Disaster Recovery as a Service (DRaaS) Market Size, Share & Industry Analysis, By Service Type (Self-service DRaaS, Assisted DRaaS, and Managed DRaaS), By Deployment (Public Cloud, Private Cloud, and Hybrid Cloud), By Enterprise Type (Large Enterprises and SMEs), By Application (Backup and Recovery, Real-time Replication, and Data Protection), By Industry (BFSI, IT & Telecommunication, Government & Public Sector, Retail & Consumer Goods, Healthcare, Media & Entertainment, and Others), and Regional Forecast, 2024-2032

The global disaster recovery as a service (DRaaS) market size was valued at USD 10.62 billion in 2023 and market is projected to grow from USD 12.80 billion in 2024 to USD 64.40 billion by 2032, exhibiting a CAGR of 22.4%. North America dominated the global market with a share of 38.51% in 2023.

Disaster recovery as a service (DRaaS) is a cloud-based solution that provides organizations with a comprehensive approach to disaster recovery planning and execution. DRaaS enables businesses to protect their critical data, applications, and IT infrastructure from potential disasters, such as natural disasters, cyberattacks, hardware failures, or human errors, by replicating and storing data and systems in off-site cloud environments. DRaaS solutions offer scalability and flexibility to accommodate changing business needs, evolving IT environments, and fluctuating workloads. Organizations can dynamically scale resources up or down based on demand, adjust recovery point objectives (RPOs) and recovery time objectives (RTOs) to meet business requirements, and customize recovery plans and policies according to specific applications or systems. Moreover, this solution is more cost efficient as it uses cloud compting resources on a subscription basis as compared to traditional disaster recovery solutions. Owing to its cost efficiency, multiple organizations are increasingly adopting this novel solution, which plays an important role to drive the market growth.

The shift to remote work during the COVID-19 pandemic heightened the demand for cloud-based disaster recovery as a service market. Organizatons were seeking to ensure the availability and resilience of critical IT systems and data in distributed work environments. DRaaS enabled businesses to protect their remote collaboration and maintain business operations despite disruptions to traditional office-based work.

In the scope of work, we have solutions offered by companies, such as Vmware, Inc., Cloudian, Kaseya, Microsoft, Rubrik, Inc., IBM Corporation, and others.

Impact of Generative AI

Growing Demand for Automated Disaster Recovery Planning is Expected to Boost Market Growth

Generative AI positively impacts the market, as generative AI algorithms can analyze vast amounts of data related to IT infrastructure, applications, and disaster recovery plans to generate optimized disaster recovery plans automatically to generate optimized disaster recovery strategies. This automation streamlines the disaster recovery planning process, reduces human error, and ensures organizations have robust and efficient recovery plans to respond to various disaster scenarios. Generative AI can be used to simulate and test disaster recovery scenarios in virtual environments, allowing organizations to assess their recovery plans' effectiveness and identify potential weaknesses or vulnerabilities. Organizations can proactively address gaps in their response procedures by generating realistic simulations of disaster events to minimize downtime and data loss. Thus, the adoption of generative AI technology in the market is expected to drive the growth of the disaster recovery as a service (DRaaS) market during the forecast period.

Disaster Recovery as a Service (DRaaS) Market Trends

Increasing Adoption of Cloud-based Solutions Propel Market Growth

Organizations increasingly turn to cloud-based disaster recovery as a service solution due to their scalability, cost-effectiveness, and flexibility. Cloud-based DRaaS eliminates the need for organizations to maintain expensive on-premises infrastructure and allows them to scale resources dynamically based on demand. As a result, the adoption of cloud-based DRaaS solutions is expected to continue growing, particularly among small and medium-sized businesses (SMBs) looking to enhance their disaster recovery capabilities without significant upfront investments. Organizations are adopting hybrid and multi-cloud strategies to leverage the strengths of different cloud providers and mitigate risks associated with vendor lock-in and service outages. DRaaS solutions that support hybrid and multi-cloud deployments enable organizations to replicate their data and workloads across multiple cloud platforms, ensuring redundancy and resilience in a cloud provider outage or regional disruption. This trend drives demand for DRaaS solutions with robust interoperability, data portability, and integration capabilities.

