Cloud-Based Emergency Notification Solution Market Trends

Growth Drivers

• Mandatory emergency alert system upgrades across federal and local governments: A major supportive factor of the cloud-based emergency notification solution market is the rise of government mandates that have bolstered adoption rates across multiple regional markets. For instance, the U.S. FCC regulations require state governments to implement upgraded emergency alert systems which are integrated with cloud-based notification platforms. The mandate was formalized in July 2024, with the compliance deadline in 2026. In terms of the measurable metrics of deployment, the FCC’s Public Safety & Homeland Security Bureau have cited that more than 84% of state and local governments in the U.S. are in the process of upgrading their systems, with the shift expected to generate over USD 3.0 billion in the spending of cloud-based notification infrastructure by the end of 2027. The growth driven by the regulatory mandates is poised to ensure a sustained expansion for the next 10 years.

• Rising demand of cloud-based emergency communication solutions from the insurance industry: The cloud-based emergency notification solution sector’s growth is supported by the demand from the insurance industry. The industry has been reliant on traditional and localized communication systems, and current trends have indicated a transition to cloud-based notification solutions. The trend of transition has been supported by a push to mitigate the impact of adverse natural events, as insurance firms are leveraging cloud technologies to bolster claims communication. Additionally, the rate of adoption is poised to spike across the insurance sectors globally highlighted by the increasing investments reported by AIG and Allianz of over 15% in cloud-based IT investments by the fourth quarter of 2023. With global warming increasing the threat of climate-related disasters, the requirement for reliable communication solutions is projected to lead the sustained growth throughout the forecast timeline.

Challenges of the Cloud-Based Emergency Notification Solution Market

• Inadequate real-time system resilience and response: A critical challenge impacting the cloud-based emergency notification solutions market is the failure of resilience during emergencies. Due to the time-sensitive nature of emergency notifications, the platforms must be able to withstand sudden spikes in usage driven by major crisis such as natural disasters or security breaches. The failure to maintain uninterrupted service during emergencies limits trust on the cloud-based emergency notification solution platforms.