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Enterprise File Synchronization and Sharing (EFSS) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

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  • 120 Pages
  • January 2021
  • Region: Global
  • Mordor Intelligence
  • ID: 4591700
The global enterprise file synchronization and sharing market was valued at USD 5.29 billion in 2020 and is expected to reach USD 21.27 billion by 2026 and grow at a CAGR of 26.3% over the forecast period (2021-2026). 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. Organizations adopt these technologies to help employees avoid using consumer-based file sharing applications and software to store, access, and manage to ensure data security. For instance, an enterprise workstation dominantly uses Windows, Mac OS, Linux OS. In contrast, mobile devices, such as tablets and smartphones, used by their employees, use Android and iOS as the dominant operating systems. It creates a considerable challenge for an organization/institution to create a solution that supports these different platforms. This led to the emergence of multiple players in the market that offer EFSS solutions.
  • Businesses use EFSS to improve content management, collaboration, secure file sharing, and include features such as live commenting, document version tracking, and workflow process management to help users store, edit, review, and share files. Additionally, it also offers the option to track and trace the document related to any invoice or order in auditing. Large enterprises that utilize EFSS require the flexibility to add their access policies that govern the organization's accessibility to access specific content. These products include security capabilities, such as authentication, data encryption, containerization, and tracking features to protect enterprise data. Enterprises have been trying to improve their internal work efficiency by saving their employees time consumed in collaboration, as these solutions enable real-time collaboration and sharing of ideas.
  • The increasing adoption of the 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. In comparison, 67.4% expressed personal interest in owning this technology.
  • With the increasing demand for security of the content and information, enterprises are actively looking for more advanced solutions then cloud. Weaknesses in cloud security include theft, sophisticated attacks against the application provider, and the inability to monitor data moving to and from applications. To overcome these, enterprises are launching new solutions. For instance, in May 2020, shayre, a provider of data-sharing solutions, announced the launch of its direct point-to-point and point-to-multi-point software for file transferring and synchronization suited for enterprise businesses. Upon installation, the software operates automatically in the background, with virtually no imprint on the operating device. The EFSS market is expected to continue to evolve as more organizations focus on digital transformation, an approach to enhancing internal productivity through adopting new technology, and eliminating paper processes.
  • 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 invest in EFSS to develop mission-critical banking solutions for risk assessment and mitigation in the business prospects preventing least data breaches. For instance, Sun Trust gives customer data and compliance the security 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 primary EFSS functions for deployment among the banking and insurance sectors. Banking institutions have made significant investments. 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 due to 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.

North America is Expected to Hold Major Share
  • The region is home to significant markets for managed services, professional services, cloud, IT and telecom, and retail, due to the presence of countries such as the United States and Canada. The United States holds a significant share in the IT and telecom and its supporting sectors, which may grow even further over the forecast period. The penetration of BYOD and smart device across the world is significantly driving the market growth for EFSS. The United States holds a prominent share in smart device sales.
  • The region's demand for managed services is another driving factor for EFSS, as more and more enterprises opt for outsourcing non-core functionalities. The region is also home to significant vendors in managed services space, and such vendors are growing even further to increase their capabilities. For example, in November 2019, Apollo Global is eyeing Tech Data acquisition with a deal valued at worth about USD 6 billion.
  • EFSS vendors, such as Microsoft, Dropbox, Citrix, Google, VMware, etc., are concentrated in the United States. Owing to such scenarios, the region is driving the demand. Also, North America is expected to attain prominent revenue generation due to the high development rate of small and medium businesses. SMEs in the region are increasingly integrating modern technologies, such as mobile and cloud, within conventional EFSS, offering cost benefits. For instance, according to the US Small Business Administration, during 2019, the country housed 30.7 million small businesses, which represented 99.9% of the US businesses.
  • The growing number of enterprises catering to global and local clientele increases the concern over data privacy. Governments in the region are taking certain steps to regulate the data privacy of citizens. For instance, the California Consumer Privacy Act (CCPA) has come into effect in January 2020, which applies to a business that collects and processes California residents' data or does business in California. The CCPA also grants rights to consumers similar to the GDPR, including the disclosure of personal information and requests for personal data.
  • Also, the Canadian law, Personal Information Protection and Electronic Documents Act (PIPEDA), enforces data privacy and governs how the private sector organizations collect, use, and disclose personal information in the course of their businesses. Due to such developments and increasing demand from the region, many vendors focus on their operations in the region. For instance, in October 2019, File Cloud has expanded its portfolio with Smart DLP, an intelligent, rules-driven solution to prevent data leaks in real-time. The smart DLP was launched keeping given the growing importance of privacy and the omnipresence of regulations around it, and the difficulties enterprises face in addressing it in the region.

Competitive Landscape

The enterprise file synchronization and sharing market are highly fragmented and competitive in nature. Players use 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 its SME and corporate customers financial services 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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Table of Contents

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Force Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Intensity of Competitive Rivalry
4.2.5 Threat of Substitutes
4.3 Industry Value Chain Analysis
5.1 Market Drivers
5.1.1 Increasing Adoption of BYOD across Various Industries
5.2 Market Restraints
5.2.1 Growing Penetration of Smartphones and Laptops
5.2.2 Data Privacy Challenges
7.1 Service
7.1.1 Managed Service
7.1.2 Professional Service
7.2 Size of Enterprise
7.2.1 Small and Medium Enterprises
7.2.2 Large Enterprises
7.3 Deployment Type
7.3.1 On-premise
7.3.2 Cloud
7.4 End-user Vertical
7.4.1 IT & Telecom
7.4.2 Banking, Financial Services and Insurance
7.4.3 Retail
7.4.4 Manufacturing
7.4.5 Education
7.4.6 Government
7.4.7 Other End-user Verticals
7.5 Geography
7.5.1 North America
7.5.2 Europe
7.5.3 Asia-Pacific
7.5.4 Latin America
7.5.5 Middle East and Africa
8.1 Company Profiles
8.1.1 Box, Inc.
8.1.2 Citrix Systems, Inc.
8.1.3 Dropbox Inc.
8.1.4 Microsoft Corporation
8.1.5 Google, Inc. (Alphabet Inc.)
8.1.6 IBM Corporation
8.1.7 Watchdox Inc. (BlackBerry Limited)
8.1.8 VMware Inc. (Dell Technologies)
8.1.9 Thru Inc.
8.1.10 SugarSync Inc.
8.1.11 Qnext Corp.
8.1.12 Acronis Inc.
8.1.13 CTERA Networks Inc.

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Box, Inc.
  • Citrix Systems, Inc.
  • Dropbox Inc.
  • Microsoft Corporation
  • Google, Inc. (Alphabet Inc.)
  • IBM Corporation
  • Watchdox Inc. (BlackBerry Limited)
  • VMware Inc. (Dell Technologies)
  • Thru Inc.
  • SugarSync Inc.
  • Qnext Corp.
  • Acronis Inc.
  • CTERA Networks Inc.