The disaster recovery-as-a-service (DRaaS) market is set to witness significant growth, expecting a Compound Annual Growth Rate (CAGR) of 24.8% from 2022 to 2030, according to a new report.
The report from Future Market Insights says the market, initially valued at US$ 12.81 billion, could reach up to US$75.22 billion by the end of the forecast period.
Market Growth Drivers
Future Market Insights highlights the digital shift of organizations globally and the consequent emphasis on data protection and recovery strategies. This urgency is further exacerbated by escalating cyber threats and natural disasters. The widespread digitization across various sectors is cited as a significant driver for the increased demand for DRaaS solutions.
The report further notes the DRaaS market's attractive features, such as flexibility, cost-effectiveness, and its capacity for rapid data storage and processing, which have found favor among various enterprises.
The pandemic forced many organizations to adopt remote working arrangements, increasing the need for cloud-based solutions and Virtual Private Networks (VPNs).
Effects of COVID-19 on the DRaaS Market
A survey by Mercer Business revealed that only 17% of organizations had a business continuity plan prepared for the impact of COVID-19, while 51% did not have one in place. Consequently, the adoption rate of DRaaS solutions is predicted to increase by 27% to 29% between 2019 and 2020, according to the report.
Key Takeaways from the Report
- DRaaS solutions are gaining worldwide traction due to their flexibility and cost-effective nature.
- The increasing digitization trend is anticipated to bolster market growth in the coming years.
- Among service providers, the managed service provider segment is projected to see the highest growth rate during the forecast period.
- The public cloud deployment segment is poised to dominate the market, accounting for over 49% of the global share by the end of 2020.