The global market for Consumer Cloud Services is forecast to reach US$260.5 billion by 2024, fueled by the rise of on-demand consumerism in the entertainment and data storage space and the resulting rise of streaming music, videos, games and cloud storage services.
The rise of the "On-Demand" economy and its revolutionizing influence on consumer behavior is wielding a significant impact on the way entertainment services such as music, videos, and games are demanded, delivered and consumed. Defined as instant fulfillment of consumer demand through immediate provisioning of goods and services, the on-demand economy feeds on developments in Internet infrastructure, communication technology, and innovations in mobile computing networks and devices. Digitalization of modern life has hardwired consumers to want things instantly, pushing the world into the era of "instant gratification". Ubiquitous spread of mobile devices and anytime anywhere access to the Internet, have enabled consumers to be always plugged-in with the digital world, thus reducing the need for waiting. Streaming is therefore emerging as the most successful application of cloud technology. High speed broadband Internet has enabled movies, music and videos to stream almost instantaneously. Digital technologies powered by the cloud and the Internet are liberating consumers and driving the on-demand era by offering convenience, speed and instant gratification. Growing consumer demand for higher levels of customization of products and services, and rising preference for prompt and rapid delivery of services are driving demand for cloud services such as streaming music, games and videos.
With a rising percentage of the world population currently "Motivated by Mobility" and utilizing mobile computing devices and technologies to manage personal, social and work lives, there is growing demand for consumer cloud storage services. To encourage widespread adoption, service providers are repositioning their storage services on a new platform that positions cloud storage benefits and functionalities beyond just a form of online storage. Developments in technology and architecture now enable even synchronizing unlimited devices, sharing, streaming of stored data, content based access, and remote data synchronization among multiple devices. The growing prominence of cloud storage services can be put into perspective by the fact that in the United States alone, over 70% of internet users utilize cloud storage services in some form or the other.
The United States represents the largest market worldwide. Asia-Pacific ranks as the fastest growing market with a CAGR of 37.8% over the analysis period led by factors such as development of the Internet and telecom infrastructure; digitalizing lifestyles of the middle class population and a parallel increase in appetite for digital forms of entertainment; growing cloud readiness of Asian economies; rising smartphone penetration and mobile internet subscriptions largely due to falling device costs and service tariffs; and growing consumer reliance on cloud storage for managing the data explosion triggered by consumer IoT.
Major players in the market include Amazon.com, Inc., Apple, Inc., Carbonite, Inc., Deezer, Dropbox, Inc., GameFly, Inc., Google Inc., Hatch Entertainment Ltd., Hulu, LLC, Microsoft Corporation, Napster, Netflix, Inc., Box, Inc., SugarSync, Inc., Nextcloud, Pandora Media, Inc., Sony Interactive Entertainment LLC, SoundCloud Limited, SpiderOak, Spotify Ltd., Tidal, Utomik, Inc., Valve Corporation, YouTube, LLC, YouTube Red, and Vudu, among others.