Editorial

GovTech set to unlock $9.8 trillion in public value globally

“GovTech has enormous potential to create a more responsive, inclusive, transparent and better-performing public sector that better meets citizens’ needs,” says new report.

Posted 16 January 2025 by Christine Horton


Government technology (GovTech) is poised to unlock $9.8 trillion in public value globally, transforming how governments operate and connect with people, according to new figures from the World Economic Forum and Capgemini.

The organisation expects the GovTech market to expand from $606 billion in 2024 to $1.4 trillion by 2034,

This opportunity will be realised through the three key value drivers:

  • Efficiency gains: Streamlining processes, reducing costs and improving service quality
  • Transparency gains: Enhancing accountability in process, reducing corruption and building public trust
  • Sustainability gains: Optimising resources, cutting waste and supporting environmental sustainability

“A true GovTech transformation promises far reaching benefits, from more efficient resource allocation and data-driven decision-making to the creation of new value across public services. By streamlining processes and improving accountability, governments could deliver faster, more responsive services tailored to the needs of their populations,” said the report.

According to the research, GovTech is entering a new era. “While governments have consistently adopted technology to modernise operations, the scale, speed and scope of what is possible in the next decade is unprecedented. Many of the technologies now available for the public sector offer the ability to create comprehensive systems that streamline government functions and interactions with both citizens and businesses. These tools no longer operate in isolation but are part of interconnected frameworks capable of transforming public administration.”

It said the commercialisation of key technologies, along with the scalability of cloud infrastructure, has greatly amplified the impact of GovTech, far exceeding the potential seen in previous decades.

“New technologies like artificial intelligence (AI), virtual reality or the internet of things (IoT) can now be embedded within government workflows. For instance, AI-powered analytics can optimize resource allocation in healthcare, ensuring medical supplies and personnel are sent to areas of critical need. Geographic information systems (GIS) enhance urban planning by using real-time, location-specific data to improve zoning and infrastructure. Looking ahead, quantum computing could transform government operations even further, offering rapid data analysis to solve complex problems in areas such as healthcare, climate change and national security.”

Driving new value creation across the economy

The report said to fully realise GovTech, governments must build robust IT infrastructure, futureproof public services, promote closer public-private collaboration and maintain a strong focus on citizen-centric solutions. “This approach is not just about digitising processes – it is about rethinking how governments can better serve their people,” it noted.

In the UK, it said digital transformation efforts are expected to save more than $1.3 billion by 2025 as departments invest in cutting edge technology, such as the National Digital Twin Programme to support climate change modelling and in blockchain technology to enhance supply chain efficiency.

“When GovTech solutions can build on foundational digital capabilities, such as digital identity systems and payment platforms, they enable individuals and organisations to create new cross-sectoral services that drive new value creation across the economy,” it said.

“GovTech has enormous potential to create a more responsive, inclusive, transparent and better-performing public sector that better meets citizens’ needs.”

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