Consumer Network Attached Storage Market Size, Share & Trends Analysis Report By Design (2-bays, 4-bays), By Storage Type (HDD, Hybrid), By Mount Type By Storage Capacity, By Deployment, By End-user, By Region, And Segment Forecasts, 2023 - 2030

Consumer NAS Market Size & Trends

The global consumer network attached storage market size was estimated at USD 4.85 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 12.1% from 2023 to 2030. Rapid digital transformation among small- and medium-sized enterprises (SMEs) and growth of unstructured data are among the primary factors boosting product adoption. Network attached storage (NAS) device is a centralized storage device that enables multiple users to share and store files over a Transmission Control Protocol/Internet Protocol (TCP/IP) network through an Ethernet cable or Wi-Fi. A consumer NAS is designed for at-home users and SME businesses needing centralized file storage.

Many companies of consumer electronics, telecommunications, automotive, and other industries seek new innovative solutions based on artificial intelligence (AI). As a result, investments in advancing AI technology are growing continuously. Continued advances in AI are poised to drive innovation and lead to the introduction of consumer NAS devices with faster data transfer speeds and larger storage capacities for home offices and small businesses. The growing demand for feature-rich consumer NAS systems is also opening significant opportunities for the growth of the market. Vendors of consumer NAS solutions are investing in R&D to introduce efficient NAS solutions.

For instance, in September 2023, QNAP Systems, Inc. announced the launch of TS-AI642, an AI-powered NAS solution. Designed to meet the video surveillance image storage and backup needs of SMEs, the solution offers a storage capacity of up to 110 TB and features a built-in Neural Processing Unit (NPU) to enable high-speed AI applications. The COVID-19 pandemic led to supply chain disruptions as a result of demand shifts, labor shortages, and travel restrictions. This posed a threat to the ability of the industry players to ensure continuous manufacturing and supply of their products and services. The COVID-19 pandemic led market players to make significant changes to their operations.

For instance, NETGEAR, a U.S.-based company, transitioned to a work-from-home model for a majority of its employees, and additional safety measures were implemented for employees working on-site in the first quarter of 2020. The COVID-19 pandemic accelerated business transformation, driving the need for increased storage demands. It highlighted the need for digital technology adoption among SMEs. With the growing digitalization among SMEs post-pandemic, the demand for consumer NAS solutions is expected to grow. Acceleration in remote working models due to the pandemic positively impacted the global market growth. The need for access to data while working from home fueled industry growth post-pandemic.

Design Insights

In terms of design, the industry is classified into 1-bay, 2-bays, 5-bays, 4-bays, 6-bays, and above 6-bays. The 4-bays segment dominated the market with a revenue share of over 28.5% in 2022. It is expected to grow at a CAGR of 12.8% from 2023 to 2030. The segment’s growth can be attributed to better specifications of 4-bay consumer NAS devices in comparison to 1-bay and 2-bay consumer network attached storage devices and the ability to support large volumes of data. A 4-bay consumer NAS device is a better option for users requiring more than 18 TB of storage space.

Moreover, it is a better option compared to 1-bay and 2-bay consumer NAS devices in terms of security and data write speeds. The 2-bays segment is anticipated to grow at the fastest CAGR of 13.5% during the forecast period. The segment’s growth can be attributed to the ability of 2-bay consumer network attached storage devices to offer better security and storage capacity in comparison to a 1-bay consumer NAS device, as well as lower costs in comparison to a 4-bay consumer NAS device. Many market players offer 2-bay consumer NAS devices. These companies are also constantly innovating and launching new 2-bay devices to meet customer demands.

Mount Type Insights

In terms of mount type, the industry is classified into standalone and rackmount. The standalone segment dominated the market with a revenue share of more than 67.0% in 2022. It is expected to grow at the fastest CAGR of 12.5% over the forecast period. The cost-effectiveness and compactness of standalone mounting devices drive the segment’s growth. Standalone NAS devices produce less noise in comparison to rackmount variants, mainly owing to the smaller and fewer fans in operation. Desktop units are compact and work well for applications that require a self-contained solution for media streaming, archiving, and data backup.

