Backup and Disaster Recovery Market Analysis (2024 – 2030)

The Backup and Disaster Recovery Market exhibited a valuation of USD 9.9 billion in 2023 and is forecasted to attain USD 43.12 billion by 2030, showcasing a Compound Annual Growth Rate (CAGR) of 23.4% during the projection period. Post the COVID-19 impact, the industry continues to evolve as enterprises globally pivot towards cloud migration for their IT infrastructure, bolstering business continuity, and optimizing IT operations. These trends are set to drive the expansion of the Backup and Disaster Recovery Market.

Industry Overview:

The realm of backup and disaster recovery encapsulates a third-party cloud computing and backup service paradigm, ensuring replication and retrieval of virtual servers and data in the face of natural or human-induced disasters. To safeguard sensitive corporate information, backups are frequently generated within public, cloud, virtual private cloud (VPC), or hybrid environments. This approach extends comprehensive network support and management during downtimes, thereby ensuring business continuity by minimizing disruptions and downtime occurrences. The sectors of banking, financial services, insurance (BFSI), healthcare, manufacturing, information technology (IT), and telecommunications extensively benefit from these services. The interconnected, multi-cloud landscape has emerged as a pivotal data security platform in contemporary society. Research from IDC indicates that nearly 90% of enterprises have integrated cloud infrastructure into their data security mechanisms. Typically, backup and disaster recovery solutions are employed to secure specific applications, data types, or regulatory obligations. The escalating threat of data loss from natural calamities or technical malfunctions has augmented the demand for backup and disaster recovery solutions. This cloud-based technique empowers businesses to safeguard and restore crucial data housed in third-party cloud environments.

The surge in hostile data breaches has propelled the expansion of the backup and disaster recovery industry. Various sectors such as BFSI, healthcare, IT, telecommunications, among others, actively leverage disaster recovery and backup services to shield critical data assets. The market growth is also driven by the burgeoning trend of digitalization and the widespread acceptance of cloud-based services across industries. These solutions are favored for their capacity to obviate the necessity for dedicated facilities and facilitate swift data recovery with minimal complexities. Furthermore, the growing awareness among small and medium-sized enterprises (SMEs) regarding the benefits of cloud-based backup and recovery is stimulating market expansion. These entities routinely utilize backup and disaster recovery solutions to design and implement effective disaster recovery strategies. A slew of technological advancements, encompassing intelligent data deduplication, virtual machine inventory, and automated testing, are propelling industry progression. Additionally, the capability to diminish downtime, slash operational expenses, augment profitability, and efficiently manage resources are pivotal factors driving the demand for Backup and Disaster Recovery solutions. Vendors within this sphere are perpetually refining Disaster Recovery (DR) planning solutions to streamline installation processes and curtail operational costs. Consequently, the backup and disaster recovery market is swiftly advancing worldwide, aiding enterprises in mitigating existential threats and recuperating from data loss scenarios.

Impact of COVID-19 on Backup and Disaster Recovery Market:

The advent of the pandemic has wielded a favorable influence on the backup and disaster recovery sector. The global lockdown precipitated an accelerated adoption and utilization of digital services, with a myriad of individuals resorting to application-based services for both professional and personal endeavors. Organizations swiftly transitioned to remote work setups to ensure employee safety and sustain operational efficacy during the lockdowns, intensifying the demand for cloud-based solutions. Moreover, the unanticipated surge in cyber-criminal activities targeting numerous organizations and their clientele propelled a heightened need for robust security of concealed business assets, thereby fostering market expansion. As more businesses opt for cloud-based solutions to fortify their IT infrastructure, the demand for backup and disaster recovery solutions is poised to ascend.

Market Drivers:

Rise in Cloud Adoption due to COVID-19:

The global dynamics of business operations have been significantly impacted by the COVID-19 outbreak. While exposing vulnerabilities in business models across diverse industries, the pandemic has also presented a plethora of opportunities for Backup and Disaster Recovery companies to proliferate their services within organizations. The surge in cloud adoption, catalyzed by the COVID-19 lockdowns, has prompted numerous businesses to scale back their IT investments in 2020. Organizations are gravitating towards public cloud solutions for backup and disaster recovery, aiming to achieve their objectives while minimizing capital outlays during these challenging times, thus fostering positive growth within the Backup and Disaster Recovery market.

Integration of AI and ML in Backup and Disaster Recovery Solutions to fortify Enterprise Data Recovery Strategies:

Software solution providers are fervently developing cutting-edge technologies such as Artificial Intelligence (AI) and Machine Learning (ML) to bolster the creation of innovative solutions. The proliferation of AI has translated into substantial value for clients, empowering solution providers to augment their revenues. AI in backup and disaster recovery endeavors assists in securing and recuperating data through diverse avenues. Given that data represents an organization's most invaluable asset, companies are investing in novel technologies and methodologies to fortify their data backup practices, thereby propelling the growth of the Backup and Disaster Recovery market.

