Purpose Built Backup Appliance Market Analysis

Global Purpose-Built Backup Appliance Market Overview:

Purpose-Built Backup Appliance Market Size was valued at USD 3.56 Billion in 2023. The purpose-built backup appliance market industry is projected to grow from USD 4.094 Billion in 2024 to USD 10.905 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 13.03% during the forecast period (2024 - 2032). 

One of the key market drivers anticipated to fuel the growth of the Purpose-Built Backup Appliance Market over the forecast period is rising concerns about enterprises' data protection and recovery due to cyber threats, persistent threats, and cyber security breaches in various information technology (IT) organizations. Additionally, because of their numerous advantages, including simple access, simple deployment, and a single point of contact, backup appliances are increasingly being integrated into existing storage infrastructure to achieve high data protection and recovery levels.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Purpose-Built Backup Appliance Market Trends

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  Increasing demand for cloud storage is driving the market growth

  
  

The market CAGR for purpose-built backup appliances will expand due to increasing demand for cloud storage, rising data analytics needs, and technological advancements in backup appliances in storage-based sectors. Dell introduced their new Apex Multi-Cloud Data Services offering in January 2022. This service offers file, block, and data security services that permit concurrent access to the main public clouds from a single data source. Additionally, Dell unveiled its SaaS-based data protection service, Apex Backup Services. For Saas apps, endpoints, and hybrid workloads, it enables end-to-end scalable, secure data protection, together with centralized monitoring and administration. 

Furthermore, Solutions for backing up your data to the cloud are less expensive and require little to no additional gear. These services, which support cloud and hybrid workloads and are easy to set up and accessible on a pay-as-you-go basis, are offered by all the top cloud service providers. As a way to reduce operating costs, managed services are gaining popularity. For storage administrators, their total control also makes backup administration simpler. For instance, PBBA devices were recently developed to address issues with hybrid data protection through quicker data restoration and auxiliary use cases. Most of these developments were sparked by new technology and changing market demands.

Another main factor driving the market's rise is the strict laws and regulations controlling data security and protection. As more social and business activities are conducted online, the need for data privacy and security is becoming more widely understood, increasing the demand for backup appliances specifically designed for this purpose. Particularly troubling is when customers' personal information is obtained, exploited, and released to third parties without their knowledge or consent. Approximately 137 out of the 194 countries have passed legislation safeguarding privacy and data. Different nations in Africa and Asia have differing degrees of approval, with 61% and 57% of countries, respectively, passing identical legislation. The least developed nations only make up 48% of the total.

However, a key element affecting the market’s development has been COVID-19. Purpose-built backup appliances (PBBA) are in high demand, notably in the European Union. Governments and companies in these nations make a lot of effort to open their data to the public. The accessibility of it is another concern. These companies also desire more effective data and information management by distant personnel. Manufacturers have heavily invested in R&D because of the escalating demand for these appliances in the European Union. The objective is to develop a new generation of devices significantly more effective than current models and simple to use and control. Thus, driving the purpose-built backup appliance market revenue.

Purpose-Built Backup Appliance Market Segment Insights:

Purpose-Built Backup Appliance End-User Insights

The Purpose-Built Backup Appliance Market segmentation, based on end-user, includes Retail, Government, Defense, IT Telecommunications and Healthcare. The IT and telecommunications segment dominated the market. In the telecom and IT industries, many massive corporations have large yearly revenues; these corporations operate and have presences worldwide. But given the fierce competition and the unpredictable nature of the market, telecom companies must constantly adapt or transform. Given that there are plans to roll out 5G networks in numerous nations, the volume of data generated in the 5G spectrum will be enormous and business-critical, necessitating a backup.

Purpose-Built Backup Appliance Products Insights

The Purpose-Built Backup Appliance Market segmentation, based on products, includes Open Systems and Mainframe Systems. The open systems category generated the most income. An open system is a collection of computing platforms developed using open hardware and software standards by various market participants. An open system allowing custom backup appliances can easily be implemented in any IT environment. The only systems used are mainframes, although they feature an advanced storage management environment. An open system, which is more economical and adaptable to any IT environment of the organization, is driving the market for purpose-built backup appliances.

Figure 1: Purpose-Built Backup Appliance Market, by Products, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Purpose-Built Backup Appliance Component Insights

The Purpose-Built Backup Appliance Market segmentation, based on component, includes Hardware, Software and Services. The hardware category generated the most income. The hardware component of the market is either changed or fixed in cases of repairable damage, while the software of the backup appliances is updated specifically for backup purposes. The amount of storage, the appliance's shape, and whether or not it supports mainframe or open systems all affect how much the hardware costs. The appliances' prices will rise as their capacities rise. As a result, the hardware segment has a bigger market share than its software segment.

Purpose- Built Backup Appliance Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American purpose-built backup appliance market area will dominate this market. This is mostly due to the concentration of information-intensive businesses and industries in this area. The highest levels of purchasing power are found in this region, which is another explanation. This region of the world likewise has a high deduplication rate. In North America, the market share for deduplication-based backup appliances is 55:1. This covers both data on the companies' internal networks and data stored there. This is a significant proportion, which explains why businesses in this region of the world are the most productive.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Purpose-Built Backup Appliance Market SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe purpose-built backup appliance market accounts for the second-largest market share due to its extensive industrialization and its well-developed and rapidly expanding electronics and IT industries. The manufacturing, BFSI, and telecom & IT industries' increased use of backup appliances created expressly for these applications and technological improvements are to blame for the market leader's position. The industry is expanding due to the increased use of cloud computing and data analytics tools. Further, the German purpose-built backup appliance market held the largest market share, and the UK purpose-built backup appliance market was the fastest growing market in the European region

The Asia-Pacific Purpose-built backup appliance Market is expected to grow at the fastest CAGR from 2023 to 2032. APAC is a promising market for custom backup appliances due to factors including growing economies and the rise of small and mid-sized organizations, among others. The expanding economic foundation of APAC will directly impact the market for backup appliances that are specifically made. Due to the presence of all the major organizations, the region's industrial development needs are strong, the supply side is robust, and the market is competent. Moreover, China’s purpose-built backup appliance market held the largest market share, and the Indian purpose-built backup appliance market was the fastest growing market in the Asia-Pacific region.

