Ronaldo scored a staggering 69 goals in 59 matches for club and country in 2013 and was hot favourite to lift the prestigious award he last held in 2008.
Barcelona and Argentina's Lionel Messi has claimed the honour over the past four years but had to make way for his La Liga rival, despite his 43 goals in as many matches last year.
Bayern Munich winger Franck Ribery, who helped his side win the treble of Champions League, Bundesliga and German Cup, was the other player in the running but the France international was also to be disappointed.
"I have to say thank you to all of my team-mates for my club Real Madrid and the national team. Without their efforts it wouldn't have been possible."
Cristiano Ronaldo
After picking up the award, a tearful Ronaldo said: "I have to say thank you to all of my team-mates for my club Real Madrid and the national team.
Barcelona and Argentina's Lionel Messi has claimed the honour over the past four years but had to make way for his La Liga rival, despite his 43 goals in as many matches last year.
Bayern Munich winger Franck Ribery, who helped his side win the treble of Champions League, Bundesliga and German Cup, was the other player in the running but the France international was also to be disappointed.
"I have to say thank you to all of my team-mates for my club Real Madrid and the national team. Without their efforts it wouldn't have been possible."
Cristiano Ronaldo
After picking up the award, a tearful Ronaldo said: "I have to say thank you to all of my team-mates for my club Real Madrid and the national team.
"Without their efforts it wouldn't have been possible. I'm very happy. I have to thank everyone who have been involved with me. It's a tremendously emotional moment."
Ronaldo secured the award with a total of 1,365 points following the voting, with Argentina ace Messi taking second place with 1,205 and France international Ribery third with 1,127.
Pele's place in football history was also recognised after he won the inaugural Ballon d'Or Prix d'Honneur award.
The Brazilian master was ineligible for the award during his playing career, which at the time was limited to players plying their trade in Europe.
FIFA inaugurated the world footballer of the year award in 1991 and, with world football's governing body amalgamating their award with the Ballon d'or in 2010, the decision was made to honour Pele.
Jupp Heynckes, now retired, was named coach of the year for the first time after leading his Bayern Munich side to an unprecedented treble.
And Nadine Angerer picked up the award for Women's Player of the Year for her part in Germany's 2013 European Championship triumph.
The 35-year-old saved two penalties in the final on July 28 and was named player of the match following her side's 1-0 victory over Norway.
Ronaldo secured the award with a total of 1,365 points following the voting, with Argentina ace Messi taking second place with 1,205 and France international Ribery third with 1,127.
Pele's place in football history was also recognised after he won the inaugural Ballon d'Or Prix d'Honneur award.
The Brazilian master was ineligible for the award during his playing career, which at the time was limited to players plying their trade in Europe.
FIFA inaugurated the world footballer of the year award in 1991 and, with world football's governing body amalgamating their award with the Ballon d'or in 2010, the decision was made to honour Pele.
Jupp Heynckes, now retired, was named coach of the year for the first time after leading his Bayern Munich side to an unprecedented treble.
And Nadine Angerer picked up the award for Women's Player of the Year for her part in Germany's 2013 European Championship triumph.
The 35-year-old saved two penalties in the final on July 28 and was named player of the match following her side's 1-0 victory over Norway.
Silvia Neid, the coach of the German national side, was named the women's coach of the year while the Fair Play award went to the Afghanistan football federation for their work "opening up football to a wider audience".
The Ferenc Puskas award for best goal of the year went to Sweden's Zlatan Ibrahimovic, for the sensational 40-yard bicycle kick he produced in the 4-2 friendly defeat of England in November 2012, a game in which he scored all of Sweden's goals.
Meanwhile, Sky Sports' Spanish expert Guillem Balague says changing image perceptionsmay have helped Ronaldo to win the Ballon d'Or for the second time ahead of Messi.
Balague said: "Runner-up to the little Argentinian for three out of the last four years, Ronaldo's greatness as a superstar player has never been in question. But in these days of high profile image requirements that go beyond just the game, CR7 always seemed to find himself unfairly cast as the villain to the hero that has been the squeaky clean Messi.
La Liga's Terry Gibson gives his thoughts after Cristiano Ronaldo was announced as the 2013 Ballon d'Or winner.
"Now the balance of the public's perceptions looks to be changing. It feels like the world has gone a bit tired of the same face at the top of the chain.
"Franck Ribery said on Sunday that no matter who won, Messi should be considered the best player in the world and not many will argue with that, but it feels like everything has been allowed to tarnish the image of Messi in the last few months.
"The media picture of villain and heroes is finally disappearing - they should both be considered heroes.
"What is certain however is that Ronaldo seems to have been working on the building of a more user-friendly, less arrogant image than that of the pouting, strutting diva he has been perceived as by so many."
Ronaldo, Messi and Ribery were also included in the FIFPRO team of the year, which was dominated by Real, Barcelona and Bayern, and also featured two players from Paris St Germain.
There were five British players in the running for selection, but no-one made the final XI.
Liverpool captain Steven Gerrard, Manchester United striker Wayne Rooney, Chelsea defender Ashley Cole, Everton left-back Leighton Baines and Gareth Bale, who is now at Real Madrid, had all been nominated.
FIFPRO team of the Year: Manuel Neuer (B Munich); Phillip Lahm (B Munich), Sergio Ramos (Real Madrid), Thiago Silva (PSG), Dani Alves (Barcelona); Andres Iniesta (Barcelona), Xavi (Barcelona), Franck Ribery (Bayern Munich); Cristiano Ronaldo (Real Madrid), Zlatan Ibrahimovic (PSG), Lionel Messi (Barcelona)
Meanwhile, Sky Sports' Spanish expert Guillem Balague says changing image perceptionsmay have helped Ronaldo to win the Ballon d'Or for the second time ahead of Messi.
Balague said: "Runner-up to the little Argentinian for three out of the last four years, Ronaldo's greatness as a superstar player has never been in question. But in these days of high profile image requirements that go beyond just the game, CR7 always seemed to find himself unfairly cast as the villain to the hero that has been the squeaky clean Messi.
La Liga's Terry Gibson gives his thoughts after Cristiano Ronaldo was announced as the 2013 Ballon d'Or winner.
"Now the balance of the public's perceptions looks to be changing. It feels like the world has gone a bit tired of the same face at the top of the chain.
"Franck Ribery said on Sunday that no matter who won, Messi should be considered the best player in the world and not many will argue with that, but it feels like everything has been allowed to tarnish the image of Messi in the last few months.
"The media picture of villain and heroes is finally disappearing - they should both be considered heroes.
"What is certain however is that Ronaldo seems to have been working on the building of a more user-friendly, less arrogant image than that of the pouting, strutting diva he has been perceived as by so many."
Ronaldo, Messi and Ribery were also included in the FIFPRO team of the year, which was dominated by Real, Barcelona and Bayern, and also featured two players from Paris St Germain.
There were five British players in the running for selection, but no-one made the final XI.
Liverpool captain Steven Gerrard, Manchester United striker Wayne Rooney, Chelsea defender Ashley Cole, Everton left-back Leighton Baines and Gareth Bale, who is now at Real Madrid, had all been nominated.
FIFPRO team of the Year: Manuel Neuer (B Munich); Phillip Lahm (B Munich), Sergio Ramos (Real Madrid), Thiago Silva (PSG), Dani Alves (Barcelona); Andres Iniesta (Barcelona), Xavi (Barcelona), Franck Ribery (Bayern Munich); Cristiano Ronaldo (Real Madrid), Zlatan Ibrahimovic (PSG), Lionel Messi (Barcelona)
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