The Global Public Impact of GovTech 2025

The potential of GovTech is often measured by market size and investment opportunities. Yet this report takes a deeper dive, spotlighting a dimension that’s often overlooked: the social and economic returns on successful GovTech investments (see section A3 on page 29 for methodology behind the analysis). The report identifies three main drivers of public value: efficiency gains, transparency gains and sustainability gains. Each plays a distinctive role in reshaping how governments interact with and serve their citizens: Efficiency gains: The application of technology to automate processes and optimize resource allocation can streamline government operations, reduce costs and accelerate service delivery. Engaging citizens via digital platforms can provide valuable feedback, leading to more user-friendly services and improving overall service quality and satisfaction. Transparency gains: Adoption of digital tools such as e-procurement systems, e-invoices and digital IDs increases transparency within government operations. These technologies enable participation, promote competition and help mitigate corruption by making transactions and processes visible and traceable, reducing the risk of loopholes and ensuring compliance with legal frameworks. Sustainability gains: Technological solutions can promote environmental sustainability by helping monitor and manage natural resources. Digitizing public services reduces reliance on resources, from paper to fuel, directly minimizing the environmental footprint of the public sector, which, across virtually all developed economies, continues to be the largest employer. This shift not only contributes to sustainability goals but also supports broader efforts towards responsible resource management and sustainable development.6 Considering the combined impact of these value drivers, GovTech is poised to deliver $9.8 trillion in public value by 2034, showcasing the transformative potential for public administration and the wider economy. Overview of GovTech value drivers and the total GovTech market opportunity in 2034 ($, trillions)FIGURE 2 Global public impact of GovTech$9.8 trillion Reduction in efficiency-related costs by 30%Efficiency gains$5.8 trillion Reduction in climate change costs by 10%Sustainability gains$2.9 trillionReduction in transparency costs by 15%Transparency gains$1.1 trillion 3.1 Efficiency gains Efficiency gains from GovTech can be measured through time savings in administrative processes and financial savings in public service delivery (for the projected cost, see Figure 3). Scaling technological solutions can lead to substantial cost savings in the public sector. For instance, replacing paper-based systems with digital platforms can reduce processing time from months to hours. As processes are automated, public servants can shift from repetitive, low-value tasks to more strategic, high-value roles. The research suggests that these improvements could lead to a reduction in efficiency-related costs by 30%, with global savings projected to reach $5.8 trillion by 2034 (see Figure 2; see section A3 on page 29 for methodology behind the analysis). GovTech is poised to deliver $9.8 trillion in public value by 2034, showcasing the transformative potential for public administration and the wider economy. The Global Public Impact of GovTech: A $9.8 Trillion Opportunity 12