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 |
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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.
