The Global Disaster Recovery as a Service Market size is expected to reach $70.53 billion by 2031, rising at a market growth of 25.7% CAGR during the forecast period.
The North America segment acquired 38% revenue share in the market in 2023. Countries like the U.S. and Canada have a strong presence of leading DRaaS providers, including AWS, Microsoft Azure, and Google Cloud, which offer scalable and high-performance disaster recovery solutions. Regulatory frameworks such as GDPR, HIPAA, and the California Consumer Privacy Act (CCPA) mandate strict data security and disaster recovery compliance, driving demand for DRaaS among industries like BFSI, healthcare, and government.
Cyberattacks and data intrusions have emerged as increasingly significant concerns for enterprises globally, with incidents of ransomware, malware, and phishing attacks attaining unprecedented levels. In addition, IBM's report published in 2022 indicated that the average cost of data exposure was $4.35 million. The proliferation of ransomware-as-a-service (RaaS) operations has facilitated the ability of cybercriminals to perpetrate assaults against enterprises of varying scales. Hence, as cyber threats evolve, proactive disaster recovery planning through DRaaS will become integral to cyber resilience strategies, ensuring businesses can withstand and recover from security breaches with minimal downtime.
Additionally, Unlike traditional disaster recovery methods that require costly physical infrastructure, cloud-based DRaaS offers a more flexible and scalable solution. Organizations can efficiently store, replicate, and retrieve critical data, ensuring business continuity during outages. Additionally, multi-cloud compatibility allows enterprises to integrate DRaaS with platforms like AWS, Microsoft Azure, and Google Cloud, enhancing disaster recovery capabilities without requiring major IT overhauls. Thus, as companies adopt big data, IoT, and AI-driven applications, the need for scalable and rapid disaster recovery solutions will drive DRaaS adoption.
However, Businesses must invest in robust infrastructure, cloud storage, and high-speed connectivity, all of which come at a premium. The initial setup costs for DRaaS solutions include hardware, software, configuration, and integration with existing IT systems. Additionally, organizations must ensure redundant and geographically diverse data centers meet stringent disaster recovery objectives, further driving up costs. Hence, these factors may hamper the expansion of the market.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Acquisitions, and Partnerships & Collaborations.
The North America segment acquired 38% revenue share in the market in 2023. Countries like the U.S. and Canada have a strong presence of leading DRaaS providers, including AWS, Microsoft Azure, and Google Cloud, which offer scalable and high-performance disaster recovery solutions. Regulatory frameworks such as GDPR, HIPAA, and the California Consumer Privacy Act (CCPA) mandate strict data security and disaster recovery compliance, driving demand for DRaaS among industries like BFSI, healthcare, and government.
Cyberattacks and data intrusions have emerged as increasingly significant concerns for enterprises globally, with incidents of ransomware, malware, and phishing attacks attaining unprecedented levels. In addition, IBM's report published in 2022 indicated that the average cost of data exposure was $4.35 million. The proliferation of ransomware-as-a-service (RaaS) operations has facilitated the ability of cybercriminals to perpetrate assaults against enterprises of varying scales. Hence, as cyber threats evolve, proactive disaster recovery planning through DRaaS will become integral to cyber resilience strategies, ensuring businesses can withstand and recover from security breaches with minimal downtime.
Additionally, Unlike traditional disaster recovery methods that require costly physical infrastructure, cloud-based DRaaS offers a more flexible and scalable solution. Organizations can efficiently store, replicate, and retrieve critical data, ensuring business continuity during outages. Additionally, multi-cloud compatibility allows enterprises to integrate DRaaS with platforms like AWS, Microsoft Azure, and Google Cloud, enhancing disaster recovery capabilities without requiring major IT overhauls. Thus, as companies adopt big data, IoT, and AI-driven applications, the need for scalable and rapid disaster recovery solutions will drive DRaaS adoption.
However, Businesses must invest in robust infrastructure, cloud storage, and high-speed connectivity, all of which come at a premium. The initial setup costs for DRaaS solutions include hardware, software, configuration, and integration with existing IT systems. Additionally, organizations must ensure redundant and geographically diverse data centers meet stringent disaster recovery objectives, further driving up costs. Hence, these factors may hamper the expansion of the market.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Acquisitions, and Partnerships & Collaborations.
Driving and Restraining Factors
Drivers- Increasing Frequency Of Cyberattacks And Data Breaches
- Rising Adoption Of Cloud-Based Services
- Stringent Government Regulations And Compliance Requirements
- High Costs Of Implementation And Maintenance
- Data Security And Privacy Concerns
- Growing Reliance On Digital Transformation
- Rise In Natural Disasters And Business Continuity Awareness
- Complexity In Integration With Legacy Systems
- Lack Of Awareness And Skilled Workforce
Provider Outlook
Based on provider, the market is segmented into cloud service providers, telecommunication service providers, and managed service providers. The telecommunication service providers segment witnessed 26% revenue share in the market in 2023. The segment is driven by the increasing reliance on 5G networks, edge computing, and cloud-based communication services. Telecom operators provide enterprises and government agencies with high-speed data connectivity, low-latency disaster recovery solutions, and secure cloud storage options.End-use Outlook
By end-use, the market is divided into BFSI, IT & telecommunication, retail & consumer goods, government, healthcare, media & entertainment, and others. The IT & telecommunication segment garnered 21% revenue share in the market in 2023. As businesses increasingly rely on remote work, SaaS applications, and AI-driven operations, the need for zero downtime, high availability, and data security has become paramount. The rise in DDoS attacks, ransomware, and system failures has fueled the demand for real-time data replication and automated disaster recovery solutions.
