TEA Project Disrupting Cloud Computing: Market Size Estimation

Market Size Estimation (Absolute or Benchmark)

The TEA Project aims to disrupt traditional centralized cloud computing through its decentralized model of distributed computing nodes. To estimate the possible market share the TEA Project could achieve, it’s useful to look at other centralized cloud providers as well as competitors in the Web3 space.

Market Cap of Popular Web3 Decentralized Computing Projects

• Dfinity, a newly listed decentralized computing market, saw its utility token — ICP — reach a market cap close to US $80 billion. Although it has since had a pullback, it’s still a top 25 coin on CoinMarketCap.
• IPFS’s token FIL reached a market cap of US $12.3 billion at its peak, achieving this market valuation solely providing storage and the network pieces for decentralized computing. It’s also a top 25 coin on CoinMarketCap.

Market Cap of Traditional Centralized Cloud Computing Providers

Looking at the traditional centralized cloud computing market, Amazon’s AWS continues to be the top provider. In 2020 Amazon, achieved net sales of US $386 billion. AWS accounted for only 11.75% of net sales but contributed to 59% of operating profit.

According to China’s Institution of Information and Communication statistics, the global cloud computing market reached US** $188.3 billion in 2019. It’s estimated that the market size will exceed US $350 billion** in 2023. In China, the cloud computing market in 2019 reached RMB ¥133.4 billion (nearly US $20 billion), a growth rate of 38.61%. The Chinese domestic market size is expected to reach a value of RMB ¥400 billion in 2023.

Edge computing is highly related to decentralized cloud computing through its reliance on distributed nodes, even though it relies on centralized servers. For reference, the edge computing market was valued at US $4.68 billion in 2020 and is poised to grow at a blistering rate.

— Technavio has been monitoring the edge computing market and it is poised to grow by $9,143.40 million during 2020–2024, progressing at a CAGR of over 32% during the forecast period.

Decentralized cloud computing is just getting started. Dfinity has been in the planning stages for years and just launched in 2021. It’s still hard to predict how many centralized cloud computing markets will be cannibalized by decentralized cloud computing over the next few years, but future prospects are promising.