Government Cloud Market to Reach $49.2 Billion by 2023

  • Published: December 2017

The need to reduce the total cost of ownership (TCO) and a notable inclination of government agencies toward digitalization are the prime factors leading to the growth of the global government cloud market.

Market segmentation insights

Based on solution, the government cloud market has been categorized into product and service. The market for the product category held the larger revenue share in 2017, owing to the increasing awareness regarding the technology. However, the market for the service category is projected to witness the higher CAGR during the forecast period.

On the basis of product type, the market is further categorized into disaster recovery, risk & compliance management (RCM), identity & access management (IAM), storage, and others. Among these, the disaster recovery category is expected to exhibit the highest CAGR, of 15.7%, during the forecast period, in the government cloud market. This is owing to the strong focus of government agencies on backup plans, which is a part of disaster recovery, to safeguard data losses.

The service category is further sub-categorized into support & maintenance, integration & migration, and training & consulting. Among these, the market for the training & consulting sub-category held the largest share in 2017 in the government cloud market due to the heavy spending on awareness programs revolving around cloud implementation in the government sector.

North America led the government cloud market in 2017

North America held the largest revenue share, of about 34.0%, in 2017, in the government cloud market. Furthermore, the region is expected to generate revenue of over $15.0 billion by 2023, as a result of the heavy demand for and increasing investments by government agencies in cloud-based solutions.

Increasing demand for sophisticated network solutions to propel the market growth

The rapid advancements in technologies are leading various government information and communications technology (ICT) executives to seek sophisticated, agile network solutions, which would enable them to efficiently react to public concerns. Such executives leverage government cloud to adapt to the changing technology landscape with minimal hassles and expense, in turn, steering the growth of the government cloud market. Furthermore, government agencies are able to improve their agility and adaptability by adopting cloud, along with enjoying increased flexibility, virtualized resources, and faster deployment.

Competitive Landscape

Some of the major players operating in the global government cloud market are International Business Machines Corporation (IBM) Corporation, Cisco Systems Inc., Inc., VMware Inc., Google LLC, Microsoft Corporation, Intel Corporation, Oracle Corporation, and Hewlett Packard Enterprise.


By Solution

  • Product
    • Storage
    • Disaster recovery (DR)
    • Identity & access management (IAM)
    • Risk & compliance management (RCM)
    • Others (security and work load management)
  • Service
    • Training & consulting
    • Integration & migration
    • Support & maintenance

By Model

  • Software as a Service (SaaS)
  • Platform as a Service (PaaS)
  • Infrastructure as a Service (IaaS)

By Deployment

  • Public
  • Private
  • Hybrid

By Geography

  • North America
    • By solution
    • By model
    • By deployment
    • By country – U.S., Canada
  • Europe
    • By solution
    • By model
    • By deployment
    • By country – U.K., Germany, France, Rest of Europe
  • Asia-Pacific (APAC)
    • By solution
    • By model
    • By deployment
    • By country – China, India, Japan, Australia, Rest of APAC
  • Middle-East & Africa (MEA)
    • By solution
    • By model
    • By deployment
    • By country – U.A.E., South Africa, Rest of MEA
  • Latin America (LATAM)
    • By solution
    • By model
    • By deployment
    • By country – Brazil, Mexico, Rest of Latin America