The content of this report will be updated with the latest scenarios based on the global COVID-19 Pandemic
The global enterprise file synchronization and sharing market was valued at USD 4.23 billion in 2019 and is expected to reach USD 16.99 billion by 2025, registering a CAGR of 26.3%, during the period of 2020-2025. Enterprise file synchronization and sharing (EFSS) is a software service that enables organizations to synchronize and share documents, photos, videos, and files in a secure manner. The demand for additional requirements to remotely access substantial assets and files has been increasing. The status quo for the remote workforce is to access the files through low-resolution proxies or by having to download multiple files that can be of large sizes. A few companies have been launching new products offering file sharing and synchronization for remote access to capture the trend for remote access of large file assets.
- Increasing adoption of BYOD Policy is driving the market. The growing trends of the mobile workforce and digital workplace have been driving the market’s growth positively. File sharing and synchronization tools have become an essential productivity-enabling resource for increasingly mobile information workers, driven by the BYOD policy. According to Cisco, BYOD-favoring companies annually save USD 350 per employee. Also, a survey conducted by IBM India among CIOs, CMOs, CTOs, and other decision-makers across various verticals indicated that about 57% of enterprises had been planning to invest in BYOD and mobile technology for their companies, while 67.4% expressed personal interest in owning this technology.
- Increasing demand for cloud-based integration drives the market. Cloud-based integration eliminates the need to maintain numerous on-premise and cloud-based information silos and enables authorized users to access business information across geographic locations. Therefore, many organizations have been switching to cloud-based integrated solutions from on-premise models. For instance, according to Spiceworks, State of IT Report, 2018, 50% of European organizations expect to spend more on hosted/cloud-based services compared to 2017. Europe had the highest adoption rate for cloud services, according to the data published by Bitglass at 84% in 2018.
- Further, the outbreak of the COVID-19 pandemic virus across the world is anticipated to augment the demand for enterprise file synchronization and sharing, especially among the IT and telecom sectors, due to the feasibility of employees’ work from home. This has significantly driven the demand for solutions offering safer enterprise file access, synchronization, and sharing. As a result of the WFH onslaught, IGEL has been witnessing stepped-up sales, providing tens of thousands of seats in the past several weeks for IGEL’s Linux OS connected to VMware, Citrix Systems, Microsoft, and Amazon, along with unprecedented demand for its UD Pocket offering. Also, according to IGEL, Europe has been witnessing the cultural shock of moving to WFH more than the United States because six out of 10 people in Europe have never worked from home.
Key Market Trends
BFSI to Account for the Significant Market Share
- The capital-intensive financial institutions generally have multiple lines of businesses, which led to several disconnected technology solutions into the functions. This has created a demand for unified applications within the overall organization.
- Most of the BFSI players are investing in EFSS for developing mission-critical banking solutions for risk assessment and mitigation in the business prospects preventing least data breaches. For instance, Sun Trust gives the security of customer data and compliance as a primary priority and, therefore, employs multiple solutions from Box Inc. to unify processes. This has resulted in reduced cost and agility among Sun Trust’s team to commercialize products and services faster.
- The cloud content management, data and security management, and using unsanctioned solutions to share files outside the firewall have become major EFSS functions for deployment among the banking and insurance sectors. Significant investments have been made by banking institutions. For example, in July 2019, Morgan Stanley partnered with Box Inc. to launch a wealth management digital collaboration product, facilitating encrypted document sharing between clients and financial advisors.
- Further, according to the Identity Theft Center, the share of sensitive records exposed as a result of data breaches in the banking sector constituted 61.1% of all exposed sensitive records in the United States country in 2019.
- The BFSI sector accounted for the majority of exposed sensitive records. For instance, in 2019, First American Financial Corp. had 885 million records exposed online, including bank transactions, social security numbers, and other confidential files leaked.
- Thus, the market studied has been gaining traction, as many banks have been hosting advanced file sharing and synchronization services, which are compatible with their existing IT architecture and capabilities to protect data across all accessing devices, including monitoring, preventing, and resolving any instances of data leakage. Lockton (US Insurance Firm), one among the largest, privately-owned insurance brokerage firms with over 5,600 associates and over 48,000 clients, provided unparalleled file sharing access to experts. Lockton used ShareFile, a DropBox solution, as a single solution to address mobility requirements while allowing easy and secure file sharing with its clients.
Asia-Pacific to Witness a Significant Growth
- Asia-Pacific is expected to be one of the fastest-growing markets for EFSS, owing to the growing economies and major tech dominant nations, such as China, India, South Korea, Japan, and Singapore. China holds a significant demand for electronics and consumer electronics devices, and it is also a semiconductor manufacturing hub. For instance, according to the National Bureau of Statistics China, the country’s revenue from consumer electronics in February 2020 was valued at CNY 80.52 billion. This has given rise to the data generated in the sector, with the implementation of Big Data solutions.
- Further, in China, major outside tech companies either find less user base or are blocked by the government-operated firewalls. For instance, Dropbox is blocked in China and cannot be accessed with local internet in the country. However, local tech companies such as Nutstore, Nihao cloud, among others, are offering their products in the country.
- Furthermore, another influencing economy in the region is India, one of the largest and fastest-growing economies in the world. The country is home to one of the largest markets for smart devices. According to the Department of Commerce, the country had an electronic product import value of INR 3881.5 billion in 2019.
- Major vendors, such as Microsoft, Dropbox, Citrix, Google, and IBM, already have their presence significantly in the country. Moreover, these organizations are offering India specific features and pricing on their services to gain a foothold in the growing IT space. For instance, Dropbox made changes to its prices in India and is offering new capabilities, such as full-text search and Dropbox Smart Sync.
- Further, Japan is another prominent player in the region, and vendors are expanding their presence slowly in the country as well. For instance, Dropbox expanded storage capabilities to business customers in Australia, New Zealand, and Japan. Also, recently, Konica Minolta launched the dokoni Sync & Share EFSS solution based on Linux offering mobile and cloud access to documents. The solution includes services enabling the organizations to distribute documents and manage content from mobile devices while keeping previous document versions intact and keeping track of contributor information reliably.
- In addition, in November 2019, QNAP officially released a new file-based cloud gateway application that integrates multiple public cloud services for enterprises that require hybrid cloud storage environments. The QNAP HybridMount File-based Cloud Gateway allows QNAP NAS users to access cloud storage with standard protocols (including SMB, FTP, AFP, NFS, and WebDAV).
The enterprise file synchronization and sharing market are highly fragmented and competitive in nature. Players are using various strategies such as new product launches, expansions, and others to increase their footprints in this market. Some of the prominent players in the market are Dropbox, Inc., Box, Inc., etc. Recent developments in the market are -
- June 2020 - Jordan Kuwait Bank implemented Citrix Virtual Apps and Desktops across its 64 branches throughout Jordan and Cyprus. The solutions allow it to remain operational and offer financial services to its SME and corporate customers to manage critical imports and continue trading seamlessly while the country remains in lockdown.
- May 2020 - Box Inc. introduced the All-New Box experience to power increased productivity and collaboration. The All-New Box experience features a simplified, redesigned user interface that enables personal productivity by making it easier to navigate Box than ever before.
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