Market Restraints:

Enterprise Reluctance towards Cloud-Based Solutions vis-à-vis Traditional Methods:

The apprehension of enterprises towards embracing novel technologies has long been a significant impediment for solution providers. Security apprehensions, lack of awareness, misconceptions concerning technology, pricing structures, and steadfast adherence to conventional backup and disaster recovery systems are among the reasons deterring businesses from embracing cloud and cloud-based recovery solutions. Organizations harbor reservations regarding cloud environments due to their susceptibility to data breaches and cyber-attacks. These barriers hinder vendors from elucidating to clients the potential business benefits inherent in well-designed and tailored backup and disaster recovery solutions.

Challenges in Ensuring Security and Compliance within Cloud Environments:

 Despite the rapid adoption of backup and disaster recovery solutions by large enterprises and SMEs, a prevalent challenge faced by providers and consumers pertains to data security. Enterprises are tasked with ensuring that backup and recovery sites boast commensurate levels of security as their primary sites. The task of maintaining and demonstrating compliance within cloud environments is more intricate, given that firms must engage with numerous providers and navigate service-level agreements. Businesses exercise utmost caution concerning data storage within cloud-based systems, given that any data disruption could have far-reaching consequences. Consequently, many enterprises exhibit hesitance in deploying backup and disaster recovery solutions.

BACKUP AND DISASTER RECOVERY MARKET – BY SERVICE TYPE

• Real-time Replication
• Backup and Restore
• Data Protection

The backup and disaster recovery market, categorized by Service Type, includes Real-time Replication, Backup and Restore, and Data Protection. Among these categories, the Backup and Restore segment is anticipated to play a significant role in the advancement of the backup and disaster recovery market. Within the context of cloud computing, backup refers to the process of duplicating data, enabling the retrieval of duplicate sets in the event of data loss due to downtime or failures, such as power outages, human errors, or natural disasters. Conversely, restore, in a disaster scenario, entails retrieving lost or corrupted files from storage media. The data restore process involves recovering specific data that has become inaccessible due to logical or physical damage to storage devices. The demand for backup solutions grows alongside the expansion of data volumes. Enterprises stand to benefit from backup for various reasons, including enhanced agility, data retention, reduced costs, quicker deployments, and improved data security. These solutions offer cost-effective, automated, reliable, secure, and scalable features, ensuring business continuity in crisis situations. For enterprises with limited resources, outsourcing data and applications to backup and disaster recovery providers offers specialized services in backup and restore, while reducing capital expenditure.

BACKUP AND DISASTER RECOVERY MARKET – BY DEPLOYMENT TYPE

• Public Cloud
• Private Cloud

Categorized by Deployment Type, the backup and disaster recovery market comprises Public Cloud and Private Cloud segments. Among these, the Public Cloud segment dominated the market share in 2021 and is expected to maintain this trend throughout the forecast period. The public cloud deployment platform, rooted in cloud computing principles, enables service providers to develop applications accessible to the general public via the internet. Public cloud services are offered either free or on a pay-per-use basis, tailored to the needs of end-users. Public cloud deployment is particularly suitable for web servers or system designs where security and compliance are not primary concerns. The public cloud facilitates easier access and faster deployments, contributing to its widespread adoption in disaster recovery services. The advantages of scalability, reliability, flexibility, and remote accessibility associated with public cloud deployment are driving businesses towards adopting backup and disaster recovery solutions.

BACKUP AND DISASTER RECOVERY MARKET – BY ORGANISATION SIZE

• Small and Medium-sized Enterprises (SMEs)
• Large Enterprises

In terms of Organisation Size, the backup and disaster recovery market segments into Small and Medium Enterprises and Large Enterprises. Among these, large enterprises held the major market share in 2021. Large companies now heavily rely on big data for analytical insights, aiding in identifying opportunities, making critical business decisions, and enhancing business performance. Organizations are restructuring their security policies, heavily relying on backup, disaster recovery solutions, and security mechanisms to safeguard crucial assets from various cyber-attacks or natural/man-made disasters, thereby contributing to market growth.

