Cloud Backup and Recovery Solutions Market Size, Share, Growth, Report 2025 to 2034

Cloud Backup and Recovery Solutions Market Size and Growth 2025 to 2034

The global cloud backup and recovery solutions market size was valued at USD 9.73 billion in 2024 and is expected to be worth around USD 78.13 billion by 2034, registering a compound annual growth rate (CAGR) of 23.16% over the forecast period from 2025 to 2034.

Report Highlights

• By Region, the North America held the largest share of around 38% in 2024.
• Asia Pacific will grow at the fastest rate during the forecast period. Whereas India holds major potential in the industry to expand. 
• By component, the solutions segment led the market in 2024 and accounted revenue share of 60%.
• By deployment mode, the public cloud segment dominated the market in 2024 (46%). Hybrid cloud holds potential to grow at the fastest.
• By service type, the incremental backup segment held the largest share of 53% the market in 2024.
• By end-use industry, the BFSI segment dominated the market with revenue share of 26% in 2024. 
• By end-use industry, the healthcare segment is expected to grow at the fastest rate during the forecast period. 

Market Analysis

Cloud backup and recovery solutions market offers services that enable enterprises to replicate, store and secure its applications that are set via cloud set-up. Cloud backup and recovery solutions work as a safeguard for data loss, that can cause by either hardware failures or cyberattacks. 

• The 2024 TechTarget’s Computer Weekly IT Priorities survey stated that 37% of its focused disaster recovery respondents are prioritizing such recovery solutions for data protection.

Key driver for the market can be observed with the rising regulatory compliance that supports industry-specific mandates such as GDPR, APRA and others. With the rising remote work culture, ensuring availability of data across distributed networks has become significant, this requirement also acts as a trend for the market’s expansion. Tier 1 vendors in the cloud backup and recovery solutions market comprise of AWS, Microsoft and Google.

Emerging Technologies

”According to the Veeam Data Protection Trends Report 2024, 88% of enterprises were either likely or almost certain to use a Backup-as-a-service or Disaster-as-a-service for at least some of their production servers.”

This stat ties a significance with cloud-native, policy-driven and service-based potential. Here are few emerging technologies that refer to the latest trends in the market:

• Blockchain Technology: Majorly consumed for data integrity, this technology guarantees tamper-proof records, audit trails and compliance for sensitive industries. Use cases can be seen by BFSI and healthcare sectors to decentralize verification of backup logs.
• Edge-to-cloud Backup Solutions: This emerging technology reduces latency in order to ensure real-time data across distributed networks.
• Quantum-safe Encryption: This data backup encryption technology with precise algorithms is seen to secure sensitive data in large-scale enterprises from future quantum computing threats.
• Ransomware-proof Backups: This emerging tech-based solutions protects data from encryption-based cyberattacks and allows rapid restoration. 

Cervicorn Consulting helps organizations benchmark adoption maturity, assess ROI from quantum-safe and blockchain-based backup models, and identify high-growth investment corridors. Talk to our analyst today.

Market Trends

• Adoption of Multi-cloud or hybrid-cloud strategies: This shift towards multi-cloud strategies is a response to the need for more flexible disaster recovery solutions. This shift can offer precise scalability and cost-effectiveness for public clouds.
• Increased Testing and Validation: As the requirement for data intricacy increases, the presence of potential testing process will stand as a crucial factor. By adopting the proactive stance of cloud recovery solutions, enterprises can reduce the risks of downtime.
• Integration of AI and ML: These advanced models are cost-effective and require high computational power along a storage for data collection and training. As major enterprises start investing in AI and ML models, the requirement for personalized cloud set-up will also rise.
• Continuous Data Protection/Real-Time Recovery: The need for minimal data loss (low RPO) and rapid restore (low RTO) is rising. Continuous Data Protection (CDP) or near-real time backup is becoming more common.

Report Scope

Future Outlook

Vertical Growth Potential in the Sector

This potential in the cloud backup and recovery solutions market refers to expansion of end users with the rise of regulatory compliances. Along BFSI and healthcare; government sector, retail industry, IT & telecom and energy sectors are observed to offer a strong potential to the market’s expansion. Vertical growth or end-user expansion holds opportunity due to rising investors as well as services providers.

