Personal Cloud Market

Market Overview

The global personal cloud market size was valued at USD 51.12 billion in 2022. It is projected to reach USD 365.92 billion by 2031, registering a CAGR of 24.4% during the forecast period (2023- 2031).

A platform for cloud storage called the personal cloud enables users to access, synchronize with, and share data across clouds and devices. There is an increasing requirement for storing and exchanging personal and professional data in this digital age. The rapid rise in tech-savvy people has significantly contributed to the current demand for cloud computing services. There is a great need for a safe platform to store digital content due to the rise in the use of devices with cameras, such as smartphones and tablets. Personal cloud services would make file sharing and storage easier for staff members and businesses embracing the BYOD trend.

Highlights

• Direct dominates the product segment.
• Service providers dominate the product segment.
• Enterprises dominate the end-user segment.
• North America is the most significant shareholder in the global market.

Market Dynamics

Global Personal Cloud Market Drivers

Rising Demand for Fast and Real-Time Access to Diversified Data

In recent years, the volume of digital content generated by individuals and business customers has increased exponentially. This quick growth is attributed to the increasing usage of camera-equipped and multimedia devices for personal and professional use. Social media has brought about a paradigm shift in how people connect and communicate. Every day tons of digital data in photos, videos, and files is generated and shared among billions of users, making it imperative for a continuous secure, easily accessible storage platform. Similarly, the growing BYOD trend among enterprises to enhance productivity and reduce IT infrastructure costs drives the demand for cloud services. These business users prefer cloud services over investing huge capital in developing traditional storage systems.

Additionally, the rising need for cost-effective storage, data sharing, easy access to data, usage of portable devices, and protection against data loss is propelling the market for personal cloud services. One of the primary benefits of the cloud includes storage space management at the users’ residences with data center infrastructure to the service provider. In such a scenario, personal cloud solutions have emerged as cost-effective, convenient, and reliable data storage and file-sharing platforms for individual customers and business users.

Growing BYOD and Mobile Workforce Trends

The use of mobile devices at work has increased due to the increasing popularity of smartphones and tablets. Enterprises are also supporting the application of mobile devices in their employees' day-to-day work. The emerging trend of Bring-Your-Own-Device (BYOD) usage is being accepted among businesses worldwide at a significant pace. To reduce the costs incurred in providing these devices, organizations are now encouraging the adoption of the trend mentioned above. According to the survey sponsored by Check Point, in selected countries, including the U.S., Canada, Germany, the UK, and Japan, BYOD is growing dramatically among all sized businesses, and almost 67% of enterprises have allowed the connection of personal devices to corporate networks.

Additionally, BYOD and personal clouds empower organizations to build a mobile workforce, enhancing productivity. These collectively offer various benefits to businesses, such as real-time access to valuable data, reduced security risks, increased visibility, compliance and streamlined workflow, and simplified processes. Such factors drive market growth.

Global Personal Cloud Market Restraint

Data Security and Privacy Issues

Despite potential benefits associated with storage, synchronization, and easy access, the personal cloud offers certain data security and privacy threats. In 2013, according to a survey done at technology trade, nearly 5% of respondents admitted to having uploaded business-related confidential data to their personal accounts. This was regarded as a major factor leading to data leakage, creating concerns among the business groups regarding highly confidential data, including customer/market research, customer loyalty programs, product testing, pricing and promotions, and legal management solutions.

Therefore, business groups have now adopted various methods of responding to such threats since they find personal cloud the most cost-effective cloud storage solution. In addition, business groups are conducting training regarding Non-Disclosure Agreement (NDA) awareness programs, which have reduced the number of incidents of employees storing work-related information on personal accounts. A recent survey indicates that these incidents have decreased from 30% to 18%.

Furthermore, a high-speed internet connection is a prerequisite for speedy data storage, file accessing and sharing onto the personal cloud. However, disparities in internet access, speed, and bandwidth in different parts of the world have limited the adoption of personal cloud services. In contrast to the Middle East, Africa, and Asia, where conditions are not very conducive, most countries in North America and Europe provide their citizens with satisfactory data connection services. The lack of well-established internet infrastructure in developing countries is a significant limiting factor for the growth of the personal cloud market.

Global Personal Cloud Market Opportunities

Developing Countries' Connectivity and Accessibility Gap

Developing countries hold a good potential for the cloud computing services market. These countries offer good growth potential with a low adoption base and developing internet infrastructure. Further, the rapid rate of industrialization in countries such as India is driving the need for cost-effective storage solutions among enterprises, which can be addressed through cloud storage solutions. Personal cloud services are gaining acceptance with an increasing level of awareness across the globe among end users. Specifically, in the recent past, there has been widespread awareness regarding the services and their associated benefits arising out of extensive marketing and advertising efforts undertaken by the leading players.

According to a media research firm nScreenMedia study, nearly 30% of US broadband Service Providers used cloud storage services in 2014. These numbers have changed significantly during the period from 2011 to 2014. The market participants constantly spread awareness regarding personal cloud solutions through aggressive advertising and marketing campaigns. This growing user awareness is expected to further drive the personal cloud services market. Personal cloud consumers are also collaborating with mobile device (Smartphones, tablets, and others) manufacturers to provide in-built apps for mobile devices.

