Chicago, July 31, 2025 (GLOBE NEWSWIRE) -- The global disaster recovery as a service market was valued at US$ 13.86 billion in 2024 and is expected to reach US$ 107.50 billion by 2033, growing at a CAGR of 25.56% during the forecast period 2025–2033.
The global market is witnessing a seismic shift towards resilience, catapulting the demand for robust business continuity solutions. At the forefront of this transformation is Disaster Recovery as a Service, a model transitioning from a niche IT consideration to an indispensable pillar of modern enterprise strategy. The confluence of relentless cyber warfare, exponential data growth, stringent regulatory oversight, and the persistent threat of natural disasters has created a perfect storm, compelling organizations worldwide to rethink their approach to operational resilience.
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The current disaster recovery as a service market is defined by aggressive consolidation and strategic investment in response to relentless cyber threats. The landscape is intensely dynamic, with major players like Cohesity acquiring Veritas's data protection arm and Veeam buying Coveware in 2025 to create end-to-end resilience platforms. This is fueled by massive capital injections, such as Acronis's $250 million funding and Microsoft's $3 billion UK cloud expansion. The focus has decisively shifted from basic backup to intelligent, AI-powered recovery solutions that are integrated into broader security frameworks, making DRaaS an indispensable component of modern enterprise strategy.
Key Findings in Disaster Recovery as a Service Market
| Market Forecast (2033) | US$ 107.50 billion |
| CAGR | 25.56% |
| Largest Region (2024) | North America (35%) |
| By Service Type | Recovery & Backup Services (46%) |
| By Deployment | Public Cloud (67%) |
| By End-use | BFSI (24%) |
| Top Drivers |
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| Top Trends |
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| Top Challenges |
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The Escalating Cyber Threat Landscape Forcing Urgent Adoption of Robust DRaaS
The primary catalyst compelling investment in modern resilience solutions across the disaster recovery as a service market is the escalating and financially ruinous cyber threat landscape. In 2024 alone, there were 5,635 publicly reported ransomware attacks, a figure that underscores the pervasive nature of this digital pandemic. The frequency is breathtaking; a business was targeted by ransomware every 11 seconds in 2023, a trend that has carried its menacing momentum into 2024. The financial demands are equally staggering, with the average ransom demand in the first half of 2024 surging to over $5.2 million and the median payment reaching $1.5 million by June 2024. High-profile incidents grab headlines, such as the largest recorded payment of approximately $75 million to the Dark Angels group in 2024, contributing to total ransomware payments of $459.8 million in the first half of the year.
This assault extends to the very foundation of recovery, with hackers targeting backup repositories in 93% of incidents. The sheer volume of compromised data highlights the urgent need for a sophisticated disaster recovery as a service strategy. The U.S. disaster recovery as a service market alone saw 3,158 reported data compromises in 2024, with a shocking 1.73 billion individuals notified of breaches. This included 6 megabreaches, each involving at least 100 million notifications. Globally, the numbers are even more dire, with over 5.5 billion accounts compromised in 2024—equivalent to 180 accounts every second. The National Public Data breach in 2024 alone exposed a colossal 2.9 billion records, making it clear that traditional, on-premises recovery solutions are no longer sufficient.
The Astronomical and Intolerable Financial Repercussions of Inadequate Business Continuity Plans
The direct and indirect costs associated with data breaches and downtime serve as a powerful economic driver for the adoption of comprehensive recovery solutions, giving a boost to the disaster recovery as a service market growth. The global average cost of a single data breach reached a new high of $4.88 million in 2024. For businesses operating in the United States, this figure is nearly double, averaging an alarming $9.36 million. The hidden vulnerabilities of modern IT are also costly, with breaches involving shadow data averaging $5.27 million. When breaches scale, the costs become catastrophic; a mega-breach of 50 to 60 million records now carries an average price tag of $375 million.
Beyond the immediate costs of remediation, the damage to reputation and loss of revenue averaged $1.47 million per incident in 2024. The nature of the attack heavily influences the financial toll in the disaster recovery as a service market. Destructive data attacks proved most expensive, averaging $5.68 million, while data exfiltration attacks averaged $5.21 million. Even ransomware attacks, separate from the ransom itself, cost businesses an average of $4.91 million in recovery and downtime. These costs vary significantly by industry, with healthcare leading at an average of $9.77 million per breach, followed by financial services at $5.97 million and the technology sector at $5.45 million. The pharmaceutical and energy sectors also reported breach costs well above the global average, illustrating that no industry is immune and that investing in disaster recovery as a service is a sound financial decision.
