Disaster Recovery as a Service (DRaaS) Market Size - By Service Model (Backup & Recovery, Real-Time Replication, Data Protection), Deployment Model (Public Cloud, Private Cloud, Hybrid Cloud), Organization Size, Industry Vertical & Global Forecast, 2023 - 2032

Disaster Recovery as a Service (DRaaS) Market Size - By Service Model (Backup & Recovery, Real-Time Replication, Data Protection), Deployment Model (Public Cloud, Private Cloud, Hybrid Cloud), Organization Size, Industry Vertical & Global Forecast, 2023 - 2032

Disaster Recovery as a Service (DRaaS) Market Size

Disaster Recovery as a Service Market size was valued at USD 11.5 billion in 2022 and is anticipated to register a CAGR of over 22% between 2023 and 2032, due to the growing awareness of data security. With the escalation in cyber threats, businesses are recognizing the critical importance of safeguarding their data. DRaaS providers offer advanced security measures including encryption and multi-factor authentication, assuring businesses that their sensitive information remains protected. This heightened awareness of data security risks motivates organizations to invest in DRaaS, which helps ensure robust defense against cyberattacks and bolstering overall data resilience.

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The increasing demand to minimize downtime is a key factor propelling the Disaster Recovery as a Service market growth. In today's fast-paced digital landscape, businesses cannot afford prolonged interruptions. DRaaS offers swift data recovery and system restoration, thereby ensuring the seamless continuity of operations even after disruptions. This capability is paramount, motivating enterprises to invest in DRaaS solutions as they provide a reliable means to swiftly recover from disasters and maintain uninterrupted business activities, bolstering productivity & customer confidence.
 

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Security concerns pose a significant challenge to the DRaaS market demand. Despite robust encryptions and authentication protocols, businesses remain apprehensive about entrusting sensitive data to external cloud services. High-profile data breaches and cyberattacks have amplified these fears, leading some organizations to opt for on-premises solutions despite their limitations. Overcoming these concerns necessitates continuous advancements in encryption technologies, stringent compliance certifications, and transparent communication from DRaaS providers about their security protocols & measures.

COVID-19 Impact

The COVID-19 pandemic notably bolstered the DRaaS industry size. With remote work becoming the norm, businesses started to increasingly rely on cloud-based DRaaS solutions to ensure seamless operations and data security. The pandemic highlighted the critical need for robust disaster recovery strategies, prompting companies to invest in DRaaS for business continuity. This surge in demand has spurred innovation & enhancements in the DRaaS sector, thereby driving market growth and further solidifying its role in modern business resilience.

Disaster Recovery as a Service (DRaaS) Market Trends

The demand for solutions that effectively minimize downtime and data loss is driving the Disaster Recovery as a Service (DRaaS) industry outlook. As businesses prioritize uninterrupted operations, DRaaS offers rapid data recovery and system restoration, ensuring minimal disruptions. For instance, in November 2021, Amazon Web Services introduced the AWS Elastic Disaster Recovery, a novel service designed to help organizations reduce downtime and data loss. It ensures the swift and dependable recovery of both on-premises & cloud-based organization sizes. AWS Elastic Disaster Recovery is a preferred solution for disaster recovery as it provides businesses with the reliable means to ensure continuity in the face of disruptions.

Disaster Recovery as a Service (DRaaS) Market Analysis

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Based on organization size, the large enterprises segment held over 74% of the market share in 2022. Collaborations are fostering substantial growth in the large enterprises segment. By partnering with specialized DRaaS providers, enterprises are gaining access to advanced technologies & expertise, enabling them to significantly enhance their disaster recovery strategies.
 

