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Disaster Recovery as a Service (DRaaS) Market Advancements to Watch Out For 2026

Disaster Recovery as a service (DRaaS) market refers to replication or hosting of virtual or physical servers to a third party business location, which either includes backup appliances or cloud, for enabling data and information recovery in case of any natural or manmade calamity. Significant number of advantages over the conventional disaster recovery, such as elimination of downtime, reduction in IT costs and resources is expected to present major traction to the industry growth.
Requirement to fix first and run later is eliminated owing to adoption DRaaS, is expected to prominent factor propelling the market growth
Mitigation and preparedness in emergence of a calamity is of significant importance, as corporate data is considered as high value asset in this data driven world. According to our research findings, digital information accounts for over 50% of the company’s total business value exceeding the software and IT infrastructure costs. Loss of consumer information, company and brand reputation, additional data recovery and other IT costs, and long business downtimes are among the major factors that can negatively impact the business propagation. Capacity of DRaaS to overcome these drawbacks is anticipated to be the major factor that will contribute to the disaster recovery as a service market growth. Moreover, owing to the cloud operations, these offerings provide smooth functioning of businesses through virtualization of the whole infrastructure. This enables the concept of run first and fix later capability for business functioning, which will continue to be the major growth factor over the forecast period.
Advancements to enable full data recovery in least time requirements is expected to provide considerable boost to the industry growth
According to Coherent Market Insights research findings, hardware failures, software or upgrade installation, power loss or interruption, and accidental data deletion are among the major reasons leading to loss of data. Ability of the solutions to provide 100% recovery in matter of hours in such circumstances is expected to boost the adoption over the forecast period. Moreover, other attributes of these DRaaS include application recovery, ability to run IT systems through cloud, high resilience and security, and adherence to Sarbanes-Oxley Act (SOX), Health Insurance Portability and Accountability Act (HIPAA), and Payment Card Industry Data Security Standard (PCI DSS) regulations have led to increased end use participants inclinations towards these solutions. Owing to increasing adoption, it is anticipated that these disaster recovery as a service market segment will evolve as part of the sustainable platform over the forecast years.
Growing security concerns and compliance requirements are expected to present major growth challenge to the industry participants
Increasing threats from malwares and data hacking incidences are expected to consistently challenge the overall IT infrastructure developments through the forecast period. Industry participants are increasingly required to meet the distinct regional regulatory requirements and international standards such as BCI standards, HITECH, PCI, and SOC2 among many others. Moreover, flow of data across international borders have to meet with several compliance obligations and restrictions. This is expected to present major growth challenge over the forecast period.
U.S. held the largest disaster recovery as a service market share in 2016, is expected to continue its dominance over the next few years owing to high adoptions and presence of reliable and chief industry participants in the region. Owing to considerable business demands in Asia Pacific, that specifically include countries as China, India, Japan and Singapore, the region is expected to witness growth over 30% CAGR during the forecast period.
Chief industry participants include Acronis International, Amazon Web Services, Cisco Systems, Microsoft Corporation, IBM Corporation, Sungard Availability Services, VMWare, Hewlett Packard Enterprise, iland Internet Solutions, and NTT Communications Corporation, among few others. Collaboration and business expansion is expected to be the part of major strategic initiatives adopted by the industry participants. For instance, in June 2017, iland introduced secure cloud services from a new location in Amsterdam to enhance its offerings for end users.

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