Decentralized Storage Market Size

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.

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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.