The industry has constantly been threatened by external competition, and will continue to suffer
Los Angeles, CA (PRWEB) July 30, 2012
The Data Recovery Services industry salvages computer files from damaged, failed, corrupted or inaccessible storage media. However, as options for data recovery and data loss prevention have expanded, demand for industry services has declined. Over the five years to 2012, industry revenue is estimated to fall at an annualized rate of 0.9% to total $1.5 billion, with a decline of 0.6% in 2012. Cloud computing, or online data storage, represents the latest threat to the industry. Recently, on a consumer level, cloud computing services are offered free of charge from Google's Drive, Apple's iCloud and Dropbox. According to IBISWorld industry analyst Brian Bueno, these services allow users to store any type of file on the cloud and access them on any computer or mobile phone. As new cloud technology continues to develop, more businesses and consumers will demand more cloud-related services, thus helping prevent data loss because this data is hosted on the servers of the cloud service provider. If data becomes inaccessible on a user's physical storage media, the business or consumer can be confident that it is retrievable from the cloud. As a result, demand for data recovery services becomes unnecessary.
The industry's decline is forecast to accelerate over the next five years. The decrease reflects the continued movement by businesses and consumers away from data recovery services and toward other technologies, such as data backup and recovery software and do-it-yourself recovery tools and tutorials. One of the largest drivers of the industry's contraction is the growing prevalence of cloud storage among households, which allows persons to store files on remote servers (i.e. the cloud) that are accessible from any computer or mobile phone; as a result, the risk of data loss is vastly diminished and data recovery services become obsolete.
The Data Recovery Services industry is highly fragmented and is dominated by small operators. Small- to medium-sized players in the industry make up the largest proportion of businesses. “The four largest companies in the industry account for less than 10.0% of industry revenue in 2012, representing a low industry concentration,” says Bueno. Market share concentration has remained stable during the past five years. In the past five years, the number of establishments declined an annualized 0.7% to 6,303 in 2012. For more information, visit IBISWorld’s Data Recovery Services in the US industry report page.
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IBISWorld industry Report Key Topics
Companies in this industry provide data recovery services. Data recovery is the process of salvaging data from damaged, failed, corrupted, or inaccessible storage media when it cannot be accessed normally.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.