PERSONAL AND ENTRY LEVEL STORAGE (PELS) MARKET ANALYSIS
The global Personal and Entry Level Storage (PELS) market is estimated to be valued at US$ 56.15 Bn in 2024 and is expected to reach US$ 241.24 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 23.1% from 2024 to 2031.
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The demand for personal storage solutions is growing globally due to increasing data generation and need for securely storing personal data among individuals and small businesses. Cloud subscription services have made data storage more accessible and affordable for consumers and SMEs alike.
The Personal and Entry Level Storage (PELS) market is expected to be driven by rising consumption in developed regions like North America and Western Europe. Increasing internet penetration and use of mobile apps/devices in developing economies like Asia Pacific and Latin America are also fueling the demand. Cloud storage providers have also expanded their portfolios with more affordable storage plans for personal and non-commercial use cases which is further supporting the market trends.
Drivers of the Market:
Increasing smartphone users and digital data consumption
With the rapid rise of smartphone users across both developed and developing nations, the personal digital data generation has seen a massive surge. This rising and continuous usage of advanced smartphones results in huge amounts of personal data like photos, videos, documents, files, and others getting generated and stored on the devices. However, the internal storage capacity of smartphones has limitations. While cloud storage services provide a solution, consistent high-speed internet may not always be available especially in lower income regions or rural areas with poor connectivity. Therefore, many users resort to external supplementary storage devices to backup, store, and manage their growing personal digital archives. This rising dependency on smartphones for both personal and professional needs has become a major driver propelling the demand for various PELS products in the market.
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Rise of multi device users and file sharing needs
Another key trend observed globally is that individuals now use and own multiple smart devices like tablets, laptops, smart watches in addition to their primary smartphone. While cloud storage allows file access across devices, inadequate internet or large file sizes can hamper seamless sharing and transferring. At the same time, the concept of sharing files physically with friends, family or clients digitally has become very common in the modern connected world. Be it sharing photos from last weekend, collaborating on office presentations or transferring media files to an elder family member - the need for swift and reliable file transfer across devices is ever present. External storage devices have emerged as an affordable yet highly effective solution addressing such multi device and file sharing requirements of users. Products like pen drives, portable Hard Disk Drive (HDDs) and Solid State Drive (SSDs) in the PELS space have seen tremendous success riding on this key growth driver.
Key Takeaways from Analyst:
The global personal and entry level storage market continues to be driven by the explosive growth in digital data creation and consumption. Factors such as rising sales of smartphones, tablets, and laptops coupled with increasing adoption of cloud services is contributing to the staggering growth in unstructured data. To accommodate this rapid data growth, the demand for user-friendly and cost-effective storage solutions for personal and non-mission critical business use cases is surging. Meanwhile, Asia Pacific has emerged as the fastest growing regional market for PELS backed by China's burgeoning digital economy and growing middle class in other developing nations propelling data storage needs.
However, continuous decline in storage prices poses margins risks for PELS manufacturers. Further, growing preference among consumers towards cloud storage over physical hardware can restrain the demand for traditional PELS products to some extent. Nevertheless, ongoing technological advancements like integration of AI capabilities and implementation of innovative form factors like thumb drives and portable SSDs presents new opportunities. Additionally, growing Bring Your Own Device (BYOD) culture in enterprises is opening up opportunities for PELS vendors to target cost-conscious SMBs and startups that need basic storage solutions. Overall, the Personal and Entry Level Storage (PELS) market is expected to grow steadily driven by evolving consumer storage habits and price declines across developing economies.
Market Challenges: Compatibility issues with devices
Compatibility issues with devices is significantly restraining the growth of the global Personal and Entry Level Storage (PELS) market. Due to the rapid pace of technological advancements, there are frequent changes in operating systems, file formats, and other backend requirements of various computing devices. This creates challenges in ensuring seamless compatibility between storage devices and the plethora of devices such as desktops, laptops, smartphones, tablets, cameras, etc. that generate and access stored data. With so many device types available from numerous brands that run on different operating systems and use diversified file structures, it has become quite difficult for PELS manufacturers to make their offerings compatible with the entire ecosystem.
This problem of incompatibility often leads to data transfer/access issues when users try to use their storage devices across multiple personal electronic devices. The non-readable or corrupted files seriously compromise user experience and discourage further usage of such storage solutions. Moreover, when compatibility issues arise, it increases technical support costs for companies. Resources have to be diverted from new product development to resolve glitches, perform firmware upgrades, bring software patches, etc. This adversely impacts the pace of innovation.
Market Opportunities: Emergence of USB Type-C connectors
The emergence of USB Type-C connectors brings with it a great opportunity for growth in the global Personal and Entry Level Storage (PELS) market. As USB Type-C allows for higher power delivery and faster data transfer speeds compared to previous generation ports, it allows PELS devices like external solid-state drives and thumb drives to vastly improve user experience. With USB Type-C, SSD manufacturers can add more powerful flash storage modules and improve sequential read/write speeds without worrying about power limitations of older ports. This enhances the functionality of smaller storage solutions targeting personal and low-capacity usage.
As USB Type-C adoption increases across devices, its standardization also means PELS devices remain forward and backward compatible. Users need not worry their current storage solutions becoming obsolete as new laptops and smartphones transition to USB Type-C. This assures continued growth for PELS manufacturers as existing users upgrade their host devices without necessarily upgrading storage accessories in tandem. It also improves convenience for users maintaining multiple device ecosystems.
