Market Trends of Government Cloud Industry
This section covers the major market trends shaping the Government Cloud Market according to our research experts:
Need for Greater Cloud Storage Capabilities to witness growth
- Digital data of all kinds are constantly growing dramatically on a global scale. The requirement for governments worldwide to manage such data effectively is posing challenges to their capacity to foster innovation and make provisions for the welfare and happiness of their citizens. According to Global Datasphere, 175 zettabytes of digital data will exist by 2025. Government agencies are producing large amounts of data, increasing the demand for cloud-based storage.
- The need for and adoption rate of cloud storage are favored by the rise in the need for low-cost data backup, storage, and protection across all government sectors, as well as the requirement to manage the data produced by the increased use of mobile technologies.
- Additionally, due to the growing number of data breaches in the banking industry, government banks are adopting cloud storage, which enables them to save data in a location that is either maintained and owned by the bank itself or by a third party, improving end-user security. Over the projected period, this is anticipated to enhance the adoption of cloud storage.
- 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; for instance, In July last year, Tata Communications launched 'IZOTM Financial Cloud,' a community cloud platform tailored to fulfill Indian authorities' demanding data privacy, protection compliance, and security criteria for the banking, enterprises, and industries sectors.
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Europea to Witness the Highest Growth
- The European Commission unveiled its first cloud computing strategy in 2012. The goal of the process was to accelerate and broaden the usage of cloud computing in all spheres of the economy. Currently, 36% of the continent's companies use cloud services2, for an estimated €54 billion (USD 5636 Billion) of direct cloud spending in 2020, which is expected to double by next year.
- As the Increased density of edge and cloud facilities is needed to sustain the adoption of innovative and sovereign edge and cloud technologies across the continent, the European market is planning to adopt cloud native 5G and enable industrial local 5G networks, leveraging the global competitiveness of its network equipment providers and the worldwide footprint of its telecommunication operators to transform the mobile network into a global network of widely distributed cloud-edge nodes.
- Moreover, the European Union plans to invest EUR 10 billion(USD 10.44 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.
- The widespread adoption of government cloud across various industrial verticals for accessing the excessive amount of citizen data regarding user logs, policies, and systems from remote endpoints is one of the key factors driving the market growth across the region.
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