Disaster Recovery As A Service (DRaaS) Market Size and Share
Disaster Recovery As A Service (DRaaS) Market Analysis by Mordor Intelligence
The Disaster Recovery as a Service market stands at USD 13.7 billion in 2025 and is forecast to reach USD 24.05 billion by 2030, expanding at an 11.91% CAGR. A steep rise in ransomware, expanding regulatory mandates, and a strategic tilt toward cloud-first infrastructure are reshaping corporate continuity programs and fueling demand for cloud-native recovery offerings. Enterprises now require rapid, automated failover to keep operations running during an attack; traditional tape or disk backups no longer satisfy risk committees or boards. Growing cyber-insurance clauses that insist on tested recovery plans further tighten the link between premiums and mature DRaaS adoption. At the same time, the subscription model lowers capital outlays, enabling both large enterprises and SMEs to access enterprise-grade resilience. Vendors now compete on orchestration intelligence, multi-cloud reach, and sustainability credentials, because organizations evaluate providers on both operational and environmental performance.
Key Report Takeaways
- By service type, Fully Managed solutions held 47.20% of Disaster Recovery as a Service market share in 2024, while Self-Service options are projected to climb at a 12.40% CAGR through 2030.
- By deployment model, Public Cloud deployments led with 58.10% revenue share in 2024; Hybrid/Multi-Cloud is the fastest-growing configuration at a 14.60% CAGR to 2030.
- By service component, Backup and Recovery accounted for 38.70% of Disaster Recovery as a Service market size in 2024, whereas Orchestration and Automation is advancing at 13.40% CAGR.
- By organization size, Large Enterprises controlled 63.70% of Disaster Recovery as a Service market size in 2024; SMEs are expanding at a 15.20% CAGR through 2030.
- By end-user vertical, BFSI retained the largest share at 24.30% in 2024, and Healthcare & Life Sciences is accelerating at a 16.10% CAGR to 2030.
- By geography, North America commanded 39.80% market share in 2024, while Asia-Pacific is the fastest-growing region at 14.80% CAGR through 2030.
Global Disaster Recovery As A Service (DRaaS) Market Trends and Insights
Drivers Impact Analysis
Driver | ( ~ ) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
---|---|---|---|
Escalating ransomware and data-breach incidents | +2.8% | Global, high in North America and Europe | Short term (≤ 2 years) |
Lower TCO versus traditional DR infrastructure | +2.1% | Global, strongest in APAC and emerging markets | Medium term (2-4 years) |
Cloud-first and SaaS adoption accelerating DRaaS uptake | +1.9% | Global, led by North America and Western Europe | Medium term (2-4 years) |
Cyber-insurance compliance mandating automated fail-over testing | +1.4% | North America and Europe, expanding to APAC | Short term (≤ 2 years) |
Edge-computing roll-outs needing geo-distributed micro-recovery nodes | +1.2% | APAC core, spill-over to North America | Long term (≥ 4 years) |
“Green-DRaaS” pressures favouring renewably powered recovery sites | +0.8% | Europe and North America, early in Australia | Long term (≥ 4 years) |
Source: Mordor Intelligence
Escalating ransomware and data-breach incidents
Attackers now exfiltrate data within hours after compromise, forcing organizations to adopt immutable snapshots and isolated recovery zones that only modern DRaaS platforms supply at scale.[1]Palo Alto Networks, “2025 Unit 42 Global Incident Response Report,” paloaltonetworks.comIn 2024, 87% of IT teams experienced SaaS data loss, yet only 14% felt confident about rapid recovery. Healthcare providers embrace cloud-native recovery to stay HIPAA-compliant and safeguard patient care continuity.[2]US Signal, “DRaaS: Protecting Healthcare Data and Enabling Compliance,” ussignal.com Cyber-insurance carriers reward verified failover capabilities with premium discounts, giving CFOs a clear financial argument for DRaaS adoption.
Lower TCO versus traditional DR infrastructure
DRaaS removes capital spending on secondary sites and specialist staff, replacing them with pay-as-you-go subscriptions that align cost to use. Veeam reports that 88% of organizations plan to shift toward DRaaS within two years, ranking cost optimization as their top motivation. Subscription pricing prevents hardware obsolescence and frees IT teams to focus on transformation projects rather than hardware upkeep. SMEs find the economics especially compelling because enterprise-grade recovery becomes attainable without scale-driven investments, broadening the total addressable Disaster Recovery as a Service market.
