Home Technology Government Cloud Market Size, Share and Forecast to 2030

Government Cloud Market

Government Cloud Market Size, Share & Trends Analysis Report By Deployment Model (Public Cloud, Private Cloud, Hybrid Cloud), By Delivery Mode (Infrastructure-as-a-Service, Platform-as-a-Service, Software-as-a-Service), By Application (Server & Storage, Disaster Recovery/Data Backup, Security & Compliance, Analytics, Content Management) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2022-2030

Report Code: SRTE2263DR
Study Period 2018-2030 CAGR 17.75%
Historical Period 2018-2020 Forecast Period 2022-2030
Base Year 2021 Base Year Market Size USD 26.79 Billion
Forecast Year 2030 Forecast Year Market Size USD 99 Billion
Largest Market North America Fastest Growing Market Europe
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Market Overview

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).

The term "government cloud" refers to cloud computing and virtualization systems designed specifically for government agencies. This global program aims to identify and develop cloud solutions that support the global federal governments' operational, strategic, and financial goals as well as their IT requirements. Using the cloud's capabilities enables the government to create services and applications for citizens more swiftly and flexibly. To improve security, agencies can use cloud-native security services. They can also update and secure their deployment while achieving higher resilience due to cloud-native auto-scaling features. The government cloud is creating itself in numerous nations following their respective federal and municipal laws, rules, and strategies.

The government cloud helps the government by giving it information on strategic change, producing documentation, setting up tailored backup settings, and building teams to focus on specific products without managing the underlying server infrastructure. Utilizing government cloud services has many benefits, including flexibility, security, compliance, improved cost-effectiveness, increased reliability, and greater scalability. It is currently offered in various delivery models, including software as a service, platform as a service, and infrastructure as a service. One of the main reasons influencing the government cloud market expansion is its widespread usage across various industrial sectors for accessing the excessive amounts of citizen data regarding user logs, policies, and systems from distant endpoints.

Market Dynamics

Market Driving Factors

Requirement for More Storage Capacity

Globally, digital data in all forms continues to increase significantly. The ability to stimulate innovation and make provisions for the wellbeing and happiness of their inhabitants is being challenged by the need for governments worldwide to manage such data appropriately. Global Datasphere predicts that by 2025, the total digital data will be 175 zettabytes. The government sector is producing data exponentially, driving demand for cloud-based storage to handle the massive amounts of data. Since the cloud is easily scalable, expanding it to accommodate quickly growing data is simple.

Storage administrators are advancing beyond outmoded storage technology and isolated point solutions to manage storage challenges and workloads in a way that aids the government workforce in deriving meaningful insights from data as government data continues to expand exponentially. Adoption of cloud storage solutions can help with this. Additionally, there are considerable cost benefits to cloud data storage. Further, the need for data storage devices is rising as the number of digital devices rises. Players in the cloud solutions market are currently compelled to develop inexpensive ways to store and handle the data due to the volume of data produced. The government cloud market will grow due to these factors in the future.

Market Restraining Factors

Security Concerns with Cloud-based Solutions

Although the use of cloud-based solutions has grown significantly over the past several years, there are currently no adequate security measures to safeguard customers' data and apps. Cloud-based solutions pose numerous security problems and difficulties. Limited visibility exists for data kept in the cloud using a third-party service, and no control because the supplier has access to the data. Although most governmental organizations continue to store client information on their premises, they nevertheless require a connection to the cloud service provider to accomplish specific functions like screen pops and data lookup. Government organizations, particularly in emerging nations, are still hesitant to adopt these solutions due to the related hazards that limit market growth.

Key Market Opportunities

Growing Implementation of IoT

A sizable customer base is being created for participants in the government cloud market due to the acceleration in the internet of things (IoT) deployment. To link various devices, IoT implementation needs cloud-based technologies, which can be offered by public, private, or hybrid models. IoT investments and, consequently, cloud spending will be significant in the years to come due to remarkable technological advancements. The government sector is beginning to understand how crucial IoT is for thorough analyses and obtaining meaningful information from such analyses. Additionally, the government cloud market is offering new entrants and start-ups a significant opportunity for growth due to the rapidly changing technical landscape.

Regional Analysis

North America Acquires Maximum Market Share

By region, the global government cloud market includes North America, Europe, Asia-Pacific, and LAMEA.

North America will command the leading market share, expanding at a CAGR of 16.6% over the forecast period. Due to numerous firms that provide government cloud solutions and services in this region, North America is the most promising potential market. The government cloud market is most developed in North America, where most major corporations are based. The most crucial federal cloud security frameworks are NIST's Cybersecurity Framework (CSF) and FedRAMP's Federal Risk and Authorization Management Program (FRAMP). One of the strictest security compliance frameworks used by the federal government is FedRAMP. It permits the federal government to hasten the use of cloud computing by developing open standards and procedures for security authorizations. FedRAMP gives federal agencies using cloud products and services a standardized method for security evaluation, authorization, and ongoing monitoring. As a result, there is a growth in demand for cloud services, particularly in government bodies.

Europe is expected to generate USD 25 billion by 2030, growing at a CAGR of 17.45%. The present cloud computing policy in Europe is based on the 2012 strategy established by the European Commission. The goal of the strategy was to accelerate and broaden the usage of cloud computing in all spheres of the economy. Creating a European Cloud Partnership was one of the strategy's action items (ECP). The Cloud-for-Europe (C4E) initiative, a component of the ECP, aims to assist European public bodies in acquiring cloud goods and services to increase trust in European cloud computing. Government organizations in the region have recognized the value of using the government cloud as a practical way to accomplish effective and efficient operations and guarantee seamless business continuity. The European Union plans to invest EUR 10 billion over the next seven years to create a domestic cloud computing market that could compete with multinational companies like Amazon, Google, and Alibaba. These factors will boost the government cloud market during the forecast period.

