US Cloud Block Storage Market Size and Forecast by Type, Deployment Model, Organization Size, Subscription Model, Industry, and Use Case: 2019-2033

US Cloud Block Storage Market Outlook

According to David Gomes, Manager – IT, the US cloud block storage market is on an upward trajectory, forecasted to grow US$ 26.4 billion by 2033. This growth is being propelled by rising enterprise workloads requiring low-latency, high-throughput storage, particularly in sectors adopting AI/ML, containerized applications, and large-scale databases.

Block storage’s ability to deliver raw IOPS (input/output operations per second) performance with persistent volume support makes it a foundational element of modern cloud infrastructure. Enterprise users are rapidly transitioning away from legacy SAN-based models to elastic, cloud-native block storage volumes offered by AWS (EBS), Azure (Managed Disks), and Google Cloud (Persistent Disks).

The AI revolution is a primary catalyst for cloud block storage demand in the United States. As enterprises deploy GPU-intensive workloads such as LLMs and generative AI pipelines, they require storage volumes capable of supporting sustained throughput above 10 GiB/s with sub-millisecond latency. This is pushing hyperscalers and third-party providers to deliver NVMe-backed, zonal-replicated, and dynamically scalable block volumes. For example, Amazon EBS io2 Block Express volumes now offer up to 256,000 IOPS and 4,000 MB/s throughput, supporting AI training datasets and real-time analytics.

From a strategic standpoint, enterprise modernization initiatives—especially database replatforming and container orchestration via Kubernetes—are making block storage indispensable. Major banks, fintechs, and digital-native businesses are migrating mission-critical PostgreSQL, MongoDB, and Oracle databases to cloud-hosted block volumes that deliver consistent read/write access patterns. Portworx by Pure Storage exemplifies this shift, providing a Kubernetes-native block storage solution that enables zero-downtime scaling, backup, and data mobility across hybrid and multi-cloud environments.

Furthermore, hybrid cloud and multicloud architectures are reshaping block storage usage. US-based enterprises increasingly require cross-region replication, high-availability (HA) zones, and disaster recovery (DR)-friendly storage designs. In this context, companies like Lightbits Labs are gaining traction with NVMe/TCP-based disaggregated block storage platforms that eliminate storage bottlenecks for scale-out workloads. In March 2025, Lightbits raised an additional $75 million to expand its U.S. customer base across financial services, ecommerce, and telco segments.

Regulatory compliance and data integrity are also influencing cloud block storage purchasing decisions. Enterprises operating under SOX, HIPAA, GLBA, and FedRAMP mandates require durable, encrypted, and auditable storage volumes with snapshot and rollback capabilities. In response, vendors are building block storage features such as immutable snapshots, automated backup policies, and granular volume encryption to meet federal and state compliance benchmarks.

From a performance optimization lens, enterprises are investing in tiered block storage and leveraging storage performance classes to match volume types (Standard, SSD, Provisioned IOPS) with specific workload SLAs. Cost efficiency is achieved via thin provisioning, storage volume resizing on-the-fly, and policy-driven snapshot lifecycle management. This not only reduces overprovisioning by 30% but also enables agile capacity planning for cloud-native DevOps teams.

Recent industry collaboration reflects the convergence of storage and compute optimization. A notable example is NetApp and VMware’s expanded partnership, offering native block storage services for VMware Cloud Foundation (VCF) on AWS and Azure. This brings enterprise-grade storage SLAs—including 99.99% uptime, encryption-at-rest, and volume cloning—to virtualized workloads across sectors like insurance, government, and healthcare.

According to David Gomes, success in the US Cloud Block Storage Market will be determined by a provider’s ability to deliver multi-tenant isolation, software-defined automation, and AI-ready IOPS performance at scale. Enterprises should prioritize vendors who offer programmable APIs, flexible QoS settings, and compatibility with advanced orchestration layers like OpenShift, Anthos, and Tanzu.

Authors: David Gomes (Manager – IT)

*Research Methodology: This report is based on DataCube’s proprietary 3-stage forecasting model, combining primary research, secondary data triangulation, and expert validation. [Learn more]

US Cloud Block Storage Market Scope