Cloud-based Disaster Recovery Market Size, Share, Competitive Landscape and Trend Analysis Report, by Service Type, by Deployment Mode, by Organization Size, by End User : Global Opportunity Analysis and Industry Forecast, 2024-2033

Key Market Dynamics

The cloud-based disaster recovery market has grown due to several factors such as the increase in frequency & severity of natural disasters, surge in need for data security & scalability, and the rise in focus among businesses to equip a reliable and scalable disaster recovery solution. However, the increase in complexity of cloud-based disaster recovery, along with the rise in concerns over dependency on service providers restrain the expansion of the market. In addition, the advent of artificial intelligence and machine learning in cloud DR, along with the growing awareness and understanding of the importance of disaster recovery is expected to provide many opportunities for market growth during the forecast period.

Furthermore, government support from varied regions is playing a crucial role in the development of the cloud-based disaster recovery market. Numerous forms of government support significantly improve the adoption and implementation of cloud DR solutions, ensuring that public institutions and businesses are better prepared for disasters. For instance, in 2023, the European Commission launched stricter data protection regulations, authorizing companies to have robust disaster recovery plans. This has pushed businesses toward cloud-based DR solutions for their security and compliance benefits. As a result, this factor has created a significant demand for cloud DR solutions among end users globally, which is projected to drive cloud-based disaster recovery market growth during the forecast period. Moreover, the rise of remote work and distributed teams increases the need for cloud-based solutions that are managed and accessed remotely, including disaster recovery operations, which are projected to drive cloud-based disaster recovery market forecast period.

PEST Analysis: Global Cloud-based Disaster Recovery Market

Although the growth of the cloud-based disaster recovery market has been more rapid in recent years, the industry is influenced by a range of political, socioeconomic, and legal factors.

Political Factors

• Policies promoting digital transformation and cloud adoption support the growth of the Cloud based DR market.
• Governments partnering with private sector companies for disaster recovery initiatives can enhance the adoption and development of Cloud based DR solutions.

Economic Factors

• The cost-saving potential of Cloud based DR solutions compared to traditional disaster recovery methods drives cloud-based disaster recovery market size, especially among small and medium-sized enterprises (SMEs) .
• Increasing competition among cloud service providers drives innovation and reduces prices, making Cloud based DR solutions more accessible.

Social Factors

• Growing awareness of the importance of disaster recovery and business continuity drives demand for Cloud based DR solutions.
• Trust in cloud services and concerns over data privacy and security influence the acceptance of Cloud based DR solutions among its consumer bases.

Technological Factors

• The development of hybrid and multi-cloud environments offers flexible disaster recovery options, catering to diverse business needs.
• The expansion and improvement of global internet infrastructure enhances the feasibility and reliability of Cloud based DR solutions.

Market Segmentation

The cloud-based disaster recovery market is segmented into service type, deployment mode, organization size, end-user, and region. By service type, the market is divided into data protection, real-time application, backup & recovery, and professional services. As per the deployment mode, the market is classified into private cloud, public cloud, and hybrid cloud. By organization size, the market is categorized into small & medium-sized enterprises and large enterprises. By end user, the market is segregated into BFSI, retail & consumer goods, government & public sector, manufacturing, healthcare & life sciences, media & entertainment, and others. Region-wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

Regional/Country Market Outlook

North America has been one of the leading countries in the cloud-based disaster recovery industry, primarily due to the robust government initiatives promoting data security, along with the presence of major cloud service providers. With increased natural catastrophes, cyber threats, and system outages, North American businesses have prioritized investments in cloud based DR solutions to protect important data, reduce downtime, and assure business continuity. Moreover, the rising imperative to secure critical data for various organizations in sectors, such as BFSI and government has led to considerable demand for innovative products and the adoption of cloud based disaster recovery, which is expected to drive market growth. For instance, in September 2023, Amazon Web Services, Inc. unveiled AWS Elastic Disaster Recovery. It typically delivers a cost-effective solution for rapidly and dependably recovering cloud-based and on-premises applications. It reduces downtime and data loss by integrating efficient storage, minimal compute resources and point-in-time recovery capabilities. In addition, the increase in adoption of emerging technologies promotes the need for cloud DR solutions that are scalable, flexible, and have great disaster recovery capabilities, which is also a significant factor in driving the North American cloud-based disaster recovery market.