Exposing Critical Failures in Traditional Recovery and Outdated Testing Methodologies
A significant factor fueling the shift towards managed services is the demonstrable failure of legacy disaster recovery methods and infrequent testing protocols in the disaster recovery as a service market. A sobering 2024 report revealed that 64% of IT leaders admitted their organizations had failed recovery tests, exposing a dangerous gap between perceived and actual readiness. Further highlighting this inadequacy, only 58% of servers met their designated recovery Service Level Agreements (SLAs) during their last major recovery drill in 2024. The consequences of these failures are severe; the average downtime a company endures following a ransomware attack is 24 days. Full recovery from a data breach often takes much longer, with a majority of organizations in 2024 reporting it took more than 100 days. The initial response is also lagging, with the average time to simply identify a breach standing at 258 days, followed by another 84 days to contain it.
These delays in the disaster recovery as a service market are often rooted in a lack of preparation. A 2024 survey showed that a mere 5% of IT professionals test their disaster recovery plans monthly, while one in five (20%) confess to testing just once a year or even less frequently. Furthermore, most organizations only update their recovery documentation annually, and in 2024, only 13% utilized orchestrated workflows. This evidence paints a clear picture: internal DR management is often flawed and unreliable, making a professionally managed disaster recovery as a service solution a critical upgrade.
The Unrelenting Data Deluge Creating Complex New Challenges for Modern Enterprises
The sheer volume of data being created, processed, and stored globally presents a monumental challenge for disaster recovery as a service market. In 2024, the world generated an estimated 149 zettabytes of data, a figure projected to climb to 181 zettabytes by the end of 2025. This equates to approximately 402.74 million terabytes of new data being created every single day in 2024. With the total amount of stored data doubling roughly every four years, the infrastructure required to protect it must be exceptionally scalable and robust. This data explosion renders traditional, fixed-capacity DR solutions obsolete and economically unviable.
The physical infrastructure supporting this data is also expanding rapidly. The top 10 largest data center providers now operate over 1,250 facilities worldwide. Individual providers illustrate this scale: Flexential operates 41 data centers in the U.S. as of 2024, Acronis boasts over 52 globally, and Databank manages over 65 facilities. This massive, distributed infrastructure requires an equally sophisticated and flexible disaster recovery as a service model that can scale on demand, protect data across diverse environments, and ensure availability regardless of data volume or location. The era of the zettabyte demands a new paradigm in data protection.
Strict Regulatory Mandates and Severe Non-Compliance Penalties Driving DRaaS Investment
A powerful external force compelling organizations in the disaster recovery as a service market to prioritize resilience is the expanding web of data privacy regulations and the severe financial penalties for non-compliance. As of 2024, 14 of the 50 U.S. states have enacted their own data privacy regulations, with over 18 states in total having passed comprehensive privacy laws. The regulatory landscape is constantly evolving, with three new laws taking effect on July 1, 2024, in Texas, Florida, and Oregon, and Montana's Consumer Data Privacy Act set to activate on October 1, 2024. In Europe, the Digital Operational Resilience Act (DORA) will come into full effect on January 17, 2025, imposing strict disaster recovery planning mandates on all financial institutions. These regulations often include specific requirements for data backup and recoverability.
The cost of ignoring these mandates is punitive in the disaster recovery as a service market. The average cost of non-compliance with data regulations was projected to be $14.82 million in 2025. The fines are already substantial, with the average GDPR penalty in 2024 standing at €2.8 million. Major corporations have faced massive penalties, including Google paying over $500 million in GDPR fines since 2019, Meta reaching a $1.4 billion settlement in Texas in 2024 for unlawful biometric data capture, LinkedIn being fined $336 million, and T-Mobile agreeing to a $15.75 million settlement. These figures demonstrate that investing in a compliant disaster recovery as a service solution is far more cost-effective than facing regulatory action.
