Disaster Recovery as a Service Market Size, Share and Forecast 2032

Global Disaster Recovery as a Service Market: Insights

According to the report published by Zion Market Research, the global Disaster Recovery as a Service Market size was valued at USD 13.25 Billion in 2023 and is predicted to reach USD 105.6 Billion by the end of 2032. The market is expected to grow with a CAGR of 25.94% during the forecast period. The report analyzes the global Disaster Recovery as a Service Market's growth drivers, restraints, and impact on demand during the forecast period. It will also help navigate and explore the arising opportunities in the Disaster Recovery as a Service industry.

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Global Disaster Recovery as a Service Market: Overview

With the help of disaster recovery as a service, the enterprises can duplicate their virtual and physical servers through the third party vendor’s cloud services thus avoiding the loss of data which can be caused by human errors or other reasons. To develop own disaster recovery strategy can be complex, expensive, and time-consuming, thus increasing the demand for the disaster recovery as a service solution.

Key Insights

• As per the analysis shared by our research analyst, the global Disaster Recovery as a Service Market is estimated to grow annually at a CAGR of around 25.94% over the forecast period (2024-2032).
• In terms of revenue, the global Disaster Recovery as a Service Market size was valued at around USD 13.25 Billion in 2023 and is projected to reach USD 105.6 Billion by 2032.
• Based on the cloud type, segmentation by cloud type typically includes public, private, and hybrid cloud models. Among these, the public cloud segment is often the most dominant, primarily due to its cost-effectiveness, scalability, and ease of deployment. Public cloud DRaaS solutions are particularly appealing to small and medium-sized enterprises (SMEs) that seek robust disaster recovery options without the overhead of maintaining physical infrastructure.
• Based on the verticals, the IT and telecommunications sector frequently emerges as the leading segment. This dominance is attributed to the critical need for continuous uptime and data integrity in these industries, where even minimal downtime can lead to significant operational and financial repercussions. Consequently, organizations within this vertical prioritize investment in comprehensive disaster recovery solutions.
• Based on the services, the DRaaS market is segmented into backup and recovery, real-time replication, and data protection services. Among these, the backup and recovery segment generally holds the largest market share. This prominence is due to the fundamental necessity for businesses to ensure data availability and integrity, making backup and recovery services a cornerstone of disaster recovery strategies across various industries.
• Based on the end users, large enterprises are typically the most dominant segment in the DRaaS market. These organizations often have complex IT infrastructures and a heightened need for robust disaster recovery solutions to maintain business continuity. Their substantial resources allow for significant investment in DRaaS offerings, driving demand and innovation within the market.
• Based on the region, North America usually stands out as the leading region in the DRaaS market. This leadership is driven by the region's advanced technological infrastructure, high adoption rates of cloud services, and stringent regulatory requirements for data protection and business continuity. The presence of numerous key market players and a strong focus on digital transformation further bolster North America's dominant position in the global DRaaS landscape.

Global Disaster Recovery as a Service Market: Growth Factors

The major factor that is driving the disaster recovery as a service market is the growth in the adoption rate of virtualization and automation in the industrial sectors. The benefits of using disaster recovery as a service solution is that they are flexible and are cost effective along with this the increasing trend of the enterprises to use managed services is accelerating the demand of the market. The factors that are going to restrain the growth of the market is the lack of security and compliance and the growing bandwidth requirements will limit the market growth.

Recent Developments

• In July 2021, HPE acquired Zerto, a leading enterprise DR/replication vendor, to strengthen its data protection and disaster recovery capabilities for hybrid cloud customers.
• In November 2022, 11:11 Systems acquired Sungard Availability Services' recovery and cloud managed services businesses, consolidating enterprise recovery capacity and managed DR assets.
• August 2024: IBM entered a strategic alliance with AWS to strengthen its streaming analytics capabilities by tapping into AWS’s powerful cloud infrastructure.
• July 2024: Google Cloud upgraded BigQuery with advanced streaming analytics features, significantly boosting its performance in handling real-time data workloads.
• July 2024: IBM acquired StreamSets and webMethods from Software AG, expanding its portfolio in automation, data integration, and streaming analytics.
• October 2024: SingleStore acquired BryteFlow, enhancing its real-time analytics and generative AI capabilities through improved data ingestion technology.

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Global Disaster Recovery as a Service Market: Report Scope

Global Disaster Recovery as a Service Market: Segmentation

​The market for disaster recovery as a service is globally fragmented into cloud type, verticals, services, and end users. All the segments have been analyzed based on present and future trends and the market is estimated from 2024 to 2032.

Based on the Cloud Type, the global market is segregated into public cloud, private cloud, and hybrid cloud.

Based on the Verticals, the market is categorized into healthcare, transportation, government, BFSI, media and entertainment, and others.

