Cloud Backup and Recovery Market - North America, Europe, EMEA, APAC : US, Canada, China, Germany, UK - Forecast 2023-2027

Cloud Backup And Recovery Market Forecast 2023-2027

The cloud backup and recovery market size is forecast to increase by USD 20.72 billion at a CAGR of 18.43% between 2022 and 2027. The market is witnessing a significant trend with the expansion of cloud computing models. Cloud computing continues to evolve annually and is poised for rapid growth in the foreseeable future. However, a major obstacle hindering market advancement is latency within the cloud network. Retrieving information from public cloud infrastructure poses a significant challenge for businesses due to latency in big data transmission. On a positive note, market growth is being propelled by a reduction in IT expenditure. In response to increasing demand and to maintain competitiveness, IT firms have substantially increased investment in IT infrastructure procurement and maintenance in recent years.

What will be the size of the Cloud Backup And Recovery Market During the Forecast Period?

To learn more about this report, Download Report Sample

Market Dynamics and Customer Landscape

In today's digital age, the adoption of cloud backup services has become increasingly imperative for businesses across various sectors. With the exponential growth in data volume and the rising prevalence of cyber threats, ensuring robust data protection mechanisms is paramount. Cloud backup services offer a reliable solution for safeguarding data against both man-made and natural disasters, providing businesses with the peace of mind that their critical information is securely stored and easily recoverable. The BFSI industry has shown a significant interest in solutions due to stringent data security requirements and regulatory compliance standards. One such challenge is the relentless pressure to optimize efficiency while simultaneously facing the need for reduction in the cost of labor & equipment and government regulations for data security.  Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

The reduction in IT expenditure is notably driving market growth. In recent years, IT firms have doubled their expenditure on IT infrastructure procurement and maintenance to meet the growing demand and remain competitive in the market. The increased spending adds up to the operational cost of the firm. With cloud backup and recovery, most organizations can expect a significant reduction in their functional cost as considerable capital is required to maintain IT infrastructure. The implementation of these solutions often allows organizations to save annual operating expenditure, cloud storage costs 4 cents per gigabyte to store data internally. Storing information remotely does not require internal power, which helps users save costs. Increased adoption of these solutions enables organizations to reduce maintenance costs, system upgrades, software patching, and other operation-related functions of an IT department. Such factors will drive the growth of the market during the forecast period.

Significant Market Trends

The expansion of cloud computing models is the key trend in the market. Cloud computing is evolving every year and is expected to expand rapidly in the coming years. Enterprises are shifting to hybrid and serverless cloud architectures to support different applications and lower operational costs. Several large cloud services providers, such as AWS, Google Cloud, and Microsoft Azure, are promoting serverless computing models. Several open-source frameworks have been developed to facilitate the development of enterprise software applications for the cloud. Managed application containers can be used by developers to build and deploy applications independently and faster. This has resulted in the growing popularity of application containers in the enterprise environment.

Thus, cloud services are expected to increasingly use tools such as Docker Enterprise, Kubernetes, and Mesosphere for managed containers. The expansion of cloud computing models is one of the growing trends that is expected to drive the growth of the global cloud backup and recovery market during the forecast period.

Major Market Challenge

Latency in the cloud network is the major challenge impeding market growth. One of the biggest challenges faced by cloud-based networks is latency in big data transmission during the retrieval of information from the public cloud infrastructure. Latency in a cloud-based network is less predictable and highly complicated to measure. Tools for measuring latency, such as Ping and Traceroute, are usually not used. There are multiple factors for latency, such as distributed computing, virtualization, and prioritizing traffic. When the cloud environment is larger, it becomes less predictable. An increase in the workload leads to high variability in service delivery. In the case of virtual machines (VMs), separate networks can lead to packet delays. If the wide area network (WAN) on the customer network is busy, it might lead to a significant effect on latency. Data exchanges between cloud services can lead to higher latency. This delay in data transfer can result in an increased cost for users of multiple cloud service providers. Thus, latency in the cloud network can hinder the adoption of solutions during the forecast period.

Market Customer Landscape

The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Global  Market Customer Landscape

Who are the Major Cloud Backup and Recovery Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Veritas Technologies  - The company offers cloud backup and recovery through its BACKUP EXEC as its key offering under the protection segment. They offer available solutions and products for enterprises which include InfoScale and Resiliency Platform for software-defined storage, management for hybrid clouds, and many more.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• Cohesity Inc.
• Commvault Systems Inc.
• Datto Holdings Corp.
• Google LLC
• Hewlett Packard Enterprise Co.
• International Business Machines Corp.
• Microsoft Corp.
• N Able Solutions ULC and N able Technologies Ltd.
• NetApp Inc.
• Oracle Corp.
• Quest Technology Management
• Rackspace Technology Inc.
• Redstor
• Unitrends Inc.
• Veeam Software Group GmbH

Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.

Market Segmentation

This report extensively covers market segmentation by sector (ICT, manufacturing, BFSI, healthcare, and others), end-user (large enterprises and SMEs), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021. In the ever-evolving landscape of data management, solutions have emerged as indispensable tools for businesses facing a myriad of challenges. With the advent of artificial intelligence and increasing cloud bookings, organizations are witnessing a significant reduction in hosting costs and a rise in capacity, leading to improved collaboration and streamlined operations. From micro and small enterprises to large corporations like Dell EMC and IBM Cloud, the adoption of private and public cloud deployment models is becoming increasingly prevalent. However, challenges such as budget constraints and latency in data transfer persist, highlighting the need for innovative solutions and robust cloud environments. Amidst these complexities, the cloud backup and recovery market continues to expand, driven by a relentless pursuit of data security and business continuity.

