Virtual Machine Backup and Recovery Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented, By Component (Software, Services), By Deployment Mode (On-Premises, Cloud), By Organization Size (Small & Medium Enterprises, Large Enterprises), By Industry Vertical (BFSI, Healthcare, IT & Telecommunications, Government, Retail, Manufacturing, and Others), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 3.59 Billion
CAGR (2026-2031)	11.04%
Fastest Growing Segment	Services
Largest Market	North America
Market Size (2031)	USD 6.73 Billion

Market Overview

The Global Virtual Machine Backup and Recovery Market will grow from USD 3.59 Billion in 2025 to USD 6.73 Billion by 2031 at a 11.04% CAGR. Virtual machine backup and recovery comprises software and services designed to duplicate virtual machine data and configurations to ensure restoration following data loss or system failure. The market is primarily driven by the exponential growth of enterprise data and the critical necessity for business continuity within increasingly virtualized infrastructures. Furthermore, the escalating frequency of malicious security breaches forces enterprises to prioritize robust disaster recovery protocols to mitigate financial and operational risks. According to ISACA, in 2024, 38% of organizations experienced an increase in cyberattacks compared to the previous year. This rising threat level highlights the urgent demand for reliable protection mechanisms.

A significant challenge impeding market expansion is the complexity of managing data protection across hybrid cloud environments. As enterprises distribute workloads between on-premises infrastructure and multiple public clouds, maintaining consistent backup policies becomes increasingly difficult. This fragmentation often creates visibility gaps and administrative burdens that complicate effective recovery strategies. Additionally, the shortage of skilled technical personnel required to navigate these intricate IT architectures further strains organizational resources and limits the successful deployment of comprehensive backup frameworks.

Key Market Drivers

The escalating frequency and severity of ransomware attacks act as a primary catalyst for the Global Virtual Machine Backup and Recovery Market. Modern cyber threats explicitly target backup repositories to prevent restoration, compelling organizations to implement immutable storage and isolated recovery systems. According to Sophos, April 2024, in the 'State of Ransomware 2024' report, 59% of organizations were hit by ransomware in the last year. Consequently, enterprises are investing heavily in recovery capabilities to minimize downtime and avoid ransom payments. This financial imperative is underscored by the high stakes of data loss events, as businesses prioritize spending to avert catastrophic financial hits. According to IBM, in 2024, the global average cost of a data breach reached USD 4.88 million, driving the prioritization of secure backup investments.

Accelerated migration to hybrid and multi-cloud infrastructures further propels market momentum as businesses seek flexibility. As organizations distribute virtualized workloads across on-premises data centers and public cloud platforms, legacy backup tools often fail to provide adequate coverage. This transition mandates the deployment of cloud-native backup solutions that ensure consistent policy application across disparate environments. According to Flexera, March 2024, in the 'State of the Cloud Report', 89% of respondents reported having a multi-cloud strategy. To support this operational shift, vendors are enhancing their platforms with centralized management consoles that offer visibility into distributed assets, ensuring virtual machines remain protected regardless of location.

Download Free Sample Report

Key Market Challenges

The complexity of managing data protection across hybrid cloud environments acts as a severe restraint on the Global Virtual Machine Backup and Recovery Market. As organizations increasingly adopt multi-cloud strategies, they often deploy disparate backup solutions for different environments, leading to significant fragmentation. This tool sprawl results in disjointed visibility where administrators lack a unified view of their protection status, increasing the likelihood of unmanaged data silos. Consequently, the operational overhead required to synchronize policies across these diverse platforms rises, diverting resources from strategic initiatives to routine maintenance and compliance tasks.

This fragmentation is further exacerbated by the prevailing skills shortage. The intricate nature of hybrid architectures demands specialized knowledge that is currently scarce in the labor market. Without adequate talent to navigate these complex ecosystems, organizations struggle to implement consistent recovery frameworks. According to the Cloud Security Alliance, in 2024, 54% of organizations utilized four or more distinct tools to manage data risks, illustrating the depth of this administrative burden. This complexity not only slows the adoption of comprehensive backup solutions but also leaves enterprises vulnerable to prolonged downtime during system failures, directly hindering market growth.

Key Market Trends

The Global Virtual Machine Backup and Recovery Market is undergoing a decisive transition toward subscription-based and consumption-driven licensing models, fundamentally replacing legacy perpetual contracts. This shift allows organizations to convert heavy upfront capital expenditures into flexible operational costs, aligning data protection spending directly with fluctuating virtualized workload volumes. Enterprises are increasingly demanding pricing structures that mirror the scalability of their cloud infrastructure, necessitating vendor adaptation to pay-as-you-grow frameworks. This commercial evolution is evidenced by rapid growth in recurring revenue streams for major vendors. According to Commvault, April 2025, in the 'Fourth Quarter and Fiscal Year 2025 Financial Results', the company reported a 68% year-over-year increase in Software-as-a-Service (SaaS) Annual Recurring Revenue (ARR), reflecting the market's aggressive shift toward consumption-based procurement strategies.