Deployment Outlook
On the basis of deployment, the market is divided into public cloud, private cloud, and hybrid cloud. The private cloud segment recorded 21% revenue share in the market in 2023. The increasing need for enhanced security, compliance, and data sovereignty drives the private cloud segment. Industries such as healthcare, BFSI, and government require dedicated, highly secure cloud environments to ensure regulatory compliance, minimize cybersecurity risks, and maintain full control over data storage and recovery processes.Service Type Outlook
Based on service type, the market is classified into recovery & backup services, data protection services, real-time replication services, and professional services. The data protection services segment procured 19% revenue share in the market in 2023. As organizations accumulate and retain substantial volumes of sensitive information, they necessitate sophisticated data protection solutions to avert data breaches and unauthorized access. The implementation of AI-driven security mechanisms, encryption technologies, and secure cloud storage solutions has enhanced the effectiveness of data protection services.Regional Outlook
Region-wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The Asia-Pacific segment recorded 25% revenue share in the market in 2023. The Asia-Pacific segment is driven by rapid digital transformation, increasing cloud adoption, and the expansion of SMEs in emerging economies like China, India, Japan, and South Korea. The region is witnessing massive growth in e-commerce, IT & telecom, and manufacturing industries, requiring cost-effective and scalable disaster recovery solutions to prevent data loss and downtime.Recent Strategies Deployed in the Market
- Sep-2024: Amazon Web Services, Inc. and Oracle came into partnership to launch Oracle Database@AWS, offering Oracle Autonomous Database and Exadata Database Service within AWS. This integration provides seamless database management, data connectivity, and disaster recovery, enhancing cloud agility, flexibility, and security for enterprise workloads.
- Sep-2024: IBM Cloud introduced self-service disaster recovery for VMware Cloud Foundation as a Service (VCFaaS) with VMware Cloud Director Availability (VCDA). This cost-effective solution enhances cloud migration, business continuity, and risk mitigation for organizations.
- Aug-2024: Cisco has introduced new Network Emergency Response Vehicles (NERVs) to enhance disaster recovery efforts. These mobile units provide secure, cloud-enabled communications for emergency responders, leveraging Cisco Meraki and Webex technologies to restore connectivity quickly during natural disasters and cyberattacks across the U.S.
- Mar-2024: Microsoft Corporation and Veeam has extended its partnership to co-develop AI-driven data protection solutions, enhancing backup and recovery for Microsoft 365 and Azure. The collaboration aims to improve cybersecurity resilience, disaster recovery, and ransomware protection for enterprise customers.
- Nov-2023: Microsoft Corporation and NetApp expanded its partnership to offer cloud storage solutions like Azure NetApp Files and Cloud Volumes ONTAP. The collaboration enhances data protection, disaster recovery, and cloud optimization, leveraging CloudOps and AI-driven automation for improved resilience and operational efficiency.
List of Key Companies Profiled
- IBM Corporation
- Microsoft Corporation
- Amazon Web Services, Inc. (Amazon.com, Inc.)
- Cisco Systems, Inc.
- HP Inc.
- Barracuda Networks, Inc. (KKR & Co. Inc.)
- Google LLC (Alphabet Inc.)
- Verizon Communications, Inc.
- VMware, Inc. (Broadcom Inc.)
- Oracle Corporation
Market Report Segmentation
By Deployment- Public Cloud
- Private Cloud
- Hybrid Cloud
- Recovery & Backup Services
- Real-time Replication Services
- Data Protection Services
- Professional Services
- Cloud Service Providers
- Telecommunication Service Providers
- Managed Service Providers
- BFSI
- IT & Telecommunication
- Retail & Consumer Goods
- Healthcare
- Government
- Media & Entertainment
- Other End-use
- North America
- US
- Canada
- Mexico
- Rest of North America
- Europe
- Germany
- UK
- France
- Russia
- Spain
- Italy
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Singapore
- Malaysia
- Rest of Asia-Pacific
- LAMEA
- Brazil
- Argentina
- UAE
- Saudi Arabia
- South Africa
- Nigeria
- Rest of LAMEA
Table of Contents
Chapter 1. Market Scope & Methodology
Chapter 2. Market at a Glance
Chapter 3. Market Overview
Chapter 4. Competition Analysis - Global
Chapter 5. Global Disaster Recovery As A Service Market by Deployment
Chapter 6. Global Disaster Recovery As A Service Market by Service Type
Chapter 7. Global Disaster Recovery As A Service Market by Provider
Chapter 8. Global Disaster Recovery As A Service Market by End-use
Chapter 9. Global Disaster Recovery As A Service Market by Region
Chapter 10. Company Profiles
Companies Mentioned
- IBM Corporation
- Microsoft Corporation
- Amazon Web Services, Inc. (Amazon.com, Inc.)
- Cisco Systems, Inc.
- HP Inc.
- Barracuda Networks, Inc. (KKR & Co. Inc.)
- Google LLC (Alphabet Inc.)
- Verizon Communications, Inc.
- VMware, Inc. (Broadcom Inc.)
- Oracle Corporation
Methodology
LOADING...