Cloud-first and SaaS adoption accelerating DRaaS uptake
As businesses migrate complex workloads to several cloud providers, conventional DR scripts break. Eighty-seven percent of APAC IT leaders increased their cloud-storage budgets in 2023, and 93% migrated workloads from on-premises to cloud during 2022, setting the stage for multi-cloud recovery strategies.[3]Wasabi Technologies, “Asia-Pacific Leads Global Public Cloud Storage Growth in 2023,” wasabi.com Government policy reforms could lift regional GDP by up to 0.7% from 2024 to 2028, magnifying the incentive to protect cloud assets.[4]Asian Development Bank, “Cloud Computing Policies and Their Economic Impacts in Asia and the Pacific,” adb.org DRaaS platforms orchestrate workload-aware recoveries across AWS, Azure, Google, and regional sovereign clouds, meeting both performance and compliance needs.
Cyber-insurance compliance mandating automated fail-over testing
Insurers are tightening underwriting guidelines and now demand proof of automated recovery tests and documentation. Security advisory firm eSentire notes that carriers increasingly require EDR, vulnerability management, and tested business continuity plans as prerequisites for coverage. Financial institutions, already subject to operational-resilience rules, rely on DRaaS providers for audit-ready evidence that reduces premiums and accelerates claims processing.
Restraints Impact Analysis
Restraint | ( ~ ) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
---|---|---|---|
Deployment and orchestration complexity in hybrid/multi-cloud | −1.8% | Global, acute in regulated sectors | Medium term (2-4 years) |
Data-sovereignty and regulatory barriers to cross-border replication | −1.3% | Europe, APAC with localization laws | Long term (≥ 4 years) |
Provider lock-in and egress-cost uncertainty | −1.1% | Global, affects multi-cloud strategies | Medium term (2-4 years) |
Shortage of multi-cloud DR engineers and skills | −0.9% | Global, pronounced in APAC | Long term (≥ 4 years) |
Source: Mordor Intelligence
Deployment and orchestration complexity in hybrid/multi-cloud
Integrating legacy on-premises assets with several public clouds stretches internal teams and forces organizations to learn disparate APIs and security models. The US National Security Agency advises constant testing and infrastructure-as-code practices to keep hybrid recovery scripts reliable. Skills shortages drive reliance on managed DRaaS partners but also prolong sales cycles, as buyers evaluate providers for deep automation and regulatory comprehension.
Data-sovereignty and regulatory barriers
Stringent data-residency statutes restrict where backups may reside, reducing geographic dispersion and inflating provider infrastructure costs. Broadcom cautions that GDPR and HIPAA rules mandate strong encryption and local replication, complicating global failover designs. In Asia-Pacific, localization edicts add compliance layers that can delay implementation and reduce the economic edge of global hyperscale regions.
Segment Analysis
By Service Type: Managed services drive market maturity
Fully Managed offerings controlled 47.20% of Disaster Recovery as a Service market share in 2024 on the back of enterprise demand for turnkey orchestration, monitoring, and compliance reporting. Customers lean on providers for multi-cloud engineering and 24×7 recovery execution, activities that would otherwise balloon internal headcount. Self-Service options, though lean on assistance, post a 12.40% CAGR because SMEs prefer configurable portals that balance autonomy with cost. Assisted models sit between both ends, suiting mid-market firms that own some cloud skills yet still need run-book support.
Managed service momentum underscores a broader reality: resilience now spans infrastructure, applications, and regulatory proof. Vendors like HYCU, which scored a 91 NPS in 2025, showcase how service depth and customer experience trump feature parity. As a result, the Disaster Recovery as a Service market will likely witness sharper service-quality segmentation, where premium support tiers justify higher annual-recurring-revenue multiples, while commodity self-service tiers chase price-sensitive niches.
Note: Segment shares of all individual segments available upon report purchase
By Deployment Model: Hybrid architectures reshape recovery strategies
Public Cloud retains 58.10% revenue thanks to hyperscale economies and on-demand scalability, yet Hybrid/Multi-Cloud configurations command a 14.60% CAGR as firms hedge concentration risk and satisfy residency rules. Disaster Recovery as a Service market size for Hybrid deployments is forecast to expand swiftly because enterprises can replicate critical databases to a sovereign cloud while failing over less-sensitive apps to global regions. Private Cloud persists for workloads steeped in strict data classifications or requiring air-gapping.
Verizon calls hybrid flexibility the linchpin of modern continuity planning verizon. N2WS research agrees, noting that multi-cloud replication cuts vendor lock-in and improves failover granularity. However, orchestrating identical recovery time objectives across divergent clouds remains complex, opening room for tooling that abstracts cloud-native idiosyncrasies.
