Disaster Recovery As A Service Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Global Disaster Recovery As A Service (DRaaS) Market Trends and Insights

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.com}In 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.

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.com}As 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.com}Similar 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.com}Public-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.