Disaster Recovery as a Service (DRaaS) Market Growth Factors

Increasing Frequency and Severity of Disasters Propel the Adoption of DRaaS Solutions among Businesses

With the rise in natural disasters, cyberattacks, and other disruptive events, organizations are recognizing the importance of robust disaster recovery solutions to ensure business continuity and data protection. The growing frequency and severity of disasters drives the demand for DRaaS solutions that offer reliable backup, data recovery, and failover capabilities to safeguard critical data and IT infrastructures. Moreover, cloud-based DRaaS solutions offer cost-effective and scalable alternatives to traditional on-premises disaster recovery solutions. By leveraging cloud infrastructure and services, organizations can avoid the capital expenditures and services and the capital expenditures and operational overhead associated with maintaining redundant data centers and hardware while benefiting from the scalability, flexibility, and pay-as-you-go pricing models of cloud computing.

RESTRAINING FACTORS

Data Security Concerns and Complexity of Integration of Solutions May Hinder the Market Growth

Despite advancements in encryption and security measures, some organizations remain hesitant to move sensitive data and critical workloads to the cloud due to data security and privacy concerns. Regulatory compliance requirements, data residency laws, and industry-specific regulations may further complicate the adoption of DRaaS solutions, particularly for organizations operating in highly regulated sectors, such as healthcare, finance, and government. In addition, integrating DRaaS solutions with existing infrastructure, applications, and workflows can be complex and challenging. Compatibility issues, interoperability constraints, and data migration complexities may arise when integrating DRaaS platforms with on-premises systems, hybrid cloud environments, or multi-cloud architectures. As a result, organizations may encounter obstacles to achieving seamless integration and interoperability, which can hinder the adoption and effectiveness of DRaaS solutions and can hamper the disaster recovery as a service market growth.

Disaster Recovery as a Service (DRaaS) Market Segmentation Analysis

By Service Type Analysis

Proactive Monitoring and Maintenance Services Fuels the Adoption of Managed DRaaS Among Organizations, Driving the Segment Growth

Based on service type, the market is classified into self-service DRaaS, assisted DRaaS, and managed DRaaS.

The managed DRaaS segment generated the maximum revenue share in 2023, as managed DRaaS providers offer proactive monitoring and maintenance services to ensure the continuous availability and performance of disaster recovery environments. They monitor critical metrics, such as replication status, backup completion, and system health, to detect potential issues or anomalies before they escalate into problems.

The self-service DRaaS segment is anticipated to showcase the highest CAGR over the forecast period, as they empower organizations to have greater control over their disaster recovery environments. IT teams can customize and configure recovery plans, replication settings, and recovery point objectives (RPOs), according to their specific business requirements and priorities.

With self-service DRaaS, organizations can tailor their disaster recovery strategies to meet the unique needs of their applications, workloads, and data, enabling greater flexibility and control over recovery processes.

By Deployment Analysis

Growing Need for Cost Efficiency and Scalability Drives the Public Cloud Segment Growth

Based on deployment, the market is divided into public cloud, private cloud, and hybrid cloud.

The public cloud segment captured a larger market share in 2023, as it offers cost-effective solutions compared to traditional disaster recovery setups. Organizations can avoid capital expenditures on hardware, software, data center facilities, and ongoing maintenance costs. Instead, they pay for DRaaS services on a basis or according to usage, which can result in significant cost savings. Moreover, these platforms provide scalable infrastructure that can easily accommodate fluctuating workloads and data volumes.

By Enterprise Type Analysis

Increasing Demand for Business Continuity Requirements Fuels the Large Enterprises Segment Expansion

Based on enterprise type, the market is segmented into large enterprises and SMEs.

The large enterprises segment captured the highest market share in 2023, as they operate in complex IT environments with diverse applications, systems, and data repositories critical to their business operations. Ensuring uninterrupted access to these resources is essential for maintaining productivity, meeting customer demands, and preserving revenue streams. DRaaS solutions offer large enterprises the flexibility, scalability and resilience needed to protect their mission-critical applications and data from disruptions caused by natural disasters, cyberattacks, hardware failures, or human errors.

