Computational Storage Market

Market Definition

The Computational Storage Market size was valued at USD 6.50 billion in 2023 updated and is predicted to reach USD 17.82 billion by 2030 with a CAGR of 15.5% from 2024-2030.

Computational storage involves integrating data storage and processing capabilities within a single storage device, enabling localized data processing. This approach minimizes data transfer overhead on the central processing unit (CPU) and enhances system performance by processing data directly within the storage device. By merging storage and computing functionalities, computational storage optimizes data processing at the storage location, eliminating the need to transfer data to a separate processing unit. Technologies like solid-state drives (SSDs) with embedded processors, memory-based storage devices, and storage-class memory systems reduce latency and bandwidth constraints associated with conventional storage, boosting performance and energy efficiency for data-intensive applications.

Market Dynamics and Trends

The growing demand for data volume and processing needs across various sectors, such as BFSI, Media & Entertainment, and others is fueling the computational storage market. As it helps to keep pace with the processing demands of massive datasets. As per the International Data Corporation (IDC), the global data volume will reach 175 zettabytes by 2025. Of this, an estimated 90 zettabytes will originate solely from IoT devices.

Moreover, rising technological innovations such as cloud computing, IoT, AI, and edge computing drives the need for advanced computational storage solutions capable of managing the growing volume and intricacy of data produced by these technologies.

This demand underscores the critical role of computational storage in optimizing data processing efficiency and performance in the era of expanding digital ecosystems. According to the IDC, the global expenditure on the Internet of Things (IoT) is projected to exceed USD 1 trillion by the year 2026.

In addition, the evolution of consumer behavior towards digital services, e-commerce, and streaming media is boosting demand for computational storage solutions, highlighting their importance in meeting modern consumers' needs for efficient data management. According to the combined estimate by Shopify SkyQuest, and GroupM, the e-commerce market size is expected to reach USD 58.74 billion by 2028, with the growing CAGR of 26.5%.

However, the high initial costs associated with computational storage solutions deter organizations from investing, especially for smaller businesses or those with limited budgets. Thus, it is the major restraining factors in the computational storage market.

On the contrary, the introduction of non-volatile memory express (NVMe) based storage devices offer high-speed data transfer and low latency is expected to create ample opportunities in the growth of the computational storage market in the coming years.

In 2024, NVM Express introduced the computational storage feature, standardizing storage management functions for cloud, enterprise, and IoT sectors. This vendor-neutral framework connects applications to NVMe computational storage devices, improving performance and reducing total cost of ownership by enabling computation directly on storage devices.

Market Segmentations and Scope of the Study

the computational storage market share is segmented on the basis of component, type, architecture, interface & protocol, deployment, application, performance tier, form factor, commercialization model, and end user vertical. on the basis of component, the market is divided into hardware, software, and services. on the basis of type, the market is segmented into fixed computational storage, and programmable computational storage. on the basis of architecture, the market is classified into in-device compute (in-situ), near-device compute, host-orchestrated compute, and hybrid models. on the basis of interface & protocol, the market is divided into nvme computational storage, pcie attached, network attached (nvme-of, block, object), and proprietary interfaces. on the basis of deployment, the market is segmented into cloud & hyperscale data centers, enterprise on-premise data centers, edge & micro data centers, embedded deployments, and hybrid deployments. on the basis of application, the market is classified into database acceleration & query pushdown, data compression & deduplication, ai/ml preprocessing & inferencing, video & image processing, security & encryption, iot telemetry processing, backup & restore acceleration, and content delivery & caching. on the basis of performance tier, the market is segmented into high performance, low latency, balanced performance & capacity, and capacity optimized. on the basis of form factor, the market is classified into drive form factor (u.2, u.3, e1.l), add-in card (aic), small form factor modules, and appliance & chassis systems. on the basis of commercialization model, the market is divided into hardware sales (oem & board-level), software licenses & subscriptions, managed services & consumption-based, oem embedded licensing. on the basis of end user vertical, the market is divided into cloud service providers & hyperscalers, telecom & service providers, enterprise it, hpc and scientific computing, research education & labs. Regional breakdown and analysis of each of the aforesaid segments include regions comprising of North America, Europe, Asia-Pacific, Middle East & Africa and Latin America.

