Backup & Disaster Recovery Appliance Market - Forecast(2023 - 2028)
Backup and Disaster Recovery Appliance Market Overview
The global Backup & Disaster Recovery Appliance Market size is forecast to reach US$34.35 billion by 2027, growing at a CAGR of 30.2% from 2022 to 2027. Data back-up refers to taking copies of data generated at fixed intervals or in real-time. The backup can be done using storage devices or cloud. While disaster recovery is an end to end solution when a disaster strikes, it not only covers the aspect of data recovery from the backed up data but also ensures that production is restored. Backup and disaster recovery appliances are used to store important data in case of disaster of hardware of software failure. These appliances are based upon network attached storage and works by replicating the files and the operating systems. It finds its application in various sectors like BFSI, education, retail, manufacturing, healthcare, government and many others. The global rise in demand for Internet of Things (IoT) has resulted into the development of smart appliances acting as storage drive which are capable of storing essential data in cloud servers, typically hybrid IT. However, the data stored is vulnerable to cyber attacks which can be an inhibitor for the growth of this market. Hence, the data security is of utmost importance.
Backup & Disaster Recovery Appliance Market Report Coverage
The report: “Backup & Disaster Recovery Appliance Industry Outlook– Forecast (2022-2027)”, by IndustryARC covers an in-depth analysis of the following segments of the backup and disaster recovery appliance industry.
- The market segmented on the basis of deployment has hybrid cloud as the largest share of 55% in Backup & Disaster Recovery Appliance Market size in 2021 and is projected to grow owing to distributed backup and its benefits.
- The Data replication prevention segment accounted for the rapid growth at a CAGR of 8.8% over the forecast period during 2022-2027 and holds the largest global Backup & Disaster Recovery Appliance Market share owing to the increasing demand for cyber security and safeguarding the data with the organizations without significant loss.
- North America held the largest market share of 40% in 2021 and is expected to hold the largest share in terms of revenue, accounting for US$ 13.7 billion by 2027 owing to settlement of Silicon Valley in USA consisting of key players of Backup & Disaster Recovery Appliance Market having potential for high capital investment to develop these technologies.
- The ever increasing risks of malicious cyber attacks and ransomwares, risks of corrupt hardware and increasing big data, all these factors drives the global Backup & Disaster Recovery Appliance Market.
Backup & Disaster Recovery Appliance Market Segment Analysis- By Deployment
The Backup & Disaster Recovery Appliance Market by deployment is segmented into on-premise, hybrid cloud, public cloud and private cloud. The hybrid cloud segment held the largest share in the Backup & Disaster Recovery Appliance Market and is expected to grow at the fastest rate over the forecast period 2022- 2027. This is primarily due to the fact that deployment of disaster recovery solutions via hybrid cloud enables users to utilize on-premise software and hardware appliances, along with recovery services in the cloud...Cloud suppliers now directly support on-premise IT with cloud-like features, through technology such as AWS Outposts or Azure Stack. In November 2021, Cloud Volumes ONTAP which is NetApp’s cloud and hybrid data management platform worked for an American EDA giant company which needed a cloud storage solution for ever-increasing complexity of semiconductor uses of cloud. With Cloud Volumes ONTAP on AWS, the company was able to - ensure data availability across multiple environments with less data replications while reducing their overall data footprint by 90% by using NetApp Flex Cache, move 100-150 PB of storage to Cloud Volumes ONTAP for scalable and use on-demand with seamless support of a fully hybrid cloud infrastructure and reduced costs. Thus, hybrid cloud deployment is in greater demand as it allows the users to use combination of cloud servers and dedicated hosting infrastructure appliances to significantly reduce costs related to the large installations.
Backup & Disaster Recovery Appliance Market Segment Analysis- By Application
The Backup & Disaster Recovery Appliance Market by applications is segmented into backup & recovery, data security, data replication, professional service and others. Data replication is an essential piece of disaster recovery planning for organizations. By replicating data sets to an off-site location, organizations can easily recover data after catastrophic events like outages, natural disasters, human error or cyber attack. Data replications the largest and fastest growing segment in the application of backup and disaster recovery appliance industry. In Feb 2022, as per CXOtoday news desk, Mahindra Group selected the Veeam Universal License to enable the organization to scale the backup infrastructure. It uses Veeam Backup and Replication to back up over 1,000 virtual machines. Veeam’s deliverables helped to improve compression ratios by 30% with enhanced reliability, while also helping to unlock additional savings and optimized the cost of our backup activities by 55%. In conclusion, data replication is very essential to improve and optimize server performance to access data faster and makes it easy to backup or recover data.
Backup & Disaster Recovery Appliance Market Segment Analysis- By Geography
The Backup & Disaster Recovery Appliance Market by geography is segmented intoNorth America, Europe, Asia-Pacific (APAC), South America andrest of the world (RoW). North America is expected to hold the largest share in terms of revenue, accounting for US$13.7 billion and accounts for 40% of the market size in 2021, which is analysed to have significant growth during the forecast period 2022-2027. Factors including increasing cyber security risks, surge in big data, high capital investments, access to high end technologies with skilled professionals and so on have attributed to the market growth. The risk in cyber attacks at an alarming rate has accelerates the adoption of backup and recovery appliances. The increasing big data demanding more storage space both in cloud and servers has also contributed to the growth of this market. In addition, North America being the home to Silicon Valley with the topmost market players which will drive this industry and its technology.