By Sector

The market share growth by the ICT segment will be significant during the forecast period. The ICT segment dominates the market with its overall size and growth. The ICT sector leads the market primarily due to the increasing demand for the digitalization of core business processes. Before the cloud boom, it was common for an enterprise to install servers and storage devices separately for each department. But, after the integration with cloud-based infrastructure, resource utilization has increased.

This scenario is leading to an increase in the use of servers and a decrease in the total number of servers in use. This can lead to a significant change in the server business model and will be a major factor contributing to the growth of the segment during the forecast period.

Get a glance at the market contribution of various segments Request a PDF Sample

The ICT segment was valued at 2.05 billion in 2017 and continued to grow until 2021. The ICT segment of the market is expected to witness an increase in its year-over-year growth rate during the forecast period. The primary drivers of this growth are the cost efficiency associated with the adoption of cloud services, the increase in scalability, the flexibility offered to SMEs for future development, and the increase in security. Thus, the ICT sector is expected to continue its dominance in the market during the forecast period.

Regional Analysis

For more insights on the market share of various regions Request PDF Sample now!

North America is estimated to contribute 32% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

North America held the largest revenue share of the market in 2022, owing to the early adoption of cloud-based services in the region. Cloud backup services help users scale resources as per the requirement, making it a viable option for start-ups and SMEs in the region. A vendor is responsible for managing, maintaining, and developing a pool of computing resources shared among multiple tenants across a network. The cloud model helps the sharing of resources such as storage, hardware, OS, databases, middleware, servers, and other software through virtualization. With the help of PaaS solutions, developers can create an application simply through their web browsers, utilizing the one-click functionality. Public PaaS solutions are flexible and are, thus, suitable for temporary workloads, as well as workloads that are experimental in nature or change unexpectedly. Thus, the demand for cloud services is increasing.

Market Analyst Overview

The market is experiencing significant growth as businesses increasingly recognize the importance of safeguarding their data against various risks, including man-made and natural disasters and cyber threats. With the adoption of cloud-based services, organizations can mitigate these risks while benefiting from advantages such as reduction of hosting costs and better productivity due to streamlined operations. Small and medium enterprises are particularly embracing cloud backup solutions to enhance their data protection capabilities within budget constraints. Mandiant-com, Rural Services Informaticos, General Dynamics, Credit Suisse, and Sourcepass are among the prominent entities addressing these challenges.

Moreover, government regulations like the Health Insurance Portability and Accountability Act (HIPAA) are driving the demand for compliant cloud backup solutions, prompting the rise of on-demand cloud providers and managed service providers catering to diverse industries such as BFSI sector, consumer goods & retail, and more. The deployment model, whether private cloud, public cloud, or hybrid cloud, Rural Services Informaticos offers flexibility to suit varying business needs, with solutions like private cloud-based and public cloud-based backup & recovery software gaining traction.Service provider like Telecom & Communication Service Provider and Managed Service Provider offer cloud backup solutions, safeguarding critical data against unforeseen events.

Leading players in the market, including Google Cloud Storage, Acronis, and Trilead, are innovating with offerings like Endpoint Backup and Transparent Cloud Tiering to address emerging challenges and meet evolving customer demands. As cloud adoption continues to rise and businesses prioritize data resilience, the cloud backup and recovery market is poised for further expansion, driven by advancements in artificial intelligence and the increasing importance of data-driven decision-making.

Segment Overview

The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Sector Outlook
  • ICT
  • Manufacturing
  • BFSI
  • Healthcare
  • Others

• End-user Outlook
  • Large Enterprise
  • Small and Medium Enterprise (SMEs)

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Brazil
    • Argentina
    • Chile
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Scope
Report Coverage	Details
Page number	170
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 18.43%
Market growth 2023-2027	USD 20.72 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	17.26
Regional analysis	North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution	North America at 32%
Key countries	US, Canada, China, UK, and Germany
Competitive landscape	Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks
Key companies profiled	Acronis International GmbH, Actifio Inc., Arcserve (USA), LLC, Asigra Inc., Carbonite Inc., Cohesity Inc., Commvault Systems Inc., Datto Holdings Corp., Google LLC, Hewlett Packard Enterprise Co., International Business Machines Corp., Microsoft Corp., N able Solutions ULC and N able Technologies Ltd., NetApp Inc., Oracle Corp., Quest Technology Management, Rackspace Technology Inc., Redstor, Unitrends Inc., Veeam Software Group GmbH, and Veritas Technologies LLC
Market dynamics	Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and arket condition analysis for the forecast period.
Customization purview	If our market research report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

Request PDF sample

What are the Key Data Covered in this Market Research and Growth Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting  between 2023 and 2027
• Precise estimation of the  market size and its contribution to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the industry across North America, Europe, APAC, South America, and Middle East, and Africa
• A thorough analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive analysis of factors that will challenge the growth of market vendors

We can help! Our analysts can customize this market growth analysis to meet your requirements. Get in touch