Disaster Recovery as a Service (DRaaS) Market
DRaaS Market by Service Type (Backup & Restore, Real-time Replication, Data Protection, and Professional Services), Deployment Mode (Public Cloud and Private Cloud), Organization Size, Vertical, and Region - Global Forecast to 2032
OVERVIEW
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
The disaster recovery as a service (DRaaS) market is projected to reach USD 46,089.9 million by 2032, up from USD 16,112.2 million in 2025, at a CAGR of 16.2%. Growth in DRaaS is driven by recovery mandates resulting from ransomware attacks, stricter auditing practices for immutable backups, and enterprises' adoption of cloud-based failover capabilities. Organizations are accelerating DRaaS adoption to achieve sub-minute RTOs, enable cross-region replication, and leverage DRaaS business models that offer consumption-based resilience options without the need to maintain idle secondary infrastructure. Rising ransomware attacks and heightened regulatory scrutiny, combined with contractual uptime commitments, have prompted many enterprises to develop more formalized recovery strategies beyond backup services.
KEY TAKEAWAYS
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BY REGIONAsia Pacific is expected to grow at the fastest rate in the DRaaS market, as India, Japan, and Australia tighten cyber recovery obligations for regulated workloads, expand sovereign cloud adoption, and enforce shorter recovery objectives across the BFSI, government, and public sectors.
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BY SERVICE TYPEBy service type, the backup & restore segment is expected to grow at the fastest rate of 17.9% during the forecast period.
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BY DEPLOYMENT MODEBy deployment mode, public cloud is expected to account for the largest market share of 71% in 2032 of the global disaster recovery as a service (DRaaS) market
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BY VERTICALIT and ITeS are expected to grow at the fastest rate in the disaster recovery as a service (DRaaS) market, at a CAGR of 17.9% over the forecast period.
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BY ORGANIZATION SIZESMEs are expected to grow at the fastest rate, as ransomware exposure, lean IT teams, and limited capital budgets accelerate demand for cloud-delivered DRaaS, automated failover, and recovery testing that eliminates the need for dedicated secondary infrastructure.
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COMPETITIVE LANDSCAPE - KEY PLAYERSAWS, Microsoft, VMware, IBM, and 11:11 Systems are among the major players in the DRaaS market, collaborating with enterprises to deliver cloud-based replication, automated failover, isolated recovery environments, and compliance-ready resilience across hybrid and multi-cloud architectures.
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COMPETITIVE LANDSCAPE - STARTUPS/SMEsAptum, Druva, and Hystax have distinguished themselves among startups and SMEs due to their robust product portfolios and effective business strategies.
The market is currently evolving toward continuous replication, automated failover, and policy-driven orchestration within disaster recovery as a service (DRaaS) platforms to meet stringent recovery objectives. Certain providers are incorporating immutable recovery vaults to safeguard against accidental backups being overwritten by ransomware, utilizing isolated clean-room testing environments, and offering audit-ready reports to mitigate recovery risks associated with these services. DRaaS solutions are now regarded as a fundamental layer of resilience that supports organizations in maintaining operational continuity, ensuring compliance, and achieving cost-effective recovery without the necessity of maintaining additional secondary infrastructure (SI).
TRENDS & DISRUPTIONS IMPACTING CUSTOMERS' CUSTOMERS
This section examines the significant disruptions and trends that influence how customers shape their disaster recovery as a service (DRaaS) strategy to strengthen cyber resilience. The analysis captures the evolution of the IT and ITeS customer base by reviewing how organizations have adapted their strategies in response to Ransomware exposure, new regulatory requirements for recovery, and the management of an increasing number of distributed cloud-based applications. These strategic shifts are enabling customers to see a direct correlation between improved disaster recovery performance metrics, including faster recovery times, reduced reliance on secondary infrastructure, and increased service availability.