A survey shows that retailers invest in cloud backup to support omnichannel operations and protect POS data. Sectors such as IT & telecom and government sector need data sovereignty and disaster recovery. These industries generate and carry massive data and need latency optimization across distributed infrastructure.

Market Restraint

IT Resources Limitations

Integrating and implementing or maintaining cloud backup and disaster recovery solutions often required expertise across cloud architecture, cybersecurity compliance and data management. Many organizations lack skilled IT professionals where a dependency can be created. Cybersecurity Workforce Study (2024) revealed that, the global industry is facing an approximate shortage of 4 million cybersecurity professionals which directly impacts areas like data protection and recovery. While this factors acts as a restraint for cloud backup and disaster recovery solutions market, increasing managed service providers and simplified skill development may create strategic angle for investors and industry players.

Did You Know?

According to O’Reily’s Cloud Adoption Report, about two-third of respondents currently operate in a public cloud and 45% use a private cloud. Whereas RightScale (after a survey of 800 organizations) stated that more than 94% of organizations with over 1,000 employees have significant portion of their workloads in the cloud.

Supportive Case Study

Global leader in next-gen digital solutions, Infosys surveyed approximately 2500 enterprises across multiple countries in order to look at how implementation or integration of cloud systems deeply correlates with business profit. In result, Infosys stated that enterprises effectively using cloud (60% of its total workloads) could generate up to $414 billion in annual profits globally.

What are Strategic Recommendations for Investors in Cloud Computing Industry?

At Cervicorn Consulting, our boardroom experts believe that companies integrating AI at the data center layer represent high-value opportunities. Our experts have also decoded how AI is transforming data infrastructure that can empower investors to secure sustainable growth in this evolving market. In the upcoming years, demand for Backup-as-a-service will continue to rise. Vendors shifting towards offering AI-driven automated services, immutable storage will stand strong in the industry.

Get boardroom-level insights from our experts on AI reshaping industries, read more about AI data center market here.

Regional Insights

How Did North America Dominate the cloud backup and disaster recovery solutions market?

North America with its ability to invest in next-gen tech solutions held the largest share of the cloud backup and disaster recovery solutions market in 2024; the region is observed to stand strong with the upcoming integrations in the sector. The region’s market is driven by the presence of major providers such as AWS, Azure and Google Cloud. Additionally, strong infrastructure, significant investments and faster adoption to distributed networks create a strong potential for North America to grow.

• In a recent survey by Coolest Gadgets, approximately 80% of organizations in North America reported using cloud-based backup solutions.
• About 52% of organizations use both cloud and on-premises storage (hybrid backup) to combine the strengths of both.
• U.S. organizations are leading adoption: in one report by Electro IQ 70% of businesses in the U.S. use cloud backup solutions for security / convenience.

Asia Pacific witnessing strong growth

Asia-Pacific is witnessing growth in cloud backup, data recovery, and cloud storage solutions, propelled by a coming together of a range of factors. To begin with, the deluge of data from IoT, mobile, video streaming, remote working, and digitization mandates is compelling organizations to reconsider data storage and protection. Second, regional governments are driving cloud-first, data sovereignty, and digital infrastructure policies, which are resulting in higher spending on cloud platforms and backup/recovery infrastructures. Third, organizations are investing bigger portions of their IT budgets on cloud backup and recovery as business continuity, cyber resilience, and regulation move to the top of the agenda.

Behaviorally, there is considerable evidence that most APAC organizations anticipate both the amount of data being stored in the cloud and their budgets for public cloud storage / backup to grow.

Segmental Insights

Component Insight

Solution Insights: In 2024, the solutions segment dominated the market owing to the requirement of business continuity during any mishap. Solutions in this sector often comprise of immutable storage offerings, A-drive threat detection and integration of the same. For instance, Commvault and Veeam recently expanded their enterprise-grade platforms that integrate backup and workload management.

