Expected GovTech market size from 2024-2034 with an estimate growth rate of 8% per annumFIGURE 1 $-$200$400$600$800$1,000$1,200$1,400$1,600Market size in $, billions 2024$610 2025$660 2026$730 2027$790 2028$860 2029$940 2030 2031$1,110 2032$1,200 2033$1,310 2034$1,420 GovTech market size$1,020GovTech market size The pressing need for governments to digitize is evident in the growing GovTech market, which is projected to more than double from $606 billion today,3 to $1.42 trillion by 2034 (see Figure 1; see section A3 on page 29 for methodology behind the analysis).4 This projected expansion is fuelled by multiple factors. Advances in AI, data analytics and cloud computing have opened new pathways for optimizing public service delivery. For example, AI- powered platforms now streamline everything from tax processing to land registry, significantly reducing human error and operational costs. In the United States, the federal government has deployed AI to detect financial fraud and potential insider trading, resulting in savings of millions of dollars annually.5 Governments are also responding to rising public expectations for seamless, personalized and efficient services akin to what consumers experience in other sectors. The demand for government services to match the user-friendliness of widely available commercial technology, such as banking apps or online shopping platforms, is placing pressure on public institutions to innovate. The legal and regulatory environment is another demand driver for GovTech solutions as governments are enacting frameworks that not only facilitate the adoption of emerging technologies but also ensure their responsible and secure use. As a result, public-private collaborations are increasingly playing a critical role in GovTech innovation. 9 The Global Public Impact of GovTech: A $9.8 Trillion Opportunity

The Global Public Impact of GovTech 2025