Unpacking High-Stakes Vulnerabilities and Urgent DRaaS Needs Across Key Verticals
While the need for robust recovery is universal, certain industries are facing uniquely intense pressures. The healthcare sector remains a prime target, suffering 725 large data breaches (involving 500+ records) in 2024 alone. These incidents in the disaster recovery as a service market compromised an astounding 275 million healthcare records in the U.S., with the average breach affecting 141,223 records. The scale is immense, with 14 separate healthcare breaches in 2024 each impacting over 1 million records. The colossal Change Healthcare breach affected an estimated 190 million individuals, while a 2024 survey confirmed that 92% of healthcare organizations were hit by at least one cyberattack in the past year.
The financial services sector is also under constant siege in the disaster recovery as a service market, experiencing cyberattacks 300 times more frequently than other industries in 2024. High-profile incidents like the breach at FBCS, a debt collection agency, exposed the data of 4.2 million people in February 2024, while a breach at USAA compromised the sensitive data of 32,000 customers. For these high-stakes industries, where data integrity and availability are paramount, a specialized disaster recovery as a service solution is not just a matter of compliance, but a core component of operational viability and customer trust.
How Natural Disasters and Geopolitical Risks Amplify Global DRaaS Market Demand
Beyond the digital realm, physical threats continue to be a potent driver for off-site data protection in the disaster recovery as a service market. In January 2024 alone, the United States experienced 8,504 earthquakes, a stark reminder of the vulnerability of centralized, on-premises infrastructure. This threat is global, with India recording 54 earthquakes in 2024, prompting the government to launch a National Disaster Recovery Framework. A powerful 7.1 magnitude earthquake in Kyushu, Japan, on August 8, 2024, and 2,794 earthquakes in Germany during 2024 have similarly accelerated investments in resilient infrastructure. In response, governments are taking action; in the Philippines, 153 local governments have prepared recovery plans using a digital application as of 2024, with over 2,300 officials trained in risk-informed recovery planning.
The channel partners facilitating recovery solutions are also seeing this demand firsthand. A 2024 survey of 72,505 people working for Managed Service Providers (MSPs) found that disaster recovery planning was the biggest challenge for 90.9% of them. A separate survey found 88% of organizations are already using or planning to procure a disaster recovery as a service solution from a cloud provider. Even small businesses are recognizing the need, with 902 new small businesses joining the Readiness for Resiliency (R4R) Program and over 3,600 completing its preparedness checklist since June 2022.
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Closing Critical Preparedness Gaps with Innovation in Disaster Recovery as a Service
A final, crucial driver for the disaster recovery as a service market is the persistent gap in internal preparedness and resources within many organizations. A 2024 survey found that 28% of American employees believe their companies are unprepared for a disruption, a sentiment supported by the finding that 24% of their organizations lack a written emergency plan. This lack of planning is a global issue, with 18% of workers worldwide reporting their company has no written plan. Training is also deficient; more than one in five American employees receive no emergency preparedness training, and 29% cite inadequate staff training as their company's "Achilles' heel." This is compounded by a skills shortage, with a projected 47% of IT leaders and data protection specialists planning to change jobs by the end of 2024, creating a significant knowledge drain.
This is where innovation in disaster recovery as a service provides a compelling solution. Over two-thirds of enterprises in the disaster recovery as a service market now believe that AI will transform both the design and execution of their recovery plans. MSPs agree, with 34.7% seeing new cybersecurity features and 23.2% seeing AI and machine learning as the future of the market. Leading providers are already embedding these technologies to automate recovery, as seen with the 2024 launch of ePlus Azure Recover, which offers fully managed DRaaS with automated testing. This fusion of managed expertise and intelligent automation is precisely what organizations need to close their preparedness gaps and face the future with confidence.
Disaster Recovery As a Service Market Major Players:
- Acronis International GmbH
- Amazon Web Services, Inc.
- Dell Technologies, Inc
- IBM Corporation
- Infrascale, Inc.
- InterVision Systems, LLC
- Microsoft Corporation
- NTT Communications Corporation
- Recovery Point Systems, Inc.
- TierPoint, LLC
- VMware, Inc.
- Unitrends
- 11:11 Systems, Inc.
- Zerto
Key Market Segmentation:
By Service Type
- Recovery & Backup Services
- Data Service Protection
- Real-time Replication Services
- Professional Services
By Deployment
- Public Cloud
- Private Cloud
- Hybrid Cloud
By End-use
- BFSI
- IT & Telecommunication
- Retail & Consumer Goods
- Healthcare
- Government
- Others
By Region
- North America
- Europe
- Asia Pacific
- Middle East
- Africa
- South America
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