The government cloud market, valued at USD 40.2 billion in 2023, is expected to surge to USD 102.2 billion by 2030, growing at a CAGR of 14.5% between 2024 and 2030. This rapid expansion is driven by the increasing need for secure and compliant data storage and management solutions among government agencies.

With rising cyber threats, governments are recognizing the necessity of government clouds with enhanced cybersecurity measures, fueling market growth. Additionally, the market’s expansion is influenced by factors such as the development of networks for remote access to citizen data, including user logs, policies, and remote systems.

Furthermore, the growing adoption of cloud IaaS, PaaS, AI, and IoT for efficient data backup, unstructured data processing, and business continuity is driving growth. The increased implementation of Identity and Access Management (IAM) across various sectors is also contributing to the market’s upward trajectory.

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The explosion of digital data globally is becoming a significant challenge for governments, prompting them to manage this data more effectively to benefit their citizens. The International Data Corporation estimates that the global Datasphere will reach 180 zettabytes by 2025.

In terms of deployment, the private cloud segment is expected to grow rapidly due to its suitability for storing sensitive data behind firewalls, while non-sensitive data can be shifted to public clouds to alleviate the demand on private systems.

The Software as a Service (SaaS) model leads the market, as public sector entities increasingly adopt SaaS solutions to efficiently manage software updates and deployments while reducing hardware costs.

North America is the largest driver of the government cloud market, owing to its focus on data security, technological advancements, and government efficiency. Countries like the USA and Canada are prioritizing secure government clouds that comply with stringent regulations such as FISMA and FedRAMP.