Decentralized Storage Market - By Deployment Model, By Storage, By Application, By End Use, By Industry Vertical, Growth Forecast, 2025 – 2034

Decentralized Storage Market Size

The global decentralized storage market size was valued at USD 622.9 million in 2024 and is estimated to register a CAGR of 22.4% between 2025 and 2034. The growth of the market can be attributed to the rising demand for data privacy and security. The rising cybersecurity threats and data breaches has forced businesses and individuals to look for more secure options to traditional centralized cloud storage providers.
 

According to Statista, during the Q3 of 2024, data breaches exposed more than 422 million records across the globe and in 2023, nearly 96 million e-mail accounts breached originated from the U.S., making it the country with the highest number of user account exposures in the examined year. Decentralized storage systems, which distribute data across a network of nodes, reduce the risk of a single point of failure and minimize vulnerability to hacking attacks.
 

Decentralized storage platforms encrypt data both when stored and during transfer, ensuring only authorized users can access it. This enhanced privacy is crucial as concerns over government surveillance and corporate data misuse increase. Since data is distributed and stored across multiple nodes, it is harder to alter or tamper with making decentralized storage a reliable option for sensitive information and ensuring data integrity.
 

Traditional centralized cloud storage providers need large-scale data centers that require significant capital investment in infrastructure, energy, and maintenance. In contrast, decentralized storage systems use the unused or underutilized storage capacity of individual users and devices, lowering overall operational costs. Many decentralized storage networks use market-driven models, where users are paid for offering their storage resources and pay based on supply and demand dynamics.
 

This approach leads to competitive pricing and the potential for cost savings, especially for small businesses and individuals. By eliminating intermediaries such as cloud providers and data centers, decentralized systems offer more affordable solutions than traditional cloud storage.
 

Decentralized Storage Market Trends

The rise of Web3 (the decentralized web) and blockchain-based applications is making decentralized storage important for decentralized applications (dApps). As the Web3 ecosystem grows, the need for decentralized infrastructure such as storage, will also expand. The decentralized finance (DeFi) sector and non-fungible tokens (NFTs) has boosted interest in decentralized systems for financial transactions and storing valuable assets, data, digital collectibles, NFTs, and smart contracts.
 

Decentralized storage is becomimg a key part of the larger Web3 infrastructure, and its interoperability with other decentralized services and networks is improving. This makes it easier for users to use decentralized storage in various applications across different industries.
 

Decentralized storage providers are launching innovative solutions to help developers integrate decentralized storage into their applications. For instance, in November 2024, DeStor, decentralized storage solutions provider launched the DeStor SDK. This toolkit helps developers add decentralized storage features directly into their applications. As the need for secure, resilient, and scalable storage grows, DeStor SDK offers an easy way to use decentralized storage, changing traditional data management.
 

The DeStor SDK is supported by top Filecoin storage providers, CIDgravity and Kabat, providing easy access to decentralized storage with minimal development effort. Using DeStor SDK in development strategies improves technical performance and delivers business benefits such as better operational efficiency, scalable growth, increased customer trust, and cost savings.
 

Decentralized storage platforms typically rely on peer-to-peer networks where users contribute excess storage capacity from their devices. This model uses less energy than traditional centralized cloud data centers, which are often energy-intensive and require extensive cooling and infrastructure. As concerns about climate change and sustainability rise, decentralized storage systems, by reducing reliance on large-scale data centers, offer a more environmentally friendly alternative. Some decentralized storage networks even help users to offset energy consumption by supporting greener solutions for the infrastructure.
 

Decentralized storage systems use distributed networks, which cause delays when retrieving data from multiple locations. This delay can slow down performance in applications needing real-time data access, affecting user experience. As the number of users and data grows, these networks might get congested, leading to slower data retrieval or higher costs for accessing and storing data. Additionally, decentralized storage depends on nodes that might be offline, slow, or unreliable. While redundancy and replication can help, extended downtime of key nodes can still cause data availability issues.
 

Decentralized Storage Market Analysis

Based on deployment model, the 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 scalability ensures businesses can access storage resources on-demand without worrying about running out of resources or overprovisioning. The decentralized network can easily handle increasing demand.
 

Additionally, public decentralized storage models distribute data globally across independent nodes, making them resistant to censorship and manipulation. In regions with strict data regulations or political censorship, public decentralized storage provides a more secure option compared to traditional centralized cloud storage. Since data isn't stored in one central location or controlled by a single entity, it's harder for governments or corporations to restrict access or monitor data flow. This is expected to drive the growth of segment during the forecast period.
 

