Tuesday, 02 January 2024 12:17 GMT

Government Cloud Computing Forecast Report 2025: An $80+ Billion Market By 2030, Driven By Cost Efficiency, Scalable Infrastructure Demand, And Improved Citizen Service Delivery


(MENAFN- GlobeNewsWire - Nasdaq) The Global Government Cloud Computing Market is driven by demand for cost-efficient, scalable IT solutions that enhance service delivery. Key opportunities include developing localized sovereign clouds for data security and compliance. Major players like AWS and Microsoft lead innovation in public, private, and hybrid deployments.

Dublin, Dec. 01, 2025 (GLOBE NEWSWIRE) -- The "Government Cloud Computing Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2020-2030F" report has been added to ResearchAndMarkets's offering.
The Global Government Cloud Computing Market, valued at USD 32.01 Billion in 2024, is projected to experience a CAGR of 16.71% to reach USD 80.90 Billion by 2030.

Government cloud computing refers to a specialized model of cloud services tailored to meet the distinct security, compliance, and operational requirements of public sector entities, enabling data storage and processing over the internet rather than exclusively on physical local servers. Key drivers supporting market growth include the imperative for cost efficiency, allowing agencies to optimize IT expenditures, and the demand for scalable infrastructure that can dynamically adjust to fluctuating service loads. Furthermore, enhanced capabilities for efficient service delivery to citizens promote adoption.
Key Market Drivers
Enhanced cost efficiency and budget optimization represent a primary driver for government cloud adoption. Public sector entities are under constant pressure to deliver greater value to citizens while operating within strict financial parameters. Cloud computing directly addresses this by converting substantial capital expenditures for IT infrastructure into more manageable operational expenditures, thereby eliminating the need for significant upfront investments in hardware procurement and ongoing maintenance. This pay-as-you-go model allows agencies to precisely match resource consumption with demand, preventing the costly inefficiencies associated with over-provisioning traditional on-premise systems. Furthermore, the ability to scale resources dynamically ensures optimal utilization and cost control.
Key Market Challenges
The persistent concern regarding data security and the complexities of navigating regulatory compliance frameworks represent a significant impediment to the growth of the Global Government Cloud Computing Market. Government agencies are entrusted with highly sensitive citizen information, necessitating exceptionally robust safeguards against evolving cyber threats and strict adherence to numerous data protection laws.

This creates considerable integration and management complexities for cloud service adoption. The inherent risks associated with data breaches, coupled with the stringent requirements of compliance mandates such as FedRAMP, GDPR, or similar regional regulations, compel public sector entities to exercise extreme caution. This heightened risk aversion and the substantial overhead required to ensure continuous compliance directly slow the pace of cloud migration and limit the scope of cloud-based initiatives.
Key Market Trends
The increasing demand for sovereign cloud offerings and data residency solutions represents a significant market trend, driven by governmental imperatives for enhanced control over sensitive national data and strict adherence to local regulatory frameworks. Governments prioritize infrastructure that guarantees data storage and processing within their geographical boundaries, mitigating geopolitical risks and ensuring compliance with national security mandates.

This trend is fostering specialized cloud deployments and partnerships aimed at meeting these stringent requirements. According to the U. S. Government Accountability Office, federal cloud spending reached USD 7.1 billion in fiscal year 2023, with 70% allocated to solutions meeting strict sovereignty requirements. This emphasis on localized data governance promotes the development of dedicated sovereign cloud environments.

Key Attributes:

Report Attribute Details
No. of Pages 186
Forecast Period 2024 - 2030
Estimated Market Value (USD) in 2024 $32.01 Billion
Forecasted Market Value (USD) by 2030 $80.9 Billion
Compound Annual Growth Rate 16.7%
Regions Covered Global


Report Scope:

Key Market Players Profiled:

  • Amazon Web Services, Inc.
  • CGI Inc.
  • Cisco Systems, Inc.
  • Dell Technologies Inc.
  • IBM Corporation
  • Microsoft Corporation
  • NetApp, Inc.
  • Oracle Corporation
  • Rackspace Technology, Inc.

By Deployment Mode:

  • Public Cloud
  • Private Cloud
  • Hybrid Cloud

By Delivery Mode:

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

By Application:

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

By Region:

  • North America
  • Europe
  • Asia-Pacific
  • South America
  • Middle East & Africa

For more information about this report visit

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