Disaster Recovery as a Service (DRaaS)-Forecast from 2020 to 2025

The global Disaster Recovery as a Service market is projected to grow at a CAGR of 27.81% to reach a value of US$7.152 billion by 2025 from US$1.641 billion in 2019

There has been a rapid increase and development of advanced technologies in the fields of digital services, social media and the Internet of Things (IoT). The rising risk of the generated data being corrupted or destroyed due to disasters such as corruption of machines and malicious ransomware attacks is the major factor for the market growth of disaster recovery as a service (DRaaS) market. Industries such as healthcare, BFSI, IT and telecom among others are increasingly adopting for data recovery as a service (DRaaS) solutions in order to keep their data safe and secure so as to reduce the operational costs involved, effective management of resources, reduce downtime, and maximize their profits. This is boosting the market growth of disaster recovery as a service globally.

Lack of budget and skilled IT professionals among medium and small enterprises is further fuelling the demand for disaster recovery as a service (DRaaS) solutions since the restoration of data does not require an internet connection.

Backup as a Service (BaaS), is able to facilitate the backup of the target files and the time required to recover the data (Recovery Time Objective, RTO) and the last available point of time from which data can be restored (Recovery Point Objectives, RPO), both of which are decided by the organization and sent to the storage systems of the solution provider (who is responsible for looking after the uniformity and the recovery of the data). This is acting as a substitute for the Disaster Recovery as a Service (DRaaS) solution, which is restraining the market growth of DRaaS.

The key players in the disaster recovery as a service (DRaaS) market are involved in growth strategies in order to expand their market share, thus contributing to the overall market growth. For instance, in July 2019, phoenixNAP announced the launch of their new Disaster Recovery as a Service solution integrated with VMware vCloud Availability. It is a unified solution that facilities more secure, cost-effective, and faster migration and disaster recovery for multiple users on VMware. In March 2019, Druva, Inc., one of the leading companies offering solutions for the protection and management of cloud data, announced the up-gradation of its Disaster Recovery as a Service (DRaaS) offering for enterprise workloads. This service is based on SaaS (Security as a Service) and is built on AWS (Amazon Web Services) and is able to offer many advanced features such as reduced costs by up to 60%, simplified planning, and testing among others.

The Disaster Recovery as a Service (DRaaS) market is segmented based on the deployment model, enterprise size, end-user industry, and geography. By deployment model, the market is segmented as premises-to-cloud and cloud-to-cloud. By enterprise size, the disaster recovery as a service (DRaaS) market is segmented as small, medium, and large. The market is further segmented by the end-user industry as government, retail, communication, and technology, healthcare, BFSI, manufacturing, and others.

Growing adoption among small enterprises

A small enterprise segment is projected to witness a substantial CAGR during the forecast period. According to the U.S. small business administration (SBA), 99.9 percent of the country’s businesses are small businesses as of 2018. Also, the small enterprise segment employs more than 47.5 percent of the private workforce in the country. According to the OECD statistics, SMEs (small and medium enterprises) account for 60 to 70 percent of jobs in most OECD countries. Since small businesses lack the required budget to hire skilled IT professionals, this, along with the emerging popularity of BYOD (Bring Your Own Device) policy, is augmenting the demand for disaster recovery as a service solution. Furthermore, medium enterprises are preferring a cloud-to-cloud deployment model to offer relatively better performance, easier access, and better and safer backup, thereby contributing to the market growth of disaster recovery as a service (DRaaS).

Retail and Communication and Technology to hold a significant share in the market

The retail industry holds significant market share on account of the growing penetration of the internet and the increasing usage of e-services. Growing preference of people for online shopping due to increased convenience, better variety, and lucrative discounts is leading to a spike in the big data volume across this sector. Since there is a continuous threat of getting the customers’ private information being hijacked or destroyed due to some natural calamity, there is growing adoption of disaster recovery as a service (DRaaS) solutions across this sector. The communication and technology industry is also projected to experience a decent market growth over the forecast period as this sector is expanding and the amount of user data, applications, and resources being generated is increasing. This is encouraging the rapid adoption of cloud computing solutions such as Disaster Recovery as a Service (DRaaS) in order to manage and backup the voluminous resources in a secure and efficient manner.

The North American region to grow at a noteworthy pace over the forecast period

Geographically, the global disaster recovery as a service (DRaaS) market is segmented into North America, South America, Europe, Middle East and Africa, and Asia Pacific. The North America DRaaS market holds significant share owing to the presence of global organizations and key market players in the region. High adoption of security and back-up solutions across end-user industries to safeguard the important and confidential data is also supporting the market growth of DRaaS in this region. In addition, the market players are investing heavily in order to expand their reach so as to cater to the changing needs and requirements of the end-user industries. For example, in March 2019, Flexential, one of the leading companies dealing with providing Hybrid IT data center solutions, expanded its Disaster Recovery as a Service portfolio with the addition of two new locations. Through this expansion, the company is now able to provide solutions in a 700-mile radius and is located in Denver and Portland (Oregon) and is able to meet the disaster recovery needs of different enterprises.

The Asia Pacific DRaaS market is expected to witness a significant CAGR between 2019 and 2025 owing to the rapid expansion of end-user industries such as BFSI, communication and technology, and healthcare in countries such as China and India.

The prominent market players covered as a part of this report are Veeam® Software, Bluelock, Zerto, Windstream Communications, LLC, Cloud4C, Sungard Availability Services, Infrascale Inc., Onica, VMware, Inc, and iland®.

Segmentation

By Deployment Model

• Premises-to-Cloud
• Cloud-to-Cloud

By Enterprise Size

• Small
• Medium
• Large

By End-User Industry

• Government
• Retail
• Communication and Technology
• Healthcare
• BFSI
• Manufacturing
• Others

By Geography

North America

• USA
• Canada
• Mexico

South America

• Brazil
• Argentina
• Others

Europe

• Germany
• France
• United Kingdom
• Spain
• Others

Middle East and Africa

• Saudi Arabia
• Israel
• UAE
• Others

Asia Pacific

• China
• Japan
• South Korea
• India
• Others