The disaster recovery-as-a-service market is projected to reach $31.6bn by 2030 according to a new report from Meticulous Research.
Disaster Recovery-as-a-Service is a cloud computing service model that allows an organisation to back up its data and IT infrastructure in a third-party cloud computing environment and provide all the DR orchestration, all through a SaaS solution.
Disaster recovery-as-a-service have gained popularity among corporate infrastructures, enabling businesses to scale their business continuity needs as they grow, reduce cost, fast recovery, and minimise damage.
The growth of the disaster recovery-as-a-service market is driven by the growing demand for data security and scalability, rising data breaches and ransomware attacks, and the growing adoption of disaster recovery-as-a-service in the BFSI sector. However, the complexity of deployment and setting terms restrains the growth of the disaster recovery-as-a-service market.
Furthermore, the growing adoption of advanced technologies such as AI and machine learning and the increasing adoption of cloud-based solutions among SMEs are expected to create growth opportunities in the market. However, one of the major challenges for players operating in this market is the lack of awareness and misconceptions regarding disaster recovery service solutions among potential customers.
The disaster recovery-as-a-service market is segmented by operating model (managed DRaaS, assisted DRaaS, and self-service DRaaS), function (data protection, real-time replication, and other functions), organization size (large enterprises, small & medium-sized enterprises), sector (BFSI, IT & telecommunications, retail, manufacturing, healthcare, government, energy & utility, and other sectors) The study also evaluates industry competitors and analyzes the market at the regional and country levels.
Based on operating model, in 2023, the managed DRaaS segment is expected to account for the largest share of the disaster recovery-as-a-service market. The large market share of this segment is attributed to the rising adoption of managed DRaaS in the IT and telecommunications sector, the rising need for business continuity across organisations, and the growing adoption of cloud solutions. Also, this segment is projected to register the highest CAGR during the forecast period.
Based on organisation size, in 2023, the large enterprises segment is expected to account for the larger share of the disaster recovery-as-a-service market. The large market share of this segment is attributed to the high spending capabilities of large enterprises resulting in the increased adoption of disaster recovery-as-a-service and the availability of skilled IT personnel to manage disaster recovery platforms.
Furthermore, large enterprises focus on desired disaster recovery service channels against data breaches to retain customers, boost sales, and validate necessary steps to overcome market interruptions, which drives the increased adoption of disaster recovery-as-a-service among large enterprises. However, the small & medium enterprises segment is slated to register a higher CAGR during the forecast period.
Based on function, in 2023, the data protection segment is expected to account for the largest share of the disaster recovery-as-a-service market. The large market share of this segment is attributed to the rising number of data breaches and ransomware attacks, the rising demand for data security, and the growing demand for data protection in various sectors. However, the backup & recovery segment is slated to register the highest CAGR during the forecast period. The rising adoption of cloud data backup, increasing risk of data breaches, and growing adoption of backup & recovery solutions in the BFSI sector are expected to support the growth of this segment.
Based on sector, in 2023, the IT & telecommunications segment is expected to account for the largest share of the disaster recovery-as-a-service market. The large market share of this segment is attributed to the rising need for business continuity across organizations, the growing adoption of cloud solutions, and the growing demand for data security and scalability. However, the BFSI segment is slated to register the highest CAGR during the forecast period. The rising fraudulent activities, rising adoption of disaster recovery-as-a-service for various financial processes, and surging need for improving the agility of work and customer experience are expected to support the growth of this segment.
Based on geography, the disaster recovery-as-a-service market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2023, North America is expected to account for the largest share of the disaster recovery-as-a-service market. North America’s large market share is attributed to the presence of leading disaster recovery service providers and their increasing focus on developing advanced disaster recovery services.
However, Asia-Pacific is projected to register the highest CAGR during the forecast period. The infrastructural growth in APAC, especially in China, South Korea, India, Australia, Singapore, and Japan; the rapid growth of regional economies; the increasing number of cybercrimes; and the growing awareness about the importance of recovery among small & medium-sized organisations offer growth opportunities for the players operating in the disaster recovery-as-a-service market.
