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The cloud backup and recovery market size is forecast to increase by USD 33.82 billion at a CAGR of 23.31% between 2023 and 2028. 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.
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The market is witnessing exponential growth driven by the escalating demand for cloud environments and integration of artificial intelligence solutions. However, challenges for businesses persist, particularly concerning cyber-threats and budget constraints, underscoring the necessity for robust backup and recovery strategies. Key players like Mandiant, General Dynamics, and Sourcepass are at the forefront, offering tailored solutions for sectors like BFSI and telecom & communication service providers. Amidst rising cloud bookings, organizations prioritize cloud adoption, leveraging platforms such as Google Cloud Storage to safeguard critical data. Managed service providers play a pivotal role in deploying secure private cloud solutions, addressing concerns over data privacy and compliance. As the market evolves, emphasis on enhancing cloud backup and recovery capabilities remains paramount to mitigate risks and ensure business continuity. Our researchers analyzed the data with 2023 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.
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.
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, including the adoption of Backup-as-a-Service (BaaS), is one of the growing trends that is expected to drive the growth of the market during the forecast period. BaaS solutions offer scalable and efficient data backup capabilities integrated within cloud environments, supporting businesses in safeguarding critical data and ensuring operational continuity.
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.
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
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. 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:
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.
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.
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The ICT segment was the largest and was valued at 2.37 billion in 2018. 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.
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North America is estimated to contribute 31% 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. 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.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments
The market is witnessing a surge in adoption driven by the increasing demand for cloud backup services. With growing concerns over data protection from both man-made and natural disasters, organizations are turning to cloud-based services for secure data storage. The exponential growth in data volume necessitates efficient backup solutions to ensure business continuity. Cloud backup offers numerous benefits, including reduction of hosting costs, scalability, and improved collaboration, leading to streamlined operations and better productivity. Especially for Micro and Small Enterprises and Small and medium enterprises, cloud backup provides a cost-effective solution to comply with government regulations like the Health Insurance Portability and Accountability Act. Deployment models such as Private, Public, and Hybrid cater to diverse needs, with private cloud-based backup & recovery software ensuring enhanced data security. Key players like Dell EMC, IBM Cloud, and Recovery Point are driving innovation in the market, offering solutions to address latency in data transfer and interruptions in data retrieval, while leveraging infrastructure as a service and managed service providers to meet the demands of large enterprises and BFSI sector alike.
In addition, with a notable rise in capacity and a reduction in the cost of labor & equipment, organizations are turning to solutions provided by industry leaders like Coherent Market Insights. Compliance with government regulations for data security, especially in sectors like BFSI industry, drives demand for public cloud-based backup & recovery software. Deployment models such as Hybrid cloud offer flexibility for diverse needs, while service providers like Trilead and Managed service providers cater to various industries including telecom & communication service provider and consumer goods & retail. Innovations like z/Archive and Transparent Cloud Tiering further enhance the market landscape, ensuring efficient data management and security.
Market Scope |
|
Report Coverage |
Details |
Page number |
180 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 23.31% |
Market Growth 2024-2028 |
USD 33.82 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
18.59 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 31% |
Key countries |
US, Canada, UK, China, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Acronis International GmbH, Actifio Inc., Alphabet Inc., Arcserve USA LLC, Asigra Inc., Carbonite Inc., Cohesity Inc., Commvault Systems Inc., Datto Holdings Corp., 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 growth 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 Market condition analysis for the market forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Sector
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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