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
MARKET DYNAMICS
Level
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Need to lower TCO, save time, and enable IT teams to shift focus to higher-value tasks
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Rising DRaaS utilization to mitigate risk of cyberattacks on data centers
Level
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Concerns over dependency on service providers
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Reluctance of enterprises in adopting cloud-based DRaaS over traditional methods
Level
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Emergence of AI and ML in DRaaS solutions to strengthen DRaaS strategies of enterprises
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SMEs to represent a significant opportunity within the DRaaS market
Level
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Difficulty in achieving security and compliance in cloud environments
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Potential performance issues with applications running in the cloud and bandwidth challenges
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
Driver: Need to lower TCO, save time, and enable IT teams to shift focus to higher-value tasks
Cost pressures and operational inefficiencies continue to drive the rise of disaster recovery (DR) as a service, as organizations seek to reduce recovery costs while maintaining greater flexibility and resilience in their hybrid or cloud environments. The growing frequency of data-loss incidents and the impact of downtime are encouraging organizations to evaluate usage-based recovery or Managed Services Operations, and to pursue a service model that is cost-transparent and helps lower Total Costs of Ownership (TCO).
Restraint: Concerns over dependency on service providers
The primary concern for the disaster recovery as a service marketplace is the dependence on third-party service providers. Organizations rely on third-party providers to deliver on recovery point objectives and execute recovery efforts during times of disaster. However, these organizations often find that gaps in capability are revealed only during a significant incident. Additionally, many organizations prefer to have some control over how quickly they recover from a major outage.
Opportunity: Emergence of AI and ML in DRaaS solutions to strengthen DRaaS strategies of enterprises
New technologies, such as advanced analytics and ML-based tools, are enabling the development of comprehensive strategies to enhance the DRaaS offerings provided by companies. As DRaaS providers integrate these capabilities into their offerings, they can use them to better identify potential threats and develop effective DRaaS recovery plans. Advanced head-to-head assessments and automated or semi-automated workflows for preparing Recovery Actions provide additional efficiencies, enabling DRaaS Service Providers to support organizations with more effective policies for data loss protection and for the design, maintenance, and deployment of DRaaS.
Challenge: Difficulty in achieving security and compliance in cloud environments
The cloud environment poses significant challenges to both security and compliance. Organizations also struggle to demonstrate compliance across multiple providers with varying service level agreements when deploying to the cloud. Concerns about cloud-based data storage have increased, making organizations more aware of the associated risks. A disruption to any of their data could negatively affect their business operations. These issues make organizations hesitant to adopt cloud-based data solutions, while requiring CSPs to provide an extensive, layered security control model and to continuously test and provide audit-ready assurance.
DISASTER RECOVERY AS A SERVICE (DRAAS) MARKET: COMMERCIAL USE CASES ACROSS INDUSTRIES
| COMPANY | USE CASE DESCRIPTION | BENEFITS |
|---|---|---|
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Allegany Insurance Group simplified its disaster recovery strategy with iland | Witnessed continuous data availability and business uptime | Gained platform control and flexibility | Predictable pricing with no hidden fees was offered | Provided seamless integration with Veeam | Innovative and comprehensive service was offered in line with company’s objectives |
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Computer Driven Solutions deployed Infrascale backup and disaster recovery (IBDR) to protect SME clients’ data and prepare for disasters | CDS received a hybrid cloud backup and disaster recovery service | Infrascale IBDR solution provided CDS with all the backup and disaster recovery functionality | Infrascale Dashboard provided a one-stop-shop for all CDS’ backup and recovery needs, including setting backup settings and schedules |
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RMS used TierPoint’s hybrid cloud & DRaaS to improve performance and reliability | Custom DRaaS solution provided RMS with guaranteed 100% uptime and failsafe business continuity protection | RMS can now grow on demand–year-over-year growth in the 30% range. When capacity reaches 80%, RMS can quickly expand by adding nodes to the cloud configuration |
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Safeguarding business continuity with disaster recovery from CloudHPT by bios at Waha Capital | Provided a RPO of less than 30 seconds | Provided a RTO of under 45 minutes | 24x7 monitoring of replication | 24x7 monitoring of WAN | DR for Oracle physical machines | Test on demand for compliance |
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MSP InfoStream ensured disaster recovery confidence with Axcient Cloud Backup | Full speed data download and upload – no throttling | 24 hours to 100% recovery | 0% of data lost after ransomware | Sleep soundly with BDR confidence| Proactive cloud backups in preparation for a hurricane disaster |
Logos and trademarks shown above are the property of their respective owners. Their use here is for informational and illustrative purposes only.