By Service Component: Orchestration emerges as competitive differentiator
Backup and Recovery held 38.70% of Disaster Recovery as a Service market size in 2024, reflecting its baseline necessity. Yet Orchestration and Automation is growing 13.40% annually as businesses realise that scripting failover for dozens of apps by hand is impractical. Real-time replication supplements both, meeting banking and healthcare RTO mandates that hover near zero.
VMware Cloud on AWS now protects up to 6,000 VMs per group and embeds automated health checks, illustrating how orchestration drives tangible operational gains. AI-driven run-books, highlighted by Silent Infotech, further cut manual intervention and lower incident fatigue. Competitive advantage is shifting toward providers that fuse event-driven automation with compliance dashboards in a single console.

Note: Segment shares of all individual segments available upon report purchase
By Organization Size: SME adoption accelerates through cloud economics
Large Enterprises still account for 63.70% of Disaster Recovery as a Service market size thanks to sprawling infrastructure estates and board-level scrutiny of risk. Still, SMEs register a 15.20% CAGR to 2030 because subscription pricing dissolves historical CapEx hurdles. They no longer need co-located secondary sites; a credit card and a policy template suffice.
Veeam observes that these firms jump-start ransomware recovery by delegating complexity to their DRaaS partner.[5]Veeam, “Understanding Disaster Recovery as a Service (DRaaS),” veeam.comAs uptake widens, providers refine tiered bundles that package essential SLA levels for SMEs while upselling advanced analytics once operational maturity rises.
By End-User Vertical: Healthcare leads regulatory-driven transformation
BFSI captured 24.30% of Disaster Recovery as a Service market share in 2024, capitalising on long-standing risk cultures and regulatory oversight. Nevertheless, Healthcare and Life Sciences log the fastest 16.10% CAGR as HIPAA, GDPR, and emerging patient-data acts force always-on continuity. Diagnostic imaging, telehealth, and electronic health record systems cannot afford downtime without endangering patient outcomes.
US Signal’s 2025 guide confirms healthcare buyers prize audit-ready artifacts and immutable storage.[6]US Signal, “DRaaS: Protecting Healthcare Data and Enabling Compliance,” ussignal.comSimilar momentum unfolds in public-sector agencies, which are under pressure from digital-service mandates. Manufacturers mesh DRaaS with operational-technology safety, ensuring production lines resume safely following cyber or physical disruption.
Geography Analysis
North America maintained a 39.80% share in 2024 by blending hyperscale cloud availability, mature cyber-insurance ecosystems, and prescriptive regulatory frameworks. High ransomware prevalence amplifies board-level urgency, while the Federal Cloud Operations Best Practices Guide supplies public agencies with blueprint standards. Financial institutions, in particular, tie premium discounts to demonstrable DR testing, further cementing uptake. Although the region’s Disaster Recovery as a Service market now sees price competition, rising edge deployments and ESG reporting keep demand resilient.
Asia-Pacific registers the highest 14.80% CAGR as governments champion cloud growth to spur GDP. The Asian Development Bank projects that improved cloud policies can lift regional GDP by up to 0.7% between 2024 and 2028. Singapore’s aggressive “cloud-first” posture sets policy benchmarks, while Japan and Australia impose rigorous data-sovereignty checks that shape architectural blueprints. National disaster exposure drives mandates for resilient ICT backbones, with agencies referencing ADB’s 2025 disaster-preparedness guide to integrate AI sensors and cloud-based recovery. Banks adopt DRaaS to match fintech agility, and manufacturers rely on geo-distributed failover for supply-chain assurance.
Europe balances adoption incentives and compliance roadblocks. GDPR and incoming EU Cloud Certification laws oblige in-region replication, constraining design but also triggering demand for sovereignty-aligned “intra-EU only” recovery nodes. Sustainability legislation boosts interest in “Green-DRaaS,” leveraging renewable-powered data centers to hit corporate emissions targets.[7]Google Cloud, “How to Establish a Sustainable Disaster Recovery Strategy,” cloud.google.comPublic-sector digital-service goals accelerate provider outreach, while financial entities continue to invest to satisfy the Digital Operational Resilience Act (DORA). Despite cost pressure, the imperative to preserve citizen-facing services keeps the market expanding.

Competitive Landscape
Roughly 250 providers vie for share in the Disaster Recovery as a Service market, creating a moderately fragmented arena that rewards supplier agility. AWS, Microsoft, and Google dominate infrastructure layers, but software players like Veeam, Zerto, and Acronis carve space with hypervisor-agnostic replication and air-gapped protection. Managed specialists, including US Signal and HYCU, differentiate through compliance tooling and white-glove run-book design.
