CLOUD BACKUP & RECOVERY SOFTWARE MARKET ANALYSIS

The global cloud backup & recovery software market size was valued at US$ 20,321 million in 2021 and is anticipated to witness a compound annual growth rate (CAGR) of 24.8% from 2022 to 2030. Increased adoption of cloud backup services to secure enterprise data is expected to boost the growth of the market. Moreover, emerging trends such as the use of artificial intelligence (AI) and big data are expected to further strengthen the market. Along with this, technological advancements are also driving the growth of the market in the developed nations.

Global Cloud Backup & Recovery Software Market: Regional Insights

Among regions, North America is projected to account for a major share in the global cloud backup & recovery software market over the forecast period. The heavy investment in research and development activities by several enterprises in the region is contributing to the creation of novel technologies. Moreover, companies across the region are also investing in advanced technologies to have strong presence in the market and enhance their business operations and this in turn is expected to offer several opportunities for vendors in the data backup and recovery market. Thus, these factors are expected to boost growth of the global cloud backup & recovery software market in the region.

Moreover, Asia Pacific is anticipated to witness substantial growth in the global cloud backup & recovery software market during the forecast period. This is owing to rise challenges for businesses across the region regarding data protection, which also includes significant rise in man-made as well as natural disaster, data volume, and cyber-threats like ransomeware. This is creating need for cloud data protection services including backup & recovery software. Furthermore, the number of global leaders expanding their business in Asia Pacific is rising. For instance, Acronis, announced the expansion of its market reach in the region. The cloud bookings of the company increased more than 200% year-over-year in 2015 and 2016.

Figure 1. Global Cloud Backup & Recovery Software Market Share (%), by Region, 2021

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Global Cloud Backup & Recovery Software Market Drivers:

Growing demand for cloud-based services in various industry verticals to propel the market pace

The cloud-based services are constantly growing in demand across several industries, as these services offer various benefits including reduction of hosting costs, rise in capacity, reduction in cost of labor & equipment, improved collaboration, more streamlined operations, and better productivity. Moreover, as the cloud acts as an ideal solution for MSEs that are not capable of affording the use of backup and recovery systems in house, the demand for cloud backup and recovery software is increasing in these organization. For instance, as per the Coherent Market Insights, in the U.S., 10% of the enterprises having more than 1,00 employees plan to invest US$ 10 million into cloud service in 2017, due to this cloud computing will account for the nearly a third of the average IT budget of the U.S. company.

Growing focus on reduction of IT expenditure to augment the market growth

The use of cloud backup & recovery enables application and infrastructure support to enterprises at a lower cost compared to on-premises solutions. These solutions help companies to reserve and pay for the amount of data required and actively used by the companies. Thus, the enterprises are cutting down their operational and capital expenditure on IT infrastructure with the adoption of cloud backup & recovery services, which in turn is expected to propel growth of the global cloud backup & recovery software market over the forecast period.

Global Cloud Backup & Recovery Software Market Opportunities:

Rise in adoption of cloud backup & recovery solutions among small and medium enterprises is expected to create several growth opportunities in the global cloud backup & recovery software market over the forecast period. As per the Salesforce website, the cost of data recovery for SMEs can be US$ 10,000 excluding the cost of man hours and downtime needed for recovering the data. Thus, getting the data back without backup and recovery solution for SMEs becomes difficult for and this further results into rise in adoption of cloud backup & recovery solutions. This in turn creates various opportunities in the global cloud backup & recovery software market.

Moreover, increase in implementation government regulations for data security is also expected to provide several business opportunities in the global cloud backup & recovery software market over the forecast period. For instance, Health Insurance Portability and Accountability act (HIPAA), founded standards for the privacy and security of healthcare-related data. The healthcare organization have to ensure that the electronic data systems in their organization adhere to the HIPAA regulations. This factor is creating growth opportunities for the players in the market.

Global Cloud Backup & Recovery Software Market Trends:

Emergence of Infrastructure as a service (IaaS) among others is a recent trend

Various trends such as on-demand cloud providers, infrastructure as a service (IaaS), demand for big data and social networking, growing adoption of smart device and tablets, among others are increasing in the global cloud backup & recovery software market. These factors are leading to generation of huge amount of data, which in turn creates a need for backup and recovery system. Thus, this in turn drives the demand for cloud backup & recovery software, which is boosting growth of the market.

Growing adoption in BFSI sector is an emerging trend

The adoption of digital backing and investment solutions is rapidly increasing in the backing industry. Due to this, the demand for cloud computing in the BFSI industry is rising, as these solutions offer better business agility and scalability to the companies in the industry. Many financial service organizations are shifting to cloud solutions for delivering innovation, security, and customization so to have a competitive edge in the market. This in turn is creating demand for cloud backup & recovery software in BFSI sector, leading to growing adoption of the solutions. This trend is likely to continue in the market over the forecast period.