MARKET ECOSYSTEM
The DRaaS ecosystem comprises stakeholders who collaborate to provide organizations with a cost-effective means of recovering from disasters. The core infrastructure for DRaaS is provided by both private and public cloud providers. DRaaS providers orchestrate failover and testing and manage the entire recovery process. By working together, these stakeholders provide organizations with a scalable DR solution that is less dependent on IT infrastructure and enables organizations to maintain business continuity, regardless of how they operate, whether in a hybrid or multi-cloud environment.
Logos and trademarks shown above are the property of their respective owners. Their use here is for informational and illustrative purposes only.
MARKET SEGMENTS
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
Disaster Recovery as a Service (DRaaS) Market, By Service Type
By service type, real-time replication is expected to account for the second-largest market share in the disaster recovery as a service market, driven by strong demand for minimal data loss and rapid service restoration. Continuous replication supports near-zero recovery objectives, automated failover, and consistent data integrity for mission-critical and transaction-intensive workloads.
Disaster Recovery as a Service (DRaaS) Market, By Deployment Mode
By deployment mode, private cloud is expected to grow fastest in the global DRaaS market, as enterprises require dedicated recovery environments. Private deployments support data residency controls, isolated recovery sites, customized recovery objectives, and audit-aligned failover for regulated and mission-critical workloads.
Disaster Recovery as a Service (DRaaS) Market, By Vertical
Within BFSI, DRaaS is expected to capture the largest share of the global DRaaS market due to stringent regulatory recovery requirements and low tolerance for service disruption. Core banking systems, payment platforms, and digital channels require near-continuous availability. DRaaS supports strict recovery objectives, audit readiness, and controlled failover for transaction-intensive financial operations.
Disaster Recovery as a Service (DRaaS) Market, By Organization Size
By organization size, large enterprises will account for the largest share of the global DRaaS market due to complex application portfolios and high volumes of critical data. Operations span distributed on-premises, private cloud, and public cloud environments, increasing the need for recovery coordination. DRaaS supports controlled execution, consistent testing, and compliance-aligned resilience at enterprise scale.
REGION
North America to be largest region in global disaster recovery as a service (DRaaS) market during forecast period
North America is expected to account for the largest share of the global disaster recovery as a service (DRaaS) market. The proliferation of revenue-generating digital business applications has led to increased prioritization of recovery operations. The North American region is an ideal location for deploying DRaaS solutions that are easily scalable and economically viable, due to the presence of service-level agreements, advanced network infrastructure, and a strong network of business partners supporting their implementations.
DISASTER RECOVERY AS A SERVICE (DRAAS) MARKET: COMPANY EVALUATION MATRIX
In the disaster recovery as a service market matrix, AWS (Star) supports companies that need to recover and maintain their critical assets by leveraging its native cloud resilience services, global region coverage, and seamless integration with compute, storage, and network services. Zerto (Emerging Leader) is making progress with its use of continuous replication and an emphasis on application restoration. AWS has the highest scale and deepest cloud infrastructure, and Zerto is rapidly moving toward leadership by providing enterprise-level, precise recovery and simplified operations for its customers.
