Global Disaster Recovery as a Service Market Size By Service Model, By Deployment Model, By Organization Size (Small and Medium-sized Enterprises, Small and Medium-sized Enterprises ), By End-User Industry, By Geographic Scope And Forecast

Disaster Recovery as a Service Market Size and Forecast

Disaster Recovery as a Service Market size was valued at USD 11673.57 Million in 2024 and is projected to reach USD 50597.19 Million by 2031, growing at a CAGR of 20.12% from 2024 to 2031.

Disaster Recovery as a Service (DRaaS) is a cloud-based service that gives businesses a comprehensive plan for recovering their IT systems and data after a disruption or disaster. Unlike traditional disaster recovery plans, which may require major investments in physical equipment and off-site backups, DRaaS uses cloud technology to provide scalable, cost-effective, and highly accessible recovery choices. It contains features like automated failover, continuous data protection, and the ability to quickly restore operations, allowing enterprises to resume normal operations with little downtime and data loss.

DRaaS solutions are typically delivered through a subscription model, with the service provider managing and maintaining the recovery infrastructure. This includes migrating data to the cloud, monitoring backups, and doing frequent testing to assure readiness. By outsourcing disaster recovery to a specialized provider, firms have access to expertise and resources that would otherwise be unavailable in-house, allowing them to focus on their core activities while remaining well-prepared for unexpected events.

Global Disaster Recovery as a Service Market Dynamics

The key market dynamics that are shaping the global Disaster Recovery as a Service Market include:

Key Market Drivers:

Growing Cybersecurity Threats: The FBI's Internet Crime Complaint Center (IC3) received 791,790 cybercrime complaints in 2020, resulting in reported damages of over USD 4.1 Million. This reflects a 69% increase in total complaints since 2019. The increasing number of cyber-attacks is forcing businesses to build comprehensive disaster recovery solutions to guard against data loss and system disruption.

Increasing Frequency and Severity of Natural Disasters: Natural disasters are becoming more frequent and severe. The United Nations Office for Disaster Risk Reduction (UNDRR) reported 7,348 large incidents between 2000 and 2019, up from 4,212 between 1980 and 1999. Natural catastrophes are becoming more common, prompting enterprises to implement DRaaS solutions to improve preparedness and resilience.

Increasing Adoption of Cloud-Based Solutions: Gartner predicts an 18.4% increase in global end-user spending on public cloud services in 2021, reaching USD 304.9 Billion from USD257.5 Billion in 2020. The move to cloud-based infrastructure makes it easier to adopt DRaaS solutions, which drives market growth.

Key Challenges:

Cost Management: Although disaster recovery as a service (DRaaS) might eliminate the requirement for physical infrastructure, costs may still rise owing to pricing structures based on data volume, recovery time objectives (RTOs), and recovery point objectives (RPOs). Additional features, greater service levels, or consumption that exceeds the beginning plan might all result in unexpected charges. Organizations must carefully review and manage their DRaaS spending to ensure it is in line with their budget and recovery requirements, balancing cost with the importance of their data and systems.

Data Security and Compliance: Maintaining data safe and compliant in a DRaaS environment can be difficult. Providers must comply with a variety of regulations, including GDPR and HIPAA, which can be complex and vary by area. Organizations must trust that their DRaaS provider will take strong security precautions to secure critical data from breaches or illegal access. To mitigate risks, companies must analyze their provider's compliance certifications and security processes.

Vendor Lock-In: Committing to a certain DRaaS provider may result in vendor lock-in, making it difficult to swap providers or migrate to a new solution in the future. This can cause problems if the provider's services become adequate or if corporate requirements alter. To reduce this risk, organizations should think about the portability of their data and recovery methods, and make sure that their contract contains provisions for data extraction and movement.

(RTOs) and (RPOs): Aligning Recovery Time Objectives (RTOs) and Recovery Point Objectives (RPOs) with business requirements is a significant difficulty in DRaaS. These measurements specify how quickly systems should be recovered and what level of data loss is acceptable. Setting unrealistic RTOs or RPOs can result in insufficient recovery solutions, whilst too cautious targets can raise expenses. Businesses must carefully evaluate their key applications and data to determine acceptable RTOs and RPOs while balancing recovery objectives with budgetary restrictions.

Key Trends:

Increase in Adoption of Cloud Solutions: As more businesses migrate to cloud-based infrastructures, there is a growing trend of incorporating disaster recovery as a service (DRaaS) into current cloud environments. Organizations are using the scalability and flexibility of cloud services to improve disaster recovery capabilities. This development mirrors a broader shift toward hybrid and multi-cloud architectures, in which DRaaS solutions are used to protect both cloud-based and on-premises assets, assuring full coverage while lowering reliance on traditional physical infrastructure.