The SMEs segment is expected to grow at the highest CAGR during the forecast period, as SMEs recognize the importance of maintaining business continuity and minimizing downtime. The DRaaS solutions provide SMEs with reliable and redundant backup and recovery capabilities, ensuring that critical data, applications, and systems are protected and accessible in the event of a disaster.

By Application Analysis

Growing Need for Faster Recovery Time Among Organizations Drives the Backup and Recovery Segment Growth

Based on application, the market is divided into backup and recovery, real-time replication, and data protection.

The backup and recovery segment captured a larger share of the market in 2023, as it enable faster recovery times compared to traditional backup and recovery methods. Cloud-based DRaaS platforms offer features, such as near-real-time data replication, instant recovery, and failover capabilities, allowing organizations to recover critical data and applications quickly during a disaster or disruption. This accelerated recovery capability minimizes downtime and ensures business continuity, helping organizations maintain productivity and customer satisfaction.

The real-time replication segment is expected to dominate the market by growing at the highest CAGR during the forecast period, as it allows organizations to achieve a low Recovery Point Objective (RPO), which means that they can recover data with minimal loss in the event of a disaster or disruption. By replicating data in real time, organizations can ensure that the secondary copies of their data are always current, minimizing the amount of data that may be lost during a recovery operation.

By Industry Analysis

Surge in Demand for Data Protection and Regulatory Compliance Propel the Adoption of DRaaS Solution in BFSI

Based on industry, the market is categorized into BFSI, IT & telecommunication, government & public sector, retail & consumer goods, healthcare, media & entertainment, and others (energy & utility and chemicals).

The BFSI segment held the largest disaster recovery as a service market share in 2023, as they handle large volumes of sensitive customer data, including financial transactions, personal information, and account details. Protecting their data from loss or unauthorized access is critical to maintain customer trust and regulatory compliance. DRaaS solutions offer secure backup, encryption, and recovery capabilities to safeguard sensitive data and ensure its availability during a disruption or disaster.

The IT & telecommunication segment is anticipated to showcase high CAGR during the forecast period, as IT & telecommunication companies rely heavily on their IT infrastructure and applications to deliver customer services. Any disruption or downtime can have significant financial and reputational consequences. DRaaS provides these organizations with a reliable and efficient way to ensure the availability and continuity of their critical IT systems and applications during a disaster or outage.

REGIONAL INSIGHTS

By region, the market is studied across five major regions, namely North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

North America held the largest revenue share in 2023, owing to the growing number of cyber threats, including ransomware attacks, data breaches, and malware infections. Organizations seek to protect their data and IT infrastructure from these threats, so they turn to DRaaS solutions for reliable backup, recovery, and business continuity capabilities. DRaaS helps organizations mitigate the impact of cyberattacks by enabling quick recovery of data and systems, minimizing downtime, and ensuring continuous operations. These factors are important to fuel disaster recovery as the region's service market grows.

Asia Pacific market is expected to grow at the highest CAGR during the forecast period. Asia Pacific is experiencing a rise in cyber threats, including ransomware attacks, data breaches, and phishing scams. As organizations across the region become more digitally connected and dependent on technology, the risk of cyberattacks grows, driving the need for robust disaster recovery solutions. Disaster recovery as a service offers organizations in Asia Pacific the ability to quickly recover from cyber incidents by providing reliable backup, recovery, and failover capabilities.

Europe has seen significant growth in cloud adoption in recent years, driven by factors such as digital transformation, scalability, and cost efficiency. Disaster recovery as a service solution leverages cloud infrastructure and services to provide scalable, on-demand backup and recovery capabilities, making them an attractive option for organizations looking to modernize their disaster recovery strategies. Cloud-based disaster recovery as a service solution offers flexibility, agility, and cost savings compared to traditional on-premises disaster recovery solutions, making them well-suited for European organizations.