Geographical Analysis

North America holds the predominant share of the computational storage market and is expected to continue its dominance during the forecast period. This is attributed to factors such as the presence of huge healthcare industry and the need to store large amount of patient’s data in electronic health records (EHRs) for faster data processing, improved patient’s data security, and reduced data transfer times is driving the growth of the computational storage market.

According to the Center for Medicare and Medicaid Services, the healthcare industry in the U.S. reached 4.3 trillion in 2021, which is an increase from USD 4.1 trillion in 2020, increasing the requirement of computational storage solutions to manage the large amount of patient data generated by the industry. Moreover, the presence of key players such as IBM Corporation, Nvidia, and Microsoft Corporation plays an important role in the development of the computational storage market in this region.

For instance, in May 19, 2025, Western Digital Corporation announced at Computex 2025 expanded ecosystem support, qualifying SSD vendors (including Phison and ScaleFlux) for its platforms.

On the other hand, Asia-Pacific is expected to show steady growth in the development of the computational storage market. This is attributed to the factors such as the growing automotive industries, coupled with the increasing adoption of computational storage, are enabling improved data processing and storage capabilities in vehicles, resulting in better in-car experiences.

According to the Ministry of Industry and Information Technology, China is the world’s largest vehicle manufacturing market, selling over 25 million vehicles in 2020, and domestic production is expected to reach 35 million by 2025, driving the demand for computational storage solutions to improve the efficiency and performance of the vehicles. 

Moreover, the rapidly developing telecommunication industry due to the increasing number of smartphone users and the increasing usage of computational storage to store and handle a large amount of customer data and information is further driving the growth of the computational storage market in this region. According to the Indian Ministry of Information and Broadcasting, the number of smartphone users reached 600 million in India in 2022 as compared to 492.78 million in 2021. 

Competitive Landscape

Various market players operating in the computational storage market include Samsung Electronics Co Ltd, Seagate Technology Holdings plc, Western Digital Corporation, Intel Corporation, International Business Machines Corporation (IBM) Huawei Technologies Co Ltd, Advanced Micro Devices, Inc. (Xilinx), Phison Electronics Corporation, ScaleFlux Inc, Pliops Inc, NGD Systems Inc,, Eideticom Ltd, Molex, LLC (BittWare Inc.) Netint Technologies Ltd, and Solidigm LLC. These market players are adopting various strategies such as product launches and partnerships to remain dominant in the computational storage market. 

For instance, in July 24, 2025, Samsung signed a $16.5 billion semiconductor contract manufacturing agreement with a large unnamed global partner, extending through 2033.

Furthermore, in July 2025, Intel agreed to give the U.S. government a 9.9 % equity stake in exchange for CHIPS Act funding, enhancing foundry momentum.

Moreover, in Dec 1 & Dec 9, 2025, SSeagate participated in UBS Global Technology & AI Conference and the Nasdaq 53rd Annual Investor Conference to present its AI-storage roadmap.

Key Benefits

• The computational storage market report provides the quantitative analysis of the current market and estimations from 2024 to 2030. This analysis assists in identifying the prevailing market opportunities to capitalize on.

• The study comprises of a detailed analysis of the computational storage market trends including the current and future trends for depicting the prevalent investment pockets in the market.

• The information related to key drivers, restraints, and opportunities and their impact on the computational storage market is provided in the report.

• The competitive analysis of the market players along with their market share in the computational storage market is mentioned.

• The SWOT analysis and Porter’s Five Forces model are elaborated in the study.

• The value chain analysis in the market study provides a clear picture of the stakeholders’ roles.

