Decentralized Storage Market Analysis

Decentralized Storage Market Analysis

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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.