Executive Summary

Many knowledge workers keep their intellectual work in Obsidian-style personal vaults but lack a safe, easy way to apply AI over that data: cloud RAG workflows force trade-offs between privacy, cost, and latency, while ad hoc local approaches are brittle and resource-hungry. This is a tangible opportunity—roughly 300 million knowledge workers with an informal willingness to spend about $30/year point to a $9.0 billion addressable market today. You could build "Rescue Your Vault," a local, privacy-first RAG product that indexes Obsidian vaults with compact embeddings and a lightweight vector store, and runs inference on-device (or optionally on trusted local servers) to provide semantic search, Q&A, summarization, and incremental sync. The product would prioritize seamless Obsidian integration, simple incremental indexing, cross-platform low-memory optimizations, and monetization via a $30/year consumer tier plus a higher-priced Pro tier for power users and teams. Timing is favorable: on-device LLMs have reduced latency and made private, offline RAG feasible, vector DB and embedding tooling have matured, and PKM has mainstreamed—together these trends underpin a Market Score of 90/100 and a Revenue Potential of 88/100. Where it can stand out is clear privacy guarantees (local-first by default), tight UX integration with Obsidian’s file model, and engineering that squeezes good performance out of modest hardware and compact indexes. Strengths are low competition and strong product-market fit; challenges include the engineering complexity of supporting diverse platforms and vault sizes, staying current with model improvements, and converting technically curious users into paying customers.

Market Opportunity

Rescue Your Vault: Local, Privacy-First RAG for Obsidian Notes targets a $9.0B = 300M knowledge workers x $30/year informal AI-PKM spend total addressable market with low saturation and a year-over-year growth rate of 30%.

Key trends driving demand: On-device LLMs -- reduced latency and privacy enablement makes true local RAG viable for end users.; PKM mainstreaming -- more knowledge workers use personal vaults and expect AI over their data.; Vector DB & embeddings tooling maturity -- libraries and compact indexes make efficient local storage possible..

Key competitors include privateGPT & community local-RAG projects (e.g., privateGPT, llama.cpp + Chroma/Qdrant stacks), LlamaIndex / developer RAG libraries, Readwise (Reader + Readwise.io), Obsidian community plugins (various AI/query plugins).

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Rescue Your Vault: Local, Privacy-First RAG for Obsidian Notes

Executive Summary

Market Validation

Market Opportunity

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