Global Government Cloud Market – Industry Trends and Forecast to 2029

Government Cloud Market Analysis and Size

Government data generation is increasing due to growing census data (an ever-increasing population), the introduction of new policies/initiatives, partnerships with other regions, and GDP growth due to new businesses sprouting up. Legacy systems consisting of physical hardware are not efficient and might run out of space. As a result, the government cloud is required.

Data Bridge Market Research analyses that the government cloud market which was growing at a value of 27.32 billion in 2021 and is expected to reach the value of USD 77.39 billion by 2029, at a CAGR of 13.90% during the forecast period of 2022-2029. In addition to the market insights such as market value, growth rate, market segments, geographical coverage, market players, and market scenario, the market report curated by the Data Bridge Market Research team includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, and pestle analysis.

Government Cloud Market Scope and Segmentation

Market Definition

The government cloud is a specially designed hybrid solution that allows federal agencies to host web applications, provide citizen services, and improve overall operational effectiveness. It assists in providing information to the government about strategic transformation, creating documentation, configuring customised backup settings, and developing teams to emphasise products without managing the underlying server infrastructure.

Global Government Cloud Market Dynamics

Drivers

• Growing need for massive data handling from a remote endpoints

One of the key factors driving market growth is the widespread adoption of government cloud across various industrial verticals for accessing the massive amount of citizen data regarding user logs, policies, and systems from remote endpoints. In line with this, the integration of the Internet of Things (IoT), cloud-based solutions, and artificial intelligence (AI) for disaster recovery, data backup, and unstructured data sequencing is another growth driver. Furthermore, the rapid adoption of identity and access management (IAM) across various industrial verticals is driving market expansion.

• Governments are heavily investing in R&D activities for better functioning

The ongoing launch of cloud-based government web portals to ensure transparency and accountability by eliminating corruption practises and the growing demand for cloud-based security services to facilitate decision-making procedures are positively stimulating market growth.

Other factors, such as rising R&D investments for launching advanced technological solutions and the numerous initiatives undertaken by governments of various countries to strengthen infrastructure by implementing cloud-based solutions to reduce capital expenditure (CAPEX) and total cost of ownership (TCO), are creating a positive outlook for the market.

Opportunity

Increased compliance with technology regulations will boost market growth. Furthermore, the emergence of open data platforms will provide numerous new opportunities, propelling the growth of the government cloud market during the forecast period.

Restraints

In the forecasted period, the varying structure of regulatory policies is acting as a major market restraint for government cloud, whereas the reluctance of government agencies to adopt cloud technology and the high risk of information loss are acting as major challenges to the growth of the government cloud market.

This government cloud market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the government cloud market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

COVID-19 Impact on Government Cloud Market

The cloud market has benefited from Covid-19, as factors such as remote work and digitalization encourage the use of cloud-based solutions. According to a MariaDB survey, 40% of respondents are accelerating their cloud migration, with 51% planning to migrate applications to the cloud in preparation for the second wave of Covid-19. Around 39% expect to be completely cloud-based. On the other hand, 24% of respondents are delaying their move to the cloud due to security, cost, and compatibility concerns.

Recent Development

• In February 2022, Meta AI (formerly Facebook AI) announced that it had open-sourced data2vec, a unified framework for self-supervised deep learning on text, images, and speech audio data.
• In February 2022, Virtana, a California-based technology company, announced that it had developed a hybrid cloud management solutions platform that would allow its customers to plan, execute, and manage their hybrid cloud implementations. In addition, the company stated that it used a combination of AI, machine learning, and data analytics to provide observability for managing app workloads across public, private, hybrid, and multi-cloud environments.
• In April 2020, OpenGov Financials, a new financial management solution that expands its cloud-based software offerings and unveils the industry's first fully-integrated cloud ERP designed exclusively for local government, will be available. The solution will enable governments to run their mission-critical processes on a daily basis, as well as report, forecast, and budget using a single online platform.

Global Government Cloud Market Scope

The government cloud market is segmented on the basis of type, service model, deployment model and application. The growth amongst these segments will help you analyse meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Type

• Solution
• Cloud storage
• Disaster recovery
• Identity and access management
• Risk and compliance management
• Others
• Services
• Training
• Consulting and education
• Support and maintenance
• Integration and migration

Service model

• Software as a Service
• Platform as a Service
• Infrastructure as a Service

Deployment model

• Public Cloud
• Private Cloud
• Hybrid Cloud

Application

• Server and Storage
• Disaster Recovery/Data Backup
• Security and Compliance
• Analytics
• Content Management

Government Cloud Market Regional Analysis/Insights

The government cloud market is analysed and market size insights and trends are provided by country, type, service model, deployment model and application as referenced above.

The countries covered in the government cloud market report are U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America.

North America is expected to have the largest market share in the forecast period of 2022–2029. North America is the most important market due to the large number of players offering government cloud solutions and services in this region. As it is home to the majority of large organisations, North America is the most developed region in the government cloud market. These are the major drivers that will propel the North America region's growth in the global market.

Asia-Pacific is expected to grow rapidly with a highest growth rate. Various government initiatives have aided the region's cloud service adoption, allowing it to accelerate its digital transformation and become a full-fledged cloud computing centre. In recent years, Asia-Pacific member countries have worked to build universal broadband infrastructure, strengthen the ICT industry, promote widespread ICT use in all sectors, and build a strong legislative framework to support new technology development.

The country section of the report also provides individual market impacting factors and changes in market regulation that impact the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of Global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.   

Competitive Landscape and Government Cloud Market Share Analysis

The government cloud market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, Global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to government cloud market.

Some of the major players operating in the government cloud market are:

• IBM Corporation (U.S.)
• Microsoft (U.S.)
• Siemens AG (Germany)
• ANSYS, Inc (U.S.)
• SAP SE (Germany)
• Oracle (U.S.)
• Robert Bosch GmbH (Germany)
• Swim.ai, Inc. (U.S.)
• Atos SE (France)
• ABB (Switzerland)
• KELLTON TECH (India)
• AVEVA Group plc (U.K.)
• DXC Technology Company (U.S.)
• Altair Engineering, Inc. (U.S.)
• Hexaware Technologies Limited (India)
• Tata Consultancy Services Limited (India)
• Infosys Limited (India)
• NTT DATA, Inc. (Japan)
• TIBCO Software Inc. (U.S.)

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