Regional Analysis

Region-wise, the global personal cloud market is segmented as North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

North America Dominates the Global Market

North America is the most significant global personal cloud market shareholder and is expected to grow at a CAGR of 22.9% over the forecast period. The growing need for central data security for various mobile devices has led to increased use of mobile cloud-based applications. Personal cloud is largely adopted by organizations that allow the "Bring Your Own Device (BYOD)" policy at workplaces. Advantageous features such as the capability to segregate and store a large amount of data per individual, which can be accessed through multiple devices, have boosted the adoption of personal cloud among individuals. In addition, most leading technology giants, like Apple and Google, invest heavily in developing personal cloud solutions. According to industry estimates, two-thirds of North American adults currently use one or more personal cloud services. The ongoing awareness campaigns, coupled with attractive usage schemes by consumers, are expected to propel the market growth further. The North American region dominates the personal cloud market due to the early adoption of personal cloud services in the US.

Europe is expected to grow at a CAGR of 23.8% over the forecast period. Europe's global personal cloud market is analyzed across the UK, Germany, France, and the rest of Europe. Currently, Europe is experiencing a shift toward the digital world, which is expected to eventually reduce the complexities associated with data sharing, data transfer, and data accessibility processes. The next big evolution in cloud services is personal cloud, which effectively caters to the increasing need to store and manage digital content generated from the rapidly increasing number of handheld devices used for business and personal purposes. European Union encourages enterprises and individuals to use personal cloud by providing various platforms to store and manage their data. In addition, security is a major restraining factor for adopting personal cloud technology in Europe. Hence, European Union is proactively developing Legislation Aware Cloud Storage to increase the use of personal cloud services across various sectors.

The Asia-Pacific personal cloud market is analyzed across countries such as India, China, Japan, and the rest of Asia-Pacific. Developing countries have witnessed increasing personal cloud services adoption in the last few years. The number of personal cloud users is continuously increasing, which has created many opportunities for personal cloud Consumers to enhance their customer base in this region. In addition, consumers are collaborating with telecom operators to enhance data storage on a personal cloud. Growing adoption of mobile devices like smartphones, tablets, and laptops, along with awareness regarding personal cloud services, are mainly supporting their adoption among individual customers in various Asian countries. The convergence of service providers' social, mobile, information, and cloud services is now fostering cloud computing adoption in the region.

Additionally, the governments are also supporting the use of internet services across organizations, supplementing the adoption of cloud services across various industry sectors. Personal cloud service providers are designing attractive data storage packages (with an economical pricing strategy) to increase their customer base in the dynamic market.

Segmental Analysis

The global personal cloud market is bifurcated by fuel revenue type, hosting, and end-user.

Based on revenue type, the global market is bifurcated into direct and indirect. 

The direct revenue segment is the highest contributor to the market and is predicted to exhibit a CAGR of 23.8% during the forecast period. The growing adoption of the cloud is now fostering the need for better security for the data which is to be stored. This would boost the usage of the direct sales model of the personal cloud market in the future. In addition, the increased usage of mobile-based applications is driving mobile device manufacturers to design an in-built personal cloud platform with features such as storing, sharing, and managing information about the user. With an increasing number of internet users, the price of the storage platforms is expected to reduce, eventually gaining popularity among users.

Based on hosting, the global market is divided into consumers and service providers. 

The service provider segment owns the highest market share and is predicted to exhibit a CAGR of 24.01% during the forecast period. Flexibility while selecting the data packages is one of the major advantages of the provider hosting personal cloud service model. The industry players are designing varied data packages with diverse monthly and annual subscription charges and post-free usage limits. Customers are also interested in this model owing to its usage and price flexibility. As the service providers offer these services on a shared basis among a wide range of customers, this model enables the providers to provide storage solutions at affordable costs.

Provider-hosted data storage solutions are designed in various data packages with different price slabs. Therefore, users can choose from numerous options as per their requirements Global leading players such as Microsoft, Apple, Google, Amazon Web Services, and Dropbox, among others, have their data centers for delivering cloud services. These players are making constant changes in the price structures. For instance, Google and Microsoft had recently slashed the prices of their solutions, Google Drive and OneDrive, respectively, to attract new customers.

Based on end-user, the global market is classified into individuals and enterprises. 

The enterprise segment is the highest contributor to the market and is predicted to exhibit a CAGR of 22.11% during the forecast period. Due to the rapidly expanding volume of digital files, organizations used to store data on servers, but this is now proving insufficient. For over a decade, these businesses have relied heavily on e-business practices and faced challenges regarding data storage, sharing, and data backing up files. However, nowadays, regardless of size, companies are looking for efficient data storage solutions expected to ensure data security, availability, and access at all times.

In addition, the rise in BYOD adoption among these enterprises has created the need for instant access facilities with enhanced data protection anywhere, anytime. The market players are equally focusing on small business groups and individual customers to create awareness and cater to the growing demand for personal cloud solutions. Therefore, the players such as Google, Amazon Web Services, Microsoft Corporation, and Copy, among others, have introduced their solutions in several packages with various features.

Impact of covid-19

The impact of COVID-19 has had a devastating effect on all industry verticals globally. However, the growth of cloud storage has slightly increased amidst the pandemic due to lockdown imposed by the governments and work-from-home implemented by corporates. This has resulted in the adoption of cloud storage to store large documents and share files, among others. Furthermore, the high-security offering of cloud services is also one of the factors leading to the adoption of cloud storage amidst the pandemic.   

Recent Developments

• June 2023 - Amazon Athena for Apache Spark started supporting custom Java libraries. Amazon Athena for Apache Spark allows users to use Java libraries and customize the Spark configurations for Spark workloads.
• June 2023 – Amazon announced the general availability of Amazon Aurora I/O-Optimized in the AWS GovCloud (US-East and US-West) Regions. Amazon Aurora I/O-Optimized is a new configuration that provides improved price performance and predictable pricing for customers with I/O-intensive applications. Aurora I/O-Optimized offers improved performance, increasing throughput and reducing latency for customers’ most demanding workloads.