Shortcomings of Traditional Data Recovery Systems to Boost Demand for Erasure Coding

In the current day and age, data security, management, and storage have become an imperative part of organizations operating in an array of industrial domains. At present, within the data resilience sphere, conventional SAN storage that operates using Redundant Array of Independent Disks (RAID) is gradually losing its sheen, owing to evolving data requirements. Although mirroring, parity and striping in RAID implementation offer a high degree of protection, some of the restraints including, high recovery timings, the steep cost of resiliency, and vulnerability associated with RAID recovery have played a major role in the development of alternatives such as erasure coding, that is predominantly different in comparison with other hardware-based systems.

Erasure coding is set to gain worldwide popularity during the forecast period, as it does not require a specialized hardware controller and offers improved resiliency in comparison with RAID. Moreover, enhanced protection erasure coding offers during the recovery is another major factor that is expected to boost the prospects of the erasure coding market in the coming years. The demand for erasure coding is expected to surpass that of RAID in the coming years, as data recovery is possible even when nearly half of the data elements are available. At the back of these factors, the global erasure coding market is expected to attain a market value of ~US$ 12 Mn by the end of 2027.

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Advent of Erasure Coding to Positively Influence Hadoop Storage Economics

Strides taken by erasure coding, along with Hadoop 3.0 has played an imperative role in enabling users to store over 50% additional data within the same cluster– a much needed technological breakthrough that streamlines data storage requirements. Although the adoption of erasure coding is expected to move in the upward trajectory during the forecast period, companies operating in the current erasure coding market are expected to find solutions to overcome the challenges associated with high CPU usage, latency issues, and pressure on network overheads. In addition, companies are also likely to strike a balance between soaring costs while optimizing the performance of their offerings.

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In the past couple of years, Hadoop has integrated erasure coding in version 3.0, marking a major shift for Hadoop Distributed File System (HDFS). With the adoption of erasure coding, the replication factor of data is set to hover around 1.5x– boosting the storage efficiency by around 50%. At present, medium-large scale organizations are highly inclined toward deploying erasure coding, as they run large data clusters wherein 100-plus nodes are likely to select use cases with added care.

Erasure coding has played an important role in enhancing the performance of large clusters. The advent of erasure coding is expected to revolutionize Hadoop in which the segregation of storage and computing is likely to gain significant recognition and acceptance. Owing to the increasing adoption of erasure coding in Hadoop, the demand for cluster coding is expected to witness exponential growth during the forecast period. The demand for erasure coding from large enterprises is projected to remain higher than those from small & medium-sized enterprises during the forecast period.

High Adoption in Cloud Storage Systems to Augment Market Growth

Technological advancements and evolving data requirements are set to play an important role in boosting the prospects of the erasure coding market during the assessment period. As storage efficiency continues to remain important for business organizations, the adoption of erasure coding in large-scale cloud storage systems is on the rise, particularly for data protection from the server and other types of failures in a datacenter. Some of the most common erasure coding techniques that have gained traction include Striping Encoding and Replicating Encoding. The adoption of these two techniques is on the rise, as they minimize network traffic, have an improved write performance, and read performance. The significant development in cloud storage systems is expected to shape the growth of the erasure coding market during the forecast period. The adoption of erasure coding is on the rise in an array of end-use industries, including healthcare, IT & telecom, BFSI, retail, government, and media & entertainment.

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Analysts’ Viewpoint

The global erasure coding market is expected to grow at a CAGR of 6.5% during the forecast period. The market growth can be primarily attributed to a range of factors, including significant progress in cloud storage systems, integration in Hadoop 3.0, high demand for data efficiency, evolving data requirements, and need to minimize network traffic. The erasure coding market is likely to flourish during the assessment period, owing to the soaring demand from a host of end-use industries and balancing data resiliency. North America and Europe are projected to present participants of the erasure coding market with plenty of growth opportunities, owing to the presence of top tier market players, advancements in technology, and a high number of large-sized enterprises in these regions who are increasingly leaning toward erasure coding.

Erasure Coding Market: Overview

  • The global erasure coding market is expected to register a CAGR of 6.5% between 2019 and 2027. The market is projected to be driven by exponential growth of data through erasure coding.
  • The rising adoption of erasure coding for data resiliency is also expected to boost the erasure coding market in the near future
  • The global erasure coding market is expected to reach ~US$ 11.9 Mn by 2027 from US$ ~2.7 Mn in 2019
  • North America holds major share of the erasure coding market in terms of revenue and is anticipated to dominate the erasure coding market during the forecast period, followed by Europe 
  • North America remains the leading region in the erasure coding market, with revenues in 2019 estimated at US$ 2,607.18 Thousand
  • The erasure coding market in Middle East & Africa and South America are also expected to show moderate growth during the forecast period.
  • Asia Pacific is projected to expand significantly in terms of share in the global erasure coding market during the forecast period. This is due to adoption of erasure coding by IT enterprises and small, medium, and large scale enterprises, which has propelled the demand for erasure coding in the APAC region.
  • Erasure coding is a technique that breaks data into fragments or shards, which are further encoded with parity or redundant data, and stored across multiple storage media and locations. Erasure coding is a parity technique or mechanism used to protect data in cloud-based services, so as enhance the storage drives. Erasure coding is used to protect the data in different nodes, along with the single storage system.
  •  The main objective of erasure coding is to provide better data resilience, and data durability or persistence, implying that it can remain for longer periods of time regardless of the media it is being stored on

North America Erasure Coding Market: Snapshot

  • North America is a developed region and hence, innovation and new technologies are expected to be trends witnessed in the North America region in the next few years. North America held a prominent share of the global erasure coding market in 2018. For the same reason, North America is expected to witness the highest opportunity addition in the erasure coding market globally, with Europe and Asia Pacific being the next closest regions.

Key Growth Driver of Erasure Coding Market

  • Balancing Data Resiliency with Erasure Coding: Data resiliency is the accessibility of the data that is required in a production environment and is carried out through the usage of redundant components, subsystems, systems, or facilities, which is possible through the usage of erasure coding. Erasure coding is evolving, owing to its algorithm structure which does not use any particular hardware controller to provide better data resiliency in data centers and small, medium, and large enterprises. Additionally, demands of the new data economy across data centers as well as small, medium, and large enterprises to ensure data resiliency, protection, security, and backup and recovery solutions, is expected to boost the erasure coding market across the globe over the forecast period.

Key Challenges Faced by Erasure Coding Market Players

  • Failure of storage nodes is a major restraint to the erasure coding market  

Erasure Coding Market: Competition Landscape

  • In February 2020, Oracle Corporation announced a new database innovation, in order to protect and enhance the flexibility to access the databases
  • In February 2020, Quantum Corporation announced the acquisition of Western Digital to enhance its unstructured data storage process

Erasure Coding Market - Company Profiles

  • Dell EMC (Dell Technologies Inc.): Established in 1979, Dell EMC, was formerly known as EMC Corporation. In 2016, Dell Technologies acquired EMC Corporation. Now Dell EMC is a member of the Dell Technologies family of business. Dell EMC provides essential infrastructure, which includes converged infrastructure, servers, storage, and cyber-security technologies. The company’s portfolio includes enterprise storage systems and software deployed in networked attached storage (NAS), storage area networks (SAN), object storage and unified storage combining NAS, and direct attached storage environments. Dell EMC supports organizations to build their digital future, transform IT, and protect their important assets and information with these offerings. The company is one of the world’s largest providers of data storage systems.
  • Cisco Systems, Inc.: Incorporated in 1984, Cisco Systems, Inc. manufactures, designs, and sells Internet Protocol (IP) and other products related to the information technology (IT) end user and communications. In addition, Cisco Systems, Inc. is a global networking company that designs, manufactures, markets, and sells networking equipment and provides various services such as converged infrastructure management. Cisco Systems, Inc. offers a wide range of products and services, which include blade switches, cloud & systems management, data center management & automation, data center switches, routers, service exchange, storage networking, borderless network services, and networking software.
  • IBM Corporation: Incorporated in 1911, IBM was previously well known as Computing-Tabulating-Recording Co. In 1924, it changed its name to International Business Machines Corporation i.e. IBM Corporation. IBM Corporation operates as an integrated services and technology company worldwide. It operates in five business segments: global business services, cognitive solutions, systems, technology services & cloud platforms, and global financing. The company is engaged in offering software and solutions related to erasure coding.
  • Other major players operating in the global erasure coding market and profiled in the report include 
    • Hewlett Packard Enterprise Company
    • Teradata Corporation
    • Pure Storage, Inc.
    • Pivot3
    • Oracle Corporation
    • Nutanix, Inc.
    • NetApp, Inc
    • Nephos Technologies
    • Lenovo
    • Huawei Technologies Co., Ltd.
    • Hitachi Ltd.
    • Fujitsu Limited, 
    • Alphabet Inc.

Erasure Coding Market - Scope of the Report

A latest study collated and published by Transparency Market Research (TMR) analyzes the historical and present-day scenario of the global erasure coding market, to accurately gauge its potential future development. The study presents detailed information about the important growth factors, restraints, and key trends that are creating the landscape for the future growth of the erasure coding market, to identify the opportunistic avenues of the business potential for stakeholders. The report also provides insightful information about how the erasure coding market will progress during the forecast period 2019-2027.

The report offers intricate dynamics about the different aspects of the erasure coding market, which aids companies operating in the market in making strategic development decisions. TMR’s study also elaborates on the significant changes that are highly anticipated to configure the growth of the erasure coding market, during the forecast period. It also includes comparative analysis of erasure coding vs. RAID and analysis of erasure coding on the basis of encoding type/ scheme/ method. The global erasure coding market helps to estimate statistics related to the market progress in terms of value (US$ Thousand).

The study covers a detailed segmentation of the erasure coding market, along with key information and a competitive outlook. The report mentions the company profiles of key players currently dominating the erasure coding market, wherein various developments, expansion, and winning strategies practiced and executed by leading players have been presented in detail.

Key Questions Answered in TMR’s Report on Erasure Coding Market

The report provides detailed information about the erasure coding market on the basis of comprehensive research on various factors that play a key role in accelerating the growth potential of the market. Information mentioned in the report answers path-breaking questions for companies that are currently functioning in the market and are looking for innovative ways to create a unique benchmark in the erasure coding industry, so as to help them formulate successful strategies and take target-driven decisions.

  • How are key market players successfully earning revenue out of the erasure coding?
  • What will be the Y-o-Y growth of the erasure coding market between 2019 and 2027?
  • What are the winning imperatives of market frontrunners in the erasure coding market?
  • What are the major drivers and restraints of the market?
  • What will be the size of the erasure coding market from 2019 to 2027?
  • Which will be the fastest growing segment in the erasure coding market?
  • Which are the leading companies in the erasure coding market?
  • What are the strategies of the companies operating in the market?

Research Methodology – Erasure Coding Market

The research methodology adopted by analysts to compile the erasure coding market report is based on detailed primary as well as secondary research. With the help of in-depth insights of industry-affiliated information that is obtained and legitimated by market-admissible resources, analysts have offered riveting observations and authentic forecasts of the erasure coding market.

During the primary research phase, analysts interviewed industry stakeholders, investors, brand managers, vice presidents, and sales and marketing managers. On the basis of data obtained through the interviews of genuine resources, analysts have emphasized the changing scenario of the erasure coding market.

For secondary research, analysts scrutinized numerous annual report publications, white papers, and data of major countries of the world, industry association publications, and company websites to obtain the necessary understanding of the erasure coding market.

Erasure Coding Market – Segmentation

TMR’s research study assesses the erasure coding market on the basis of enterprise size, end user, and region. The report presents extensive market dynamics and progressive trends associated with different segments, and how they influence the growth prospects of the erasure coding market.

Enterprise Size

  • Small & Medium Enterprises
  • Large Enterprises

End User

  • BFSI
  • Retail
  • Government
  • Healthcare
  • IT & Telecom
  • Media & Entertainment
  • Manufacturing
  • Energy & Utility
  • Others (Education, Hospitality)

Region

  • North America
  • Europe
  • Asia Pacific
  • Middle East & Africa
  • South America

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