Key Market Segments

By Component                                                                        

• Hardware                                                       

  • Computational Storage Drives (CSDs)                                   

  • Arrays & Integrated Appliances                                             

  • Compute Modules and Processors (including FPGA)                                    

  • Accelerator Cards & AICs                                           

• Software                                                         

  • Device Firmware & Runtime                                      

  • SDKs, Libraries & APIs                                    

  • Management & Orchestration Software                                           

  • Container & Function Runtimes                                            

• Services                                                          

  • Integration & Deployment Services                                       

  • Managed Services                                          

  • Support & Maintenance                                            

By Type                                                                       

• Fixed Computational Storage                                                 

• Programmable Computational Storage                                                         

  • Native Programmable (SDK-based)                                       

  • Containerized Functions                                             

By Architecture                                                                       

• In-Device Compute (In-Situ)                                                   

• Near-Device Compute                                                

• Host-Orchestrated Compute                                                  

• Hybrid Models                                               

By Interface & Protocol                                                                      

• NVMe Computational Storage                                                           

• PCIe Attached                                                 

• Network Attached (NVMe-oF, Block, Object)                                                

• Proprietary Interfaces                                                

By Deployment                                                                       

• Cloud & Hyperscale Data Centers                                                      

• Enterprise On-Premise Data Centers                                                 

• Edge & Micro Data Centers                                                    

• Embedded Deployments                                                       

• Hybrid Deployments                                                  

By Application                                                            

• Database Acceleration & Query Pushdown                                                   

• Data Compression & Deduplication                                                  

• AI/ML Preprocessing & Inferencing                                                   

• Video & Image Processing                                                     

• Security & Encryption                                                

• IoT Telemetry Processing                                                       

• Backup & Restore Acceleration                                                         

• Content Delivery & Caching                                                  

By Performance Tier                                                              

• High Performance, Low Latency                                                        

• Balanced Performance & Capacity                                                    

• Capacity Optimized                                                    

By Form Factor                                                                       

• Drive Form Factor (U.2, U.3, E1.L)                                                     

• Add-in Card (AIC)                                                       

• Small Form Factor Modules                                                   

• Appliance & Chassis Systems                                                 

By Commercialization Model                                                             

• Hardware Sales (OEM & Board-level)                                                

• Software Licenses & Subscriptions                                                    

• Managed Services & Consumption-based                                                     

• OEM Embedded Licensing                                                     

By End User Vertical                                                              

• Cloud Service Providers & Hyperscalers                                                        

• Telecom & Service Providers                                                  

• Enterprise IT                                                   

  • BFSI                                        

  • Healthcare & Life Sciences                                         

  • Media & Entertainment                                             

  • Government & Defense                                             

  • Automotive & Transportation                                    

  • Retail & Consumer Goods                                          

  • Industrial & Manufacturing                                       

• HPC and Scientific Computing                                               

• Research Education & Labs

By Region

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • U.K.

  • Germany

  • France 

  • Italy

  • Spain 

  • Sweden

  • Denmark

  • Finland

  • Netherlands

  • Rest of Europe

• Asia Pacific

  • China

  • India

  • Japan

  • South Korea

  • Taiwan

  • Indonesia

  • Vietnam

  • Australia

  • Philippines

  • Malaysia

  • Rest of APAC

• Middle East & Africa

  • Saudi Arabia

  • UAE

  • Egypt

  • Israel

  • Turkey

  • Nigeria

  • South Africa

  • Rest of MENA

• Latin America

  • Brazil

  • Argentina

  • Chile

  • Colombia

  • Rest of LATAM

​​​​​​Key Players

• Samsung Electronics Co Ltd

• Seagate Technology Holdings plc

• Western Digital Corporation

• Intel Corporation

• International Business Machines Corporation (IBM)

• Huawei Technologies Co Ltd

• Advanced Micro Devices, Inc. (Xilinx)

• Phison Electronics Corporation

• ScaleFlux Inc

• Pliops Inc

• NGD Systems Inc

• Eideticom Ltd

• Molex, LLC (BittWare Inc.)

• Netint Technologies Ltd

• Solidigm LLC

Report Scope and Segmentation: