Disaster Recovery as a Service Market Size & Share 2023 to 2032
Market Size by Service Model (Backup & Recovery, Real-Time Replication, Data Protection), Deployment Model (Public Cloud, Private Cloud, Hybrid Cloud), Organization Size, Industry Vertical & Global Forecast.
Report ID: GMI6892
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Published Date: October 2023
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Report Format: PDF
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Authors:
Preeti Wadhwani, Aishvarya Ambekar
Disaster Recovery as a Service (DRaaS) Market Size
Disaster Recovery as a Service Market size was valued at USD 11.5 billion in 2022 and is anticipated to register a CAGR of over 22% between 2023 and 2032, due to the growing awareness of data security. With the escalation in cyber threats, businesses are recognizing the critical importance of safeguarding their data. DRaaS providers offer advanced security measures including encryption and multi-factor authentication, assuring businesses that their sensitive information remains protected. This heightened awareness of data security risks motivates organizations to invest in DRaaS, which helps ensure robust defense against cyberattacks and bolstering overall data resilience.
Disaster Recovery as a Service Market Key Takeaways
Market Size & Growth
Key Market Drivers
Challenges
The increasing demand to minimize downtime is a key factor propelling the Disaster Recovery as a Service market growth. In today's fast-paced digital landscape, businesses cannot afford prolonged interruptions. DRaaS offers swift data recovery and system restoration, thereby ensuring the seamless continuity of operations even after disruptions. This capability is paramount, motivating enterprises to invest in DRaaS solutions as they provide a reliable means to swiftly recover from disasters and maintain uninterrupted business activities, bolstering productivity & customer confidence.
Security concerns pose a significant challenge to the DRaaS market demand. Despite robust encryptions and authentication protocols, businesses remain apprehensive about entrusting sensitive data to external cloud services. High-profile data breaches and cyberattacks have amplified these fears, leading some organizations to opt for on-premises solutions despite their limitations. Overcoming these concerns necessitates continuous advancements in encryption technologies, stringent compliance certifications, and transparent communication from DRaaS providers about their security protocols & measures.
COVID-19 Impact
The COVID-19 pandemic notably bolstered the DRaaS industry size. With remote work becoming the norm, businesses started to increasingly rely on cloud-based DRaaS solutions to ensure seamless operations and data security. The pandemic highlighted the critical need for robust disaster recovery strategies, prompting companies to invest in DRaaS for business continuity. This surge in demand has spurred innovation & enhancements in the DRaaS sector, thereby driving market growth and further solidifying its role in modern business resilience.
Disaster Recovery as a Service (DRaaS) Market Trends
The demand for solutions that effectively minimize downtime and data loss is driving the Disaster Recovery as a Service (DRaaS) industry outlook. As businesses prioritize uninterrupted operations, DRaaS offers rapid data recovery and system restoration, ensuring minimal disruptions. For instance, in November 2021, Amazon Web Services introduced the AWS Elastic Disaster Recovery, a novel service designed to help organizations reduce downtime and data loss. It ensures the swift and dependable recovery of both on-premises & cloud-based organization sizes. AWS Elastic Disaster Recovery is a preferred solution for disaster recovery as it provides businesses with the reliable means to ensure continuity in the face of disruptions.
Disaster Recovery as a Service (DRaaS) Market Analysis
Based on organization size, the large enterprises segment held over 74% of the market share in 2022. Collaborations are fostering substantial growth in the large enterprises segment. By partnering with specialized DRaaS providers, enterprises are gaining access to advanced technologies & expertise, enabling them to significantly enhance their disaster recovery strategies.
For instance, in September 2022, Perpetuuiti in collaboration with SoftwareONE, a prominent software & cloud technology solutions provider, launched the Perpetuuiti Hybrid Disaster Recovery Service. This joint initiative targets Microsoft Azure customers in India, thereby aiming to reduce recovery time, minimize data loss, and mitigate the downtime cost for enterprises. These collaborations result in tailored solutions that minimize downtime, reduce data loss, and ensure seamless business continuity. The shared expertise & resources between enterprises and DRaaS providers contribute to the market's lucrative expansion.
Based on industry vertical, the BFSI segment accounted for 25% of the disaster recovery as a service market share in 2022. Financial institutions are increasingly collaborating with DRaaS providers to fortify their organization sizes, thereby driving the BFSI segment growth in the market. These partnerships empower banks and other financial entities to ensure the security & continuity of their critical organization sizes.