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
KEY MARKET PLAYERS
- AWS (US)
- Microsoft (US)
- Vmware (US)
- IBM (US)
- 11:11 Systems (US)
- Recovery Point Systems (US)
- Intervision Systems (US)
- TierPoint (US)
- Infrascale (US)
- Zerto (US)
- BIOS Middle East (UAE)
- C&W Business (US)
- Carbonite (US)
- Daisy (UK)
- Databarracks (UK)
MARKET SCOPE
| REPORT METRIC | DETAILS |
|---|---|
| Market Size in 2024 (Value) | USD 13,259.6 Million |
| Market Forecast in 2032 (Value) | USD 46,089.9 Million |
| Growth Rate | CAGR of 16.2% from 2025-2032 |
| Years Considered | 2020-2032 |
| Base Year | 2024 |
| Forecast Period | 2025-2032 |
| Units Considered | Value (USD Million) |
| Report Coverage | Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
| Segments Covered |
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| Regions Covered | North America, Europe, Asia Pacific, Middle East & Africa, Latin America |
WHAT IS IN IT FOR YOU: DISASTER RECOVERY AS A SERVICE (DRAAS) MARKET REPORT CONTENT GUIDE
DELIVERED CUSTOMIZATIONS
We have successfully delivered the following deep-dive customizations:
| CLIENT REQUEST | CUSTOMIZATION DELIVERED | VALUE ADDS |
|---|---|---|
| Leading BFSI Firm (US) | Additional Vendor Mapping: Evaluation of DRaaS providers offering isolated recovery vaults, regulatory-aligned recovery objectives, and audit-ready controls | Clarified competitive white spaces, refined BFSI-focused value propositions, and strengthened differentiation against established providers |
| Global IT & ITeS Firm (APAC) | Architecture Benchmarking: Comparison of cross-region replication, network-aware failover, and latency-sensitive recovery designs | Improved solution-market fit, enabled region-specific service positioning, and supported entry into carrier and cloud partner ecosystems |
| Global Retail & Consumer Goods Enterprise (US) | Hybrid Stack Assessment: Analysis of DRaaS platforms supporting application-centric recovery, cloud-to-cloud failover, and data governance | Accelerated go-to-market strategy, sharpened messaging for revenue-critical workloads, and improved alignment with enterprise buyer priorities |
RECENT DEVELOPMENTS
- November 2025 : Assured Data Protection expanded its disaster recovery portfolio with a Zerto-powered service for VMware and mixed environments. The offering delivers near-zero recovery objectives, automated failover, and operational flexibility, supporting enterprises through infrastructure transitions while maintaining consistent recovery assurance and reducing downtime risk.
- July 2025 : ICICI Lombard partnered with Amazon Web Services to implement an automated, cloud-native disaster recovery setup using the AWS Hyderabad region. Reported by Analytics India Magazine, the deployment enabled cross-region replication, automated failover, regulatory compliance, and uninterrupted access to business-critical applications during service disruptions.
- June 2025 : Cohesity and 11:11 Systems expanded their partnership with the launch of a fully managed Clean Room Recovery service. Announced by Channel Insider, the offering combines Cohesity’s data security platform with 11:11 Systems’ managed recovery expertise to provide isolated recovery environments, rapid ransomware response, and end-to-end cyber incident recovery for enterprises.
- June 2025 : CrashPlan and Microsoft strengthened their partnership through the integration of Microsoft 365 Backup Storage. Announced via Business Wire, the collaboration facilitates enterprise-grade disaster recovery featuring rapid, large-scale restorations, strict recovery objectives, and unified governance for Microsoft 365 workloads.
- April 2025 : Elastio partnered with JetSweep to strengthen DRaaS and ransomware protection. The collaboration integrates ransomware recovery assurance with AWS-based disaster recovery, enabling validated clean recovery points, rapid failover, and reduced downtime for enterprises facing advanced cyber threats.
Table of Contents
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Methodology
This research study involved extensive secondary sources, directories, and paid databases to identify and collect information useful for this technical, market-oriented, and commercial study of the DRaaS market. In-depth interviews were conducted with various primary respondents, including key industry participants, subject matter experts, C-level executives of key market players, and industry consultants, to obtain and verify critical qualitative and quantitative information and assess the market prospects. The following figure highlights the market research methodology in developing this report on the DRaaS market.
Secondary Research
The market size of companies offering DRaaS was based on the secondary data available through paid and unpaid sources and by analyzing the product portfolios of major companies in the ecosystem and rating the companies based on their product capabilities and business strategies. In the secondary research process, various sources were referred to for identifying and collecting information for the study. The secondary sources included annual reports, press releases, investor presentations of companies, product data sheets, white papers, journals, certified publications, articles from recognized authors, government websites, directories, and databases.
Secondary research was mainly used to obtain key information about the industry’s supply chain, the total pool of key players, market classification and segmentation according to industry trends to the bottom-most level, regional markets, and key developments from both market- and technology-oriented perspectives, all of which were further validated by primary sources.
Primary Research
In the primary research process, various primary sources from both the supply and demand sides were interviewed to obtain qualitative and quantitative information on the market. The primary sources from the supply side included various industry experts, including Chief Experience Officers (CXOs); Vice Presidents (VPs); directors from business development, marketing, and product development/innovation teams; and related key executives from DRaaS vendors, industry associations, independent consultants, and key opinion leaders.