Based on the Service Type, the market is divided into backup, professional services, real-time protection, data security, and others.

Based on the End User, the market is bifurcated into large enterprises and SMEs.

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Disaster Recovery as a Service Market Dynamics:

Key growth drivers

The DRaaS market is experiencing significant growth, primarily fueled by the increasing frequency and sophistication of cyberattacks like ransomware and data breaches, which make traditional on-premise disaster recovery solutions inadequate. Businesses of all sizes, particularly small and medium-sized enterprises (SMEs), are adopting DRaaS because it provides a more cost-effective and scalable alternative to building and maintaining a secondary physical data center. The growing adoption of cloud-based services and a general shift toward a "cloud-first" strategy also drives the market, as DRaaS seamlessly integrates with existing cloud infrastructure. Furthermore, strict regulatory and compliance requirements, such as GDPR and HIPAA, compel organizations to have robust disaster recovery plans, and DRaaS provides a simple way to meet these mandates.

Restraints

Despite its benefits, the DRaaS market is held back by several key restraints. A major concern for potential customers is data security and privacy, as they must entrust their critical data to a third-party service provider. This can be a significant hurdle, especially for industries with highly sensitive data like healthcare and finance. Another restraint is the potential for vendor lock-in, which makes it difficult and costly for an organization to switch providers if their needs change or if they're unhappy with the service. Additionally, while DRaaS is often more cost-effective than traditional methods, pricing can be complex and unpredictable, especially for data transfer and storage costs during a disaster.

Opportunities

The DRaaS market presents numerous opportunities for innovation and expansion. The proliferation of hybrid and multi-cloud environments creates a demand for solutions that can manage disaster recovery across a combination of on-premise and multiple cloud platforms. There is a significant opportunity to integrate advanced technologies like Artificial Intelligence (AI) and Machine Learning (ML) into DRaaS offerings to automate and streamline recovery processes, providing a faster and more efficient response to a disaster. The growing trend of "as-a-service" models across various IT functions also means that DRaaS providers can offer additional services, such as managed security and compliance, creating new revenue streams.

Challenges

The market faces several challenges that can hinder its full potential. A primary challenge is the complexity of orchestrating disaster recovery in a highly distributed and diverse IT environment. Ensuring seamless failover and failback across a mix of on-premise, public, and private cloud systems can be technically demanding. There's also a shortage of skilled IT professionals with expertise in cloud and disaster recovery, which can make it difficult for organizations to effectively implement and manage a DRaaS solution. Finally, the highly competitive nature of the market, with major cloud providers and specialized vendors vying for market share, puts pressure on pricing and requires continuous innovation to stay ahead.

Global Disaster Recovery as a Service Market: Regional Analysis

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The global disaster recovery as a service market is regionally diversified into Western Europe, Eastern Europe, Latin America, the Middle East & Africa, North America, and Asia Pacific. The regions that are dominating the disaster recovery as a service market are North America and Western European regions. The factors that contribute to the market growth in the North American region are the increased presence of the key disaster recovery as a service vendors and the U.S. has the highest adoption rate of this technology. The market growth in the Asia Pacific region is expected to experience a significant market growth in the coming years. The factors that are contributing to the market growth in Asia Pacific region are increasing cases of the cyber attacks, growing business automation, and the increase in the investments that are made in this technology by the organizations. The regions such as Eastern Europe and Latin America will also experience a significant market growth in the coming years.

Global Disaster Recovery as a Service Market: Competitive Players

The key market players that are involved in the disaster recovery as a service market include:

• Amazon Web Services
• Microsoft Corporation
• International Business Machines Corporation
• Vmware, Inc.
• Cisco Systems, Inc.
• and others.

Global Disaster Recovery as a Service Market: Segmentation

The Global Disaster Recovery as a Service Market is segmented as follows:

By Cloud Type 

• Public Cloud 
• Private Cloud
• Hybrid Cloud 

By Verticals 

• Healthcare 
• Transportation 
• Government 
• BFSI
• Media And Entertainment
• And Others 

By Services 

• Backup
• Professional Services
• Real-time Protection
• Data Security
• And Others 

By End Users 

• Large Enterprises
• SMEs

Global Disaster Recovery as a Service Market: Regional Segment Analysis

• North America
  • U.S.
• Europe
  • UK
  • France
  • Germany
• Asia Pacific
  • China
  • Japan
  • India
• Latin America
  • Brazil
• The Middle East and Africa

What Reports Provides

• Full in-depth analysis of the parent market
• Important changes in market dynamics
• Segmentation details of the market
• Former, on-going, and projected market analysis in terms of volume and value
• Assessment of niche industry developments
• Market share analysis
• Key strategies of major players
• Emerging segments and regional markets
• Testimonials to companies in order to fortify their foothold in the market.