The Global Public Impact of GovTech 2025

c. Estimating proportion of state-owned enterprises: To calculate the share of state- owned enterprises in global IT spending, which is projected to be $864 billion in 2024 and $2 trillion in 2034 for the respective sectors (see Figure 1), the following assumptions are made: the public sector is at 100% ($670 billion in 2024; $1.567 billion in 2034), the education sector at 60% ($92 billion in 2024; $220 billion in 2034), the healthcare sector at 25% ($66 billion in 2024; $172 billion in 2034), and the transport sector at 30% ($36 billion in 2024; $70 billion in 2034).15 d. Identifying GovTech-specific allocation: Assumed 70% of public sector IT spending goes to GovTech solutions (based on IDC (International Data Corporation). e. Calculating market size in 2034: Aggregation of GovTech-related IT spending reflects the projected GovTech market in 2024 and 2034 respectively, reaching $1.42 trillion by 2034. 2. Assessment of the global GovTech opportunity a. Identification of GovTech value drivers: Expert interviews and literature review have resulted in three prevalent value drivers, highlighting where GovTech has the greatest impact – efficiency gains, transparency gains and sustainability gains – to assess the economic and societal impact of GovTech.b. Individual assessment and aggregation of value drivers: –Calculating efficiency gains: Focus on potential cost savings in public service delivery was estimated based on a 30% reduction referencing OECD data that indicates that public services account for 13.2% of global government expenditure.16,17 –Calculating transparency gains: Considering that corruption accounts for approximately 5% of global GDP (gross domestic product), a 10-20% reduction was applied to estimate the gains from increased transparency facilitated by GovTech.18 –Calculating sustainability gains: The impact of GovTech on reducing emissions was projected using data from the Stern Review with potential savings linked to mitigating the 20% of GDP at risk from climate change. c. Calculating the opportunity of GovTech: Aggregation of all GovTech value drivers, resulting in a total projected opportunity of GovTech of $9.79 trillion by 2034. The Global Public Impact of GovTech: A $9.8 Trillion Opportunity 30