Cloud Storage Services in Australia - Market Research Report (2014-2029)
Melbourne, Australia
Last Updated: January 2024
ANZSIC J5922Revenue
$5.2bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
3,960
Businesses
1,037
Wages
$XXX.Xm
Cloud Storage Services in Australia industry analysis
Cloud storage is the new way forward for many businesses and organisations. Big data and artificial intelligence have crept into all facets of society. Ever-increasing internet traffic has heightened the need for businesses to outsource cloud storage, leading to cloud computing's rising prominence across several channels. Firms that have opted out of cloud storage and maintained their own servers have faced climbing capital expenditure and utility costs. Cloud computing has helped companies reduce their in-house storage and computing costs, while also being able to quickly scale capacity up or down depending on demand. The COVID-19 pandemic accelerated demand for cloud storage and computing services as more businesses shifted to remote working conditions. That’s why revenue is expected to expand at an annualised 5.6% over the five years through 2023-24, to $5.2 billion. Demand for outsourced cloud storage services has been mounting in recent years as businesses adapt to the changing technological landscape. That’s why revenue is anticipated to jump by 11.8% in 2023-24.
Data centres are capital-intensive, volume-based businesses. Data centres require sophisticated cooling, security and energy backup systems so clients can access their data at any time. The bulk of revenue for cloud storage operators comes from financial, government and telecommunication clients that are concerned about their data security, particularly in light of recent, highly publicised data breaches.
While some Australian businesses will continue to opt for in-house data storage, data centres provide obvious efficiencies and avenues to make better use of artificial intelligence. As more businesses see the need for computing power and data analytics, space, energy and cooling efficiencies will attract a wider net of clients across all sectors. Data centre operators will bolster capacity by strengthening data centre rack density, but will need to improve electricity and water efficiency to maintain profit margins and win over environmentally conscious clients. Remote working arrangements implemented in response to the pandemic are set to continue propelling demand for ongoing remote working environments, supporting cloud storage services. Revenue is forecast to strengthen at an annualised 8.0% over the five years through 2028-29, to $7.7 billion.
Trends and Insights
- Cloud computing uptake has continued to accelerate and expand across the economy. Improved domestic internet accessibility has enhanced the benefits of cloud storage services, with businesses capitalising on the growing applications of big data.
- Media, education and healthcare firms are rapidly adopting cloud storage services. New data storage applications have popped up across a growing number of sectors.
- Hyperscale data storage facilities have zeroed in on regional areas to take advantage of cost-savings. Lower land and energy costs make regional locations ideal for large-scale cloud storage.
- Smaller cloud storage service providers are taking advantage of infrastructure enhancements to compete with major facilities. Barriers to entry are dropping as transmission capacity and online data capacity are becoming more affordable to set up.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 5.6 % over the past five years, to reach an estimated $5.2bn in 2024.
Trends and Insights
Internet connectivity and technological developments have been benefiting cloud-based industries
- Cloud computing services provide the most benefit to larger companies and organisations. Cloud migration is allowing businesses to reduce capital expenditure and use economies of scale by outsourcing IT requirements to cloud storage service operators.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Floor space requirements will expand as major cloud storage providers adapt to new applications
- Cloud storage will help clients manage the emerging frontier of artificial intelligence. AI requires massive and secure cloud storage services for many new and emerging applications.
Biggest companies in the Cloud Storage Services in Australia
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
Amazon | 754.3 | |
Microsoft | 555.3 | |
Equinix Australia | 283.4 |
To view the market share and analysis for all 7 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Colocation storage, Cloud storage and Managed storage. Colocation storage is the largest segment of the Cloud Storage Services in Australia.
Trends and Insights
Standard cloud storage providers have generated demand across multiple new verticals
- Cloud storage involves storing digital data on multiple servers (often based in different locations), with the storage operator responsible for keeping client data available, accessible and safe.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Computer System Design Services in Australia
- Telecommunications Services in Australia
- Computer and Software Retailing in Australia
- Cloud Hosting and Data Processing Services in Australia
International industries
- Data Processing & Hosting Services in the US
- Web Domain Name Sales in the US
- Social Networking Sites in the US
- Virtual Data Rooms in the US
- Colocation Facilities in the US
Table of Contents
About this industry
Industry definition
Cloud storage centre operators provide electronic information storage and retrieval services. Electronic information storage allows third parties to upload, download, back up and access files and systems over the internet. The industry excludes web hosting services, which mainly provide access to information stored on the internet as a means to disseminate information, and modular data centres sales, factory-produced, standardised data centre systems that store data in-house.
What's included in this industry?
Colocation storageCloud storageManaged storageCompanies
AmazonMicrosoftEquinix AustraliaPurchase this report to view all 7 major companies in this industry.
Related Terms
LATENCYIOTDATA CENTRE RACKRACK DENSITYIndustry Code
ANZSIC 5922 - Cloud Storage Services in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Cloud computing uptake has continued to accelerate and expand across the economy. Improved domestic internet accessibility has enhanced the benefits of cloud storage services...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Media, education and healthcare firms are rapidly adopting cloud storage services. New data storage applications have popped up across a growing number of sectors.
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Hyperscale data storage facilities have zeroed in on regional areas to take advantage of cost-savings. Lower land and energy costs make regional locations ideal for large-sca...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Smaller cloud storage service providers are taking advantage of infrastructure enhancements to compete with major facilities. Barriers to entry are dropping as transmission c...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Major tech companies are setting up a strong presence in the market, but have not been able to completely dominate. Well-known companies are often beaten out by local firms s...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Amazon's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Microsoft's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Equinix Australia's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 4 additional companies
Detailed analysis
- Description and key data for Amazon, and factors influencing its performance in the industry
- Description and key data for Microsoft, and factors influencing its performance in the industry
- Description and key data for Equinix Australia, and factors influencing its performance in the industry
- Description, key data and performance trends for 4 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The GDPR dictates strong protections regarding the security and consent of consumer data use in the European Union. Cloud storage operators that provide services for customer...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Profitability has remained strong as downstream businesses clamour for cloud storage. Expenses in the form of energy and water costs for cooling and server rack maintenance a...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Cloud Storage Services industry in Australia in 2024?
The market size of the Cloud Storage Services industry in Australia is $5.2bn in 2024.
How many businesses are there in the Cloud Storage Services in Australia industry in 2024?
There are 1,037 businesses in the Cloud Storage Services industry in Australia, which has grown at a CAGR of 7.0 % between 2019 and 2024.
Has the Cloud Storage Services industry in Australia grown or declined over the past 5 years?
The market size of the Cloud Storage Services industry in Australia has been growing at a CAGR of 5.6 % between 2019 and 2024.
What is the forecast growth of the Cloud Storage Services industry in Australia over the next 5 years?
Over the next five years, the Cloud Storage Services industry in Australia is expected to grow.
What are the biggest companies in the Cloud Storage Services market in Australia?
The biggest companies operating in the Cloud Storage Services market in Australia are Amazon, Microsoft and Equinix Australia
What does the Cloud Storage Services in Australia include?
Colocation storage and Cloud storage are part of the Cloud Storage Services industry.
Which companies have the highest market share in the Cloud Storage Services in Australia?
The company holding the most market share in Australia is Amazon.
How competitive is the Cloud Storage Services industry in Australia?
The level of competition is high and increasing in the Cloud Storage Services industry in Australia.
