Portable Data Storage Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Flash Storage, USB Storage, External Hard Drives, External CD/DVD Drives), By Memory (Below 256 GB, 256 GB to 1TB, Above 1TB), By File Formatting (NTFS, FAT32), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 3.72 Billion
CAGR (2026-2031)	12.12%
Fastest Growing Segment	Above 1TB
Largest Market	North America
Market Size (2031)	USD 7.39 Billion

Market Overview

The Global Portable Data Storage Market will grow from USD 3.72 Billion in 2025 to USD 7.39 Billion by 2031 at a 12.12% CAGR. The Global Portable Data Storage Market comprises compact, transportable electronic devices designed for recording and retrieving digital information, notably including external hard disk drives, solid-state drives, USB flash drives, and memory cards. The primary drivers fueling market expansion include the exponential increase in digital data generation requiring high-capacity backup solutions, the necessity for disaster recovery protocols independent of internet connectivity, and the growing mobility of the professional workforce. These fundamental factors sustain demand for offline storage capability even as connectivity improves globally.

However, the market faces a significant impediment regarding data security since physical devices are susceptible to theft or loss and potentially expose sensitive information to unauthorized access. Furthermore, the widespread adoption of cloud computing presents a formidable substitute that offers ubiquitous access without hardware management. According to the World Semiconductor Trade Statistics, in 2024, the global memory integrated circuit market was projected to increase by 81.0 percent. This substantial growth in the component sector underscores the robust demand for the storage technologies that power these portable devices despite the competitive landscape.

Key Market Drivers

The exponential growth in digital data generation serves as a primary catalyst for the portable storage market, driven by the relentless accumulation of high-definition media and professional files. As individuals and enterprises generate terabytes of content, the reliance on high-capacity external drives for offline backup and transport intensifies, particularly when cloud accessibility is limited or costly. This surge effectively sustains the need for hardware-based solutions that offer immediate, secure access to large data sets. According to Western Digital Corporation, July 2024, in the 'Fourth Quarter Fiscal 2024 Financial Results', Flash revenue increased by 28 percent year-over-year to $1.76 billion, reflecting a sharp recovery in demand for the storage technologies that power portable solid-state and USB drives.

Furthermore, the expansion of the gaming sector and the associated demand for console storage significantly propels market momentum. Modern video games frequently require massive installation files, quickly saturating internal console capacities and necessitating high-speed external solid-state drives for library maintenance. According to Sony Group Corporation, May 2024, in the 'Consolidated Financial Results for the Fiscal Year Ended March 31, 2024', the company sold 20.8 million PlayStation 5 units during the fiscal year, creating a substantial installed base requiring storage augmentation. This specific consumer need contributes to the broader health of the component market. According to the Semiconductor Industry Association, in 2024, global semiconductor industry sales reached $53.1 billion during August, underscoring the robust manufacturing environment supporting these consumer electronic peripherals.

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Key Market Challenges

The widespread adoption of cloud computing acts as a formidable substitute that significantly hampers the growth of the Global Portable Data Storage Market. As internet infrastructure becomes more robust and reliable globally, the necessity for physical hardware to transport or backup data diminishes. Corporate and individual users increasingly favor the convenience of cloud-based solutions, which offer ubiquitous access across multiple devices without the logistical burden or risk of managing physical assets. This structural shift in user behavior directly cannibalizes the demand for portable storage devices, as the value proposition of instant, hardware-free retrieval often outweighs the benefits of offline capacities, particularly for non-sensitive, general-purpose data.

This transition from physical product ownership to service-based consumption is evident in shifting expenditure trends. According to the Consumer Technology Association, in 2024, consumer spending on software and subscription services was projected to account for nearly one-third of total technology spending, reflecting a substantial migration of budget away from traditional hardware categories. As reliance on digital, service-oriented storage ecosystems grows, the addressable market for external hard drives and flash memory confronts a persistent ceiling, restricting potential revenue expansion despite the overall surge in global data generation.

Key Market Trends

The standardization of biometric security and hardware encryption is rapidly reshaping product specifications as manufacturers address the critical vulnerability of data loss in remote work environments. With dispersed workforces accessing sensitive corporate information outside traditional firewalls, enterprises are mandating the use of portable drives equipped with AES-256 bit encryption and fingerprint authentication to ensure compliance with strict data protection regulations. This shift is substantiated by recent industry surveys regarding cyber resilience and backup protocols. According to Apricorn, November 2024, in the 'Apricorn Survey: Ransomware Drives Cyber Insurance Need', 46 percent of respondents cited data backups as an essential tool to meet cyber insurance compliance requirements, highlighting the growing institutional reliance on secure, offline storage protocols to mitigate modern security threats.

