Disaster Recovery Market to Hit $60.4 Billion by 2031 Driven by Cyber Threats
Global, Friday, 4 July 2025.
The disaster recovery-as-a-service industry is growing at a 23.9% CAGR due to increased cyber-attacks and demand for data protection, poised to reach a valuation of USD 60.4 billion by 2031.
Drivers of Market Growth
The growth of the Disaster Recovery-as-a-Service (DRaaS) market is driven by several critical factors, including rising cyber-attacks and power outages, which have heightened the need for robust data protection and recovery solutions. Organizations today are deeply concerned about maintaining business continuity in the face of increasing threats, thereby driving demand for effective disaster recovery solutions. Furthermore, the flexibility and cost-effectiveness of DRaaS solutions are propelling market growth outcomes, as seen during the COVID-19 pandemic when lockdowns facilitated increased internet penetration and adoption of cloud-based solutions [1].
Economic Impact and Projections
The substantial market expansion carries profound implications for the global economy, as it promises to enhance data resilience across various sectors. By 2031, the DRaaS market is projected to attain a valuation of USD 60.4 billion, propelled by an impressive compound annual growth rate (CAGR) of 23.9% from 2022 [1]. This industry growth is not only indicative of technological advancement but also reflective of a broader transformation within IT and data management sectors, emphasizing cloud solutions’ critical influence on contemporary business infrastructure [1][2].
Regional Market Dynamics
Regionally, the North America sector held a dominant market share in 2021, underscoring its established infrastructure and prioritization of data security. However, the Asia-Pacific region is anticipated to witness the fastest growth, with a projected CAGR of 24.7% during the forecast period. Countries within this region are increasing investments in high availability systems as part of broader digital transformation initiatives, thereby bolstering the demand for DRaaS solutions [1][2].
Future Outlook
Looking forward, technological advancements in Artificial Intelligence (AI), Machine Learning (ML), and IoT integration are projected to further enhance the system performance and overall security of DRaaS offerings. These advancements are expected to continue driving market expansion, with key sectors including healthcare, BFSI, and IT experiencing heightened demand for data protection solutions amidst evolving regulatory frameworks [2]. As organizations prioritize resilience and quick recovery from disruptions, the DRaaS market is poised to play an integral role in shaping the future of business continuity and data management strategies [3].