Government cloud market to hit $49.2 billion by 2023
- By Gov Cloud Insider Staff
As government agencies become more comfortable with cloud computing, industry analysts project the global market for government cloud services will reach $49.2 billion by 2023, growing at a compound annual rate of 15.4 percent between now and then.
Public cloud deployments will be the leading platform choice, and software-as-a-service offerings are expected to see the highest revenue growth because governments gave been attracted by the low cost of ownership and the pay-as-you-go model, according to a new report from P&S Market Research. Government IT executives see cloud as a way to help them adapt to changes with less trouble and expense, one of the major drivers of the government cloud market.
Agencies have been adopting cloud for storage, disaster recovery, identity access management, risk compliance management and other applications. For the forecast period, the largest growth is projected for disaster recovery and IAM applications with governments turning to cloud solutions to prevent transaction and data losses from disasters and vulnerabilities in authentication procedures. Government defense, education and insurance agencies have been the early adopters of cloud computing, blazing a trail for other departments to follow in near future, the report said.
The internet of things is also projected to contribute to the growth of cloud-based business startups and cloud assisted technologies -- connected devices, deep analytics, for example -- that will require support from public, hybrid, and private cloud models.
North America is expected to account for nearly 34 percent of the global government cloud market in 2017 and generate more than $15,000 million in revenue by 2023, thanks in part to government agencies' "cloud-first" policies and their increasing digitalization of citizen-facing services.