2. Market analysis & ICP

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This page is a hometask for Family Archive (Closed) project from 2023.10.27 - Market analysis & ICP lecture

Task

Calculate the size of the market and its dynamics

Top-down TAM

The global personal cloud market size reached US$ 24.0 Billion in 2023. The market is expecting to reach US$ 68.7 Billion by 2029, exhibiting a growth rate (CAGR) of 18.72% during 2024-2029.

Source 1, Source 2

Bottom-up TAM USA

Total households in USA, 2021 (Source): 83.71M

Households without children in USA, 2021 (Source): 50.34M

Percentage of middle class in USA, 2021 (Source): 50%

Potential clients in USA: (83.71M - 50.34M) * 50% = 16.68M

Average family digital album size (guesstimate): 200Gb

Average size of photos&videos taken per month per person: 11 Gb

This includes:

  • 300 Full HD photos, where 1 FullHD photos = 1 Mb

  • 300 4k photos, where 1 4k photo = 5 Mb

  • 30min Full HD video, where 1 min of Full HD video = 20 Mb

  • 30min 4k video, where 1 min of 4k video = 300 Mb

Price per GB per month we charge: 0.01$

TAM = Clients * Price GB/Month * Average family digital album size

TAM = 16.68M * 0.01$ * 200Gb = 33.36M $

Growth = Clients * Price GB/Month * Average size of photos taken/Month

Growth (per month) = 16.68M * 0.01$ * 11Gb = 1.8M $

Growth (per year) = 16.68M * 0.01$ * 11Gb * 12 = 22M $

Bottom-up TAM Europe

Total households in Europe (Source): 197M

Percentage of households with children (Source): 24%

Percentage of middle-class households (guesstimate): 50%

Potential clients in Europe: 197M * 24% * 50% = 23.64M

TAM = 23.64M * 0.01$ * 200Gb = 47.28M $

Growth (per month) = 23.64M * 0.01$ * 11Gb = 2.6M $

Growth (per year) = 23.64M * 0.01$ * 11Gb * 12 = 31.2M $

Bottom-up TAM Total

33.36M$ + 47.28M$ = 80.64M$

1% of TAM = 0.8064M$

Analyze competitors and show the result concisely

Family Archive

Main selling point: Long-term backup in cloud

Addons: Automatic sort by date into folders, bulk download, end-to-end encryption

Google Drive

Main selling point: File storage and sharing

Addons: Automatic computer folder backup

Google Photos

Main selling point: Automatic photo&video backup in cloud

Addons: Albums, Collages, “Revisit the moment” collages

PhotoMove

Main selling point: Automatic sort by date into folders on hard drive

Addons: Sort by camera model

Gemini Photos

Main selling point: Cleanup gallery

Addons: Automatically find and remove similar photos, Help to choose the best photo among similar, “Tinder like” manual cleanup (swipe to keep or delete)

Create your own ICP

A middle-class family, in late 30s, early 40s, with children under 18, whom parents

  • are worrying about digital photo album safety

  • wants to clean up/categorize their digital photo album

GEO: USA or Europe

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