Data Protection As A Service Market Size, Share & Trends Analysis Report By Service Type, By Deployment, By End-use (SMEs, Large Enterprises), By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global data protection as a service market size was valued at USD 11.97 billion in 2019. It is expected to expand at a compound annual growth rate (CAGR) of 31.3% from 2020 to 2027. The growing adoption of next-generation technologies and increasing migration of data to a cloud model to gain flexibility, agility, and optimize cost saving is one of the significant factors contributing to market growth. Thus, storing and safeguarding critical data from data loss, data theft, and operational disasters is influencing enterprises to consider data protection solutions and services over the cloud.

The radical shift in the evolution of product-based solutions to service-based offerings has disrupted the IT infrastructure industry. Enterprises are increasingly adopting a service model to deliver business outcomes to their customers and vendors. The service-based model's shift was primarily due to the focus on resiliency, as businesses manage thousands of data. Amongst the infrastructure services, data protection as a service (DPaaS) has been the most resilient service as it helps enterprises to backup solutions at scale and provides data protection across computing, storage, and network environments.

The DPaaS solutions also help protect and restore the data and information within the database. For instance, certain enterprises that run high-performance computing or edge computing environments often have high data flow rates within their functional levels and have limited bandwidth and small backups to restore the influx of information. With such limited capabilities, a small failure in the backup process could incur a high loss of data and operational costs for the enterprises to recover the data lost. As a result, enterprises are increasingly adopting DPaaS solutions to offer their developing, functional, and administration teams efficient recovery options so they can frequently backup data before anything goes wrong.

Moreover, the growing stringency in regulations and standards, such as the GDPR policy and Data Protection Act, continues to put more obligations on enterprises to comply. As a result, it builds more pressure on the enterprises to carry out regular checks and focus on their compliance framework to evidence their accountability. With the rise in stringent requirements, data protection services provide a more useful way to meet the enterprises' challenges and reduce their exposure risks to data protection. It involves a collaborative approach to strategize, comply with checks, sight data protection artifacts, and processes, and provide incident capabilities.

Additionally, the growing Brings Your Own Device (BYOD) and Choose Your Own Device (CYOD) trends among enterprises are the other factor contributing to the market growth. The end use of BYOD policies allows employees to register their own devices and share enterprises to improve productivity. As a result, increased risks related to data theft, data piracy, and data storage emerged as one of the primary concerns for enterprises. To reduce such challenging issues, enterprises, adopt DPaaS services, and solutions. Furthermore, the pandemic impact of COVID-19 has impelled organizations to push their solutions and services to the cloud. The growing dependencies on remote network infrastructure influenced businesses to opt for recovery services. Additionally, growing cases of data thefts also anticipate the development of the market in 2020.

Service Type Insights

On the basis of service type, the DPaaS market is categorized into Disaster Recovery as a Service (DRaaS), Backup as a Service (BaaS), and Storage as a Service (STaaS). The STaaS service type dominated the market in 2019 with a revenue share of more than 47% of the overall market. The service is more prevalent among small and medium enterprises as it offers them a cost-effective way to mitigate disaster recovery and storage services. Moreover, the growing demand for long-term retention of records, databases, and the cloud to enhance their business continuity is driving the segment growth.

Disaster recovery as a service is estimated to emerge as the faster-growing segment over the forecast period. The increasing cases of data breaches, malware, and software bugs have influenced enterprises to opt for DRaaS solutions. Moreover, increasing risks of communication failure, power outage, and hardware failures also anticipate growth. In the COVID-19 situation, the demand for DRaaS solutions increased as the dependencies on remote hardware infrastructure and the need for recovery solutions increased among employees.

Deployment Insights

The hybrid cloud deployment segment dominated the market in 2019, accounting for more than 42% of the global revenue share. Moreover, it is also anticipated to expand at a higher CAGR over the forecast period. The hybrid cloud includes the services of both public and private clouds, which allows enterprises with better flexibility and more optimized deployment options. For instance, enterprises could use the public cloud for low security and high-volume data and the private cloud for critical operations that require high security. Thus, the popularity of the hybrid cloud model is growing owing to its efficient control, flexibility, and cost-effectiveness feature.

