IDC: China's DR&P market revenue reached US$270 million in the first half of 2024 and is expected to exceed US$1 billion in 2028

Zhitong Finance App learned that the International Data Corporation (IDC) recently released the “China Data Backup and Recovery System Market (DR&P) Quarterly Tracking Report, First Half of 2024". According to the report, China's DR&P market revenue reached 270 million US dollars in the first half of 2024. Driven by market data capitalization and commercialization needs, the market share remains stable; the share of pure backup and protection software revenue exceeds 30%. Since it can adapt more quickly to the development of new technology and further improve compatibility, it has become a purchasing direction for end users. IDC predicts that in the next five years, China's DR&P market will grow at a compound annual growth rate (CAGR) of close to 5%, and the market size will exceed 1 billion US dollars in 2028.

After experiencing rapid growth in 2023, the share of the data backup and recovery market remained stable with shipments in the overall enterprise market in the first half of 2024.

As a means of production, and gradually increasing its value as a commodity — data, the need for safety protection is still increasing. Following the introduction of the “Data Security Law”, the “Regulations on the Administration of Network Data Security” just passed by the State Council will be implemented in August 2025 to further regulate data processing activities and ensure data security to promote rational and effective use of data in accordance with the law. Enterprises and organizations are not only increasing their internal security requirements for their own data, but furthermore, with the commercialization of data, the demand for safe and effective data replication and backup continues to increase. Multiple favorable market factors will continue to drive the healthy growth of DR&P solutions in 2024.

Looking at the sub-market, in the first half of 2024, China's data backup and recovery software market (DR&P SW) accounted for more than 30% of shipments. In 2024, SME recovery procurement, data backup and recovery software became the first choice for small and medium-sized enterprises due to its flexibility and cost efficiency. It can meet their urgent data backup and protection needs, while also providing simple operation and maintenance, especially in terms of troubleshooting.

The year-on-year growth rate of the all-in-one machine market (PBBA Appliance) was much higher than the overall market situation for data backup and recovery. End users are paying more and more attention to fast recovery functions in the event of data loss or damage. Backup all-in-one machines have strong advantages in ensuring business continuity; in addition, technology vendors are actively developing and equipping all-in-one devices with intelligent management functions, such as automatically detecting data changes and performing intelligent backup according to pre-set policies, etc., to help reduce human operation complexity and improve data backup efficiency and recovery speed.

Market pattern

Looking at the overall market, the competitive trend of leading technology suppliers has basically remained stable, and more waist technology suppliers have gained market favor with their respective advantages.

Looking at the overall market for data replication and protection, two companies have experienced some changes in market share. Among them, iDigital's backup solution supports rich operating system, database and application system backup, and provides efficient data compression technology and encryption functions, increasing its share of the overall market by nearly 5%, and is favored by end customers; digital storage technology has increased its share of the overall market by more than 2%, and realizes real-time data monitoring and backup through integrated intelligent data protection and management functions, including automatic timing protection, virtualized agentless, custom agents, etc., and its backup solution has been recognized in the medical industry.

Looking at the backup software sub-market, the British side (688435.SH) ranks second in the software market with a market share of more than 10%, supports users to back up various data types and environments, and uses optimization algorithms and transmission mechanisms to improve backup performance; Yunxinda uses CDM technology to revitalize dark data for customers, increasing its share of the software market by more than 4%, and providing customers with simple, fast, and efficient data recovery capabilities.

Yang Yunxu, research manager at IDC China, said that with the implementation of AI and other technologies, companies' demand for data backup, management and data recovery solutions is still increasing, which will continue to drive the healthy growth of China's DR&P market.