Simultaneously, there is a critical focus on automated compliance and data sovereignty management features as protection tools evolve into governance platforms. With the enforcement of stringent international regulations such as DORA and NIS2, organizations are prioritizing backup solutions that can automatically verify recoverability standards and enforce regional data placement policies to prevent legal exposure. This trend transforms backup from a simple restoration task into a vital component of regulatory adherence and risk management. The urgency of this capability is highlighted by the severe repercussions of recent failures; according to Cohesity, November 2025, in the 'Risk-Ready or Risk-Exposed: The Cyber Resilience Divide' report, 92% of organizations reported experiencing legal, regulatory, or compliance consequences following a cyberattack, driving the adoption of tools that ensure audit-ready data resilience.

Segmental Insights

The Services segment is projected to register the fastest growth within the Global Virtual Machine Backup and Recovery Market. This expansion is primarily driven by the increasing complexity of virtualized IT environments, which necessitates specialized external expertise for effective implementation and maintenance. Organizations are prioritizing professional and managed services to ensure compliance with data protection standards while minimizing operational downtime. Furthermore, the shift toward cloud-based infrastructures encourages enterprises to rely on service providers for seamless integration and disaster recovery planning, thereby reducing the burden on internal IT resources and optimizing operational costs.

Regional Insights

North America leads the Global Virtual Machine Backup and Recovery Market, primarily due to its mature IT infrastructure and the extensive adoption of virtualization across diverse industries. This dominance is supported by a strict regulatory environment that enforces rigorous data protection and retention standards. Compliance mandates, such as those under the Health Insurance Portability and Accountability Act (HIPAA) and the California Consumer Privacy Act (CCPA), compel organizations to prioritize robust backup strategies. Furthermore, the concentration of key technology vendors in the region ensures continuous innovation and ready access to reliable recovery solutions, reinforcing the market’s strong position.

Recent Developments

• In December 2024, Cohesity announced the formal completion of its acquisition of the enterprise data protection business of Veritas, forming a combined entity valued at approximately $7 billion. This strategic merger brought together Cohesity’s modern, scale-out architecture with the extensive global footprint and workload support of Veritas. The consolidated organization now protects hundreds of exabytes of data and serves a vast customer base, including a significant majority of the Fortune 100. The union was designed to accelerate innovation in AI-powered data security and management, providing enterprises with a comprehensive portfolio to safeguard critical assets against cyber threats.
• In November 2024, NAKIVO released version 11 of its backup and replication solution, delivering agentless data protection for Proxmox VE environments. This launch provided customers with a seamless way to back up and recover virtual machines on an increasingly popular open-source hypervisor. The update also introduced advanced multi-cloud backup capabilities for Microsoft 365, enabling businesses to store immutable backups on various cloud object storage platforms to defend against ransomware. Additionally, the release offered enhanced support for NAS backup to the cloud and real-time replication improvements, ensuring comprehensive data availability and flexibility for hybrid IT infrastructures.
• In August 2024, Veeam Software released version 12.2 of its data platform, expanding its support ecosystem to include native protection for the Proxmox VE hypervisor. This update addressed the market demand for virtualization flexibility by enabling organizations to protect and migrate workloads without requiring the management of agents. The release also introduced enhanced integration with Nutanix Prism Central, providing policy-driven protection for enterprise infrastructure. Furthermore, the platform extended its capabilities to include backup support for MongoDB, offering immutable backups and high-speed recovery to strengthen cyber resilience and operational agility across hybrid cloud environments.
• In April 2024, Commvault acquired Appranix, a cloud cyber resilience company, to enhance its ability to help enterprises recover rapidly from cyberattacks and system outages. This acquisition integrated automated rebuild capabilities into Commvault's platform, allowing organizations to reconstruct complex cloud applications and their dependencies—such as networking and DNS configurations—in hours or minutes rather than weeks. By combining extensive risk readiness with next-generation cloud-native rebuild tools, the company aimed to minimize business downtime. The move significantly strengthened the company's position in the market by addressing the challenge of rebuilding distributed cloud infrastructure after a ransomware incident.

Key Market Players

• Barracuda Networks, Inc.,
• Druva Inc.
• Cisco Systems, Inc.
• Quest Software Inc.
• Rackspace Technology, Inc.
• Vembu Technologies
• IBM Corporation
• Acronis International GmbH
• Microsoft Corporation
• Broadcom, Inc.

By Component	By Deployment Mode	By Organization Size	By Industry Vertical	By Region
Software Services	On-Premises Cloud	Small & Medium Enterprises Large Enterprises	BFSI Healthcare IT & Telecommunications Government Retail Manufacturing Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Virtual Machine Backup and Recovery Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Virtual Machine Backup and Recovery Market, By Component:

• Software
• Services

• Virtual Machine Backup and Recovery Market, By Deployment Mode:

• On-Premises
• Cloud

• Virtual Machine Backup and Recovery Market, By Organization Size:

• Small & Medium Enterprises
• Large Enterprises

• Virtual Machine Backup and Recovery Market, By Industry Vertical:

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

• Virtual Machine Backup and Recovery Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE