Consumer Network Storage Market to Exceed $1.25 Billion in Revenue by 2011, Says ABI Research

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ABI Research has a new report out stating the market for consumer-grade Networked Attached Servers (NAS) servers, NAS enclosures, and routers capable of providing network access to attached USB storage drives are expected to deliver more than $1.25 Billion in revenues by 2011. Interestingly, “Storage routers and bridges offer vendors the greatest growth opportunity,” says ABI Research senior analyst Jason Blackwell. The report also finds that integrating DLNA / UPnP support so NAS server products function as media servers, in addition to its standard file sharing and backup duties, will help these products become more widely adopted in the Digital Home.

Honestly, no big surprises here. But it’s true that NAS servers that combine media server functionality are the most attractive to consumers who at some point may want to serve up media content to networked PCs, game consoles, digital media adapters, and even TV set-top boxes in some cases. A couple points not mentioned in the press release worth highlighting is that consumers, from what I’m seeing, don’t really want to spend more than $500 for such products and they’d also like to have remote access via PC or mobile to their home files.

Consumer Network Storage Equipment Revenue Will Exceed $1.25 Billion in 2011

NEW YORK – May 12, 2009, Computer users today save more data than ever before. The phenomenal growth of digital photography, audio, and video has focused consumers’ minds on the secure storage of their precious pictures, music, and movies, raising the profile of backup and media server solutions.

Although most consumers still rely on single-computer backup scenarios, a small but growing number are opting for Network Attached Storage (NAS). While the market is still relatively small, consumer NAS is expected to deliver more than $1.25 billion in revenues by 2011.

“In order to move the consumer NAS market forward,” says ABI Research senior analyst Jason Blackwell, “vendors, including leaders such as Buffalo Technology and Linksys by Cisco, need to educate and inform consumers about NAS’s advantages.”

Consumer NAS equipment falls into three groups:

– Integrated NAS drives, which include the necessary networking software.

– Network storage enclosures, for those who wish to add the hard disk themselves.

– Storage routers and bridges, which allow attachment of standard USB or IEEE 1394 hard drives to a network.

Integrated NAS drives comprise the lion’s share of the market, but, says Blackwell, “Storage routers and bridges offer vendors the greatest growth opportunity.”

Challenges in this market have traditionally included consumers’ relative indifference to data security: backups have always been considered a bore. So marketing and customer education will be key to success. Cost has been an issue too: while prices continue to fall, they still pose a barrier to adoption.

The rise of the home media server market, however, will provide some lift: DLNA and UPnP-enabled NAS devices can act as media servers and are being branded as such. “The fact that NAS devices are becoming more like media servers will certainly help them penetrate the digital home network,” notes Blackwell. “Vendors are making a concerted effort to market NAS for these more exciting purposes rather than simply for backup.”

Consumer Network Attached Storage” examines the market for consumer network storage devices, alternative storage technologies, and opportunities for network storage to increase market penetration. Forecasts are provided by NAS market segment as well as geographic region.

It forms part of the Home Networking Research Service.

ABI Research is a leading market research firm focused on the impact of emerging technologies on global consumer and business markets. Utilizing a unique blend of market intelligence, primary research, and expert assessment from its worldwide team of industry analysts, ABI Research assists hundreds of clients each year with their strategic growth initiatives. For information, visit, or call +1.516.624.2500.

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Filed in: Digital Media Servers, Home Networking Gear, Industry Buzz

1 Reaction to “Consumer Network Storage Market to Exceed $1.25 Billion in Revenue by 2011, Says ABI Research”

  1. Marco says:

    I agree, I don’t want to spend more than 500 USD, maybe less! ;o)