Market Size of Government Cloud Industry
Study Period | 2019 - 2029 |
Market Size (2024) | USD 35.48 Billion |
Market Size (2029) | USD 78.23 Billion |
CAGR (2024 - 2029) | 17.13 % |
Fastest Growing Market | Europe |
Largest Market | North America |
Major Players*Disclaimer: Major Players sorted in no particular order |
Government Cloud Market Analysis
The Government Cloud Market size is estimated at USD 35.48 billion in 2024, and is expected to reach USD 78.23 billion by 2029, growing at a CAGR of 17.13% during the forecast period (2024-2029).
Government cloud refers to virtualization and cloud computing systems explicitly created for governmental entities. This global program aims to identify and develop cloud solutions supporting global federal governments' operational, financial, strategic, and IT goals.
- Government data generation is increasing due to growing census data (constant population growth), new policies and initiatives, cooperation with other regions, and increased GDP due to the mushrooming of new businesses. Physical hardware-based legacy systems are inefficient and may run out of room. Government cloud is therefore required.
- Moreover, governments may create more swiftly and scalable applications and services for citizens by utilizing cloud capabilities. Agencies can use cloud-native security services to improve security, modernize and secure their deployment, and achieve higher resilience through cloud-native auto-scaling capabilities.
- Based on their national and local laws, policies, and tactics, government clouds are emerging in numerous nations. For instance, the GovCloud initiative in the US supports the adoption of cloud computing systems following established standards, with a particular emphasis on security. This program has produced several guidelines, including the Federal Cloud Computing Strategy and the NIST Cloud Computing Technology Roadmap.
- Government policies across different regions have been a major restraining factor for the market. The governments in the EU, US, Singapore, and India have mandated that the data from government agencies be saved in local data centers. These regulations have benefitted the local players but have exerted additional financial strain on global companies.
- With the outbreak of COVID-19, the government cloud market is expected to witness significant growth as cloud-based services and tools are increasingly adapted due to government organizations deploying remote work access and rising awareness of security issues amid lockdowns in various countries.
Government Cloud Industry Segmentation
Cloud for government is becoming the next big thing as vendors provide public, private, or hybrid cloud solutions for government data related to its management, security, backup, or compliance. The offerings can be categorized by delivery modes, such as Infrastructure-as-a-Service, Platform-as-a-Service, or Software-as-a-Service.
The Government Cloud Market can be segmented by Deployment Model (Private Cloud, Public Cloud, Hybrid Cloud), Delivery Mode (IaaS, PaaS, SaaS), Application (Server and Storage, Disaster Recovery/Data Backup, Security and Compliance, Analytics, Content Management), and Geography.
The market sizes and forecasts are provided in terms of value (USD billion) for all the above segments.
By Deployment model | |
Public Cloud | |
Private Cloud | |
Hybrid Cloud |
By Delivery Mode | |
Infrastructure-as-a-Service | |
Pltaform-as-a-Service | |
Software-as-a-Service |
By Application | |
Server and Storage | |
Disaster Recovery/Data Backup | |
Security and Compliance | |
Analytics | |
Content Management |
By Geography | |
North America | |
Europe | |
Asia Pacific | |
Latin America | |
Middle East and Africa |
Government Cloud Market Size Summary
The government cloud market is poised for significant expansion, driven by the increasing need for efficient data management and the adoption of cloud-based solutions by governmental entities worldwide. This market is characterized by the development of virtualization and cloud computing systems tailored specifically for government use, aiming to support various operational, financial, strategic, and IT objectives. The shift from traditional hardware-based systems to cloud solutions is fueled by the growing volume of government data, necessitated by factors such as population growth, new policies, and economic development. Cloud capabilities enable governments to create scalable applications and services, enhance security through cloud-native services, and achieve greater resilience. However, regulatory challenges, particularly data localization mandates in regions like the EU, US, Singapore, and India, pose constraints, benefiting local players while adding pressure on global companies.
The European market is actively investing in cloud infrastructure to enhance its competitiveness against multinational giants, with plans to develop a domestic cloud computing market. This initiative is part of a broader strategy to leverage cloud-native technologies and 5G networks, aiming to transform mobile networks into globally distributed cloud-edge nodes. The government's increasing reliance on cloud solutions across various sectors is a key driver of market growth, as seen in initiatives like Tata Communications' community cloud platform in India and Amazon Web Services' collaboration with the Telangana government. Major players such as Microsoft, Oracle, NEC, IBM, and Google dominate the market, offering robust cloud solutions and services. The high entry barrier due to the strong presence of these vendors underscores the competitive landscape, with ongoing developments in multi-cloud offerings and AI applications further shaping the market dynamics.
Government Cloud Market Size - Table of Contents
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1. MARKET INSIGHTS
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1.1 Market Overview
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1.2 Industry Attractiveness - Porter Five Forces
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1.2.1 Bargaining Power of Suppliers
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1.2.2 Bargaining Power of Consumers
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1.2.3 Threat of New Entrants
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1.2.4 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 By Deployment model
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2.1.1 Public Cloud
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2.1.2 Private Cloud
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2.1.3 Hybrid Cloud
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2.2 By Delivery Mode
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2.2.1 Infrastructure-as-a-Service
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2.2.2 Pltaform-as-a-Service
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2.2.3 Software-as-a-Service
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2.3 By Application
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2.3.1 Server and Storage
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2.3.2 Disaster Recovery/Data Backup
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2.3.3 Security and Compliance
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2.3.4 Analytics
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2.3.5 Content Management
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2.4 By Geography
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2.4.1 North America
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2.4.2 Europe
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2.4.3 Asia Pacific
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2.4.4 Latin America
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2.4.5 Middle East and Africa
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Government Cloud Market Size FAQs
How big is the Government Cloud Market?
The Government Cloud Market size is expected to reach USD 35.48 billion in 2024 and grow at a CAGR of 17.13% to reach USD 78.23 billion by 2029.
What is the current Government Cloud Market size?
In 2024, the Government Cloud Market size is expected to reach USD 35.48 billion.