Malaysia Cloud Disaster Recovery as a Service (DRaaS) Market Size and Forecast by Service Model, Deployment Model, Industry, Organization Size, Use Case, Pricing Model, Recovery Time Objective (RTO), Recovery Point Objective (RPO), Service Provider Type, and Compliance and Certification: 2019-2033

Malaysia Cloud Disaster Recovery as a Service Market Growth and Performance

• The Malaysia cloud disaster recovery as a service market size in 2023, stood at US$ XX Million.
• Furthermore, projections indicate that the cloud disaster recovery as a service market in Malaysia is poised for sustained growth, with an anticipated annual growth rate of XX%.

Malaysia Cloud Disaster Recovery as a Service Market Outlook

Malaysia cloud disaster recovery as a service market is expanding rapidly as enterprises seek scalable, cost-efficient, and secure solutions to protect mission-critical data. With the increasing reliance on digital infrastructure, businesses are prioritizing cloud-based disaster recovery strategies to mitigate risks associated with cyber threats, system failures, and regulatory compliance. The country’s digital economy, projected to contribute over RM100 billion by 2025, is fueling the demand for robust cloud-based solutions that ensure business continuity and data resilience. The rise in ransomware attacks, hardware malfunctions, and natural disasters has further emphasized the need for organizations to adopt cloud-based disaster recovery as a service (DRaaS), ensuring rapid failover and minimal operational disruptions.

Enterprises in Malaysia are increasingly embracing hybrid cloud environments to balance performance, security, and cost-effectiveness. Many businesses are moving from legacy disaster recovery solutions to cloud-native platforms that offer real-time data replication, automated recovery policies, and AI-driven threat detection. With 77% of Malaysian SMBs at risk due to inadequate data protection strategies, DRaaS has become a vital solution for ensuring uninterrupted business operations. Cloud providers such as AWS, Microsoft Azure, and Google Cloud are strengthening their regional presence by offering enterprise-grade DRaaS solutions that support compliance with Malaysia’s Personal Data Protection Act (PDPA) and international standards such as GDPR.

Malaysian financial services sector has been a leading adopter of DRaaS, driven by Bank Negara Malaysia’s cybersecurity regulations, which mandate financial institutions to establish resilient backup and disaster recovery frameworks. Leading banks and fintech companies are leveraging cloud-based recovery solutions to protect customer transactions, prevent downtime, and maintain compliance with regulatory bodies. Similarly, healthcare organizations are increasingly integrating DRaaS to safeguard electronic medical records and ensure continuous access to critical patient data, even during system failures.

One of the biggest challenges facing Malaysian enterprises in implementing DRaaS is data sovereignty. Many organizations require local data centers to store and manage sensitive information within Malaysia’s jurisdiction. In response, global cloud providers are establishing in-country data centers to address data residency concerns and ensure compliance with regulatory frameworks. Microsoft’s RM10.5 billion investment in Malaysia’s cloud ecosystem and AWS’s RM29.2 billion cloud infrastructure expansion reflect the increasing demand for secure, high-speed DRaaS solutions tailored to the Malaysian market.

The government’s push for digital transformation through initiatives like MyDIGITAL and Malaysia’s Cloud First Strategy is further accelerating DRaaS adoption. Enterprises across industries, including retail, telecommunications, and government agencies, are leveraging cloud-based disaster recovery solutions to enhance resilience and minimize downtime. The demand for real-time monitoring, predictive analytics, and AI-driven automation is shaping the future of Malaysia’s cloud DRaaS market, ensuring faster recovery times and reduced operational risks.

With organizations recognizing the critical financial and operational risks associated with data loss, Malaysia cloud disaster recovery as a service market is expected to witness sustained investment and innovation. As businesses continue to scale their digital operations, DRaaS providers must focus on scalability, security, and automation to meet the growing demand for cost-effective, high-performance disaster recovery solutions.

Malaysia Cloud Disaster Recovery as a Service Market Scope