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. Enterprises, especially SMEs are looking for ways to reduce IT costs while improving the efficiency and scalability of their storage solutions. Decentralized storage allows these businesses to use unused resources from a distributed network, avoiding the high costs of traditional storage systems.
 

By using a decentralized model, companies can reduce their reliance on large third-party cloud providers, which often have high subscription fees and vendor lock-ins. Additionally, decentralized storage offers a flexible cost structure, allowing businesses to pay only for what they need without long-term commitments to centralized providers.
 

North America decentralized storage market accounted for 40% of the revenue share in 2024. North American countries are increasingly concerned about data sovereignty and complying with international regulations such as the GDPR. Decentralized storage helps organizations in finance, healthcare, and government keep sensitive data within specific regions, meeting local and international laws.
 

These systems offer better control over data, crucial as governments enforce stricter data localization and cross-border transfer rules. Additionally, the U.S. leads in blockchain innovation, providing a strong base for decentralized storage platforms. Blockchain enhances data integrity, traceability, and security in these networks. As blockchain and smart contracts evolve, the U.S. market is set to boost decentralized storage adoption.
 

The EU's Digital Single Market (DSM) aims to promote free data flow across borders and reduce barriers to digital services. This supports the adoption of decentralized solutions, which make cross-border data exchanges easier without centralized intermediaries. EU-backed blockchain initiatives, such as the European Blockchain Partnership, create a favorable environment for decentralized technologies, including storage.
 

Asia Pacific, especially countries including China, India, South Korea, and Japan, is rapidly digitalizing across industries. With the massive increase in data generation, there's a growing need for scalable and secure storage solutions. Decentralized storage platforms, which can grow by adding more nodes, are well-suited to meet the rising storage demands in sectors such as e-commerce, social media, and gaming. Additionally, many governments in Asia Pacific are pursuing smart city projects and digital infrastructure development. These projects involve large-scale data collection and need secure and efficient data management solutions, making decentralized storage attractive.
 

Decentralized Storage Market Share

The Graph and Storj Labs hold a market share of over 5% in the decentralized storage industry. The Graph focuses on partnering with blockchain networks and decentralized applications (dApps) to grow its Web3 ecosystem. By integrating with blockchains such as Ethereum, Solana, and Polkadot, the company enhances its role as a key data indexing protocol for decentralized platforms. This strategy attracts developers looking for efficient data querying solutions. Furthermore, the company builds a strong developer community through grants, incentives, and educational programs.
 

Storj Labs targets enterprises by highlighting its data security, privacy, and compliance advantages over centralized cloud storage. Using decentralized technology to encrypt and shard data across multiple nodes, the company appeals to sectors such as healthcare, finance, and media that need secure and compliant storage. The company collaborates with edge computing platforms and IoT providers to meet the growing demand for decentralized storage.
 

Decentralized Storage Market Companies

Major players operating in the decentralized storage industry include:

• Akash Network
• Arweave
• BitTorrent (BTFS)
• Bluzelle
• Cere Network
• Filecoin
• InterPlanetary File System
• MaidSafe
• Storj Labs
• The Graph
   

Decentralized Storage Industry News

• In November 2024, Protocol Labs and the Filecoin Foundation, along with other founding members, launched the Decentralized Storage Alliance. This member-led organization aims to increase awareness and adoption of decentralized technologies including Filecoin, IPFS, and libp2p. It also helps Web2 businesses transition to Web3 through education, advocacy, and best practices.
   
• In October 2024, Scope Technologies Corp. launched  its subscription model. This new service offers individuals and small businesses full access to its encrypted and quantum-resilient decentralized cloud storage solutions. The QSE (Quantum Security Entropy) platform now allows individuals and small businesses to use the same advanced encryption and decentralized storage that mid-sized and enterprise clients use, ensuring their data is protected from current and future cyber threats. The platform is scalable, letting users expand their storage and security needs as they grow without losing performance or protection.
   

The decentralized storage market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue ($Bn) from 2021 to 2034, for the following segments:

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Market, By Deployment Model

• Public cloud
• Private cloud
• Hybrid cloud

Market, By Storage

• File storage
• Object storage
• Block storage
• Archive storage
• Media storage
• Others

Market, By Application

• Data backup & recovery
• Content distribution
• Long-term archiving
• Multimedia hosting
• Decentralized Application (dApp) storage
• NFT & digital asset storage
• Others

Market, By End Use

• Individual
• Enterprises
• Government & public sector
• Developers

Market, By Industry Vertical

• Retail & e-commerce
• Media & entertainment
• Healthcare
• BFSI
• Government & public sector
• Education
• E-commerce
• Gaming
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
  • Southeast Asia 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • South Africa
  • Saudi Arabia