Purpose-Built Backup Appliance Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the purpose-built backup appliance market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, purpose-built backup appliance industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global purpose-built backup appliance industry to benefit clients and increase the market sector. In recent years, the purpose-built backup appliance industry has offered some of the most significant advantages to market. Major players in the purpose-built backup appliance market attempting to increase market demand by investing in research and development operations include Dell EMC (U.S.), Oracle Corporation (U.S.), Axcient Inc. (U.S.), Barracuda Network Inc. (U.S.), Arcserve LLC (U.S.), International Business Machines Corporation (U.S.), Hitachi Data Systems Corporation (U.S.), Commvault Systems Inc. (U.S.), Quantum Corporation (U.S.) and Hewlett Packard Enterprise Company (U.S.).

Intelligent solution and cloud-based service provider Hewlett Packard Enterprise Co (HPE). The company's product line includes software, integrated systems, servers, storage devices, networking goods, cloud service-based products, and customized financial solutions. It also offers IT consulting, IT support, instruction, and training services. Small and medium-sized organizations, financial services, healthcare, manufacturing, and telecommunications industries are among the commercial and big enterprise groups HPE serves. In September 2019, three new versions of the purpose-built de-duplicating backup machines in the StoreOnce line, which boost capacity and transfer rates, have been added, according to an announcement from Hewlett Packard Enterprise. Three categories make up the StoreOnce line: 36xx entry-level, 525 mid-range, and 526 high-end. Exagrid, Quantum DXI, and Dell EMC's PowerProtect products are competitors of these systems.

Information and data management software programs are offered by Commvault Systems Inc (Commvault). The company provides solutions for data recovery, storage, compliance and governance, and security. The business also provides training, education, real-time support, ransomware recovery, remote managed services, and consultancy for technology. Architecture design, implementation, residency services, personalization, health evaluation, and data migration are just a few technology consulting services it offers. The business provides services to the government, pharmaceuticals, healthcare, and medical sectors, as well as the banking, insurance, financial services, legal, technology, manufacturing, utilities, and energy sectors.

Key Companies in the purpose-built backup appliance market include

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  Dell EMC (U.S.)

  
  


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  Oracle Corporation (U.S.)

  
  


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  Axcient Inc. (U.S.)

  
  


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  Barracuda Network Inc. (U.S.)

  
  


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  Arcserve LLC (U.S.)

  
  


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  International Business Machines Corporation (U.S.)

  
  


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  Hitachi Data Systems Corporation (U.S.)

  
  


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  Commvault Systems Inc. (U.S.)

  
  


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  Quantum Corporation (U.S.)

  
  


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  Hewlett Packard Enterprise Company (U.S.)

  
  

Purpose-Built Backup Appliance Industry Developments

May 2022: The Kubernetes-specific Veeam Kasten V5.0 is designed to give a comprehensive risk management strategy, enhanced CI/CD pipelines, and other ecosystem development elements that maximize and reduce the risk associated with Kubernetes investments. These improvements are intended to make it easier for the expanding Kubernetes community to execute cloud-native apps safely and effectively.

December 2021: NVIDIA stated that with the launching of the NVIDIA BlueField-2, it will continue to improve the Data Processing Unit. As a data center infrastructure-on-a-chip for business cloud and high-performance computing applications, the NVIDIA BlueField-2 DPU is positioned as a solution. An Arm core set, an NVIDIA ConnectX-6 Dx network adapter and infrastructure-specific offloads are combined in BlueField-2 to produce purpose-built, hardware-accelerated engines with complete software programmability.

February 2019: The Dell EMC subsidiary has unveiled its portfolio of backup storage appliances, which includes purpose-built backup appliances, the Dell EMC Data Domain and the Integrated Data Protection Appliance (IDPA) portfolio. These appliances offer enterprise backup storage flexibility, multiple cloud capabilities, and improved performance.

Purpose-Built Backup Appliance Market Segmentation:

Purpose-Built Backup Appliance End-User Outlook (USD Billion, 2018-2032)

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  Retail

  
  


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  Government

  
  


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  Defense

  
  


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  IT and Telecommunications

  
  


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  Healthcare

  
  

Purpose-Built Backup Appliance Product Outlook (USD Billion, 2018-2032)

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  Open Systems

  
  


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  Mainframe Systems

  
  

Purpose-Built Backup Appliance Component Outlook (USD Billion, 2018-2032)

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  Software

  
  


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  Services

  
  


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  Hardware

  
  

Purpose-Built Backup Appliance Regional Outlook (USD Billion, 2018-2032)

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  North America

  
  

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  US

  
  


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  Canada

  
  

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  Europe

  
  

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  Germany

  
  


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  France

  
  


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  UK

  
  


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  Italy

  
  


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  Spain

  
  


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  Rest of Europe

  
  

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  Asia-Pacific

  
  

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  China

  
  


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  Japan

  
  


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  India

  
  


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  Australia

  
  


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  South Korea

  
  


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  Australia

  
  


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  Rest of Asia-Pacific

  
  

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  Rest of the World

  
  

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  Middle East

  
  


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  Africa

  
  


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  Latin America