration in the automotive sector is likely to prove favorable for the external storage industry development. In April 2024, Micron Technology, Inc. revealed that it was sampling the Micron 4150AT SSD, the world’s first automotive-grade quad-port SSD,¹ with an ability of interfacing with up to four SoCs for centralizing storage for software-defined intelligent vehicles. The growing rate of digital content creation is also driving the demand for external storage devices as they offer fast data transfer speeds. The significant boom in professional photography and the consequent need for high-capacity storage for backing up and managing large RAW image files will enhance the market development in coming years.

External Storage Market Opportunities

The increasing rate of AI integration along with the rising innovations in storage device technology will favor the growth of the external storage market. In April 2025, memory and flash storage solutions provider ADATA Technology Co., Ltd. marked its entry into the enterprise storage market for addressing the growing challenges of data processing brought driven by the onset of AI and high-performance computing. The influx of cutting-edge storage solutions, such as hybrid drives as well as advanced NVMe protocols are pushing the limits of data storage technology. The strong need for providing ample space for storage needs, spanning extensive media collections and critical backups will favor the market growth.

External Storage Market Restraints

The external storage market expansion is likely to be hindered due to their non compatibility with devices, including older computers and certain types of gaming consoles. Due to their small size and portability, these devices are easy to misplace and can be stolen. The risk of vibration, wear-and-tear, virus damage, and power surge will also hinder the product acceptance to some extent.

External Storage Industry Segmentation

External Storage Market Share

Market Analysis by Technique

Solid state storage (SSD) will gain immense traction in the external storage market due to their rising cost-effectiveness and assistance to end users in resolving issues quicker while achieving greater productivity. SSD’s also witness a large presence in logistics and transportation as they are used to manage data storage, streamline data management and transform workflows. While flash memory devices are favored as they render lower power consumption, faster access times, and greater durability, driving innovations in technology. In February 2025, Kioxia partnered with Sandisk to launch its gen-next 3D flash memory technology for achieving 4.8Gb/s NAND interface speed. The demand for external hard drives will grow in the external storage industry with the emerging trend of work-from-home and remote working. The rapid innovations in data security and speed are boosting the consumer interest in cutting-edge external hard drives.

Market Analysis by Application

The consumer electronics segment is poised for expansion due to the rising penetration of SSDs in tablets, and smartphones to provide quicker application launches, faster boot times, and enhanced system performance for faster data access. According to industry reports, SSDs have taken over HDD within laptops, now contributing to 95% of the total laptop sales.

The demand for external storage in healthcare devices is rising with the incessant need to process, analyze and store patient data. SSDs also offer essential storage performance common to medical and drug research companies for data-intensive workloads. The external storage mill products segment will record significant growth driven by the expansion of warehouses and construction projects. This can be attributed to the rising adoption of external storage devices for streamlining data, managing data storage, and transforming workflows.

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Purchase the Regional Overview for USD 1099

If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Purchase the Regional Overview for USD 1099

If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Purchase the Regional Overview for USD 1099

If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

External Storage Market Regional Analysis

North America External Storage Market Trends

The external storage demand forecast in North America will likely expand with the rapid digital transformation and the strong presence of leading industry participants, mainly in the United States and Canada. As per industry reports, 7% of businesses in Canada with five or more employees deployed software or hardware with AI in 2023. Several defense bodies, government agencies and commercial enterprises across the region are largely using portable storage devices that can survive exposure to dust, water and chemical submersion, and extreme temperatures and conditions. The soaring advancements in storage technologies along with the increasing data storage demands will drive the regional market growth.

Europe External Storage Market Insights

Europe external storage market growth is likely to be driven by the rising demand for renewable energy, the strong emphasis on sustainable storage solutions and the surge in popularity of advanced solar power storage solutions. The increasing need for long-term storage solutions has propelled the rise in the number of warehouse storage facilities as well as the expansion of rental self-storage units. In October 2024, the government in the United Kingdom unveiled an investment support scheme for bolstering the long duration energy storage (LDES) infrastructure in the country. Such thriving government intervention will positively influence the market growth in Europe.

Asia Pacific External Storage Market Opportunities

The thriving government support and the increasing acceptance of cloud technologies will act as significant boosters for the external storage market in Asia Pacific. For instance, in November 2024, the Reserve Bank of India revealed its plans of launching a local cloud storage pilot in 2025 to support smaller financial firms with affordable solutions while challenging global providers like AWS and Google. The presence a booming electronic manufacturing industry in China has surged the popularity of portable external drives, cloud storage services, and NAS devices in the country. According to industry reports, the value of data storage device production reached 78M units in 2024 in China, rising by 4.7% compared to the 2023 figures.

Latin America External Storage Market Drivers

The growing activities by both local and international players aimed at introducing innovations in storage devices and expanding their footprint will increase the external storage market revenue in Latin America. In July 2024, lobal storage and memory solutions provider KingSpec Electronics participated in the Brazil Eletrolar Show 2024, which was Latin America’s biggest B2B consumer electronics show to exhibit its consumer-grade storage and memory solutions. The strong presence of data centers in the region and the rise in government-driven regulations for data protection, such as Mexico's Federal Law on Protection of Personal Data will add impetus to the regional market growth.

Middle East and Africa External Storage Market Factors

The external storage market outlook will be enhanced in the Middle East and Africa driven by the strong need for computer storage devices owing to the surge in digital transformation initiatives and expansion of e-commerce. According to industry reports, the UAE is the 43rd largest eCommerce market with a predicted revenue of USD 5,969.2 million by 2025. Several businesses, including small enterprises and large corporations mainly in the United Arab Emirates and Saudi Arabia are increasingly relying on external hard drives for data security. The booming tourism industry along with the rise in smart city initiatives will also favor the regional market growth.

Competitive Landscape

Other key players in the external storage market report are Pure Storage, Inc., Toshiba Corporation, Samsung Electronics Co., Ltd., Western Digital Corporation, ADATA Technology Co., Ltd., and Micron Technology, Inc., among others.