Global Cloud Backup & Recovery Software Market Restraints:

Problems regarding storage management and securing backups to impede the market pace

Several organizations leave their database backup unencrypted, this is mainly due to the complexity of the procedure, which may corrupt the data and create a need for additional software licenses. Furthermore, increasing number of backups causes more challenges for storage management needing deeper understanding of databases backup needs. This further creates issues in storage management. Hence, these factors are expected to restrain growth of the global cloud backup & recovery software market.  However, with increasing technological development, market players are focusing on offering solutions that overcome these issues, and this in turn is expected to support growth of the market.

Slow reaction time in data retrieval and interruptions are to hinder the market growth

Latency in data transfer during the retrieval from the public cloud infrastructure, and prevalence of interruptions after the data is retrieved and transmitted to the location of end-user, creates hesitance among consumers towards the adoption of cloud backup & recovery software. In the data exchange between cloud services across the internet, latency can be significantly high. Such delays can lead to higher costs for users of multiple cloud services. This in turn is expected to restrain growth of the global cloud backup & recovery software market over the forecast period.

Figure 2. Global Cloud Backup & Recovery Software Market Share (%), by Deployment Model, 2021

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Global Cloud Backup & Recovery Software Market Segmentation:

The global cloud backup & recovery software market report is segmented into Deployment Model, User Type, and Industry Vertical.

Based on Deployment Model, the market is segmented into Private, Public, and Hybrid. Out of which, Private is expected to dominate the global market over the forecast period and this is attributed to the growing adoption of private cloud-based backup & recovery software among large and medium businesses. The rate of high volume of sensitive information generated such as customer information, confidential internal records, or business plans, requiring additional security by large and medium businesses, the need for cloud backup and recovery solutions is increasing.

Public segment is also expected to witness significant growth in the near future and this is owing to the several benefits of public cloud such as scalability, self-service, and others. Public cloud-based backup & recovery software is mostly paid by the hour, which allows companies to use the service as per the need. This makes it a cost-effective solution. Thus, due to such advantages, the segment will witness strong growth in the market.

Based on User Type, the market is segmented into Large Enterprises, and Small & Medium Enterprises. Out of which, Large Enterprises is expected to dominate the global market over the forecast period and this is attributed to the rise in adoption of cloud services by government agencies and public companies, which shows that security concerns regarding cloud are decreasing slowly. This in turn in driving growth of the segment.

Small & Medium Enterprises segment is also expected to witness significant growth in the near future and this is owing to the growing cases of natural disasters that cause data loss, which further creates need for backup & recovery software in small and medium enterprises. Moreover, several benefits offered by these cloud backup & recovery software are boosting their adoption in SMEs, which is driving growth of the segment.

Based on Industry Vertical, the market is segmented into BFSI, Government, Healthcare, Telecom & IT, Retail, Manufacturing, and Others. Out of which, BFSI is expected to dominate the global market over the forecast period and this is attributed to the increasing adoption of virtualized infrastructure and stringent data retention regulations by several financial institution. For instance, in December 2017, SVC Co-op. Bank (SVC Bank) tied up with Commvault for scalable and effective backup.

Healthcare segment is also expected to witness significant growth in the near future and this is owing to the increasing challenges of rise in data volume such as diagnostic images, records, and others. This creates a strong need for these companies to assess the security and privacy needs and act on implementing strict data protection. This is leading to rise in adoption of cloud backup & recovery software in this industry.

Global Cloud Backup & Recovery Software Market: Key Developments

In December 2017, Actifio announced a partnership with Cloud Distribution. The company joined Datacenter Infrastructure (DCI) portfolio of Cloud Distribution as a major, disruptive vendor partner in the space of data storage and protection.

In May 2017, CommVault announced the launch of novel VM Backup and recovery trial software for partners and customers. The launch of this product allowed the customers to create, protect, and optimize VMs throughout life cycle and migrate VMs and data to the public cloud of their choice.

In August 2017, Dell EMC partnered with VMware for delivering first data protection solution for VMware Cloud on AWS.

In February 2016, HPE completed acquisition of Trilead, who provides a backup solutions targeted exclusively on virtualized environments. The company made the new software available in three versions, the Free edition backs up, the Pro edition, the Enterprise edition.

Global Cloud Backup & Recovery Software Market: Key Companies Insights

The global cloud backup & recovery software market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis.

Some of the key players in the global cloud backup & recovery software market are Veritas Technologies Llc., Actifio Inc., Veeam Softwares, Commvault Systems Inc., Symantec Corporation, Ca Technologies, Microsoft Corporation, Dell Technologies Inc., Ibm Corporation, and Hewlett Packard Enterprise.

*Definition:

Cloud backup and recovery software is a cloud-based application which enables organizations to store and protect their business-critical information and data in a safe, remote location. This software provides a simple and efficient way to store and recover files, applications, and databases.