Widespread adoption of NVMe technology and the integration of USB4 high-speed interfaces are driving a performance revolution in the portable storage sector, effectively replacing legacy SATA-based architectures. This transition allows external solid-state drives to achieve transfer rates previously reserved for internal hardware, catering specifically to content creators and professionals who require immediate rendering and editing of high-bitrate video directly from the drive. The surge in demand for these high-performance components is evident in the financial results of key component suppliers. According to Phison Electronics, October 2024, in the 'September 2024 consolidated revenue report', cumulative revenue for the year reached NT$46.36 billion, reflecting a year-over-year growth of 43 percent, a surge the company attributed to the continuous rise in market demand for high-capacity NAND storage module products.

Segmental Insights

The Above 1TB segment constitutes the fastest-growing category within the Global Portable Data Storage Market, fueled by the escalating demand for high-capacity mobile solutions. This growth is primarily attributed to the proliferation of high-resolution digital media, including 4K video and raw photography, which necessitates significant storage space for content creators and professionals. Additionally, the increasing size of modern gaming applications and the requirement for comprehensive portable backups drive this trend. Manufacturers are responding by utilizing advancements in flash memory to provide these substantial capacities in compact devices, thereby supporting the data-intensive needs of a mobile workforce.

Regional Insights

North America maintains a leading position in the global portable data storage market due to the extensive integration of digital tools across corporate and consumer sectors. The region benefits from the established presence of major manufacturers, which ensures consistent product availability and distribution. Additionally, heightened concerns regarding data security encourage the adoption of encrypted storage devices among enterprises. Compliance with framework guidelines from the National Institute of Standards and Technology further drives the procurement of secure hardware, as organizations prioritize reliable data protection methods to meet operational requirements.

Recent Developments

• In December 2025, Micron Technology announced its strategic decision to exit the consumer market, effectively discontinuing its Crucial brand which encompasses portable solid-state drives and computer memory. The company stated that it would cease sales of these consumer-focused storage products by early 2026 to redirect resources towards its enterprise and commercial business units, citing the surging demand for data center memory driven by artificial intelligence. Micron assured customers that it would maintain warranty support and service for all existing Crucial portable storage devices throughout the transition phase.
• In November 2025, Samsung Electronics released the T7 Resurrected Portable Solid State Drive, a new external storage device emphasizing environmental sustainability. The drive featured a casing manufactured from 100 percent recycled aluminum sourced from the production waste of mobile devices, earning it a CES Innovation Award for sustainability. Despite the eco-friendly construction, the product maintained high performance with sequential read speeds of up to 1,050 MB/s and write speeds of up to 1,000 MB/s via the USB 3.2 Gen 2 interface. The product was introduced to appeal to environmentally conscious consumers and professionals.
• In November 2025, Kingston Technology launched the Dual Portable SSD, a compact external storage solution featuring both USB Type-A and USB Type-C connectors. The new drive was designed to facilitate seamless file transfers between a wide range of devices, including laptops, desktops, and smartphones, without the need for additional cables or adapters. Offering read speeds of up to 1,050 MB/s and write speeds of up to 950 MB/s, the device utilized the USB 3.2 Gen 2 interface. It was made available in capacities of up to 2TB, targeting content creators and professionals requiring versatile on-the-go storage.
• In January 2024, Lexar unveiled the SL500 Portable SSD, a high-performance external storage device designed for content creators and mobile professionals. Showcased at a major technology event, the drive featured a slim aluminum unibody construction and utilized advanced controllers to achieve read speeds of up to 2,000 MB/s. The product was positioned as an ideal solution for recording high-quality video directly from smartphones, offering broad compatibility with various devices including laptops and cameras. This launch expanded Lexar’s portfolio in the portable storage market, emphasizing a combination of compact design and superior data transfer capabilities.

Key Market Players

• Western Digital Corporation
• Seagate Technology LLC
• Samsung Electronics Co., Ltd.
• Kingston Technology Company, Inc.
• Toshiba Corporation
• Lexar Co., Ltd.
• Transcend Information, Inc.
• ADATA Technology Co., Ltd.
• Zotac Technology Limited
• PNY Technologies, Inc.

By Type	By Memory	By File Formatting	By Region
Flash Storage USB Storage External Hard Drives External CD/DVD Drives	Below 256 GB 256 GB to 1TB Above 1TB	NTFS FAT32	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Portable Data Storage Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Portable Data Storage Market, By Type:

• Flash Storage
• USB Storage
• External Hard Drives
• External CD/DVD Drives

• Portable Data Storage Market, By Memory:

• Below 256 GB
• 256 GB to 1TB
• Above 1TB

• Portable Data Storage Market, By File Formatting:

• NTFS
• FAT32

• Portable Data Storage Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE