Global Government Cloud Market Extends at a Healthy CAGR of 17.75% by 2030

Introduction

Cloud computing and virtualization systems created especially for governmental organizations are called "government clouds." This global program aims to find and build cloud solutions that support the federal government's operational, strategic, and financial goals worldwide and their IT needs. The government may develop services and applications for residents more quickly and flexibly by utilizing the capabilities of the cloud. Agencies can leverage cloud-native security services to enhance security. They may also update and secure their deployment to cloud-native auto-scaling features while attaining excellent resiliency. According to local federal and municipal laws, regulations, and policies, government clouds are emerging in many countries.

The government benefits from using the government cloud by receiving information on strategic change, providing documentation, configuring customized backup settings, and forming teams to concentrate on specific goods without managing the underlying server infrastructure. One of the many advantages of using government cloud services is flexibility. Other advantages include security, compliance, improved cost-effectiveness, increased reliability, and greater scalability. Currently, it is available in a range of delivery methods, such as infrastructure as a service, platform as a service, and software as a service. The extensive use of government clouds across various industrial sectors for accessing the vast volumes of citizen data regarding user logs, policies, and systems from remote endpoints is one of the key factors driving the market expansion.

Market Dynamics

Requirement for More Storage CapacityCreates Demand for Government Cloud

The volume of digital data in all forms is steadily rising globally. The requirement for governments worldwide to manage such data effectively poses challenges to their capacity to foster innovation and make provisions for the wellbeing and pleasure of their citizens. According to Global Datasphere, there will be 175 zettabytes of digital data worldwide by 2025. The amount of data produced by the government sector is increasing exponentially, increasing the demand for cloud-based storage to handle the enormous amounts of data. The cloud can be expanded to address the rapidly growing data because it is highly scalable.

As government data continues to grow tremendously, storage administrators are moving past outdated storage technologies and isolated point solutions to manage storage challenges and workloads in a way that helps the government workforce derive valuable insights from data. Cloud storage adoption may be able to help with this. Additionally, cloud data storage offers significant financial advantages. As the number of digital devices increases, there is also a growing need for data storage devices. Players in the cloud solutions market are forced to find low-cost methods of handling and storing the data because of the volume produced. These factors will cause the government cloud market to expand in the following years.

Untapped Market Opportunities Amid Growing Implementation of IoT

The acceleration of internet of things (IoT) adoption creates a substantial customer base for players in the government cloud industry. IoT implementation requires cloud-based technologies, which can be provided by public, private, or hybrid models, to connect numerous devices. Due to remarkable technological breakthroughs, IoT investments and cloud spending will be significant in the following years. The government sector is starting to realize how important IoT is for doing in-depth analysis and getting valuable information from those analyses. Additionally, the government cloud industry is providing new entrants and start-ups with a big chance for growth because of the fast-evolving technical environment.

Regional Insights

North America will command the leading market share, expanding at a CAGR of 16.6% over the forecast period.North America is the most attractive potential market because many companies in this area offer government cloud solutions and services. The government cloud industry is the most established in North America, where the most significant firms are headquartered. The two most crucial government cloud security frameworks are the Cybersecurity Framework (CSF) from NIST and the Federal Risk and Authorization Management Program (FRAME) from FedRAMP. FedRAMP is among the federal government's most stringent security compliance frameworks. Creating open standards and practices for security authorizations enables the federal government to accelerate the usage of cloud computing. FedRAMP provides a standardized mechanism for security review, authorization, and ongoing monitoring of federal agencies adopting cloud goods and services. As a result, demand for cloud services is rising, especially among government organizations.

Europe is expected to generate USD 25 billion by 2030, growing at a CAGR of 17.45%. Europe's current cloud computing policy is based on the European Commission's 2012 strategy. The strategy's objective was to hasten and expand the use of cloud computing across all economic sectors. One of the action items for the plan was the formation of a European Cloud Partnership (ECP). To foster greater trust in European cloud computing, the Cloud-for-Europe (C4E) initiative, which is a part of the ECP, aims to support European public entities in obtaining cloud products and services. Government organizations in the region have acknowledged the significance of employing the government cloud as a realistic means to achieve effective and efficient operations and ensure seamless business continuity. To build a domestic cloud computing sector that might compete with large corporations like Amazon, Google, and Alibaba, the European Union also aims to invest EUR 10 billion over the ensuing seven years. These factors will drive the market for government cloud services during the projected period.

Key Highlights

• The global government cloud market size was worth USD 26.79 billion in 2021. It is expected to reach USD 99 billion by 2030, growing at a CAGR of 17.75% during the forecast period (2022–2030).
• By deployment model, the global government cloud market comprises Public, Private, and Hybrid Clouds.The Public Cloud section is projected to advance at a CAGR of 17.9% and hold the largest market share over the forecast period.
• By delivery mode, the global government cloud market comprises Infrastructure-as-a-Service, Platform-as-a-Service, and Software-as-a-Service.The Software-as-a-Service section is projected to advance at a CAGR of 17.2% and hold the largest market share over the forecast period.
• By application, the global government cloud market comprises Server & Storage, Disaster Recovery/Data Backup, Security & Compliance, Analytics, and Content Management. The Servers & Storage section is projected to advance at a CAGR of 17.5% and hold the largest market share over the forecast period.
• By region, the global government cloud market includes North America, Europe, Asia-Pacific, and LAMEA. North America dominates the global market.

Competitive Players

1. Amazon Web Services Inc.
2. AT&T Inc.
3. CGI Inc.
4. Cisco Systems Inc.
5. Dell Inc.
6. Google Inc.
7. IBM Corporation
8. Microsoft Corporation
9. NetApp Inc.
10. Oracle Corporation
11. Rackspace Inc.
12. com Inc.
13. Verizon Wireless
14. VMware Inc.

Recent Developments

• June 2024 - Salesforce declared the opening of its Public Sector division in India with the goal of enabling public sector and government organizations to use Salesforce technology to revolutionize citizen experiences. Salesforce Public Sector Solutions offers out-of-the-box software for digital service delivery, enabling government organizations to serve citizens more quickly.
• April 2024 - In order to assist with sovereign AI, Oracle announced that NVIDIA AI Enterprise on Oracle Cloud Infrastructure Supercluster will be available in the Oracle U.S. Government Cloud area. With access to Oracle Cloud Infrastructure's 100+ services, including its generative AI services running on high-performance accelerators like NVIDIA H100 and NVIDIA A100 Tensor Core GPUs, as well as ultra-low-latency networking and secure storage, Oracle and NVIDIA are assisting U.S. government customers in training and deploying AI solutions, building on the expansion of their partnership.

Segmentation

1. By Deployment Model
   1. Public Cloud
   2. Private Cloud
   3. Hybrid Cloud
2. By Delivery Mode
   1. Infrastructure-as-a-Service
   2. Platform-as-a-Service
   3. Software-as-a-Service
3. By Application
   1. Server & Storage
   2. Disaster Recovery/Data Backup
   3. Security & Compliance
   4. Analytics
   5. Content Management