Disaster Recovery-As-A-Service (Draas) Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, China, Germany, India, UK - Size and Forecast 2024-2028

Disaster Recovery-As-A-Service Market Size 2024-2028

The disaster recovery-as-a-service (DRaaS) market size is forecast to increase by USD 171.39 billion at a CAGR of 70.7% between 2023 and 2028.

• Disaster Recovery-as-a-Service (DRaaS) is a third-party solution that enables businesses to replicate and host their physical and virtual servers for quick failover during disasters, such as natural calamities or power outages. The market is witnessing significant growth due to several factors. Firstly, the increasing need for business continuity and disaster recovery solutions is driving market growth. Secondly, advancements in replication technologies and hosting capabilities are making DRaaS more manageable and protective. Thirdly, the adoption of artificial intelligence (AI) and Machine Learning (ML) in disaster recovery is gaining traction, providing more efficient and automated recovery processes. Lastly, the availability of open-source disaster recovery tools is offering cost-effective solutions for businesses.

What will be the Size of the Market During the Forecast Period?

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• Disaster Recovery as a Service (DRaaS) refers to a third-party solution that enables businesses to replicate their on-premise IT infrastructure to a remote company's physical or virtual servers. This solution is designed to help organizations mitigate the impact of various disruptions, including natural disasters, power outages, and other unexpected events. DRaaS utilizes replication technology to maintain a duplicate of a company's computing resources in a secure, globally distributed architecture. In the event of a disaster, this duplicate infrastructure can be activated, allowing businesses to continue their operations with minimal downtime.
• In addition, physical servers and virtual machines can both be replicated and failover to the DRaaS provider's remote data center. This flexibility enables businesses to choose the best solution for their specific needs, whether they prefer the control and customization of physical servers or the ease and scalability of virtual servers. DRaaS is an essential component of business continuity planning, as it helps organizations prepare for the worst-case scenario. By partnering with a DRaaS provider, businesses can ensure they have a reliable and efficient disaster recovery solution in place, without the need for extensive on-premise infrastructure or the high costs associated with traditional disaster recovery methods.

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• Deployment
  • Public cloud
  • Private cloud
  • Hybrid cloud
• Geography
  • North America
    • US
  • Europe
    • Germany
    • UK
  • APAC
    • China
    • India
  • South America
  • Middle East and Africa

By Deployment Insights

• The public cloud segment is estimated to witness significant growth during the forecast period.

In today's business landscape, organizations seek reliable IT solutions for their mission-critical operations. One such service gaining popularity is Disaster Recovery-as-a-Service (DRaaS), offered by third-party providers like Amazon Web Services (AWS). DRaaS allows businesses to replicate their physical and virtual servers to a hosting environment, ensuring business continuity during natural disasters or power outages. Public cloud-based DRaaS offers several benefits. Firstly, it is a cost-effective solution as organizations pay only for the resources they consume, eliminating the need for capital expenditures. Secondly, it provides customizable disaster recovery solutions that adapt to evolving business requirements. With DRaaS, businesses can easily scale resources on demand, ensuring business continuity without compromising on efficiency.

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The public cloud segment was valued at USD 2.58 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

• APAC is estimated to contribute 33% 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.

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Disaster Recovery-as-a-Service (DRaaS) is a significant segment in the North American market, given the region's high adoption of cloud computing and substantial data generation. Enterprises in North America are at the forefront of utilizing cloud services, making it a global leader in data production and consumption. The vast volume of data generated in this region necessitates DRaaS solutions that ensure business continuity during outages. The advanced technological infrastructure and the highly developed industrial sector in North America result in increased DRaaS adoption for enhancing productivity and efficiency. Consequently, the market in North America is poised for substantial growth during the forecast period.

Market Dynamics

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.

What are the key market drivers leading to the rise in adoption of Disaster Recovery-As-A-Service (DRaaS) Market?

Improvements in manageability and protection is the key driver of the market.

• Disaster Recovery-as-a-Service (DRaaS) is a vital solution for businesses seeking uninterrupted operation in the event of IT infrastructure downtime. DRaaS enables organizations to monitor and manage their networks and servers through a web-based control panel, offering real-time activity and system health reporting. DRaaS solutions provide comprehensive control and support, both manual and automatic, as well as detailed information on the status of the entire IT infrastructure. Key features of DRaaS solutions include ecosystem auditing, integrated data archiving, hybrid cloud availability monitoring, cross-cloud infrastructure management, cross-platform health monitoring, and sophisticated metering. These services safeguard businesses by replicating critical servers, operating systems, applications, and end-user data to remote data centers, ensuring business continuity.
• Moreover, DRaaS solutions are available in various deployment models, including private cloud, public cloud, and hybrid cloud. The pay-per-use model allows businesses to scale their disaster recovery capabilities according to their needs, making it an affordable and efficient option for organizations of all sizes. With DRaaS, businesses can minimize downtime, reduce the risk of data loss, and maintain business continuity.

What are the market trends shaping the Disaster Recovery-As-A-Service (DRaaS) Market?

Adoption of AI for disaster recovery is the upcoming trend in the market.

