DRaaS Market

The global disaster recovery as a service (DRaaS) market is expanding rapidly, with a projected market size expected to rise from about USD 16,112.2 million in 2025 to USD 46,089.9 million by 2032, featuring a CAGR of 16.2%. The Disaster Recovery as a Service (DRaaS) market is strengthening around clearly defined demand drivers shaping enterprise recovery strategies. Cost and operational efficiency are primary drivers, as organizations replace capital-intensive disaster recovery sites with consumption-based DRaaS platforms to lower total cost of ownership, shorten recovery setup timelines, and free IT teams to focus on higher-value initiatives. Data security and scalability requirements are rising as enterprises manage larger data sets and fluctuating workloads, driving adoption of DRaaS solutions with elastic capacity, policy-driven recovery, and hybrid and multi-cloud coverage. Ransomware and infrastructure attacks are prompting enterprises to adopt Disaster Recovery as a Service (DRaaS) solutions, which provide immutable backups, isolated recovery environments, and automated failover to minimize operational downtime and financial risks associated with data loss resulting from cyberattacks. This increased need for business continuity among small and mid-sized enterprises (SMEs) continues to be a significant catalyst for SMEs to utilize DRaaS, enabling them to gain access to the same levels of enterprise-grade capabilities without the burden of maintaining a separate infrastructure or requiring expertise in recovery functions beyond their existing level of experience. Collectively, these emerging trends are driving a rapid increase in the adoption and integration of DRaaS into the overall digital operations model of contemporary enterprises, thereby serving as a fundamental layer of business resilience.

Major players in the disaster recovery as a service (DRaaS) market include AWS (US), VMware (US), Microsoft (US), IBM (US), and 11:11 Systems (US). These providers 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 helped Publix Employees Federal Credit Union modernize its disaster recovery strategy with Azure Local, Azure Arc, Azure Site Recovery, and Azure Migrate. The deployment consolidated infrastructure in a Tier IV data center, reduced downtime to under 10 minutes per VM, lowered licensing costs by USD 35,000 annually, 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 with a fully automated, cloud-native DR setup. The deployment enabled seamless regional failover between Mumbai and Hyderabad, accelerated recovery, strengthened regulatory compliance, and ensured uninterrupted access to mission-critical insurance applications during climate- and technology-driven disruptions.

AWS

Amazon Web Services (AWS) is a leading provider in the disaster recovery as a service (DRaaS) sector. AWS's DRaaS strategy centers on delivering an automated disaster recovery solution that leverages the AWS Footprint from multiple geographic locations. This approach extends the AWS portfolio through native Cloud Services Integration within 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 toward a cloud-based DR methodology, reducing their overall cost of ownership and thereby increasing their Recovery Speed and Consistency. Key activities include continuously enhancing services and 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, enabling DR coverage across disparate Enterprise environments.

MICROSOFT

Microsoft is of tremendous significance in the disaster recovery as a service 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 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 total market share. As companies prioritize automated recovery, cyber resilience, and hybrid continuity, competition among DRaaS vendors intensified. In April 2025, AWS enhanced its DRaaS offerings with Elastic Disaster Recovery Automation and Cross-Region Orchestration, enabling faster 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 events. 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. Throughout the competitive landscape, vendors have been concentrating on automating and simplifying recovery, and on increasing 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 its competitive nature, with leading companies investing heavily to establish themselves as trusted partners for enterprises, providing solutions that ensure regulatory continuity and enable continuous digital operations.

Related Reports:

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

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