Military Cloud Computing Market by Deployment Type (Public Cloud, Private Cloud, Hybrid Cloud), Service Model (Infrastructure as a Service ,Platform as a Service, and Software as a service), Application, End User and Region - Global Forecast to 2028
[233 Pages Report] The military cloud computing market is estimated to be USD 8.5 billion in 2023 and is projected to reach USD 15.3 billion by 2028, at a CAGR of 12.5% from 2023 to 2028. The primary key driving factor for the growth of the military cloud computing market is the increasing need for efficient and secure data management and communication in modern military operations. Modern armed forces are highly reliant on data for intelligence, surveillance, reconnaissance, decision-making, and mission-critical applications. Cloud computing offers a scalable, cost-effective, and flexible solution to manage and process vast amounts of data, ensuring that military personnel have timely access to critical information and applications. Furthermore, the cloud provides advanced security measures to protect sensitive military data and enhances interoperability for joint operations and coalition efforts.
Military Cloud Computing Market Forecast to 2028
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Military Cloud Computing Market Dynamics:
Drivers: Access to Advanced Technologies
In today's rapidly evolving defense landscape, staying ahead of adversaries and maintaining a technological edge is crucial for military organizations. Cloud computing provides a gateway to access and leverage advanced technologies that can enhance military capabilities and enable innovation. By leveraging cloud computing, military entities can harness the computational power and scalability needed to process vast amounts of data and derive valuable insights. The cloud provides the infrastructure and tools necessary to perform complex data analysis, pattern recognition, and predictive modeling, enabling military organizations to make data-driven decisions, optimize resource allocation, and identify emerging threats.
Cloud computing also enables rapid prototyping and experimentation, reducing the time and cost required to develop and test new technologies. Military organizations can leverage cloud-based environments to simulate and evaluate various scenarios, optimize equipment performance, and refine operational strategies.
Overall, access to advanced technology through cloud computing drives the military cloud computing market. The ability to harness the power of AI, ML, big data analytics, and cybersecurity advancements empowers military organizations to enhance their operational capabilities, improve decision-making processes, and maintain a technological advantage. By embracing cloud-based solutions, the military can leverage advanced technologies more effectively and efficiently, ensuring they remain at the forefront of innovation and preparedness in an ever-evolving defense landscape.
Restraints: Security Concerns
Security is a top priority for military organizations, and concerns about data breaches, unauthorized access, and cyber threats can hinder the adoption of cloud computing. Defense agencies require stringent security measures and assurances to protect sensitive and classified information stored and processed in the cloud.
One of the primary security concerns is the risk of unauthorized access to sensitive military data. With cloud-based systems, data is stored and processed in remote data centers operated by cloud service providers. This introduces the challenge of ensuring secure transmission and storage of data, protecting it from unauthorized access, interception, or breaches. The potential for cyberattacks, data breaches, or insider threats raises concerns about the confidentiality, integrity, and availability of military information.
Another security concern is the risk of data sovereignty and jurisdiction. Military organizations often have specific requirements and regulations regarding the storage and processing of sensitive data within their own national boundaries. When adopting cloud computing solutions, there is a need to ensure compliance with data sovereignty regulations and address concerns about data being stored or processed in foreign jurisdictions, which may introduce legal and geopolitical risks.
To address these security concerns, military organizations must implement robust security measures and adopt best practices for securing cloud-based systems. This includes implementing strong access controls, encryption mechanisms, intrusion detection and prevention systems, and continuous monitoring of cloud environments. It also involves establishing comprehensive security policies, conducting regular security audits, and fostering a strong security culture within the organization.
Opportunities: Advanced Analytics and Intelligence
Cloud computing enables the processing and analysis of vast amounts of data in real-time, offering opportunities for advanced analytics and intelligence capabilities. Defense organizations can leverage cloud-based platforms to gain actionable insights from data collected from various sources, including sensors, surveillance systems, and social media. This empowers military decision-makers with enhanced situational awareness, predictive modeling, and intelligence-driven operations.
Advances in analytics and intelligence have significantly transformed the landscape of Military Cloud Computing (MCC), providing the military with powerful capabilities to extract valuable insights from vast amounts of data. The collection and integration of diverse data sources, ranging from sensors to unmanned systems and satellites, enables the military to gather comprehensive situational awareness and intelligence. Through the application of advanced analytics techniques, such as big data analytics, machine learning, and artificial intelligence, the military can process and analyze massive volumes of data in real-time or near-real-time. These techniques enable the identification of patterns, trends, and anomalies that may not be readily apparent through traditional analysis methods.