Edge-centric continuity is now an innovation hotspot. European Commission research underscores the migration of compute to the edge for low-latency processing, a trend that pushes vendors to spin up micro-recovery nodes in proximity to sensors and branch sites. Providers that automate policy placement based on latency and carbon scores can capture emerging spend. Sustainability also moves up the buying checklist; EY notes that data-center operators must integrate renewable energy and dynamic load scheduling to achieve emissions targets.
Consolidation looms. Cohesity’s planned USD 3 billion purchase of Veritas’ data-protection unit signals scale imperatives for feature breadth and geographic coverage. Smaller regional players may seek niche depth in regulated verticals or partner into hyperscaler marketplaces. Over the forecast period, competitive advantage will likely pivot on cross-platform orchestration breadth, sustainability certifications, and demonstrable customer-satisfaction scores rather than on raw backup throughput alone.
Disaster Recovery As A Service (DRaaS) Industry Leaders
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iLand Internet Solutions Corporation
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Microsoft Corporation
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Recovery Point Systems Inc.
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Evolve IP LLC
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TierPoint, LLC
- *Disclaimer: Major Players sorted in no particular order

Recent Industry Developments
- May 2025: XenTegra launched a cloud-native DRaaS product featuring advanced failover orchestration and non-disruptive testing, aimed at VMware-Broadcom customers migrating to Nutanix platforms
- April 2025: HYCU achieved leadership status across 101 G2 Spring 2025 reports with a Net Promoter Score of 91.
- March 2025: Asian Development Bank projected that stronger cloud-policy frameworks could add up to 0.7% to Asia-Pacific GDP by 2028
- January 2025: US Signal released a healthcare DRaaS compliance guide covering HIPAA and GDPR mandates.
Global Disaster Recovery As A Service (DRaaS) Market Report Scope
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 (North America, Europe, Asia-Pacific).
The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.
By Service Type | Fully Managed | ||
Assisted | |||
Self-Service | |||
By Deployment Model | Public Cloud | ||
Private Cloud | |||
Hybrid/Multi-Cloud | |||
By Service Component | Backup and Recovery | ||
Real-time Replication | |||
Orchestration and Automation | |||
Data Security and Compliance | |||
By Organization Size | Large Enterprises | ||
Small and Medium Enterprises | |||
By End-user Vertical | BFSI | ||
IT and Telecom | |||
Government and Public Sector | |||
Healthcare and Life Sciences | |||
Manufacturing | |||
Retail and E-commerce | |||
Media and Entertainment | |||
Others | |||
By Geography | North America | United States | |
Canada | |||
Mexico | |||
South America | Brazil | ||
Rest of South America | |||
Europe | Germany | ||
United Kingdom | |||
France | |||
Russia | |||
Rest of Europe | |||
Asia-Pacific | China | ||
Japan | |||
South Korea | |||
India | |||
South East Asia | |||
Rest of Asia-Pacific | |||
Middle East and Africa | Middle East | ||
Africa |
Fully Managed |
Assisted |
Self-Service |
Public Cloud |
Private Cloud |
Hybrid/Multi-Cloud |
Backup and Recovery |
Real-time Replication |
Orchestration and Automation |
Data Security and Compliance |
Large Enterprises |
Small and Medium Enterprises |
BFSI |
IT and Telecom |
Government and Public Sector |
Healthcare and Life Sciences |
Manufacturing |
Retail and E-commerce |
Media and Entertainment |
Others |
North America | United States |
Canada | |
Mexico | |
South America | Brazil |
Rest of South America | |
Europe | Germany |
United Kingdom | |
France | |
Russia | |
Rest of Europe | |
Asia-Pacific | China |
Japan | |
South Korea | |
India | |
South East Asia | |
Rest of Asia-Pacific | |
Middle East and Africa | Middle East |
Africa |
Key Questions Answered in the Report
What is the projected Disaster Recovery as a Service market size for 2030?
The market is forecast to reach USD 24.05 billion by 2030, reflecting an 11.91% CAGR from 2025.
Which region is expected to grow the fastest?
Asia-Pacific leads growth with a 14.80% CAGR, driven by cloud-first government policies and heightened disaster-preparedness needs.
Why are fully managed DRaaS solutions so popular?
Enterprises prefer turnkey offerings that include monitoring, testing, and compliance documentation, which reduces internal staffing needs and speeds audits.
How do data-sovereignty rules influence DRaaS adoption?
Localization laws require in-country replication and restrict cross-border failover, shaping architectural choices and sometimes raising costs.
What role does cyber-insurance play in DRaaS demand?
Many insurers now mandate automated disaster-recovery testing, pushing organizations toward DRaaS platforms that supply audit-ready evidence and lower premiums.
Page last updated on: June 18, 2025