Cloud Backup Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

Cloud Backup Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The Cloud Backup Market size is expected to grow from USD 4.57 billion in 2023 to USD 13.85 billion by 2028, at a CAGR of 24.84% during the forecast period (2023-2028).

The primary driver for adopting cloud backup across businesses is the need for agility and flexibility in the face of accelerating innovation and disruptions from competitors due to the increase in cloud adoption across both big and small.

Key Highlights

• Key players in the market are increasing investments in cloud technologies. For Instance, Veeam Software has partnered with Microsoft Azure to provide New Veeam Backup, an enterprise-ready cloud backup and recovery solution for Microsoft Azure. The new product will help customers and service providers to migrate more apps and data to Azure and to cost-effectively, securely, and easily protect cloud applications and data in Azure.
• Data loss is becoming a significant concern across all industries. In one recent survey, around 33% blamed hardware or system failure for data loss, while 29% reported that their companies lost data due to human error or ransomware. It is estimated that up to 93% of organizations that lose servers for 10 days or more during a disaster filed for bankruptcy within the next 12 months, with 43% never reopening. Another industrial survey of the US and Canadian IT professionals using cloud-based data protection services found that while 74% of respondents rely only on the native Microsoft 365 services for backup, only 15% could recover 100% of their data.
• In recent years, cloud adoption has significantly grown, and the COVID-19 pandemic, which accelerated digital technologies adoption globally, has further fueled the trend. According to an IBM analysis, a single manufacturing site may generate more than 2,200 terabytes of data in a month. A single production line can generate more than 70 terabytes per day—yet the vast majority of data remains unanalyzed and unprotected. Therefore, companies are moving to cloud storage to secure and utilize this data.
• Furthermore, IBM revealed that 90% of the data was created in the previous two years. Because of the large amount of data generated, there is a rising demand for low-cost data backup/storage across companies. Automated backup, Malware protection, Encrypted cloud storage, File-level Recovery, and Point-in-time Restore, among others, are some trending services in the market.
• However, Cloud backup solutions, on the other hand, are one of the complete tools for defending against cyber-attacks and data breaches. However, if unmanaged, attackers may smoothly infiltrate the backup server's database and utilize it against the user. Hence, privacy and security issues are major hindrances to adopting cloud backup solutions.
• Furthermore, the recent COVID-19 pandemic exposed gaps in enterprise disaster recovery and business continuity planning in remote access, networking, SaaS applications, and ransomware. Many enterprises claim that managing large data is becoming increasingly complex and challenging.

Cloud Backup Market Trends

BFSI Expected to Exhibit Maximum Adoption

• The banking industry is increasingly embracing digital banking and investing solutions, which is increasing demand for Cloud storage/backup in the BFSI sector. Further, some financial sector businesses are transitioning to cloud technologies to obtain a competitive advantage, enabling innovation, customization, and security.
• Further, Government and private organizations are collaborating with many companies to anticipate new growth opportunities in the market over the next five years. For Instance, UBS and Microsoft Corp have expanded their collaboration to boost UBS's public cloud footprint over the next five years. UBS (multinational investment bank and financial services company) intends to operate more than half of its applications, including critical workloads, running on Microsoft Azure, now UBS's primary cloud platform. The partnership furthers UBS's cloud-first strategy and the modernization of its global technology estate.
• For Instance, IBM is using Hybrid Cloud to Help Two European Banking Groups Go Digital. Rural Services Informaticos (RSI), a Spanish banking IT services provider, will increase its digital product and service offerings using hybrid cloud technology and industry expertise from IBM and Red Hat to boost its digital products and service offerings through a Cloud Office platform. Hence, many vendors are investing money in hybrid cloud solutions to eliminate the need to manage hosts, maintain, update, and scale service operations. These developments are projected to increase the usage of cloud backup solutions in the BFSI sector.
• Furthermore, the growing number of data breaches in the banking sector is driving banks to use cloud backup solutions that will allow them to recover from any disaster. Public cloud solutions provide an enhanced backup resource to ensure business continuity despite a disaster.
• The increasing trends for cloud-based real-time payment solutions can be attributed to their flexibility in providing real-time payment insights to retailers. The growing adoption of digital payment methods in BFSI globally is anticipated to drive market growth over the next five years. According to an IBM survey on Cloud usage by organizations, Microsoft Azure has the highest percentage of 56% of cloud usage in the last year.

North America Expected to Dominate the Market

• With the presence of market leaders in the region and the early adoption of technologies across various end-user verticals, North America stood as the leading regional market and is expected to continue its dominance throughout the forecast period. Also, early adoption of new technologies, considerable investments in R&D for cloud-based solutions, and enhanced IT infrastructure are expected to drive market growth further.
• The United States is anticipated to occupy a crucial portion of the demand for cloud-based storage/backup solutions over the next five years. A significant driver behind the investments in the market is the continuous evolution and application of new technologies to unlock volumes that were previously considered non-commercial. With a series of investments across healthcare, retail, communications, and manufacturing applications in the country, the market for cloud-based solutions is expected to witness significant growth over the next five years.
• The country has made multiple efforts to modernize its infrastructure. To achieve this, the US Army planned to spend up to USD 249 million to deploy private cloud computing services and data centers. General Dynamics, HP, and Northrop Grumman were among the service providers selected for the Army Private Cloud contract, providing cloud computing services to consolidate data centers using a secure private cloud.
• In the United States, the adoption of cloud-based computing is increasing rapidly, owing to which the data centers in the country are also witnessing an increase. According to Credit Suisse, the United States currently accounts for the highest number of hyperscale data centers worldwide, holding more than one-third of the total hyperscale data centers in the country.
• The overall GDP of the country is expected to grow more than USD 30966.06 by the end of 2021, to which the digital economy contributes significantly. Over the next five years, this digital economy is expected to grow further. Also, the data center industry in the country is increasing considerably due to the rapidly growing IT and telecommunication sectors.

Cloud Backup Industry Overview

The Cloud Backup Market's competitive landscape could be more cohesive due to the presence of several global market players. The increasing adoption of cloud computing for data storage and a massive increase in data generation is expected to boost the market. Hence, the market players such as Dell EMC, IBM Corporation, Backblaze Inc., and Barracuda Networks, Inc. are making several innovations to provide enhanced solutions in the market compared to their peers and gain maximum market traction. In February 2022, IBM acquired Neudesic, a major cloud services consultant in the United States specializing mainly in the Microsoft Azure platform and offering expertise in multi-cloud. This acquisition will significantly enhance IBM's offering of hybrid multi-cloud services and further advance the company's hybrid cloud and AI strategy. In March 2022, Barracuda disclosed that it had added three new cloud-to-cloud backup data centers in France, UAE, and India. Now, a total of 11 regions would be included in Barracuda's solution. Office 365 backup data for clients would be stored locally in each location, which is essential for clients who work in regulated industries or reside in nations with strict data protection laws. Incorporating these new data center locations would help satisfy customer needs for local data protection.

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• The market estimate (ME) sheet in Excel format
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