The integration of analytics and intelligence capabilities into the MCC ecosystem empowers military decision-makers with actionable insights for mission planning, operational optimization, threat detection, and situational awareness. It allows for rapid data-driven decision-making, enhancing the effectiveness and efficiency of military operations. Furthermore, advanced analytics and intelligence in MCC facilitate predictive analytics, enabling the military to anticipate and proactively respond to emerging threats and changing scenarios. Overall, the integration of advanced analytics and intelligence capabilities in MCC represents a significant advancement in military operations, providing the military with a competitive edge by harnessing the power of data to gain actionable insights and make informed decisions.
Challenges: Connectivity and Bandwidth Limitations
Cloud Computing (MCC) relies heavily on robust and reliable network connectivity to facilitate data transmission, real-time communication, and seamless access to cloud resources. However, in military operations, the availability of high-speed and stable network connections can be limited or compromised due to various factors.
Deploying MCC in remote or austere environments often entails dealing with limited or unreliable network infrastructure. These locations may lack sufficient internet connectivity or have limited bandwidth capacity, making it challenging to establish and maintain consistent communication with the cloud infrastructure. Bandwidth limitations can hinder the transfer of large amounts of data and affect the performance of cloud-based applications and services.
Another challenge is the need for secure and reliable connectivity between the military's on-premises systems and the cloud environment. Establishing secure connections, such as virtual private networks (VPNs) or dedicated communication channels, while maintaining high data transfer rates and low latency can be complex and resource intensive.
Collaboration between military organizations, cloud service providers, and network infrastructure providers is crucial in addressing these challenges. By leveraging advanced networking technologies, deploying robust connectivity solutions, and prioritizing the optimization of data transfer and communication, the MCC community can overcome connectivity and bandwidth limitations to ensure reliable and efficient military cloud operations.
Military Cloud Computing Market Ecosystem
Amazon (US), Raytheon Technologies Corporation (US), Microsoft Corporation (US), Google (US), Atos (US), Oracle (US), IBM (US), Atos (France), General Dynamics Corporation (US), Bae Systems (UK), SAIC (US) are some of the leading companies in the military cloud computing market.
Based on Deployment Type, the private cloud segment accounts for the highest market share in military cloud computing during the forecast period
Private military cloud computing accounts for the highest market share due to its ability to meet the unique and stringent requirements of military organizations. Unlike public clouds, private clouds are dedicated to a single entity, ensuring complete control over data and infrastructure, which is a paramount concern for the military. Security is of utmost importance, and private clouds allow for the implementation of highly customized security measures, including strict access controls, encryption, and compliance with military and government standards. Additionally, military operations often involve sensitive and classified information, making data sovereignty a critical factor. Private clouds enable military organizations to maintain data within their own jurisdiction, ensuring sovereignty and compliance with national regulations.
Based on Service Model, the Infrastructure as a Service segment accounts for the highest market share in military cloud computing during the forecast period.
Infrastructure as a Service (IaaS) commands the highest market share in military cloud computing due to its fundamental role in providing the essential building blocks for a wide range of military applications and operations. IaaS offers military organizations a comprehensive and flexible cloud infrastructure, including virtualized computing resources, storage, and networking capabilities. IaaS provides military users with a high degree of customization and control over their virtualized infrastructure. This level of flexibility is crucial in addressing the diverse and dynamic needs of military operations, allowing them to tailor resources to specific mission requirements.
Based on End User, the air force segment is projected to grow at the highest CAGR during the forecast period.
The Air Force segment is experiencing the highest growth in the global military cloud market for several compelling reasons. Firstly, air operations have become increasingly data-intensive, relying on real-time information from a multitude of sensors, drones, and surveillance systems. Military cloud computing provides the necessary infrastructure to collect, process, and disseminate this data efficiently, enhancing situational awareness and decision-making capabilities.
Secondly, the Air Force's need for agility and rapid response has driven the adoption of cloud solutions. Cloud computing allows for the quick provisioning of resources, enabling the deployment of critical applications and services in a matter of minutes, a vital capability in an ever-changing operational environment.
North America is expected to lead the military cloud computing market in 2023.
Military Cloud Computing in the North America region are experiencing significant growth due to several key factors.
- Technological Advancements: North America, particularly the United States, is a global leader in technology innovation. The region is home to numerous tech giants and cloud service providers that have pioneered cloud computing solutions for various industries, including the military.
- Defense Budget: The United States, in particular, maintains the largest defense budget in the world, allowing for substantial investments in military cloud computing infrastructure, research, and development.
- Cybersecurity Focus: Cybersecurity is a top priority for North American militaries. Leading cloud providers in the region invest heavily in security measures, including advanced threat detection, encryption, and access controls, aligning with stringent military and government security standards.