BACKUP AND DISASTER RECOVERY MARKET – BY END-USER

• Banking, Financial Services, and Insurance (BFSI)
• Telecommunications
• IT and ITeS
• Government and Public Sector
• Retail and Consumer Goods
• Manufacturing
• Energy and Utilities
• Media and Entertainment
• Healthcare and Life Sciences
• Others

End-users of backup and disaster recovery solutions span across various industries including Banking, Financial Services, and Insurance (BFSI), Telecommunications, IT and ITeS, Government and Public Sector, Retail and Consumer Goods, Manufacturing, Energy and Utilities, Media and Entertainment, and Healthcare and Life Sciences, among others. The BFSI sector notably dominated the market share. Financial institutions, such as commercial banks and credit unions, rely extensively on offering uninterrupted services to clients to establish their credibility. The BFSI industry is rapidly adopting backup and disaster recovery solutions as any system downtime could harm these institutions' reputations and lead to client losses. Key sectors like banking are increasingly turning towards cloud-based services and solutions for instant data, application, and system recovery in case of disruptions. Most cloud recovery and backup providers catering to financial institutions continuously assess and enhance their infrastructure to ensure compliance with auditing, financial sector standards, and regulations. Smaller institutions, unable to allocate staff resources to meet compliance standards, benefit from these regulatory advancements. Both commercial and government entities are increasingly deploying newer technologies to mitigate cyber threats, secure sensitive consumer data, and comply with regulatory requirements. Rising consumer expectations, technological capabilities, and regulatory constraints are driving financial firms towards a proactive security approach, subsequently positively impacting the backup and disaster recovery market.

BACKUP AND DISASTER RECOVERY MARKET – BY REGION

• North America
• Europe
• Asia Pacific
• Latin America
• The Middle East
• Africa

Regional segments of the backup and disaster recovery market include North America, Europe, Asia Pacific, Latin America, The Middle East, and Africa. North America is anticipated to hold a significant share of the backup and disaster recovery market due to the presence of globally renowned businesses and major players in the region. The high demand for data security and recovery solutions to safeguard critical and private information is a major driver propelling market expansion in North America. Additionally, the proliferation of small enterprises and startups is expected to fuel the backup and disaster recovery industry's growth. The increasing incidents of cyber-attacks and security breaches across the region are stimulating the demand for cloud-based security solutions. The growth of e-commerce platforms further boosts the market in the US and Canada.

The European market is also projected to witness significant growth, attributed to increasing investments in data security projects. Europe is expected to witness substantial market expansion in the coming years due to stringent data privacy and security regulations. The European General Data Protection Regulation (GDPR) mandates businesses to employ various safeguards to protect sensitive data against cyber-attacks and natural disasters.

The Asia-Pacific region emerges as a promising market for backup and disaster recovery services. The significant factor driving market expansion across Asian countries is the rapid growth of IT infrastructure. Government regulations on data protection are anticipated to encourage the adoption of backup and disaster recovery services in countries like China, Japan, and India. Regular occurrences of natural disasters in some Asian countries such as Japan and India are also expected to drive widespread adoption of these services. Consequently, the Asia-Pacific backup and disaster recovery services market is poised for substantial growth in the coming years.

BACKUP AND DISASTER RECOVERY MARKET – BY COMPANIES:

Notable players in the backup and disaster recovery market include:

1. Microsoft
2. IBM
3. VMware
4. iland
5. Recovery Point
6. Sungard Availability Services
7. InterVision
8. AWS
9. TierPoint
10. Infrascale
11. Acronis Axcient
12. BIOS Middle East
13. C&W Communications
14. Carbonite
15. Daisy
16. Databarracks
17. Datto
18. Evolve IP
19. Expedient
20. Flexential
21. Geminare
22. NTT
23. Quorum
24. StorageCraft
25. Unitrends
26. RackWare
27. Druva
28. Optum
29. DARZ Zettagrid
30. PhoenixNAP

The backup and disaster recovery sector features numerous prominent companies, reflecting a competitive landscape. Currently, a few companies hold significant market share, extending their market presence through new deals and penetration into emerging markets due to advancements in data storage and security technologies.

NOTABLE DEVELOPMENTS IN BACKUP AND DISASTER RECOVERY MARKET:

• ACQUISITION- In July 2021, in a transaction estimated at USD 374 million, Hewlett Packard Enterprise agreed to buy Zerto, a leading cloud data management, and protection company.
• PRODUCT LAUNCH- In May 2021, At KubeCon + CloudNativeCon Europe 2021, Wanclouds, a multi-cloud SaaS and managed service provider, unveiled its Multi-Cloud Disaster Recovery as a Service. As extreme weather and cybercrime threats increasingly threaten business operations, the company's backup and disaster recovery solution minimizes the financial investment and technological challenges that typically prevent or delay enterprises from putting up disaster recovery defenses
• PRODUCT LAUNCH- in October 2020, Sungard Availability Services (Sungard AS), one of North America's and Europe's leading suppliers of highly available, cloud-connected infrastructure, introduced a new Private Cloud solution as the centerpiece of its end-to-end Connected Cloud platform. As businesses look for ways to accelerate digitalization across their processes, Sungard AS Private Cloud provides a solution designed to evolve with them at the pace they ought to develop, with flexibility minimal commitment, and on-demand scalability.