Decentralized Storage Market
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The global decentralized storage market was valued at USD 622.9 million in 2024 and is estimated to register a CAGR of 22.4% between 2025 and 2034. The case for data privacy and security is at an all-time high. The Internets increased cyber security breaches alongside conventional data leaks have compelled organizations and individuals to search for something much more secure than traditional cloud decentralized storage services.
In Statista, in Q3 of 2024 alone, data breaches impacted over 422 million records of users worldwide and in the year 2023, approximately 96 million email Power breaches that originated from the United States. A bulk of user accounts that were exposed, were also from the examined year. Because of the nature of decentralization, the storage systems are not as vulnerable to hacking attacks as they would be with a centralized system because of the elimination of a single point of failure.
| Report Attribute | Details |
|---|---|
| Base Year: | 2024 |
| Decentralized Storage Market size in 2024: | USD 622.9 Million |
| Forecast Period: | 2025 – 2034 |
| Forecast Period 2023 - 2032 CAGR: | 22.4 |
| 2023 Value Projection: | USD 4.5 Billion |
| Historical Data for: | 2021 – 2024 |
| No of Pages: | 175 |
| Tables, Charts & Figures: | 200 |
| Segments Covered: | Deployment model, Storage, Application, End Use, Industry vertical |
| Growth Drivers: |
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| Pitfalls Challenges: |
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When data is stored and transferred, decentralized storage ensembles encoding it, hence t only authorized people are given access. This improved privacy is very significant in modern society where fears over government and corporate data abuse keep on scaling. Since data is distributed and stored across multiple nodes, it is harder to alter or compromise with, thus trustful storage of sensitive information and maintaining data integrity is guaranteed with decentralized storage systems.
Establishment of large data centers entail significant expenses towards infrastructure, energy, and maintenance, which can prove to be highly costly in Centralized cloud storage services. However, in Decentralized storage systems, operational costs can be significantly reduced because it makes use of unused storage space available within a user’s device . Several decentralized storage systems use a marketplace structure, where users can buy or sell storage space depending on the demand. This competetive method enables Microenterprises and individuals to save greatly. By doing away with cloud providers and data centers, decentralized systems can offer cheaper alternatives to traditional cloud services.
The development of dApps is contributing to the importance of decentralized storage due to the emergence of Web3 (the new decentralized web) and apps that use blockchains. The the storage is decentralized, the more development it will trigger in the Web3 ecosphere. These phenomena, in conjunction with other developments in the DeFi world and the growth of interest in NFTs, have led to greater interest in decentralized systems for storing and managing assets, data, digital art, contracts, and transactions.
Progress in decentralized storage is indeed a progress in the whole Web3 interstructure, especially considering that its integration and cooperation with other decentralized services and networks is improving. As a result, developed decentralized storage can find its application in virtually all industries.
By making the integration of decentralized storage into applications easier for developers, decentralized storage providers are solving challenges. For example, in November 2024, DeStor, a decentralized storage solutions provider, introduced the DeStor SDK, which is a toolkit for software developers to enable the integration of decentralized data storage into their applications.
As the industry shifts away from traditional data management practices, DeStor SDK allows for easier utilization of decentralized data storage, which is more secure and resilient. The ease of using the DeStor SDK for software development is made simpler by the support of top Filecoin storage providers, CIDgravity and Kabat. With DeStor SDK, organizations gain more than just supreme technical performance. They increase operational efficiency while scaling, building customer trust, and reducing costs.
Decetralized networks focus on users’ devices, where extra storage space is available through peer-to-peer networks, to offer storage space. Such systems incur lower operational costs due to reduced cooling energy, as compared to traditional data centers that heavily rely on cooling units. Taking into account the growing concerns regarding sustainable practices, decentralized storage systems tend to switch away from traditional data center services, which is a favorable development. There are even some decentralized storage networks that allow their users to significantly lower energy expenditures through the use of renewable energy resources in their system.
When it comes to decentralized storage systems, the use of distributed networks often serves as a double-edged sword. While they do enable easier management, they can also slow down performance when real-time data access is required. With numerous users and large volumes of data needing consented real time access, there arises a potential of the network becoming congested. As a result, that would lead to either slow data retrieval times or astronomically high costs associated with data storage and retrieval.
Moreover, decentralized storage technology also relies entirely on nodes, of which a few may or may not be inactive at the specific time. While some extent of replication along with redundancy may work for ways to slove the availability problems, extended downtime of the nodes themselves will definitely result in data availability problems.
Based on deployment model, the decentralized storage market is divided into public cloud, private cloud and hybrid cloud. In 2024, the public cloud segment held a market share of over 50% and is expected to cross USD 2 billion by 2034. Public cloud models are ideal for users and organizations that need flexibility and quick scalability as their data storage needs grow. This flexibility guarantees companies unlimited access to storage facilities on an as-needed basis without the risk of resource scarcity or overspending. The distributed network can adequately meet any surges in demand.