Increasing Emphasis on Real-Time Data Protection: As businesses generate and rely on massive amounts of real-time data, DRaaS solutions are shifting to provide near-instantaneous data protection and recovery. Continuous data protection (CDP) systems offer real-time or near-real-time backups, which reduces the risk of data loss and shortens recovery times. This trend highlights the growing importance of data integrity and availability in dynamic, data-driven corporate contexts.

Focus on Cybersecurity and Ransomware Protection: As cyber threats and ransomware attacks increase, DRaaS companies are prioritizing better security capabilities to protect data and systems. Advanced encryption, threat detection, and secure access restrictions are increasingly included in solutions to prevent unwanted access and malicious activity. To meet the growing demand for robust cybersecurity measures, providers are implementing tactics for speedy recovery from ransomware attacks, such as immutable backups and incident response plans.

Global Disaster Recovery as a Service Market Regional Analysis

Here is a more detailed regional analysis of the global Disaster Recovery as a Service Market:

North America

North America dominates the Disaster Recovery as a Service Market owing to its advanced IT infrastructure, robust economy, and increased awareness of both cyber dangers and natural disasters. The region's supremacy is bolstered by the presence of large cloud service providers and DRaaS specialists, as well as early adoption of cloud technologies and a strong risk management culture. North America is expected to retain the largest market share throughout this period, owing to increased investments in disaster recovery spurred by frequent cyber-attacks and severe natural disasters.

The COVID-19 pandemic has spurred DRaaS adoption in North America, emphasizing the significance of disaster recovery and business continuity planning. Significant factors driving this demand include the increasing frequency of cyber assaults, as indicated by the FBI's Internet Crime Complaint Center projecting a $4.2 billion loss in 2020, and record-breaking natural disasters, with the NOAA reporting 22 billion-dollar severe storms in 2020 alone.

As organizations progressively shift to cloud platforms, with more than 95% of new digital workloads predicted to be cloud-native by 2025, the demand for scalable and effective cloud-based disaster recovery solutions grows, establishing North America as a prominent player in the worldwide DRaaS market.

Asia Pacific:

The Asia Pacific region is quickly becoming a leading force in the Disaster Recovery as a Service Market, owing to fast digital transformation, growing cyber threats, and frequent natural catastrophes. Key countries such as China, India, and Australia are driving this expansion, fueled by a pressing demand for robust business continuity and data security solutions. Asia Pacific is the world's fastest-growing area, thanks to its large population and burgeoning middle class.

The increasing frequency and sophistication of cyberattacks, with 74% of firms in the region having incidents in the previous year, as well as the high cost of breaches, which average USD 3.3 Million per event, are important drivers of DRaaS adoption. The region's vulnerability to emergencies, which accounted for 42% of worldwide disasters and 54% of linked fatalities between 2000 and 2020, emphasizes the importance of effective disaster recovery plans.

The COVID-19 pandemic has spurred digital transformation, with IDC predicting that 65% of the region's GDP will be digital by 2022. This digital transition, combined with significant expenditures in data center infrastructure, is boosting demand for scalable and effective DRaaS solutions, putting Asia Pacific in a great position to challenge North America's market supremacy soon the near future.

Global Disaster Recovery as a Service Market: Segmentation Analysis

The Global Disaster Recovery as a Service Market is segmented on the basis of Service Model, Deployment Model, Organization Size, End-User Industry, and Geography.

Disaster Recovery as a Service Market, By Service Model

Backup & Recovery

Real-Time Replication

Data Protection

Based on the Service Model, the Disaster Recovery as a Service Market is bifurcated into Backup & Recovery, Real-Time Replication, and Data Protection. Backup & Recovery is now the dominant segment in the disaster recovery as a service market, thanks to its established position and widespread adoption by enterprises of various sizes. This segment provides a comprehensive solution for data security and business continuity in the face of a variety of threats. Real-time replication is the fastest expanding market, driven by rising demand for low recovery point objectives (RPOs) and minimal data loss. As firms rely more on real-time data processing, the demand for continuous data replication has increased, driving this segment's rapid rise.

Disaster Recovery as a Service Market, By Deployment Model

Public Cloud

Private Cloud

Hybrid Cloud

Based on Deployment Model, the Disaster Recovery as a Service Market is segmented into Public Cloud, Private Cloud, and Hybrid Cloud. The public cloud now dominates the disaster recovery as a service market due to its scalability, cost-effectiveness, and ability to install quickly. It provides a flexible and accessible platform for businesses of all sizes to execute disaster recovery as a service solution. The Hybrid Cloud market is expanding the fastest as businesses strive to optimize their IT infrastructure by integrating the advantages of both public and private clouds. This technique improves flexibility, security, and cost control, making it a more appealing choice for DRaaS systems.

