Enterprise File Synchronization and Sharing (EFSS) Market Size | Forecast 2031

Report Description

Global Enterprise File Synchronization and Sharing (EFSS) Market Outlook 2031

The global Enterprise File Synchronization and Sharing (EFSS) market size was around USD 7.8 billion in 2022 and is expected to surpass USD 53.24 billion by 2031, expanding at a CAGR of 23.79% during the forecast period, 2023–2031. The market growth is attributed to the rising adoption of EFSS systems for easy and secure file sharing coupled with growing data security concerns.

The growing adoption of EFSS solutions by enterprises is fueling the market. This solution allows enterprises to share files securely with synchronization. The rise of distributed and remote work forces is creating a high need for EFSS solutions, as these solutions enable employees to access files from anywhere.File synchronization and sharing solutions provide an efficient and scalable way to store, organize, and share files.

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The increasing importance of data security and compliance makes EFSS solutions crucial. EFSS solution offers various features, such as access control, encryption, and auditing to protect sensitive information and meet regular requirements. Moreover, EFSS services offer user-friendly interfaces, making it easy for employees to adopt and use them effectively.

Impact of Artificial Intelligence on Enterprise File Synchronization and Sharing (EFSS) Market

Artificial Intelligence is revolutionizing every sector, including software & solutions. Integration of AI in EFSS enhances security by detecting and alerting administrators to potential policy and security violations within the EFSS system. Artificial Intelligence integration allows automated compliance checks and reporting, coupled with identifying and eliminating duplicate files. Workflow automation is another factor in which AI opens up new market opportunities, as it helps the EFSS system to automate routine tasks and workflows, such as file routing, approvals, and notification. Many global organizations are focusing on adopting AI to enhance the functionality, usability, and security of these solutions, which makes them efficient and user-friendly for employees.

COVID-19 Impact

The market report finds that COVID-19 positively impacted the Enterprise File Synchronization and Sharing (EFSS) market. Governments across the globe imposed strict lockdowns to curb the spread of the virus, which encouraged major companies to switch to work-from-home mode. This increased the usage of EFSS software and services. EFFS services helped companies, especially the companies working inthe IT & telecom sector,in synchronizing big data and files, during the pandemic.

Digitization accelerated during the pandemic, as the demand for work remotely software and services increased exponentially. The demand for safe data access, easy data synchronization, and sharing solutions resulted in increased company spending and technology adoption for better solutions and services. For instance,

• According to the data published in November and December 2020, in India, small companies that are investing in technology increased by around 33%, resulting in an increase in efficiency and profitability rates in these companies.

Enterprise File Synchronization and Sharing (EFSS) Market Dynamics

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Major Drivers

Rising demand for mobile workforce and digital workplace are driving the market. The use of digital workplace services has increased in recent years, especially after COVID-19. Enterprises are increasingly focusing on adopting digital workplaces, which allow them to increase their efficiency and cope with modern business processes. Mobile workforce solution is gaining traction among enterprises, as it helps enterprises in saving cost and increasing employee productivity.

Enterprises are heavily spending on adopting digital technologies to transform their business process from non-digital to digital. For instance,

• In 2022, spending on digital transformation was around USD 1.6 trillion and is expected to reach around USD 3.4 trillionby 2026.

The market is expected to boost in the coming years with the increased forecasted spending on digital transformation across the globe.

Existing Restraints

The high cost associated with EFSS software and solutions hampers the market. There are several benefits of adopting this service. However, the high cost of various models of EFSS software is hindering the adoption rate. Enterprises have to adopt either an enterprise subscription model or a single-user licensing model and the high prices of these models are expected to hinder the potential customers. Moreover, EFSS services are encrypted files, and in the case of a missing FEK (File Encryption Key), the data is lost forever.

Emerging Opportunities

Increasing adoption of cloud-based services and solutions for easy data access and synchronization processes is expected to create lucrative opportunities in the market. Enterprises across the globe are integrating cloud services, as this helps them in easy synchronization and sharing processes. EFSS cloud solution offers better data protection with anti-virus and better encryption,which helps in preventing data loss. Enterprises prefer cloud software & solutions, especially ones integrated with advanced technologies, such as the Internet of Things (IoT) and Artificial Intelligence (AI).

