TAM of $51 billion for NetApp in fiscal 2018
NetApp (NTAP) has estimated its total available market (or TAM) to be $51 billion in fiscal 2018. NetApp’s estimated revenue for fiscal 2018 is $5.9 billion, which indicates that the company accounts for over 11.5% of the TAM. This market is estimated to grow at a CAGR (compound annual growth rate) of 2% and reach $53 billion by 2020 and $54 billion by 2021.
NetApp’s revenue is estimated to be $6.5 billion and to account for almost 12% of the TAM by fiscal 2021. NetApp’s TAM consists of three verticals: Networked Storage, Hyper-Converged Infrastructure (or HCI), and Cloud Storage.
Three verticals for NetApp
NetApp has estimated the Networked Storage market to grow at a CAGR of -4% between fiscal 2017 and fiscal 2021. The growth rates for HCI and Cloud Storage are expected to be 29% and 13%, respectively, in the same period.
The Networked Storage vertical accounts for $35 billion, or 68.3%, of the TAM. This amount is estimated to fall to $31 billion and to account for 57.4% of the market by fiscal 2021.
Comparatively speaking, the HCI vertical is expected to grow at a CAGR of 29% from $3 billion in fiscal 2017 to $8 billion in fiscal 2021. HCI’s market share is also expected to rise from 7.8% in fiscal 2018 to 14.8% in fiscal 2021.
Cloud Storage revenue is expected to rise at a CAGR of 13% from $10 billion in fiscal 2017 to $15 billion in fiscal 2021. The market share for Cloud Storage is expected to rise from 21.5% in fiscal 2018 to almost 28% in fiscal 2021.