Disaster Recovery Solution Market

Market Overview

The global disaster recovery solution market size was valued at USD 8.01 billion in 2021 and is projected to reach USD 115.36 billion by 2030 at a CAGR of 34.5% from 2022 to 2030.

The ever-expanding IT landscape and a steady rise in cybersecurity attacks have shaped the disaster recovery solution market in recent years. Modern businesses cannot afford the loss of data due to human error, cyber-attack, or natural disaster; data loss is expensive and can prove risky. As per a study by the World Backup Day, disaster causes can be classified as hardware failure (44%), human error (32%), software corruption (14%), computer viruses (7%), and natural disasters (3%). Disaster recovery is the process of backing up data at regular intervals by creating a duplicate copy in a secondary device.

Market Dynamics

The adoption of cloud-based disaster recovery solutions to curb the challenges posed during infrastructural failures is a key driving factor for market growth.   

Many organizations have migrated their applications and platforms to private, public, or hybrid clouds to gain real efficiencies and adequate savings. One of the most significant advantages of cloud-based recovery solution is its cost-effectiveness, as traditional backup follows an expensive process of setting up physical servers at remote locations. Many businesses are transferring their business workloads on a cloud server. For instance, according to Cisco, by 2021, 94% of workload will run on a cloud-based environment. Thus, application of cloud-based disaster recovery is anticipated to drive the disaster recovery market during the forecast period.

Increasing cyber-attacks are becoming a day-to-day struggle for businesses. For instance, in 2017, 147.9 million consumers were affected by the Equifax Breach, as their credit card credentials were stolen. Besides, average expenditures on cybercrime are increasing dramatically, and costs associated with these attacks can be crippling to the companies who have not considered cybersecurity as an integral part of their regular budget. For instance, the aftermath of the Equifax breach cost the company over USD 4 billion. Additionally, according to IDC’s latest report, the average hourly cost for infrastructure failure accounts for USD 100,000.

Regional Analysis

Geographically, the disaster recovery solution market is segmented into North America, Europe, Asia Pacific, and Latin America and the Middle East & Africa (LAMEA).

North America is expected to hold a greater share in the disaster recovery solution market, owing to the need to reduce the financial toll resulting from network outages and system downtime. Furthermore, changing government regulations, particularly in the U.S., are propelling the growth of the disaster recovery solution market. In the U.S., federal mandates regarding disaster recovery planning affect numerous industrial segments differently. For instance, financial institutions, particularly those participating in the various components of the federal banking system, must comply with a well-rooted regimen of regulations on DR.

Europe is one of the prominent regions for the disaster recovery solution market and is expected to grow at a positive growth rate during the forecast period 2022–2030.  Also, the General Data Protection Regulation (GDPR) is an overhaul of the European’s data protection rules, which became effective on May 25, 2018. Companies affiliated to the GDPR are accountable for handling personal information appropriately, including implementation of necessary technical and organizational measures and ensuring “the confidentiality, integrity, availability, and resilience of systems and services processing personal data” (Article 32).

In 2016, Zerto announced its partnership with a European managed services provider, Claranet, to offer a cloud-based business continuity and disaster recovery (DR) service. This partnership is providing an opportunity for Zetro to build a partner base of over 100 service providers across Europe.

In Asia Pacific, China dominates the disaster recovery solution market, owing to disaster recovery providers and other big data companies. Besides, extensive use of cloud technology in business operations across various industry verticals is boosting the market.

Segmental Analysis

The disaster recovery solution market can be segmented by type, deployment, organization size, and end-user.

Based on type, the disaster recovery solution market is segmented into backup and recovery, real-time replication, data protection, and professional services. While by deployment type, the market is segmented into private cloud, public cloud, and hybrid cloud.

Further, based on organization size, the market is segmented into SMEs and large enterprises. By end user, the disaster recovery solution market is segmented into BFSI, consumer goods and retails, government and public sector, healthcare and life sciences, manufacturing, media and entertainment, telecommunication, and others.