Moreover, public decentralized storage structure saves and manages assets in separate nodes which renders it resistant to censorship and other manipulative activitites. In parts of the world where data retention laws are extreme, or there is robust political censorship, public decentralized storage is a much safer alternative than a traditional centralized cloud services.
Due to the fact that the data is not retained at one specific location or under the authority of one sole organization, it is more difficult for governments or companies to access and supervise the transfer of data. This will fuel the growth of the segment over the next decade.
Based on end use, the decentralized storage market is categorized into individual, enterprises, government & public sector and developers. The enterprises segment held a market share of 45% in 2024. The modern business, particularly towards the SMEs sector, is searching for methods to cut IT expenses while increasing the productivity and scalability of their storage services. These companies now have the option to use unused resources from a distributed network without incurring the high costs of traditional storage systems thanks to decentralized storage.
Moving to a decentralized model allows firms to more easily scale back efforts relying on huge subscription-based cloud vendors which are packed with expensive fees and vendor lock-in agreements. Also, with decentralized storage, businesses are offered flexible cost models, eliminating the need for long-term contractual commitments to centralized providers.
North America dominated the global decentralized storage market with a major share of around 40% in 2024 and the U.S. leads the market in the region. The rise of concerns regarding data-fueled sovereign contempt and GDPR compliance has been noted from countries belonging to the North American region. With the use of decentralized storage, organizations operating in finance, healthcare, or government can regionally store sensitive information data, claiming compliance to both local and international regulations. Such systems provide the necessary control over data as per the new laws regarding data localization and cross border transfer.
In addition, the United States is perhaps the leading nation when it comes to innovation in blockchain technology, establishing a solid foundation for decentralized storages. Blockchain technology makes data in these networks more secure, traceable, and increases its integrity. According to the future of smart contracts and blockchain technology, it will provide the U.S. decentralized storage market an incentive to adopt decentralized storage, thus, shifting the country towards advanced technology.
Finally, the establishment and implementation of Europe’s Digital Services Act will encourage the free movement of data across borders and will facilitate cross-border exchange of digital services. Such initiatives foster the adoption of decentralized systems that enable simpler cross-border data transfers without a central authority. Such initiatives that are catered towards the adoption of blockchain technology such as the European Blockchain Partnership and other EU's supported initiatives make the environment more appealing towards these decentralized storage technologies.
Asia Pacific, especially countries including China, India, South Korea, and Japan, is rapidly digitalizing across industries. As more and more data is produced, there is a burgeoning need for secure and scalable storage options. Services like e-commerce, social media, and gaming can benefit from decentralized storage systems which can effortlessly meet increasing storage thresholds by simply adding additional nodes.
Also, many governments in the Asia Pacific region are actively pursuing smart city initiatives along with digital infrastructure development. These projects include massive data harvesting and require efficient and secure data management systems, which is exactly what decentralized storage has to offer.
The Graph and Storj Labs together possess about 5% of the decentralized storage industry. The Graph works on collaborating with blockchain networks and decentralized applications (dApps) to expand its Web3 ecosystem. By connecting to Ethereum, Solana, and Polkadot blockchains, the company further cements its position as a leading data indexing protocol for decentralized systems. Such a strategy captures the interest of developers who require effective and rapid data fetching synonyms. Also, the company strengthens its developer ecosystem with grants, incentives, and other educational initiatives.
Using decentralized clouds to indicate that a company does not rely on a single service provider gives gained leverage to the company over, in this particular instance, Storj Labs. The company also uses data decentralization, encryption and sharding to appeal the companies that work in the sensitive classrooms of healthcare, finance, or even media. The company works with edge computing and IoT service providers to sustain the growing needs for decentralized storage.
Major players operating in the decentralized storage industry include:
Market, By Deployment Model
Market, By Storage
Market, By Application
Market, By End Use
Market, By Industry Vertical
The above information is provided for the following regions and countries:
Key players in the industry include Akash Network, Arweave, BitTorrent (BTFS), Bluzelle, Cere Network, Filecoin, InterPlanetary File System, MaidSafe, Storj Labs, and The Graph.
The North America market accounted for 40% of the revenue share in 2024, led by concerns over data sovereignty and compliance with international regulations such as GDPR.
The public cloud segment held over 50% market share in 2024 and is expected to surpass USD 2 billion by 2034, as it offers flexibility and quick scalability for growing data storage needs.
The market size of decentralized storage reached USD 622.9 million in 2024 and is set to grow at a 22.4% CAGR from 2025 to 2034, driven by the rising demand for data privacy and security.