The external enterprise storage systems market is expected to gain momentum in 2026 as organizations expand infrastructure to support artificial intelligence, data analytics, and large-scale digital workloads, IDC report said.

The worldwide external OEM enterprise storage systems market is projected to grow 6.3 percent in 2026, reaching approximately $37.7 billion in revenue, reflecting stronger demand for advanced storage architectures, Juan Seminara, research director, Worldwide Enterprise Infrastructure Trackers, said.
2026 Forecast: AI and Data Growth to Drive Storage Investments
IDC’s outlook indicates that enterprise storage spending will accelerate in 2026 as businesses deploy infrastructure capable of supporting AI training, inference, and data-intensive workloads. Organizations across sectors are increasing storage capacity to handle massive datasets generated by AI applications, cloud services, and digital transformation initiatives.
The forecast follows steady growth in the sector, with the market expected to rise from about $33.6 billion in 2024 to $35.4 billion in 2025, before reaching nearly $37.7 billion in 2026.
Flash Storage to Lead the Market Expansion
IDC highlights that demand for all-flash storage arrays is expected to remain a key driver of market growth. Enterprises are increasingly shifting toward high-performance flash storage to support AI workloads, real-time analytics, and high-throughput data processing.
Recent market data shows strong growth in all-flash arrays, while hybrid flash and traditional hard-disk-based storage systems continue to face slower demand as organizations modernize their infrastructure.
AI Projects Reshaping Enterprise Storage Strategies
Large-scale AI projects are beginning to reshape enterprise data center architecture, increasing the need for high-capacity, high-performance storage systems. Research institutions, technology companies, and enterprises investing in generative AI and machine learning are deploying storage platforms capable of handling vast volumes of training data.
IDC analysts note that these AI initiatives are expected to sustain storage infrastructure demand through 2026 and beyond as organizations expand data pipelines and analytics platforms.
Market Outlook: Moderate but Stable Growth Ahead
Although the enterprise storage market remains relatively mature compared with faster-growing segments like servers, IDC expects consistent expansion as organizations prioritize data infrastructure modernization.
The 2026 forecast suggests that continued investments in AI, cloud computing, and data-driven applications will reinforce the importance of scalable enterprise storage platforms, positioning the sector for steady growth across the next phase of digital transformation.
RAJANI BABURAJAN

