The global data protection and recovery solutions market size was estimated at USD 4.70 billion in 2016 and is expected to gain momentum over the forecast period. The dependency of organizations on enterprise software applications, such as email, customer relationship management, and enterprise resource planning, is leading to a rapid increase in volumes of data across an enterprise. This rapid growth has enforced enterprises to deploy efficient and reliable data protection solutions for securing confidential information.
Moreover, there has been a significant increase in information storage over the cloud, due to lower operational costs, enhanced reliability, and convenient & timely backup from a host to a destination system. These advantages are significantly propelling the demand for data protection, backup, and recovery solutions that avoid cyber-attacks, data loss, and theft.
U.S. data protection and recovery solutions, by solution, 2014 - 2025 (USD Billion)
Increasing instances of cyber-attacks, ransomware, and unauthorized access to information are the prime factors accelerating the adoption of such solutions. For instance, in May 2017, WannaCry ransomware affected private and public organizations. This cyber-attack infected more than 200,000 computers, in the BFSI, retail, and manufacturing, and other industries, across 150 countries.
The Asia Pacific regional market is in a transitional state and is marked by rapidly-evolving technologies and business requirements. Traditionally, the APAC market was relatively slower in adopting new technologies and practices, compared to the North American and European markets. However, the increasing flexibility, scalability, and uniformity of security offerings have accelerated their adoption this region.
The email protection segment dominated the overall market and was valued at USD 1.82 billion in 2016. Emails form a major source of repository for large amounts of critical information. This mandates organizations to safeguard such information from external and internal threats.
Increasing instances of email spams or virus attacks are necessitating the presence of strong security measures to retain data privacy and safety. However, increasing adoption of cloud-based disaster recovery and backup offerings is expected to drive the growth of the cloud platforms segment. Moreover, cloud offers unlimited storage capacity to store information and end-to-end encryption to ensure security and easy backup of critical business assets.
The cloud platforms are anticipated to foresee the highest growth rate, as it helps in addressing high costs, risks, and practices that are discouraging secure and sustainable data storage. Moreover, these platforms are capable of handling large amounts of undifferentiated information and building scalable protection products.
The cloud deployment segment is presumed to emerge as the fastest-growing segment and gain traction over the forecast period. The segment is predicted to witness a CAGR of 15.1% from 2017 to 2025. The growth can be attributed to the increasing demand for improved management, flexibility, and enhanced accessibility to data.
Cloud deployment saves time by eliminating various steps between restoration and access to information, irrespective of the location. Moreover, it is capable of handling large sets of information and offering a facility to remotely store large amounts of information at lower prices.
Various organizations, belonging to the BFSI, energy & utilities, manufacturing, government, healthcare, and retail industries, are making significant investments for developing cloud-based security offerings. This can be attributed to the increasing instances of large-scale cyber-attacks on web-based or on-premise applications of enterprises.
Enterprise size Insights
The large enterprise segment acquired a significant market share in 2016. However, the small & medium enterprises segment is expected to emerge as the fastest growing segment with a CAGR of 15.2% from 2017 to 2025. The increasing concern of SME clients about the threat of cyber-attacks and information breaches is compelling them to implement security products for ensuring security of critical information.
SMEs are concerned about managing and securing their data in an organized way. This can be attributed to the growing need for SMEs to adopt advanced tools and solutions to meet the growing necessity of securing information. The increasing availability of online backup products, and remote replication is gaining traction among SMEs, which is further propelling the demand of security products among SMEs.
The increasing awareness of the benefits of cloud-based platforms in emerging economies, such as India and China, is impelling the industry growth. Moreover, advancements, such as improved user interface and management features, in these technologies are reducing the organization’s effort on training the staff and eliminating compatibility issues.
The healthcare sector is anticipated to experience the highest adoption of security solutions over the next eight years. The segment is anticipated to grow at a CAGR of 16.4% from 2017 to 2025. This can be attributed to the increasing focus of healthcare providers toward enhancing patient care, meeting compliance standards, and simultaneously managing massive volumes of information.
Increasing volumes of electronic records of patients are accelerating the demand for enterprise data protection products. These products help healthcare organizations to cost-effectively scale their infrastructure, while ensuring the security and privacy of critical personal health information of a patient.
Moreover, compliance mandates are promoting the implementation of security products in this sector. Mandates, such as Health Information Technology for Economic and Clinical Health (HITECH) Act and Health Insurance Portability and Accountability Act (HIPAA), are ensuring security of confidential healthcare information.
Europe data protection and recovery solutions market, by end-use, 2016 (%)
The North American regional market acquired a significant share in 2016 and is estimated to reach a market size of USD 4.64 billion by 2025. This can be attributed to the increasing incidents of hacking and information loss that are compelling organizations to adopt security products.
In the past few years, several incidents of hacking United States’ power grid, oil, and water pipelines, by foreign nationals, have been reported. This resulted in the creation of a strong security strategy to ensure data security and prevent cyber-attacks. Moreover, the demand for recovery solutions is predicted to grow, owing to the increasing frequency of such attacks.
The Asia Pacific regional market is anticipated to grow at the highest CAGR of 18.6% from 2017 to 2025, which can be attributed to the increasing adoption of hosted and managed services in developing nations such as India, China, and Australia. These services pose high risk of information loss and unauthorized access to critical information, which is further expected to augment the demand for security products.
The industry is characterized by the presence of several dominant players who hold a significant share in the market. The list of prominent players includes Commvault, EMC Corporation, Hewlett-Packard Enterprise, IBM Corporation, Acronis, Seagate Technology LLC, Veritas Technologies LLC, Veeam Software AG, Unitrend, Actifio, and Arcserve (USA) LLC, among others.
The key industry players are primarily engaging in partnerships and acquisitions for the development of innovative products. The market is highly fragmented and intensely competitive, marked by constantly-evolving technological landscape and standards. There has been a rise in the number of manufacturers who offer data and information management solutions, using their resources and capabilities. They are further extending their product portfolios by undertaking mergers & acquisitions.
Moreover, the manufacturers are anticipated to establish cooperative relationships, through alliances or collaborations, with market players or third parties for strengthening their position in the market. Further, a large number of application vendors and operating systems developers are introducing functionalities similar to the software offerings.
Base year for estimation
Actual estimates/Historical data
2014 - 2015
2017 - 2025
Revenue in USD Billion & CAGR from 2017 to 2025
North America, Europe, Asia Pacific, Latin America, and MEA
U.S., Canada, UK, Germany, India, Japan, China, and Brazil
Revenue forecast, company ranking, competitive landscape, growth factors, and trends
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Segments Covered in the Report
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global data protection and recovery solutions market based on solutions, deployment, enterprise sizes, end-uses, and regions:
Solution Scope (Revenue, USD Billion; 2014 - 2025)
Endpoint Data Protection
Application Recovery Management
Deployment Scope (Revenue, USD Billion; 2014 - 2025)
Enterprise Size Outlook (Revenue, USD Billion; 2014 - 2025)
Small & Medium Enterprise
End-use Outlook (Revenue, USD Billion; 2014 - 2025)
Energy & Utilities
Regional Outlook (Revenue, USD Billion; 2014 - 2025)
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