Cloud Backup and Recovery Solutions Market Share, By Component, 2024 (%)

Services Insights: Moreover, the services segment is observed to grow at the fastest rate during the forecast period as growing organizations, especially small-scale organizations look for managed services to reduce IT burdens internally. Major player IBM’s managed backup services highlighted that enterprises outsource backup management to focus on cost optimization.

Deployment Mode Insight

Public Cloud Insights: In 2024, the public cloud segment held the largest share in the market due to its scalability, lower upfront cost, and the ability to support diverse workloads. Enterprises migrating from on-premises infrastructure find public cloud solutions from providers like AWS Backup or Microsoft Azure Backup more efficient.

Hybrid Cloud insights: Observed to be the fastest growing segment in the cloud backup and recovery solutions market, the segment is known for combining the power of scalability of public clouds with the control of private infrastructure. This model is crucial for BFSI and healthcare sectors where compliance demands local storage but workloads need benefits from cloud systems.

Service Type Insight

Incremental Backup Insights: Incremental backup segment held the significant share of the market in 2024 that is known for its ability to minimize storage and bandwidth by only saving changed or updated data, this ability makes it widely utilized and preferred service type; especially by industries that carry fluctuating data volume such as BFSI and IT & telecom.

Cloud Backup and Recovery Solutions Market Share, By Service Type, 2024 (%)

Differential Backup Insights: Expected to be the fastest growing segment during the forecast period, differential backups carry a balance between legal audits and baseline creation. The segment’s expansion is observed due to its balance between efficiency and recovery speed. Media firms and real-time data users adopt it to minimize restore windows without running full backups.

End-use Insights

BFSI Insights: The BFSI segment leads the market. These enterprises handle structured data and rely heavily on database backups to maintain integrity. Such industry verticals expect zero-downtime systems and compliance-driven data protection, thereby stands as a major segment in the industry. For instance, major financial firms have adopted VMware Cloud Disaster Recovery to meet GDPR and Basel III standards while securing millions of transactions daily.

Healthcare Insights: The healthcare sector is experiencing rapid digital transformation, making it one of the fastest-growing verticals in cloud backup and recovery. The proliferation of electronic health records (EHRs), telemedicine platforms, and AI-driven diagnostics has resulted in an unprecedented surge in sensitive data that must be stored securely, accessed quickly, and remain compliant with strict regulations.

With 88% of enterprises moving toward BaaS or DRaaS, our data-backed insights and competitive analyses empower you to invest where the next wave of enterprise demand emerges. Engage with our team to explore market sizing, pricing models, and competitive intelligence today.

Cloud Backup and Recovery Solutions Market Top Companies

• Veeam Software: Holds strong background in multi-cloud backup and virtual machines. Also has a large market share in enterprise backup and recovery solutions.
• Dell Technologies: Offers integrated hardware + software backup/recovery with solutions like PowerProtect; strong presence in regulated industries.
• Commvault: Broad coverage (cloud + on-prem + hybrid); good vision/execution; solid for large-scale and enterprise environments.
• Rubrik: Focus on cloud data management, security, and recovery; strong deal flow; increasingly used for ransomware defence.
• Veritas Technologies: Cited first in market share rankings; legacy strength plus modernizing backup suites.

Recent News

• Datto founder Austin McChord in February 2025, announced that his newest startup ‘Slide’, aimed at creating advanced solutions tailored for MSPs especially for backup and disaster recovery space. Slide is also focused on fostering an open and collaborative approach with other backup vendors.
• In May 2025, Rubrik announced partnership with Rackspace Technology to offer a fully managed isolated recovery service. This service is designd to help enterprises ensure business continuity in any event of cyber attack.
• In June 2025, AWS and SAP announced their unity to launch AI Co-innovation program for smarter enterprise solutions. This solution has been created to help customers accelerate their cloud journey. 

Market Segmentation

By Component

• Solutions 
• Services

By Deployment Mode

• Public Cloud
• Hybrid Cloud
• Private Cloud

By Service Type

• Full Backup
• Incremental Backup 
• Differential Backup

By End-use Industry

• BFSI
• Healthcare
• IT & Telecom
• Retail
• Government
• Manufacturing
• Others

By Region

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East and Africa