Disaster Recovery as a Service Market, By Organization Size

Small and Medium-sized Enterprises (SMEs)

Large Enterprises

Based on Organization Size, the market is segmented into Small and Medium-sized Enterprises (SMEs) and Large Enterprises. Large enterprises now dominate the disaster recovery as a service market thanks to their larger IT budgets, more complicated IT infrastructures, and greater risk exposure. They need reliable DRaaS solutions for preserving vital data and apps. However, the Small and Medium-sized Enterprises (SMEs) segment is expanding the fastest, as these companies appreciate the need for data security and business continuity. This expansion is being driven by the increasing adoption of cloud technology and the availability of low-cost DRaaS solutions, resulting in a large market segment.

Disaster Recovery as a Service Market, By End-User Industry

Banking, Financial Services and Insurance (BFSI)

IT & Telecommunication

Government & Public Sector

Retail & Consumer Goods

Healthcare

Media & Entertainment

Based on End-User Industry, the Disaster Recovery as a Service Market is segmented into BFSI, IT & Telecommunication, Government & Public Sector, Retail & Consumer Goods, Healthcare, and Media & Entertainment. Due to the highly regulated and sensitive nature of financial data, BFSI dominates the disaster recovery as a service market. Banks, insurance companies, and financial institutions are subject to severe compliance regulations and are particularly vulnerable to data breaches and system breakdowns. Businesses invest substantially in DRaaS solutions to assure business continuity and data security. The healthcare sector is rapidly adopting DRaaS due to increased patient data quantities, stringent privacy requirements (such as HIPAA), and a growing reliance on digital health records. The necessity to protect sensitive patient information while also providing uninterrupted healthcare services is increasing the demand for DRaaS solutions in this sector.

Disaster Recovery as a Service Market, By Geography

North America

Europe

Asia Pacific

Rest of the World

On the basis of Geography, the Global Disaster Recovery as a Service Market is classified into North America, Europe, Asia Pacific, and the Rest of the World. North America is anticipated to dominate the Disaster Recovery as a Service Market, owing to early adoption of cloud technology, strong IT infrastructure, and increased awareness of cybersecurity hazards. The region's strong economy and the presence of major cloud service providers have helped it maintain its dominant position. In contrast, Asia Pacific is the fastest-growing area, owing to rapid digital change, increased cyberattacks, and the occurrence of natural disasters. The region's massive population and expanding middle class are driving demand for DRaaS solutions, resulting in a vibrant and attractive market.

Key Players

The "Global Disaster Recovery as a Service Market" study report will provide valuable insight with an emphasis on the global market. The major players in the market are Acronis International GmbH, Amazon Web Services, Inc., IBM Corporation, InterVision Systems, LLC, Infrascale, Inc., Microsoft Corporation, Recovery Point Systems, Inc., Sungard Availability Services LP, TierPoint, LLC, and VMware, Inc. The competitive landscape section also includes key development strategies, market share, and market ranking analysis of the above-mentioned players globally.

Our market analysis also entails a section solely dedicated to such major players wherein our analysts provide an insight into the financial statements of all the major players, along with its product benchmarking and SWOT analysis. The competitive landscape section also includes key development strategies, market share, and market ranking analysis of the above-mentioned players globally.

• Disaster Recovery as a Service Market Recent Developments
• In February 2024, Cohesity collaborated with Veritas' data protection division to broaden its data security and management offerings. Cohesity will invest in R&D as part of this agreement to supply clients with unique solutions.
• In December 2023, 11:11 Systems introduced a revolutionary Disaster Recovery as a Service (DRaaS) solution called '11:11 DRaaS for Azure'. It is specifically intended for the Microsoft Azure cloud, which is available internationally and may provide enterprises with tailored disaster recovery (DR) plans.
• In October 2023, Veeam launched backup-as-a-service for Microsoft Azure and Microsoft 365. This technology will help enterprises manage their backup operations more efficiently.
• In June 2023, Keepit launched a new backup and recovery service for Microsoft Azure DevOps. This solution is dedicated to Data Protection for Software-as-a-Service (SaaS).
• In May 2023, N-able, Inc. developed a new Cove Data Protection platform feature by integrating Standby Image Recovery into Microsoft Azure. This feature enables smarter DRaaS, allowing IT professionals to provide end users with a comprehensive selection of recovery options.