• Disaster Recovery-as-a-Service (DRaaS) is an essential business continuity solution that ensures the availability and accessibility of critical data and applications during unexpected disruptions. DRaaS providers are increasingly incorporating advanced technologies such as Artificial Intelligence (AI) and machine learning to automate tasks and enhance their offerings. For instance, UNITRENDS, a leading backup services provider, offers intelligent DRaaS solutions that leverage AI and machine learning to proactively detect and respond to threats like ransomware.
• Moreover, their offerings include Unitrends Backup software and Recovery Series backup appliances, which provide features such as post-mortem identification and recovery and enable deflection of attacks. These solutions are not limited to on-premises networks; they can also be deployed as a hybrid solution, protecting both network drives and external hard drives, as well as virtual machines (VMs). DRaaS providers' adoption of AI and machine learning will continue to streamline operations, improve efficiency, and minimize downtime for businesses.

What challenges does Disaster Recovery-As-A-Service (DRaaS) Market face during the growth?

Availability of open-source disaster recovery tools is a key challenge affecting the market growth.

• The market faces a challenge due to the availability of open-source disaster recovery tools. These tools allow the establishment of a primary backup server to multiple backup hosts via a network. Open-source solutions are popular in developing countries like China and India, where businesses are cautious about cloud hosting for their data. Small enterprises, in particular, cannot afford costly on-premises and cloud-based backup recovery solutions. Instead, they opt for open-source disaster recovery tools that do not necessitate upfront capital investments. However, these tools may lack the advanced features and support offered by commercial DRaaS solutions.
• In addition, market growth is influenced by the increasing dependency on digital data and the need for business continuity. The solutions provide access to storage resources, compute power, and bandwidth on demand, ensuring minimal downtime during disruptions. DRaaS offerings include backup software, secondary sites, and recovery services, which can be scaled according to business requirements. Licensing fees and compute costs are significant expenses for businesses, making DRaaS an attractive alternative to traditional recovery methods.

Exclusive Customer Landscape

The market forecasting 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 market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

Customer Landscape

Key Companies & Market Insights

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

The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• 11 11 Systems Inc.
• 2nd Watch Inc.
• Acronis International GmbH
• Amazon.com Inc.
• Broadcom Inc.
• Cisco Systems Inc.
• Citrix Systems Inc.
• Commvault Systems Inc.
• Dell Technologies Inc.
• Fidelity National Information Services Inc.
• Hewlett Packard Enterprise Co.
• International Business Machines Corp.
• InterVision Systems LLC
• IPC Systems Inc.
• Liberty Latin America Ltd.
• Microsoft Corp.
• Nippon Telegraph and Telephone Corp.
• Oracle Corp.
• Rackspace Technology Inc.
• Recovery Point System
• TierPoint LLC
• VMware Inc.

Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Research Analyst Overview

Disaster Recovery-as-a-Service (DRaaS) is a third-party solution that enables businesses to replicate their physical and virtual servers to a remote company's infrastructure for quick failover during a disaster. This solution is crucial in mitigating the impact of natural disasters, power outages, and other business disruptions. With DRaaS, businesses can leverage a globally distributed architecture for hosting their infrastructure, ensuring business continuity in the worst-case scenario. DRaaS offers various operating models such as managed, assisted, and self-service, allowing businesses to choose the level of involvement they desire. Replication of servers, computing resources, storage, and backup management software is handled by the DRaaS provider.

Moreover, in the event of a shutdown, businesses can access their applications and data from a remote data center, ensuring minimal downtime. DRaaS can be deployed in various environments, including on-premise, private cloud, public cloud, and hybrid solutions. The pay-per-use model allows businesses to pay only for the resources they consume, making it a cost-effective solution. Contracts with DRaaS providers often include backup services, network drive, external hard drive, and off-site storage for additional data protection. DRaaS solutions offer various features such as failover, backup management software, virtual machines (VMs), and recovery services. These solutions can be integrated with various hardware appliances, software applications, and network drives.

Furthermore, the infrastructure can be easily scaled, and businesses can access their resources on-demand. The DRaaS provider offers customer support, ensuring a smooth transition during a disaster. DRaaS solutions offer various benefits such as reduced downtime, cost savings, and improved business continuity. The market is expected to grow significantly due to the increasing adoption of cloud computing and the need for businesses to ensure business continuity in the face of disasters. The market offers various solutions, including backup services, hybrid solutions, and production version replication, catering to the unique needs of businesses. Disaster Recovery-as-a-Service (DRaaS) is a third-party disaster recovery solution that enables businesses to quickly recover from worst case scenarios such as natural disasters, power outages, and other unplanned interruptions. With DRaaS, businesses can rely on remote vendors to manage their disaster recovery needs, providing peace of mind and minimizing downtime.

DRaaS solutions offer various deployment models, including managed, assisted, and self-service options. Managed DRaaS provides a fully outsourced solution, while assisted DRaaS allows for some level of customer involvement. Self-service DRaaS empowers businesses to manage their own recovery process. DRaaS solutions can be delivered through software applications or hardware appliances, and offer on-demand billing and flexible Service Level Agreements (SLAs) to meet unique business needs. Recovery Point Objectives (RPOs) and Recovery Time Objectives (RTOs) can be customized to ensure data is recovered to the desired point and within a specified timeframe.

DRaaS providers offer disaster recovery solutions that can be deployed to a secondary site, providing physical facilities to house critical infrastructure and applications. The cost of DRaaS solutions can include RAM, compute, and other resources, making it essential to carefully review contracts and understand the potential ramifications of usage. In the event of a business disruption, DRaaS solutions enable organizations to quickly recover their critical applications and data, minimizing downtime and reducing the financial impact of an unplanned outage.

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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 2024 and 2028
• Precise estimation of the size of the market and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behaviour
• Growth of the market across North America, Europe, APAC, South America, and Middle East and Africa
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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