Military Cloud Computing Market by Region
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Key market players
Amazon (US), Raytheon Technologies Corporation (US), Microsoft Corporation (US), Google (US), Atos (US), Oracle (US), IBM (US), Atos (France), General Dynamics Corporation (US), Bae Systems (UK), SAIC (US) are some of the leading companies in the military cloud computing companies. These companies have well-equipped manufacturing facilities and strong distribution networks across North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.
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Report Metric |
Details |
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Market Size Available for Years |
2019–2028 |
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Base Year Considered |
2022 |
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Forecast Period |
2023–2028 |
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Forecast Units |
Value (USD billion) |
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Segments Covered |
Deployment type, Service Model, Application, End User, and Region |
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Geographies Covered |
North America, Europe, Asia Pacific, Rest of the World |
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Companies Covered |
Amazon (US), Google (US), Microsoft Corporation (US), Oracle (US), Dell Technologies (US), Thales Group (France), IBM (US), Cisco, Atos (France) |
Military Cloud Computing Market Highlights
This research report categorizes military cloud computing market based on Deployment type, Service Model, Application, End User, and Region
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Subsegment |
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Recent Developments
- In December 2022, US Depeartment of Defense (DoD) awarded a contract USD 9 billion as part of its Joint Warfighter Cloud Capability to 4 companies which includes Amazon (US), Microsoft Corporation (US), Oracle (US), Google (US). The Contract is awarded for a duration of 6 years.
- In November 2020, general Dynamics Corporation (US) was awarded a contract by the US Department of defense to support DoD cloud strategy. The Contract was valued at USD 4.4 billion and was awarded for a duration of 10 years.
Key Questions Addressed by the Report
What is the current size of the military cloud computing market?
The military cloud computing market is estimated to be USD 8.5 billion in 2023 and is projected to reach USD 15.3 billion by 2028, at a CAGR of 12.5% from 2023 to 2028.
What are the key sustainability strategies adopted by leading players operating in the military cloud computing market?
Response: Key players have adopted various organic and inorganic strategies to strengthen their position in the military cloud computing market. Amazon (US), Raytheon Technologies Corporation (US), Microsoft Corporation (US), Google (US), Atos (US), Oracle (US), IBM (US), Atos (France), General Dynamics Corporation (US), Bae Systems (UK), SAIC(US) are some of the leading companies in the military cloud computing market.
What new emerging technologies and use cases disrupt the military cloud computing Market?
Response: Some of the major emerging technologies and use cases disrupting the market include the development of quantum computing, block chain and hyperspectral imaging.
Who are the key players and innovators in the ecosystem of the military cloud computing market?
Response: . Amazon (US), Raytheon Technologies Corporation (US), Microsoft Corporation (US), Google (US), Atos (US), Oracle (US), IBM (US), Atos (France), General Dynamics Corporation (US), Bae Systems (UK), SAIC(US).
Which region is expected to hold the highest market share in the military cloud computing market?
Response: In 2023, North America is expected to hold the greatest market share for military cloud computing during the forecast period, US is anticipated to grow at the highest CAGR.
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The research study conducted on the military cloud computing market involved extensive use of secondary sources, including directories, databases of articles, journals on military cloud computing, company newsletters, and information portals such as Hoover’s, Bloomberg, and Factiva to identify and collect information useful for this extensive, technical, market-oriented study of the military cloud computing market. Primary sources are several industry experts from the core and related industries, alliances, organizations, Original Equipment Manufacturers (OEMs), vendors, suppliers, and technology developers. These sources relate to all segments of the value chain of the military cloud computing market.
In-depth interviews were conducted with various primary respondents, including key industry participants, subject-matter experts, C-level executives of key market players, and industry consultants, among others, to obtain and verify critical qualitative and quantitative information and to assess future prospects of the market.
Secondary Research
In the secondary research process, various secondary sources were referred to identify and collect information for this study on the military cloud computing market. Secondary sources included annual reports, press releases, and investor presentations of companies; white papers and certified publications; articles from recognized authors; manufacturer's associations; directories; and databases. Secondary research was mainly used to obtain key information about the supply chain of the military cloud computing industry, the monetary chain of the market, the total pool of key players, market classification and segmentation according to the industry trends to the bottom-most level, regional markets, and key developments from both market- and technology-oriented perspectives.
Primary Research
Extensive primary research was conducted to obtain qualitative and quantitative information for this report on the military cloud computing market. Several primary interviews were conducted with the market experts from both demand- and supply-side across major regions, namely, North America, Europe, Asia Pacific, Middle East & Africa, and Latin America. Primary sources from the supply-side included industry experts such as business development managers, sales heads, technology and innovation directors, and related key executives from various key companies and organizations operating in the military cloud computing market.