After the hybrid cloud segment, the public cloud deployment type is expected to grow at a significant rate. The popularity of the public cloud is highly prevalent among small and medium-sized enterprises due to its low-cost services compared to the other deployment models. Furthermore, it is primarily used for storage and backup, and recovery purposes for the office end-uses web-based email and testing environments. Also, features such as complete scalability of on-demand resources, improved reliability to provide support against any failure, and limited maintenance hardware infrastructure costs increase the popularity of the model amongst enterprises to increase their spending.

End-use Insights

The large enterprise end-user segment dominated the market in 2019, accounting for more than 71% of the overall revenue share. The growing cyber threat risks, data thefts, and cloud spending among large enterprises are the primary factors responsible for segment growth. Furthermore, the need to comply with the changing data protection standards and guidelines is the other factor influencing large enterprises to adopt diverse data protection and recovery solutions. Additionally, large enterprises adopt numerous strategic initiatives ranging from technology collaboration to acquisitions and regional distribution. As a result, a high influx of data shared across the businesses, and hence, to manage and maintain the efficient flow of data with proper backup is driving the DPaaS market.

The Small and Medium Enterprises (SMEs) segment is anticipated to register a high CAGR over the forecast period. The growing adoption of cloud-based solutions among SMEs is the primary factor attributing to the segment growth. SMEs prefer to adopt cost-effective deployment solutions as they lack high computing on-premise IT infrastructure to share and store data. Moreover, the growing risk of data theft, the need for long-term data retention, and the need for efficient backup services contribute to the adoption of the market among SMEs.

Regional Insights

The North America region accounted for more than 42% of the overall market share in 2019. The increased cases of cyberattacks and the increased spending on data protection solutions and cloud-based services are some of the factors responsible for regional growth. Furthermore, the presence of extensive IT Infrastructure, cloud solution vendors, and data protection vendors in the U.S. is also anticipated to fuel the growth. The U.S. held the largest share in the regional market and is expected to continue its dominance throughout the forecast period, owing to the increased spending on recovery, backup, and storage solutions and stringency in data protection standards.

Asia Pacific region is expected to expand at the highest CAGR of 34.4% over the forecast period. The growing adoption of managed services, security solutions, and data hosting services is one factor contributing to regional progress. Furthermore, the continued digitization transformation trend is the other factor contributing to regional growth. As a result of digital transformation, a high volume of data is stored on the computing infrastructure. To maintain and safeguard the critical IT infrastructure from power outages, sudden infrastructure failures, and natural disasters businesses are increasingly adopting disaster recovery and backup solutions and services.

Key Companies & Market Share Insights

The data protection as a service market is highly competitive with the presence of large data protection vendors, disaster recovery vendors, and cloud storage vendors, along with the presence of managed service providers operating in the market. The vendors are continuously involved in updating new features and in the development of advanced solutions. For instance, in April 2019, Hitachi Vantara LLC, a subsidiary of Hitachi Ltd. that offers data management solutions to enterprises to improve their operational efficiencies, introduced DPaaS solution. The solution includes the capability of on-demand storage as a service to provide enterprises with a complete package of data protection solutions.

The growing demand for disaster recovery and backup services is further intensifying the competitiveness of the market. The key players are engaged in establishing partnerships and collaborations to offer an advanced solution and gain a competitive edge. For instance, in April 2020, Commvault, U.S.-based data protection, and backup and recovery solution provider introduced NetApp Scale-out Data Protection. The solution is powered by the Commvault’s full backup and recovery software to offer NetApp, Inc. and its channel partner disaster recovery, backup, and snapshot management functionality. Some of the prominent vendors operating in the global data protection as a service market include:

• Asigra, Inc.

• Amazon Web Services, Inc.

• Cisco Systems, Inc.

• Commvault Systems, Inc.

• Dell Inc.

• HP Development Company L.P.

• IBM

• Microsoft

• NetApp, Inc.

• Oracle

• Quantum Corporation

• Veritas Technologies

Data Protection As A Service Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global data protection as a service market report on the basis of service type, deployment, end-use, and region:

• Service Type Outlook (Revenue, USD Million, 2016 - 2027)

  • Disaster Recovery as a Service (DRaaS)

  • Backup as a Service (BaaS)

  • Storage as a Service (STaaS)

• Deployment Outlook (Revenue, USD Million, 2016 - 2027)

  • Public Cloud

  • Private Cloud

  • Hybrid Cloud

• End-use Outlook (Revenue, USD Million, 2016 - 2027)

  • SMEs

  • Large Enterprises

• Regional Outlook (Revenue, USD Million, 2016 - 2027)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • MEA