Primary interviews were conducted to gather insights, such as market statistics, the latest trends disrupting the market, new use cases implemented, data on revenue collected from products and services, market breakups, market size estimations, market forecasts, and data triangulation. Primary research also helped in understanding various trends related to technology, service type, deployment, and region. Stakeholders from the demand side, such as Chief Information Officers (CIOs), Chief Technology Officers (CTOs), Chief Security Officers (CSOs), the installation teams of governments/end users using DRaaS, and digital initiatives project teams, were interviewed to understand the buyer’s perspective on suppliers, products, service providers, and their current use of solutions, which would affect the overall DRaaS market.
The Breakup of Primary Profiles:
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Market Size Estimation
Both top-down and bottom-up approaches were used to estimate and forecast the DRaaS market and other dependent submarkets. The bottom-up procedure was deployed to arrive at the overall market size using the revenues and offerings of the key companies in the market. With data triangulation methods and validation through primary interviews, this study determined and confirmed the exact value of the overall parent market size. The overall market size was then used in the top-down procedure to estimate the size of other individual markets via percentage splits of the market segments.
Top Down and Bottom Up Approach of the DRaaS market.
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The top-down and bottom-up approaches were used to estimate and validate the size of the DRaaS market and various other dependent subsegments. The research methodology used to estimate the market size included the following:
Key players in the market were identified through secondary research, and their revenue contributions in respective countries were determined through primary and secondary research.
This entire procedure included the study of the annual and financial reports of top market players and extensive interviews for key insights from industry leaders, such as Chief Executive Officers (CEOs), VPs, directors, and marketing executives.
All percentage splits and breakups were determined using secondary sources and verified through primary sources.
Top Down Approach of DRaaS market.
Data Triangulation
After arriving at the overall market size, the market was split into several segments and subsegments—using the market size estimation processes as explained above. Where applicable, data triangulation and market breakdown procedures were employed to complete the overall market engineering process and determine each market segment's and subsegment's exact statistics. The data was triangulated by studying various factors and trends from government agencies’ demand and supply sides.
Market Definition
DRaaS refers to a cloud model that enables replicating enterprise data and applications on a third-party virtual or cloud environment to ensure business continuity during artificial or natural disasters. It is mainly facilitated by System Integrators (SIs) and Managed Service Providers (MSPs). DRaaS is based on three crucial aspects: disaster planning/management, business continuity, and backup.
Key Stakeholders
- Cloud service providers (CSPs)
- Colocation providers
- Technology service providers
- Data center managed service providers
- Government organizations
- Networking companies
- Consultants/consultancies/advisory firms
- Support and maintenance service providers
- Telecom service providers
- Information Technology (IT) infrastructure providers
- System Integrators (SIs)
- Regional associations
- Independent software vendors
- Value-added resellers and distributors
Report Objectives
- To describe and forecast the global Disaster Recovery as a Service (DRaaS) market based on service types, deployment modes, organization size, verticals, and regions
- To forecast the market size of the five major regional segments: North America, Europe, Asia Pacific (APAC), Middle East & Africa (MEA), and Latin America
- To strategically analyze the market subsegments with respect to individual growth trends, prospects, and contributions to the total market
- To provide detailed information related to the major factors influencing the growth of the market (drivers, restraints, opportunities, and challenges)
- To strategically analyze macro and micro markets with respect to growth trends, prospects, and their contributions to the overall market
- To analyze industry trends, patents & innovations, and pricing data related to the DRaaS market
- To analyze the impact of recession impact on service types, deployment modes, organization size, verticals, and regions across the globe
- To analyze the opportunities in the market for stakeholders and provide details of the competitive landscape for major players
- To profile key players in the market and comprehensively analyze their market share/ranking and core competencies
- To track and analyze competitive developments, such as mergers and acquisitions, new product developments, and partnerships and collaborations in the market
Available Customizations
With the given market data, MarketsandMarkets offers customizations per the company’s specific needs. The following customization options are available for the report:
Product Analysis
- The product matrix provides a detailed comparison of the product portfolio of each company.
Geographic Analysis
- Further breakup of the DRaaS market
Company Information
- Detailed analysis and profiling of five additional market players
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