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Insights By product type - Ubiquitous connectivity is driving the demand for cloud-based storage
In terms of product type, the cloud-based drives segment is expected to contribute 24.1% estimated share of the market in 2024 owing to the ubiquity of internet connectivity and consumer preference for flexibility. As wireless networks and high-speed internet access have proliferated globally, it has become increasingly convenient for consumers to store and access their data from any device with a network connection. Cloud storage allows users to store and retrieve their files, photos, videos and other content from any smartphone, tablet or computer without needing local storage space or physical media like discs. This offers flexibility that appeals to modern, mobile lifestyles.
Users can access cloud-based personal storage from any location, sharing content seamlessly across all their devices. No longer tethered to a single PC or hard drive, consumers have come to expect being able to retrieve their files from any internet-connected device. Cloud drives also offer advantages in automatic backup features that protect users from data loss through synchronization across multiple endpoints. Their ability to offer scalable, on-demand storage that expands alongside the user's needs without physical limits has resonated widely with personal storage customers.
Insights By Technology- Direct attachment remains crucial for performance-critical use cases
In terms of technology, the directly attached storage segment is expected to contribute 37.8% estimated share of the market in 2024 as it remains the optimal choice for storage-intensive or latency-sensitive use cases. While remote cloud servers can offer vast, scalable capacity for personal file storage, their reliance on an internet connection introduces variability in access speeds. For high-performance computing tasks like video/image editing, engineering design work or data analytics, Solid-State Drives and high-capacity conventional hard disk drives connected directly via SATA or USB interface deliver consistently fast data access times.
Direct attachment eliminates the need to transmit large files over a network connection, making it preferable for handling huge files sizes involved in tasks like rendering 4K/8K video, complex CAD/CAM drawings, large database management and more. It also avoids any risks of lag, latency or intermittent connectivity disruptions that could impact productivity. For local backup of mission critical work as well as storage of frequently accessed files, direct attachment ensures the quickest storage I/O speeds. Multiple directly connected drive units in RAID configurations can further improve redundancy protection and throughput for the most demanding performance enthusiasts and professionals.
Insights By End User - Entertainment sector embraces new content creation and consumption models
In terms of end user, the media and entertainment segment is expected to contribute 49.1% estimated share of the market in 2024 as innovative models transform content creation and consumption. Rapid digitization has enabled new forms of entertainment such as streaming video on demand that place onus on creators and distributors to make content widely available online. Personal storage facilitates production and delivery of this digital content across artistic industries including film, television, music, publishing as well as user-generated sharing platforms. It supports multi-faceted workflows involving capturing, editing, mastering, archiving and delivery of high-resolution audio-visual files.
Personal storage allows content professionals to work seamlessly across home and mobile setups, moving projects between devices. It also permits collaboration and crowdsourcing of content through cloud-based sharing tools employed by media production houses. Individual creators benefit from hosting platforms leveraging personal storage solutions, enabling new ways for artists to build careers as content becomes democratized. Meanwhile, consumers now expect entertainment on demand through streaming services that leverage scalable personal storage systems to deliver deep libraries for viewing, listening and reading across all screens. This has transformed the media landscape, driving accelerated reliance on advancements in personal storage technologies.
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North America has established itself as the dominant region in the global Personal and Entry Level Storage (PELS) market. The region is expected to account for 39.3% of the market share in 2024. The presence of major industry players like Western Digital, Seagate, and Toshiba has solidified the region's leadership position. These companies have invested heavily in R&D and manufacturing infrastructure, allowing them to introduce new innovative products on a regular basis. Additionally, North America benefits from a well-developed distribution network that ensures quick and reliable delivery of PELS solutions to customers across the region.
Asia Pacific has emerged as the fastest growing regional market for Personal and Entry Level Storage (PELS) globally. Countries like China, India, and Singapore have witnessed explosive growth in data usage driven by increasing internet penetration, widespread use of smartphones, and rising consumption of digital content. At the same time, Asian countries are now manufacturing reliable and competitively priced PELS hardware to meet the needs of local customers. For example, Chinese brands like Tengchi and Anthropic have built a strong reputation for value storage solutions. Their growing market presence, combined with the region's massive population and rising digital and economic growth, positions Asia Pacific as the future engine of growth in the global Personal and Entry Level Storage (PELS) industry.
Personal and Entry Level Storage (PELS) Market Report Coverage
| Report Coverage | Details | ||
|---|---|---|---|
| Base Year: | 2023 | Market Size in 2024: | US$ 56.15 Bn |
| Historical Data for: | 2019 To 2023 | Forecast Period: | 2024 To 2031 |
| Forecast Period 2024 to 2031 CAGR: | 23.1% | 2031 Value Projection: | US$ 241.24 Bn |
| Geographies covered: |
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| Segments covered: |
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| Companies covered: |
Amazon, Apple, Autoliv, Inc., Box, CubeSmart, Dropbox, Egnyte, Engyte, Google, Life Storage Inc., Metro Self Storage, Microsoft, National Storage Affiliates, Prime Storage Group, and Safestore |
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| Growth Drivers: |
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| Restraints & Challenges: |
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*Definition: The global Personal and Entry Level Storage (PELS) market consists of suppliers who provide data storage solutions designed for personal, home, and small office use. PELS products include external hard disk drives, solid state drives, network attached storage devices, and other storage peripherals aimed at individual consumers and small businesses looking for affordable options to back up, share, and access their digital files across different devices. PELS devices offer simple setup and management along with storage capacities ranging from 1TB to 8TB to meet the needs of personal and non-enterprise level customers.
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About Author
Suraj Bhanudas Jagtap is a seasoned Senior Management Consultant with over 7 years of experience. He has served Fortune 500 companies and startups, helping clients with cross broader expansion and market entry access strategies. He has played significant role in offering strategic viewpoints and actionable insights for various client’s projects including demand analysis, and competitive analysis, identifying right channel partner among others.
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