Report Description

Forecast Period

2025-2029

Market Size (2023)

USD 3.9 Billion

CAGR (2024-2029)

6.80%

Fastest Growing Segment

BFSI

Largest Market

North America


Market Overview

Global AI Powered Storage Market was valued at USD 3.9 Billion in 2023 and is anticipated to project robust growth in the forecast period with a CAGR of 6.80% through 2029. One of the key drivers of Al-powered storage market is the growth in adoption of cloud-based applications & services. Cloud based applications have carried a massive revolution in the business industry, particularly during COVID-19 pandemic. Many companies are adopting cloud-based platforms as it bids limitless flexibility & reliability. Moreover, it proposals great adaptability & is eco-friendly which further pushes the AI powered storage market growth. The Al- powered storage is widely adopted due to the digitalization of the markets after the covid-19. Companies are shifting all their workload to cloud based applications to ease distant working. Over the past few years, cloud migration has seen widespread global adoption, but recent trend to remote working has caused companies to rely more than ever on cloud services & apps. The COVID-19 outbreak had a big influence on AI Powered Storage Market. This is primarily attributable to the worldwide total halt of production & manufacturing. This pandemic had a significant negative influence on the world economy, which created additional challenges for numerous industries and businesses all over the world. However, there has been an increase in demand for cutting-edge solutions to make remote working more comfortable. This further encouraged the development of new, creative methods that make use of artificial intelligence and machine learning. Additionally, a lot of businesses have implemented AI-powered storage for real-time data storage to improve their business models and speed up turnaround. Additionally, this growth has sparked large investments in AI Powered Storage Market across the globe.

Key Market Drivers

An Increase in BFSI Companies' Investments in AI & Machine Learning

Additionally, AI & machine learning can help financial institutions at several stages of the risk management process, including risk exposure identification, measurement, estimation, and effect assessment. Additionally, BFSI companies are implementing & developing machine learning techniques to analyse vast amounts of data and provide insightful information to clients. The industry is also expected to rise as a result of banks and fintech companies investing more money in artificial intelligence & advanced machine learning to improve automation and provide more streamlined and customized consumer experiences. Additionally, major financial institutions like Bank of America, JPMorgan, and Morgan Stanley are heavily investing in machine learning technology in order to create automated investment advisors and train systems to detect red flags like money laundering techniques, which can be stopped by financial monitoring, thereby accelerating AI powered storage market growth.

Due to the rapid adoption of Chatbots by banks & increased rivalry among BFSI providers for the largest possible market share, end consumers are increasingly favoring personalized financial services. The AI Powered Storage Market is growing as a result of the numerous BFSI companies offering machine learning-powered budget management apps that assist users in meeting their financial goals and streamlining their money management techniques.

Increasing Demand for Customized Financial Services.

Additionally, robot-advisors, which primarily target investors with little resources like individuals and small- to medium-sized organisations for managing their accounts, are one of the other quickly rising trends in personalised financial services and machine learning-based robot-advisors can use conventional data processing methods to develop financial portfolios and solutions for their clients, including retirement plans, investments, and trading. Additionally, as usage-based insurance becomes more prevalent, machine learning and advanced artificial intelligence (AI) technologies are used to compute the premium that is appropriate for each individual, which in turn drives the growth of AI Powered Storage in the BFSI industry.

The number of SKUs are Increasing: Due to the frequent introduction of new items, an increasing number of SKUs (stock-keeping units) is rather typical in the business. With an array of options and styles at the disposal of the e-commerce retailers for delivery on demand, the luxury of customization & the increasing number of customer choices through the e-commerce platform have driven the demand for an enlarged inventory. The quantity of large-pallet orders that distributors receive is declining, as a result of just-in-time ordering, direct-to-consumer distribution & changing retailer-wholesaler partnerships. In response, the rise in small orders with numerous SKUs is putting pressure on warehouses to automate.

This market difficulty is addressed by automated, effective mini-load storage and retrieval systems (AS/RS), which use lightweight cranes to sort individual totes, cases, trays, and crates while improving storage and freeing up valuable labour & transportation resources. These systems optimise supply chain efficiency by automating crucial steps. Companies are turning to warehouse automation hardware & software solutions in order to maintain their competitiveness in an unstable & difficult economic environment, as warehouses are simultaneously experiencing long-term labour shortages and rising demand due to the booming e-commerce industry. Furthermore, due to the significant investment in the transit of goods through the world's warehouses, security is likely to become increasingly popular in the coming years. Which in turn increasing the demand for AI Powered Storage market during the forecast period.