For instance, in September 2023, IBM partnered with Indian Bank, a leading public sector bank, to expedite the bank's modernization journey. The collaboration aims to provide a flexible and secure computing infrastructure, thus facilitating the deployment of new front-end banking organization sizes. Indian Bank aims to enhance its manageability and availability in both Data Centers (DC) and Disaster Recovery (DR) centers by consolidating its front branch servers.
North America disaster recovery as a service market recorded more than 34% of revenue share in 2022, propelled by the robust technology infrastructure in the U.S. The country's advanced IT framework facilitates the widespread adoption of DRaaS solutions. With a focus on seamless business continuity and data security, businesses in the U.S. are increasingly investing in DRaaS. This surge in demand reflects the region's commitment to resilient disaster recovery strategies, making North America a key region in the market.
Disaster Recovery as a Service Market Share
Major companies operating in the Disaster Recovery as a Service (DRaaS) industry are:
IBM Corporation and Amazon Web Services, Inc. (AWS) are dominating the market, accounting for a collective revenue share of around 16%. These companies are focused on strategic partnerships, new product launches, and commercialization efforts for market expansion. They are also heavily investing in research to introduce innovative solutions and garner the maximum market revenue.
Disaster Recovery as a Service (DRaaS) Industry News
The disaster recovery as a service (DRaaS) market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments:
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Market, By Service Model
Market, By Deployment Model
Market, By Organization Size
Market, By Industry Vertical
The above information has been provided for the following regions and countries:
Research methodology, data sources & validation process
This report draws on a structured research process built around direct industry conversations, proprietary modelling, and rigorous cross-validation and not just desk research.
Our 6-step research process
1. Research design & analyst oversight
At GMI, our research methodology is built on a foundation of human expertise, rigorous validation, and complete transparency. Every insight, trend analysis, and forecast in our reports is developed by experienced analysts who understand the nuances of your market.
Our approach integrates extensive primary research through direct engagement with industry participants and experts, complemented by comprehensive secondary research from verified global sources. We apply quantified impact analysis to deliver dependable forecasts, while maintaining complete traceability from original data sources to final insights.
2. Primary research
Primary research forms the backbone of our methodology, contributing nearly 80% to overall insights. It involves direct engagement with industry participants to ensure accuracy and depth in analysis. Our structured interview program covers regional and global markets, with inputs from C-suite executives, directors, and subject matter experts. These interactions provide strategic, operational, and technical perspectives, enabling well-rounded insights and reliable market forecasts.
3. Data mining & market analysis
Data mining is a key part of our research process, contributing nearly 20% to the overall methodology. It involves analysing market structure, identifying industry trends, and assessing macroeconomic factors through revenue share analysis of major players. Relevant data is collected from both paid and unpaid sources to build a reliable database. This information is then integrated to support primary research and market sizing, with validation from key stakeholders such as distributors, manufacturers, and associations.
4. Market sizing
Our market sizing is built on a bottom-up approach, starting with company revenue data gathered directly through primary interviews, alongside production volume figures from manufacturers and installation or deployment statistics. These inputs are then pieced together across regional markets to arrive at a global estimate that stays grounded in actual industry activity.
5. Forecast model & key assumptions
Every forecast includes explicit documentation of:
✓ Key growth drivers and their assumed impact
✓ Restraining factors and mitigation scenarios
✓ Regulatory assumptions and policy change risk
✓ Technology adoption curve parameter
✓ Macroeconomic assumptions (GDP growth, inflation, currency)
✓ Competitive dynamics and market entry/exit expectations
6. Validation & quality assurance
The final stages involve human validation, where domain experts manually review filtered data to identify nuances and contextual errors that automated systems might miss. This expert review adds a critical layer of quality assurance, ensuring data aligns with research objectives and domain-specific standards.
Our triple-layer validation process ensures maximum data reliability:
✓ Statistical Validation
✓ Expert Validation
✓ Market Reality Check
Trust & credibility
Verified data sources
Trade publications
Security & defense sector journals and trade press
Industry databases
Proprietary and third-party market databases
Regulatory filings
Government procurement records and policy documents
Academic research
University studies and specialist institution reports
Company reports
Annual reports, investor presentations, and filings
Expert interviews
C-suite, procurement leads, and technical specialists
GMI archive
13,000+ published studies across 30+ industry verticals
Trade data
Import/export volumes, HS codes, and customs records
Parameters studied & evaluated
Every data point in this report is validated through primary interviews, true bottom-up modelling, and rigorous cross-checks. Read about our research process →