Scope of the Report

The global Enterprise File Synchronization and Sharing (EFSS) market research report includes an assessment of the market trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Market Segment Insights

Component Segment Analysis

Based on component, the global Enterprise File Synchronization and Sharing (EFSS) market is bifurcated into service and solution. The solution segment is expected to expand at a significant growth rate during the projected period. The segment growth is driven by the increasing usage of EFSS solutions by large enterprises and SMEs for seamless access and sharing of any file within the enterprise.This type of solution helps enterprises to share any size of files from anywhere and anytime. File synchronization solutions help in sharing any business files containing sensitive information through secure channels. The demand for secure file-sharing solutions is growing, due to the rising number of cyber attack cases across the globe. For instance,

• According to a recent study published in 2023, in 2022, the number of data compromises in the US was around 1802 cases, and over 422 million individuals were affected.

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Deployment Mode Segment Analysis

On the basis of deployment mode, the global market is segregated into on-premise and cloud. The on-premise segment is projected to register a considerable CAGR during the forecast period,owing to better protection of files compared to cloud one. Increasing data breaching cases are encouraging companies to preferon-premise solutions. On-premise solutions allow companies to easily drag and drop any file and create a customized link that works in the organization only. This creates a secure link for file synchronization and sharing.

The cloud segment is anticipated to account for a major market share in the coming years, due to the increasing adoption of cloud computing technologies by large and SMEs. Cloud EFFS offers enterprises the convenience of accessing data from anywhere and anytime. Companies such as Dropbox offer smart sync that allows users to experience the same experience irrespective of whether the file is stored locally or on the cloud.

End-user Segment Analysis

Based on the end-user, the market is divided into large enterprise and small & medium-sized enterprise. The large enterprise segment is anticipated to dominate the market, owing to the rising use of EFSS solutions for various purposes. Large enterprises use file synchronization and sharing software and solutions for document version tracking and workflow process management,which help usersto store, edit, and share files. Large enterprises are integrating EFSS services,owing to thepresence of large numbers of employees. The demand for EFSS service is growing in large enterprises, as these enterprises need to store, synchronize, and share large amounts of data in organizations.

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The SME segment is anticipated to register a considerable CAGR during the forecast period,due to the increasing integration of EFSS services among medium and small-size companies to offer better consumer services. SMEs are increasingly spending on IT services and technologies for advanced file synchronization and sharing solutions. For instance,

• As per the recent data published, in 2021, SMEs' spending on IT services was around USD 1,125 billion.

Industry Vertical Segment Analysis

On the basis of industry vertical, the global market is segregated into BFSI, manufacturing, Telecom and IT, education, retail, government, and others. The BFSI segment dominates the market, due to the wide use of EFSS services, owing to the increasing cases of data theft and cyber-attacks. In BFSI, the security and synchronization of files are important,as these files are crucial.EFSS solution helps BFSI organizations share and access files, customer experience and business operations streamline, and better customer experience.These services enable BFSI enterprises to improve their productivity by offering mobile workplace services. The use of EFSS is anticipated to grow during the forecast period with increasing data security concerns, resulting in driving the market.

Regional Outlook

In terms of regions, the Enterprise File Synchronization and Sharing (EFSS) market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The market in North America is expected to dominate the market during the projected period, due to the rapid adoption of EFSS solutions in the region. Companies present in the region are integrating on-premise and cloud-based EFSS services for easy file sharing and synchronization purposes. Regional enterprises are adopting digital workplace and mobile workforce solutions for hassle-free solutions. Moreover, the presence of major companies offering EFSS services is driving the regional market.

The market in Asia Pacific is anticipated to expand at a rapid pace during the forecast period, owing to the growing digitalization and mobile work culture. Large companies and SMEs present in the region are focusing on integrating EFSS, owing to the increasing data theft cases. Increasing data theft cases are encouraging enterprises to adopt and spend on technologies, such as cloud and server less computing, for safe and secure file synchronization and sharing platforms.

• As per the recent survey by SWZD , 72% of businesses across the Asia Pacific are planning to adopt IT automation technologies within the next two years.

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The rapidly growing IT and telecom sector in the region opens new pathways for the key players to boost market revenue in the coming years. IT & telecom companies use EFSS services to store, share, and synchronize big data for easy access and security purposes. This is expected to boost the regional market during the projection period.