Global Disaster Recovery as a Service (DRaaS) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Market Overview

The Disaster Recovery as a Service (DRaaS) Market has registered a CAGR of 12% over the forecast period 2021 - 2026. The pandemic was marked with nationwide lockdown across the world, with companies being forced to be pushed to work remotely. The increased dependency on the security of data measures was brought to light by several data breaches and an increase in cyberattacks. Furthermore, ransomware attacks have increased significantly during the pandemic, which has underlined the need for disaster recovery solutions to prevent downtime of systems that could result in severe losses for organizations.

• According to VMWare, in a 2020 analyst survey, 76% of respondents reported an incident during the past two years that required an IT Disaster Recovery (DR) plan, while more than 50% reported at least two incidents. At the same time, cyberattacks are on the rise, increasing business risk. In 2019, 52% of global enterprise network security decision-makers experienced at least one sensitive data breach in the12 months. And in September 2020, security researchers reported a seven-fold year-on-year increase in ransomware reports, thus, increasing the traction of disaster recovery solutions.
• The combination of decreasing IT budgets and headcount and the increasing complexity of IT infrastructure and most corporate computing environments include SaaS applications, cloud workloads, mobile workers, and vastly increasing volumes of data to protect and result in data losses and downtime. Growth in using the cloud for long-term storage or also archiving increased dramatically over the past few years. Compliance mandates and state / federal regulations require certain data records to be kept for periods between five years and perpetuity.
• The players in the market are expected to increase market capture and reduce customer friction by offering enhanced onboarding options and additional capabilities in support of various recovery targets, platforms supported (i.e., beyond VMware and physical x86), and multinational support and bolster DRaaS solutions with built-in add-ons like automated recovery testing and change management assurance.
• The DRaaS market consists of multiple players, each with varying abilities to support requirements. These can relate to workload types, geographies, scale, onboarding, and ongoing support levels, the number of recovery point objective (RPO) and recovery time objective (RTO) options, and target recovery locations. The provider may deliver services as a fully managed, assisted-recovery, or self-service offering.
• On the other hand, customers may face problems if they are unaware of what they have in their data centers. They must be aware of their various IT assets and how their criticality translates into the service tiers of a DRaaS provider. The service provider's replication method will generally give different recovery periods at other price points. The most costly tier may offer workload recovery in seconds or minutes. In contrast, the mid-tier may offer a 4-to-8-hour enterprise workload recovery time, and the least expensive tier may offer a 24-to-48-hour recovery.

Scope of the Report

The disaster recovery as a service (DRaaS) market provides for the recovery of enterprise applications at another location in the event of a disaster. The provider can deliver the service as a fully-managed, assisted recovery or self-service offering.

The agility of disaster recovery in the cloud affords businesses a geographically diverse location to failover operations and run as close to normal as possible following a disruptive event.

The Disaster Recovery as a Service (DRaaS) Market is segmented by End-user Vertical (BFSI, IT, Government, and Healthcare) and Geography.

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Key Market Trends

BFSI is One of the Significant Factor Driving the Market

• BFSI sector is poised to significantly adopt DRaaS solutions because financial institutions such as commercial banks and credit unions build their reputations around an ability to provide consistent and uninterrupted service to their customers. Any system downtime could damage these reputations and potentially lead to lost customers. The usage of DRaaS solutions could provide instant recovery of data, applications, and systems.
• Critical sectors, like banking, are expected to adopt cloud-based deployment of services increasingly. This is due to the IT sector's continuing quest for optimized infrastructure and the ability of solution builders to source application and infrastructure components from multiple providers to construct a hybrid cloud-based solution, thereby augmenting the studied market growth.
• Most financial institution-specific cloud recovery vendors will inspect and upgrade their cloud infrastructure to ensure compliance, auditing, and financial sector standards are met. These regulatory modifications benefit smaller institutions that lack the resources to commit employee time to meet compliance criteria.
• With the aim to secure their IT processes and systems, secure customer critical data, and comply with government regulations, both private and public organizations are increasingly focused on implementing the latest technologies to prevent cyber attacks. Also, with greater customer expectations, growing technological capabilities, and regulatory requirements, banking institutions are being pushed to adopt a proactive approach to security.
• Some of the most common malware attacks that the banking industry faces include signature-less and file-less malware, which does not behave like other malicious programs but can instead exploit native processes to hide their activities.

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