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Market size Estimation
Extensive research into military cloud computing sources and the concurrent advances in machine learning technology have pushed technology to the level where fully configured military cloud computing are now being designed and tested for imminent deployment. Advances in AI/ML technology and its global demand propelling the demand for military cloud computing.
The top-down and bottom-up approaches were used to estimate and validate the size of the military cloud computing market. The figure in the section below is a representation of the overall market size estimation process employed for the purpose of this study.
The research methodology used to estimate the market size also includes the following details.
- Key players in the industry and markets were identified through secondary research, and their market share was determined through primary and secondary research. This included an extensive study of annual and financial reports of top market players and interviews of CEOs, directors, and marketing executives.
- All percentage shares, splits, and breakdowns were determined using secondary sources and verified through primary sources.
- All possible parameters that affect the markets covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data.
This data was consolidated, enhanced with detailed inputs, analyzed by MarketsandMarkets, and presented in this report.
The research methodology used to estimate the market size also included the following details:
- All possible parameters that affect the markets covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data. This data was consolidated, enhanced with detailed inputs, and analyzed by MarketsandMarkets and presented in this report.
- Market growth trends were defined based on approaches such as the product revenues of the major 10-15 companies from 2019 to 2022, military expenditure, cloud developments in military by different countries from 2019 to 2022, historic development patterns and budget allocation between 2019 to 2022, among others.
Data Triangulation
After arriving at the overall size of the military cloud computing market from the market size estimation process explained above, the total market was split into several segments and subsegments. The data triangulation and market breakdown procedures explained below were implemented, wherever applicable, to complete the overall market engineering process and arrive at the estimated sizes of different market segments and subsegments. The data was triangulated by studying various factors and trends from both the demand and supply sides. Additionally, the market size was validated using both the top-down and bottom-up approaches.
The following figure indicates the market breakdown structure and the data triangulation procedure implemented in the market engineering process used to develop this report.
Market Definition
Military cloud computing is a specialized and highly secure cloud computing framework tailored to the unique demands and stringent requirements of military and defense organizations. It encompasses a comprehensive ecosystem of hardware, software, and services designed to facilitate the storage, processing, management, and dissemination of sensitive and mission-critical data and applications within the military sector. At its core, military cloud computing leverages cloud infrastructure and technology to provide on-demand access to computing resources, enabling military personnel to access vital information, collaborate, and execute operations more efficiently and flexibly. Security is paramount in military cloud computing, with robust encryption, access controls, and stringent compliance measures in place to safeguard sensitive data, communications, and systems from cyber threats and unauthorized access. Furthermore, military cloud computing offers scalability and agility, allowing defense agencies to rapidly adapt to changing mission requirements, optimize resource allocation, and reduce infrastructure costs. This transformative technology plays a pivotal role in modern warfare, enhancing the military's capabilities in areas such as intelligence analysis, logistics management, real-time situational awareness, and mission planning.
Key Stakeholders
- Ministry of Defense
- Regulatory Bodies
- R&D Companies
- Providers of Military Cloud Computing Services
- Providers of Components and Sub-components for Cloud Services
- Armed Forces
Report Objectives
- To define, describe, and forecast the size of the military cloud computing market based on Deployment type, Service Model, Application, End User, and Region from 2023 to 2028.
- To forecast the size of various segments of the market with respect to major regions, namely, North America, Europe, Asia Pacific, and the Rest of the World (RoW), which comprises the Middle East & Africa, Latin America.
- To identify and analyze key drivers, restraints, opportunities, and challenges influencing the growth of the military cloud computing market across the globe.
- To strategically analyze micromarkets1 with respect to individual growth trends, prospects, and their contribution to the military cloud computing market.
- To analyze opportunities for stakeholders in the market by identifying key market trends
- To analyze competitive developments such as contracts, acquisitions and expansions, agreements, joint ventures and partnerships, new product launches, and Research & Development (R&D) activities in the military cloud computing market.
- To provide a detailed competitive landscape of the -market, in addition to an analysis of business and corporate strategies adopted by leading market players.
- To strategically profile key market players and comprehensively analyze their core competencies2.
1. Micro markets refer to further segments and subsegments of the Military cloud computing market included in the report.
2. Core competencies of the companies were captured in terms of their key developments and strategies adopted by them to sustain their position in the market.
Available customizations
Along with the market data, MarketsandMarkets offers customizations as per the specific needs of companies. The following customization options are available for the report:
Product Analysis
- Product matrix, which gives a detailed comparison of the product portfolio of each company
Regional Analysis
- Further breakdown of the market segments at country-level
Company Information
- Detailed analysis and profiling of additional market players (up to 5)
Growth opportunities and latent adjacency in Military Cloud Computing Market