However, Asia-Pacific is expected to register significant growth prospects during the forecast period, due to the rising focus on data sovereignty and compliance, especially in developing countries such as China, India, and Singapore. In addition, significant investments in IT infrastructure and cloud services by both public and private sectors support the growth of the cloud-based disaster recovery market in this region. This investment ensures that businesses have secure access to the current technologies and essential resources for effective disaster recovery. Also, the increasing prevalence of cyberattacks, including ransomware and data breaches, underscores the necessity for a robust disaster recovery plan. This is likely to support the growth of the cloud-based disaster recovery market across this region. 

Industry Trends

• In June 2023, Japan announced a significant policy shift requiring its government contractors to adhere to U.S. cybersecurity standards. This move reflects Japan's increasing emphasis on strengthening its cybersecurity posture in the event of growing cyber threats and the importance of safeguarding sensitive government data. This policy aims to secure not only primary contractors but also their supply chains. It ensures that all subcontractors involved in government projects adhere to robust cybersecurity practices, reducing vulnerabilities throughout the supply chain. However, the successful implementation of this policy will require careful planning, adequate resources, and support for affected businesses.
• In March 2023, the U.S. government proclaimed its National Cybersecurity Strategy that seeks to protect critical infrastructure, including hospitals and clean energy facilities, from cyber threats. The government has made efforts to strengthen the country's cybersecurity prowess, along with bolstering its overall technology governance strategy. The strategy is part of a substantial effort by the Biden administration to consolidate cyber and technology governance. This included efforts to improve accountability for tech companies, strengthen privacy protection measures, and ensure fair competition online. It aims to strengthen collaboration with international partnerships and coalitions to counter threats to the digital ecosystem.

Competitive Landscape

The major players operating in the cloud-based disaster recovery market include Amazon Web Services, Inc., Cable & Wireless Communications Limited, Dell Technologies, Inc., Hewlett Packard Enterprise Development LP, IBM Corporation, Kaseya (Unitrends) , Microsoft Corporation, NetApp, Inc., NTT Data Group Corporation, and Seagate Technology LLC. Other players in the cloud-based disaster recovery market include Broadcom Inc., Cloud4C, Kyndryl Inc., Veritas Technologies LLC, and so on.

Recent Key Strategies and Developments in Cloud-based Disaster Recovery Industry

• In May 2024, Hewlett Packard Enterprise Co. introduced new solutions across the HPE GreenLake cloud to streamline enterprise management and optimize their data storage and workloads across on-premises and public cloud environments. The new hybrid cloud storage, private cloud offerings, and storage investment protection facilitate enterprises to automate and leverage data insights on HPE GreenLake. It is expected to often enable enterprises to manage and protect global storage environments and backups for optimal performance, as well as provide hybrid cloud data protection and disaster recovery.

• In July 2022, IBM introduced an update to its Cloud Pak for Data (version 4.5.1) , which includes features to simplify backup and disaster recovery for businesses using IBM Cloud.

• In February 2022, VMware had its cloud-based disaster recovery solution validated by Otava, a leading provider of hybrid cloud solutions. This validation secures users of Otava's compatibility and proficiency in implementing VMware's disaster recovery solution.

Key Sources Referred 

• Disaster Recovery Institute International (DRI International)  

• Cloud Security Alliance (CSA)  

• International Association of Emergency Managers (IAEM)  

• National Institute of Standards and Technology (NIST)  

• Information Systems Audit and Control Association (ISACA)  

• Open Web Application Security Project (OWASP)  

• International Organization for Standardization (ISO)  

Key Benefits for Stakeholders

• This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the cloud-based disaster recovery market analysis from 2024 to 2033 to identify the prevailing cloud-based disaster recovery market opportunities.
• The market research is offered along with information related to key drivers, restraints, and opportunities.
• Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
• In-depth analysis of the cloud-based disaster recovery market segmentation assists to determine the prevailing market opportunities.
• Major countries in each region are mapped according to their revenue contribution to the global market.
• Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
• The report includes the analysis of the regional as well as global cloud-based disaster recovery market trends, key players, market segments, application areas, and market growth strategies.