North America Disaster Recovery as a Service (DRaaS) Market

The Disaster Recovery as a Service (DRaaS) market in North America is projected to rise from about USD 7,425.4 million in 2025 to USD 19,389.4 million by 2032, at a CAGR of 14.7%. In North America, Disaster Recovery as a Service (DRaaS) is taking off as enterprise priorities evolve, driven by new levels of cloud maturity, increased regulatory pressure for compliance, and growing cyber risk exposure from security threats. Cost and operational efficiencies will remain at the forefront of driving DRaaS adoption. Across both the US and Canadian markets, businesses are replacing capital-intensive secondary recovery sites with "pay-as-you-go" usage-based DRaaS platforms, enabling stakeholders to lower the total cost of ownership of recovery operations. Reduced deployment timeframes for DRaaS solutions and reduced ongoing overhead for managing disaster recovery will further enhance adoption. The presence of these drivers is prompting enterprises to evaluate disaster recovery solutions that offer features such as immutable backups, the ability to recover to an isolated recovery environment, and a reliable failover mechanism in the event of a cyberattack. SMEs (small and medium-sized enterprises) also continue to increase their adoption of DRaaS, supported by the growth of cloud services and the continued evolution of a mature managed service provider (MSP) environment that enables access to enterprise-class business continuity without the cost of maintaining duplicate IT infrastructure.

Some of the major players in the North America Disaster Recovery as a Service (DRaaS) market include AWS (US), VMware (US), Microsoft (US), IBM (US), and 11:11 Systems (US). These providers deploy and deliver advanced DRaaS to ensure application availability, protect critical data, and meet business continuity requirements. By enabling automated failover, immutable backups, and scalable cloud-based recovery environments, DRaaS platforms simplify recovery, reduce downtime, and mitigate both cyber and operational risks. By lowering recovery costs and eliminating secondary infrastructure, DRaaS helps enterprises improve resilience, optimize IT operations, and sustain digital transformation across distributed and cloud-centric environments.

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In July 2025, Microsoft supported Publix Employees Federal Credit Union in modernizing its disaster recovery strategy using Azure Local, Azure Arc, Azure Site Recovery, and Azure Migrate. The deployment consolidated infrastructure into a Tier IV data center, reduced downtime to under 10 minutes per VM, lowered annual licensing costs by USD 35,000, and strengthened hybrid-cloud resilience against hurricane-related disruptions.

In July 2025, ICICI Lombard partnered with Amazon Web Services to upgrade its disaster recovery architecture using a fully automated, cloud-native DR setup. The deployment enabled seamless regional failover between Mumbai and Hyderabad, improved recovery speed, strengthened regulatory compliance, and ensured uninterrupted access to mission-critical insurance applications during climate and technology-driven disruptions.

AWS

Amazon Web Services (AWS) is one of the leading providers within the Disaster Recovery as a Service (DRaaS) sector. AWS's DRaaS strategy centers on providing customers with an automated solution for disaster recovery that leverages the AWS footprint and operates from multiple geographic locations. This approach extends the AWS portfolio by integrating native cloud services into the DRaaS architecture. AWS views DRaaS as an extension of the core capabilities of its cloud infrastructure, providing recovery services via various AWS services (Amazon Elastic Disaster Recovery, Amazon S3, AWS Lambda, etc.) to ensure rapid responses to DR events while minimizing customer operational costs. Customers of AWS can move from a secondary data center approach to a cloud-based DR methodology, reducing their overall cost of ownership and thereby increasing their recovery speed and consistency. Key activities involve continuously enhancing services while developing synergistic partnerships with system integrators and managed service providers to foster greater adoption of enterprise DRaaS. AWS is integrating its DRaaS solutions vertically with Compute, Network, Storage, and Security services. Horizontally, AWS continues to support hybrid and multi-account architectures, allowing for DR coverage across disparate enterprise environments.

MICROSOFT

Microsoft is of tremendous significance in the DRaaS market through its Hybrid-First Resilience and Enterprise Continuity Strategy. Azure Site Recovery is the service that supports Azure as a core capability in automated failover, automated recovery workflows, and predictable recovery. Microsoft has significant capabilities in hybrid cloud architecture, global data centers, and central management through Azure Arc, as well as strong security, identity, and compliance support for regulated industries. Major initiatives will focus on ecosystem expansion through partnerships with infrastructure vendors and OEMs to accelerate the adoption of Azure Local (Azure with On-premise workloads). Vertically, Microsoft integrates DRaaS with compute, storage, network, identity, and security services for Total Recovery Orchestration. Horizontally, Microsoft provides solutions for heterogeneous environments (e.g., protection of on-premise systems, VMware workloads, and hybrid architectures) using a Unified Disaster Recovery Framework.

Market Ranking

In 2025, the North America Disaster Recovery as a Service (DRaaS) market remained highly competitive, with Amazon Web Services, Microsoft, VMware, 11:11 Systems, and IBM collectively accounting for approximately 35–40% of the market. As companies prioritize automated recovery, cyber resilience, and hybrid continuity, competition for vendors of DRaaS has increased. In April 2025, AWS enhanced its DRaaS offerings with the addition of Elastic Disaster Recovery Automation and Cross-Region Orchestration, enabling quicker recoveries with reduced operational overhead. In July 2025, Microsoft updated Azure Site Recovery to include enhanced capabilities for the controlled routing of large numbers of moves through improved integration with Azure Arc, designed explicitly for regulated companies. In October 2024, VMware's focus on Cyber Recovery and Cloud Recovery led to enhancements to VMware Cloud Disaster Recovery, creating isolated (segmented) recovery environments for businesses affected by ransomware. In February 2025, 11:11 Systems capitalized on its unified platform consolidation efforts to expand its presence in the DRaaS marketplace by combining its DRaaS, backup, and Managed Recovery services for the SMB and regulated industry sectors into a single solution. In June 2024, IBM expanded its DRaaS capabilities through enhancements to its IBM Cloud Resiliency Services, including the integration of recovery workflows with Security and Compliance Tooling for BFSI and government workloads. Across the competitive landscape, vendors have been focusing on automating recovery, simplifying recovery, and improving integration with cloud infrastructure to differentiate themselves based on recovery speed, cyber isolation, and hybrid scalability. These developments underscore the maturity of the DRaaS marketplace and demonstrate its competitive nature, with leading companies investing heavily to establish themselves as trusted partners for enterprises, deliver solutions to ensure regulatory continuity, and enable continuous digital operations.

Related Reports:

North America 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 - Forecast to 2032

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