The rackmount segment is expected to grow at a considerable CAGR of 11.3% during the forecast period. The ability of rackmount NAS devices to operate over longer periods and provide advanced hardware continues to drive the segment’s growth. Rackmount NAS devices are suitable for long hours of operation. This can be attributed to significant airflow through the cabinet and the availability of bigger and more powerful fans compared to standalone NAS devices. This maintains a low temperature, preventing heating of the device over extended periods of operation.

Storage Type Insights

In terms of storage type, the market is classified into Hard Disk Drive (HDD), flash storage, and hybrid. The HDD segment dominated the industry with a revenue share of 65.8% in 2022 and is expected to grow at a CAGR of 12.2% over the forecast period. New product launches are anticipated to propel the segment growth owing to benefits, such as cost-effectiveness, compatibility with existing infrastructures, and diverse application possibilities, such as data centers, cloud storage, and video surveillance. For instance, in September 2023, Toshiba Corp., an international electronics company based in Japan, announced a new 22 Terabytes (TB) model, MG10F. The design uses Conventional Magnetic Recording (CMR) HDD with the company’s mature 10-disk helium-sealed technology.

The hybrid segment is expected to grow at the highest CAGR of 13.3% from 2023 to 2030. The need for efficient and versatile storage devices for a wide range of applications in consumer NAS environments drives the segment’s growth. Hybrid storage in consumer NAS combines the strengths of hard disk drives and solid-state drives to offer an optimal balance of performance and storage capacity. This technology excels in scenarios where users require faster access to frequently used data, making it suitable for tasks, such as multimedia editing, gaming, and small business operations.

Storage Capacity Insights

In terms of storage capacity, the market is classified into less than 1 TB, 1 TB to 20 TB, and more than 20 TB. The 1 TB to 20 TB segment dominated the industry with a revenue share of more than 62.6% in 2022. It is expected to grow at the fastest CAGR of 13.0% over the forecast period. The 1 TB to 20 TB range is suitable for the storage needs of home users and small businesses. These capacities provide ample space for storing personal files, multimedia content, documents, and backups without being overly complex or expensive. These factors are driving segment growth.

The more than 20 TB segment is expected to grow at a considerable CAGR of 10.8% during the forecast period. The growing demand for very high storage capacities for demanding, data-intensive applications among consumers and small businesses drives the segment’s growth. Data analytics, machine learning (ML), and scientific research typically rely on large datasets for their operations. A high-capacity NAS solution offers the necessary storage space to store these extensive datasets and facilitate efficient data processing and analysis. A NAS solution with over 20 TB of storage capacity can guarantee the necessary storage capacity for such applications without compromising resource allocation and management.

Deployment Insights

In terms of deployment, the market is classified into on-premise, hybrid, and cloud/remote. The on-premise segment dominated the consumer NAS market, with a market share of over 51.4% in 2022. It is expected to grow at a considerable CAGR of 10.9% throughout the forecast period. On-premise deployment allows users to have direct control over their data, enhancing security and privacy. Consumers prefer to keep their personal and sensitive data within their premises, reducing reliance on external servers or cloud services, which is driving the segment growth. On-premise deployment represents a traditional approach to implementing scalable NAS solutions in enterprises. This method grants organizations full control over platforms, applications, systems, and data.

The hybrid segment is likely to grow at the fastest CAGR of 13.8% during the forecast period. The growing need for consumer NAS solutions offering high performance and minimizing downtime and maintenance costs drives segment growth. Hybrid deployment approach delivers highly efficient solutions in terms of performance, scalability, manageability, and cost reduction to customers. Unlike solely on-premises or remote deployments, hybrid storage solutions offer a combination of advantages and disadvantages. These systems operate seamlessly, utilizing mechanisms to keep active data on-premises while moving inactive data to remote locations based on policies defined by sophisticated engines.