Report Scope

Report Metric Details
By Deployment Model
  1. Public Cloud
  2. Private Cloud
  3. Hybrid Cloud
By Delivery Mode
  1. Infrastructure-as-a-Service
  2. Platform-as-a-Service
  3. Software-as-a-Service
By Application
  1. Server & Storage
  2. Disaster Recovery/Data Backup
  3. Security & Compliance
  4. Analytics
  5. Content Management
Company Profiles Amazon Web Services Inc. AT&T Inc. CGI Inc. Cisco Systems Inc. Dell Inc. Google Inc. IBM Corporation Microsoft Corporation NetApp Inc. Oracle Corporation Rackspace Inc. com Inc. Verizon Wireless VMware Inc.
Geographies Covered
North America U.S. Canada
Europe U.K. Germany France Spain Italy Russia Nordic Benelux Rest of Europe
APAC China Korea Japan India Australia Taiwan South East Asia Rest of Asia-Pacific
Middle East and Africa UAE Turkey Saudi Arabia South Africa Egypt Nigeria Rest of MEA
LATAM Brazil Mexico Argentina Chile Colombia Rest of LATAM
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
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Segmental Analysis

The global government cloud market is classified based on deployment model, delivery mode, application, and region.

On the Basis of Deployment Model

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. Users can store and analyze their data on the public cloud and other resource-sharing features to achieve economies of scale in other people's data centers. Public cloud platforms allow customers to access the same services without worrying about managing and storing their data. These help firms save on the potentially high expenses of buying, running, and maintaining on-premises software. The typical delivery method for these cloud services is an automated web route free from human involvement.

The Hybrid Cloud section will hold the second-largest market share. An agency's network-accessible private and public clouds are combined to form a hybrid cloud (accessible to the public). Due to the security dangers, government agencies were previously wary of using the public cloud; nevertheless, many organizations are now accepting the safe hybrid cloud approach. The government has hesitated to entrust sensitive or essential systems to the public cloud. However, according to IBM, the hybrid cloud model offers agencies a way to select a service based on data and security concerns.

On the Basis of Delivery Mode

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. Software that can be accessed online through a web browser instead of having to be bought and deployed on individual computers is known as software-as-a-service (SaaS). SaaS is one aspect of cloud technology that is experiencing rapid expansion. SaaS-based software and services are frequently utilized in hybrid settings to integrate with on-premises and cloud models. When workable solutions are already available in the cloud, government agencies no longer need to develop their own. Adopting AI and other new technologies in government may expand with the use of SaaS solutions that incorporate cognitive technologies into the software.

The Infrastructure-as-a-Service (IaaS) section will hold the second-largest market share. Due to its ability to run on any platform or application, IaaS is regarded as the layer with the most significant degree of freedom among the other cloud layers. IaaS's expansion can be attributed to its capacity to move workloads to the cloud when demand for on-premises systems is at its highest. Instant computing infrastructure that is deployed and controlled online is known as infrastructure as a service. Some of the critical components of IaaS include analytics, web apps, high-performance computing, test and development, and website hosting.

On the Basis of Application

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. Cloud servers offer scalability, cost-effectiveness, and diverse operations and procedures integration. The term "cloud server" refers to a virtual server rather than a physical server that is constructed, hosted, and provided by a cloud computing platform over the internet and accessible from a distance. Governments are moving their computing requirements to cloud infrastructure at all levels, including the federal, state, and municipal. Many governments are attempting to implement hybrid, multi-cloud environments that offer agility and security. The user records, public policies, and programs held by the federal and state governments contain vast data. Therefore, having a trustworthy and durable storage solution is essential for the government to deliver all services on demand.

The Security & Compliance section will hold the second-largest market share. Government organizations are subject to stringent cloud computing rules and security specifications, so cybersecurity is a significant worry for them. Solutions from businesses like Intel assist corporations and government bodies in implementing measures that correspond to cloud compliance. Additionally, the apps that these organizations rely on are moving to the cloud to meet the demands of the constantly growing workloads due to the pandemic and the growing trend of remote working conditions among government firms. Agencies and companies' old security perimeters are becoming obsolete, raising demand for cloud-based servers and security choices.

Market Size By Deployment Model

Market Size By Deployment Model
  • Public Cloud
  • Private Cloud
  • Hybrid Cloud
  • Recent Developments

    Top Key Players

    Government Cloud Market Share of Key Players

    Government Cloud Market Share of Key Players
    Amazon Web Services Inc. AT&T Inc. CGI Inc. Cisco Systems Inc. Dell Inc. Google Inc. IBM Corporation Microsoft Corporation NetApp Inc. Oracle Corporation Rackspace Inc. com Inc. Verizon Wireless VMware Inc. Others

    Frequently Asked Questions (FAQs)

    What is the estimated growth rate (CAGR) of the Government Cloud Market?
    Government Cloud Market size will grow at approx. CAGR of 17.75% during the forecast period.
    Some of the top prominent players in Government Cloud Market are, Amazon Web Services Inc., AT&T Inc., CGI Inc., Cisco Systems Inc., Dell Inc., Google Inc., IBM Corporation, Microsoft Corporation, NetApp Inc., Oracle Corporation, Rackspace Inc., com Inc., Verizon Wireless, VMware Inc., etc.
    North America has been dominating the Government Cloud Market, accounting for the largest share of the market.
    The Europe region is projected to exhibit the highest rate of growth in the Government Cloud Market.
    The global Government Cloud Market report is segmented as follows: By Deployment Model, By Delivery Mode, By Application

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