The Middle East & Africa is expected to showcase noteworthy growth. Business continuity planning is becoming increasingly important for organizations in the MEA region, particularly in light of recent events, such as the COVID-19 pandemic. Disaster recovery as a service solution plays a critical role in business continuity planning by enabling organizations to develop comprehensive disaster recovery strategies, automate recovery processes, and ensure continuous access to critical data and applications.

Moreover, the adoption of DRaaS solutions is growing significantly among organizations in South America to enhance their resilience, minimize downtime, and maintain operational continuity in the face of unforeseen disruptions.

List of Key Companies in Disaster Recovery as a Service (DRaaS) Market

Market Players Are Focusing on Partnership and Acquisition Strategies to Expand Their Analytics Services Globally

Key market players focus on expanding their geographical presence globally by presenting industry-specific services. Leading companies are strategically emphasizing acquisitions and collaborations with regional key players to maintain dominance across regions. Top market participants are introducing novel products to increase their consumer base. An increase in constant R&D investments for product innovations is enhancing market expansion. Hence, top companies are rapidly implementing these strategic initiatives to sustain their competitiveness in the market.

List of Key Companies Profiled:

• VMware Inc. (U.S.)


• Cloudian (U.S.)


• Kaseya (U.S.)


• Microsoft (U.S.)


• Rubrik, Inc. (U.S.)


• Infrascale Inc. (U.S.)


• IBM Corporation (U.S.)


• RackWare LLC (U.S.)


• InterVision Systems (U.S.)


• Cohesity, Inc. (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• February 2024: Cohesity partnered with Veritas’ data protection business to expand its data security and management offering. Through this partnership, Cohesity will focus on R&D investment to provide novel solutions to customers.


• December 2023: 11:11 Systems launched a novel Disaster Recovery as a Service (DRaaS) solution, known as '11:11 DRaaS for Azure'. It is designed specifically for the Microsoft Azure cloud, which can be accessible globally and provide organizations with customised disaster recovery (DR) plans.


• October 2023: Veeam launches backup-as-a-service for Microsoft Azure and Microsoft 365. This solution will allow organizations to simplify the management of their backup operations.


• June 2023: Keepit launched a new backup and recovery service for Microsoft Azure DevOps. This solution is committed to data protection for Software-as-a-Service (SaaS).


• May 2023: N-able, Inc. expanded a new Cove Data Protection platform feature by integrating Standby Image recovery in Microsoft Azure. This feature provides smarter DRaaS to help IT professionals provide a full range of recovery for end users.

REPORT COVERAGE

The report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product/service types, and leading applications of the product. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the growth of the market in recent years.

Report Scope & Segmentation

ATTRIBUTE	DETAILS
Study Period	2019-2032
Base Year	2023
Estimated Year	2024
Forecast Period	2024-2032
Historical Period	2019-2022
Growth Rate	CAGR of 22.4% from 2024 to 2032
Unit	Value (USD Billion)
Segmentation	By Service Type Self-service DRaaS Assisted DRaaS Managed DRaaS By Deployment Public Cloud Private Cloud Hybrid Cloud By Enterprise Type Large Enterprises SMEs By Application Backup and Recovery Real-time Replication Data Protection By Industry BFSI IT & Telecommunication Government & Public Sector Retail & Consumer Goods Healthcare Media & Entertainment Others (Energy & Utility and Chemicals) By Region North Ameirica (By Application, By Frequency, By Industry, and By Country) U.S. (Application) Canada (Application) Mexico (Application) South America (By Application, By Frequency, By Industry, and By Country) Brazil (Application) Argentina (Application) Rest of South America Europe (By Application, By Frequency, By Industry, and By Country) U.K. (Application) Germany (Application) France (Application) Italy (Application) Spain (Application) Russia (Application) Benelux (Application) Nordics (Application) Rest of Europe Middle East & Africa (By Application, By Frequency, By Industry, and By Country) Turkey (Application) Israel (Application) GCC (Application) North Africa (Application) South Africa (Application) Rest of Middle East & Africa Asia Pacific (By Application, By Frequency, By Industry, and By Country) China (Application) India (Application) Japan (Application) South Korea (Application) ASEAN (Application) Oceania (Application) Rest of Asia Pacific