Backup & Disaster Recovery Appliance Market Drivers
The growth of big data and rising threats of cyber attacks enhances the need to have backup and recovery of the data.
Global organizations functioning across the globe use technologies like cloud computing and IoT. Eventually, the onset of pandemic accelerated the need of remote working and data management which in turn increased the scope of cyberattacks and ransomwares to hack into the data of organizations. This can potentially cause a huge financial loss for companies and loss of critical information can be misused in the future. In 2021, according to IBM Data Breach Report, the average total cost of a breach in 2021 was $4.24 million. According to the report, the average per-record cost of a breach led to 10.3% increase from 2020 to 2021. In 2022, IBM Security X-Force report observed a 33% increase in attacks caused by vulnerability exploitation of unpatched software. In 2019, according to a report by Forbes, 95% of businesses cite the need to manage unstructured data as a problem for their business. In order to avoid the losses caused by such cyberattacks and to increase the efficiency managing the big data, companies are increasing adopting disaster recovery appliances and services which assist in driving the market.
The risk of hardware corruption and its uncertain lifetime generates need of a backup and recovery system and appliances.
The failure of hardware devices cannot be predicted and so it is essential to take backup of critical documents on a real time basis. The average server lifetime is 5 to 8 years whereas hard disks lasts for 3 to 5 years and rest of the storage devices also account for certain number of years. Also the ever increasing data with the organizations creates need for backup and recovery for this data.In some cases, hardware parts such as HHDs (hard disk drives) or SSDs (Solid State Drives) might simply fail due to manufacturing errors or other failures within the production process. While the device can be replaced with the help of the warranty, data located inside might be lost forever. Natural hardware failures are not the only ones that might result in permanent data loss. In some cases, components might be mishandled – dropped on the floor, stored in incorrect conditions, and much more. In 2020, as per the article by Unitrends, hardware failures account for more than 40% of the reasons why permanent data loss occurs.
Backup & Disaster Recovery Appliance Market Challenges
It requires a strong and stable internet connectivity to utilize backup and disaster recovery appliances and services.
The biggest influence on speed is the speed of network connection to the cloud storage provider. For most on-premise situations, that is limited by the speed of the service provided by the Internet Service Provider. Only a secure, fast bandwidth can ensure that your data is reliably traveling and is getting recovered. The majority of Backup-as-a-Service (BaaS) and Disaster Recovery-as-a-Service (DRaaS) providers rely on the public internet for connectivity. Even though the internet is more secured than the past, the risk of getting hacked still persists. Any confidential or protected data in transit to the cloud or back will require encryption, which adds overhead and increases latency. The operation of these appliances requires strong and stable internet connectivity which is lacking in the developing nations for smooth operation of the technology. The companies may need to take up the extra expenditure to set up local networks with fast internet speeds across all the physical locations across the globe in the developing countries.
Backup & Disaster Recovery Appliance Market Landscape
Product launches, acquisitions, and R&D activities are key strategies adopted by players in the backup and disaster recovery appliance industry. The Backup & Disaster Recovery Appliance Market top 10 companies include:
- Google LLC
- VMware, Inc.
- Oracle Corporation
- Veritas Technologies LLC
- Hewlett Packard Enterprise
- Unitrends Inc.
- Acronis International GmbH
- Cisco Systems, Inc.
- Dell EMC Corporation
- In March 2022, Managed services provider Magna5, backed by NewSpring Capital, has acquired TCG Network Services (TCG), a Boston, Massachusetts-based managed IT and cyber security services provider. This acquisition further strengthens Magna5’s practice in cyber security, data recovery and cloud services in the lower middle market and helps in accessing and expanding its reach
- In March 2022, Huawei unveils the Disaster Recovery & Backup Service Solution to help customers achieve high reliability and strong resilience and ensure service migration to the cloud. Huawei DR & Backup solution provides multiple DR solutions to meet regulatory requirements of different industries, shorten customer construction period, and improve switchover efficiency
- In Feb 2022, Druva expanded its SaaS data protection portfolio to include Amazon’s EC2 with combined snapshot, backup, and disaster recovery capabilities. This service provides secure, air-gapped backups to protect against ransomware with a 50 % lower TCO (total cost of ownership) than Amazon’s services.
- In Feb 2022, Wanclouds’ Disaster Recovery as a Service (RaaS) and Multi-Cloud Migration Debuts on the IBM Cloud Marketplace. This solution will allow business professionals to deploy new services faster, developers to build them with greater speed and offer IT departments more creative, efficient and lower-cost ways to deliver
- In July 2021, Hewlett Packard Enterprise (HPE) has agreed to acquire cloud data management and data protection provider Zerto for $374 million in cash. The acquisition is further proof that the data protection as a service market is growing rapidly.
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