For instance, in September 2022, Perpetuuiti in collaboration with SoftwareONE, a prominent software & cloud technology solutions provider, launched the Perpetuuiti Hybrid Disaster Recovery Service. This joint initiative targets Microsoft Azure customers in India, thereby aiming to reduce recovery time, minimize data loss, and mitigate the downtime cost for enterprises. These collaborations result in tailored solutions that minimize downtime, reduce data loss, and ensure seamless business continuity. The shared expertise & resources between enterprises and DRaaS providers contribute to the market's lucrative expansion.

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Based on industry vertical, the BFSI segment accounted for 25% of the disaster recovery as a service market share in 2022. Financial institutions are increasingly collaborating with DRaaS providers to fortify their organization sizes, thereby driving the BFSI segment growth in the market. These partnerships empower banks and other financial entities to ensure the security & continuity of their critical organization sizes.
 

For instance, in September 2023, IBM partnered with Indian Bank, a leading public sector bank, to expedite the bank's modernization journey. The collaboration aims to provide a flexible and secure computing infrastructure, thus facilitating the deployment of new front-end banking organization sizes. Indian Bank aims to enhance its manageability and availability in both Data Centers (DC) and Disaster Recovery (DR) centers by consolidating its front branch servers.

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North America disaster recovery as a service market recorded more than 34% of revenue share in 2022, propelled by the robust technology infrastructure in the U.S. The country's advanced IT framework facilitates the widespread adoption of DRaaS solutions. With a focus on seamless business continuity and data security, businesses in the U.S. are increasingly investing in DRaaS. This surge in demand reflects the region's commitment to resilient disaster recovery strategies, making North America a key region in the market.

Disaster Recovery as a Service Market Share

Major companies operating in the Disaster Recovery as a Service (DRaaS) industry are

• Amazon Web Services, Inc. (AWS)
• Dell Technologies Inc.
• IBM Corporation
• Microsoft Corporation
• NTT Communications Corporation
• Sungard Availability Services
• VMware Inc.

IBM Corporation and Amazon Web Services, Inc. (AWS) are dominating the market, accounting for a collective revenue share of around 16%. These companies are focused on strategic partnerships, new product launches, and commercialization efforts for market expansion. They are also heavily investing in research to introduce innovative solutions and garner the maximum market revenue.

Disaster Recovery as a Service (DRaaS) Industry News

• In September 2023, Expedient collaborated with Kyndryl, a provider of IT infrastructure services, to expand the delivery of security & cyber resilience services to a broader customer base. This initiative assists organizations in diverse sectors to enhance their cybersecurity defenses, thereby reinforcing their resilience against potential data breaches and associated risks.

The disaster recovery as a service (DRaaS) market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments

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Market, By Service Model

• Backup & Recovery
• Real-Time Replication
• Data Protection
• Others

Market, By Deployment Model

• Public Cloud
• Private Cloud
• Hybrid Cloud

Market, By Organization Size

• Small & Medium-sized Enterprises (SMEs)
• Large Enterprises

Market, By Industry Vertical

• Healthcare
• BFSI
• Government
• Retail
• Manufacturing
• IT & Telecom
• Others

The above information has been provided for the following regions and countries

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • South Africa
  • UAE
  • Saudi Arabia

Frequently Asked Questions (FAQ)

How big is the disaster recovery as a service market?

The market size of disaster recovery as a service (DRaaS) reached USD 11.5 billion in 2022 and is set to grow at over 22% CAGR from 2023 to 2032, favored by the growing awareness of data security.

How will BFSI vertical contribute to disaster recovery as a service (DRaaS) industry growth?

The BFSI segment held around 25% market share in 2022, as financial institutions are increasingly collaborating with DRaaS providers to fortify their organization sizes.

What is the revenue share held by North America in DRaaS market?

North America market with a share of over 34% in 2022, led by the robust technology infrastructure and advanced IT framework facilitates in the region.

Who are the main contenders in disaster recovery as a service landscape?

Amazon Web Services, Inc. (AWS), Dell Technologies Inc., IBM Corporation, Microsoft Corporation, NTT Communications Corporation, Sungard Availability Services, and VMware Inc.