End-user Insights

In terms of end-user, the market is classified into residential and business. The business segment dominated the industry with a share of more than 59.7% in 2022 and is expected to register a CAGR of 12.0% during the forecast period. The growing need for dependable data management and backup solutions among businesses owing to growing volumes of unstructured data drives segment growth. Consumer NAS devices provide a convenient and accessible way for small businesses to store and secure their data. NAS devices serve as centralized storage solutions, enabling small businesses to store and organize their data in a single location.

This simplifies data access and management, ensuring efficient storage and retrieval. The residential segment is anticipated to grow at the fastest CAGR of 12.3% during the forecast period. The adoption of consumer NAS in the residential segment has been influenced by the need for centralized storage, the demand for file sharing and collaboration, and the rising preference for remote work, particularly due to the COVID-19 pandemic. With the shift to remote work practices, there has been an increased demand for cloud-based solutions, including NAS devices, to support remote collaboration and data access.

Regional Insights

North America dominated the market in 2022 with a revenue share of over 34.2%. It is expected to grow at a CAGR of 11.6% during the forecast period. The booming startup ecosystem in North America drives market growth in the region. North America has emerged as a global hub for technology startups. The region fosters a vibrant ecosystem, attracting entrepreneurs, venture capital investments, and technological innovation. The presence of numerous startups in North America creates a significant demand for storage solutions, such as NAS devices. In addition, a rising number of smart homes in North America has a positive impact on product demand.

Asia Pacific is expected to grow at the fastest CAGR of 13.5% from 2023 to 2030. Rapid urbanization in this region has positively impacted its growth. The urban lifestyle involves a degree of mobility, with individuals requiring access to their data on the go. Therefore, as more people move to urban areas, there is a corresponding increase in the demand for advanced and convenient technologies to manage and access digital data. Moreover, the rising number of SMEs in Asia Pacific is likely to contribute to product demand.

Key Companies & Market Share Insights

The market is moderately consolidated, with a few companies providing consumer NAS devices. The market players are adopting strategies, such as expansion, to gain a competitive edge. For instance, in June 2022, QNAP Systems, Inc. inaugurated a new facility in Willich, Germany. It comprises training facilities, modern office space, a servicing area, and a warehouse. The company was expecting the new facility to serve as its European head office, a service center, and a logistics hub and to aid in cementing its foothold in the European market.

Consumer Network Attached Storage Market Report Scope

Global Consumer Network Attached Storage Market Report Segmentation

This report forecasts volume & revenue growth at global, regional, and country levels and provides an analysis of the latest trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the consumer network attached storage market report based on design, mount type, storage type, storage capacity, deployment, end-user, and region:

• Design Outlook (Volume, Thousand Units; Revenue, USD Million, 2017 - 2030)

  • 1-Bay

  • 2-Bays

  • 4-Bays

  • 5-Bays

  • 6-Bays

  • Above 6-Bays

• Mount Type Outlook (Volume, Thousand Units; Revenue, USD Million, 2017 - 2030)

  • Standalone

  • Rackmount

• Storage Type Outlook (Volume, Thousand Units; Revenue, USD Million, 2017 - 2030)

  • Hard Disk Drive (HDD)

  • Flash Storage

  • Hybrid

• Storage Capacity Outlook (Volume, Thousand Units; Revenue, USD Million, 2017 - 2030)

  • Less than 1 TB

  • 1 TB to 20 TB

  • More than 20 TB

• Deployment Outlook (Volume, Thousand Units; Revenue, USD Million, 2017 - 2030)

  • On-premise

  • Cloud/Remote

  • Hybrid

• End-user Outlook (Volume, Thousand Units; Revenue, USD Million,2017 - 2030)

  • Residential

  • Business

• Regional Outlook (Volume, Thousand Units; Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • China

    • Japan

    • India

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa