GovTech Market Size, Share, Growth, and Industry Growth by Type (Cloud and On-premise) By Application (Citizen-centric service delivery, Citizen participation and Government core operations), Regional Insights, and Forecast To 2031

Updated On: 08 July 2024

GovTech Market REPORT OVERVIEW

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The global govtech market size was USD 430872.4 Million in 2021 and market is projected to touch USD 1829887.1 Million by 2031, at a CAGR of 15.56% from 2021 to 2031.

By combining the words "government" and "technology," the term "govtech" refers to initiatives to digitize (and digitalize) public administrations through cutting-edge technological solutions that permit remote use of the public administration services (such as social security identity verification online, government ID verification, etc.). The adoption of eKYC for government accounts based on online authentication, electronic signatures, and identity is the main foundation of this policy. This expression, which is linked to the FinTech expression, was first used.

Similar to FinTech, GovTech businesses develop and provide software and technology to address the demands for streamlining, modernizing, and optimizing the sector's operations, procedures, and activities (i.e., government ID verification)

COVID-19 Impact: Economic Disruption to Challenge the Market Growth

The world is undoubtedly changing due to digital technology, and COVID-19 is hastening that transformation. The impact of digital transformation on company models and industry structures is significant. Governments continue to face unique difficulties as a result of the pandemic, which has resulted in unprecedented requests for social assistance as well as a health crisis accompanied by a severe economic disruption.

LATEST TRENDS

"Digital Transformation to Boost the Market"

State and municipal governments' digital transformation was accelerated by 2020. Due to need, services were moved online, and many government regulations were overturned. A significant improvement in work-from-home skills convinced many people who had before doubted their productivity. The need of citizen involvement has never been greater as local citizens have relied on trustworthy authority to help them through challenging times.

Through data, analytics and automation, IoT offers the public sector the chance to alter services. The Internet of Things, to put it simply, is any device that is seamlessly capable of sending and receiving data and is linked to the Internet. Data can be quickly mined and analyzed once it is networked, which is more than enough to completely transform how citizens get governmental services.

GovTech Market Segmentation

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• By Type Analysis

By type, market is segmented into Cloud and On-premise. The cloud segment will dominate the market in the coming years.

• By Application Analysis

Based on applications, the market is classified into citizen- centric service delivery, citizen participation and government core operations. The citizen- centric service delivery segment will lead the global share through 2031.

DRIVING FACTORS

"Demand for Technological Advancements to Propel the Market Growth"

Because end users are demanding more technological advancements, the global market is anticipated to grow quickly. A further advantage for the market will come from increasing investments in launches, partnerships, and other strategic initiatives. Additionally, it is anticipated that government attention is shifting more and more toward promoting urbanization and industrialization, which will fuel market expansion.

Traditional software, on the other hand, makes a significant contribution to productivity and benefits greatly from ICT spending. Mobile devices and cloud computing are establishing themselves as new venues for distributing the most recent software tools and apps.

"Blockchain- Based Digital Government to Augment the Demands"

A blockchain-based digital government may increase confidence and accountability while securing data, streamlining procedures, and reducing fraud, waste, and abuse. A distributed ledger that is cryptographically secure allows for the sharing of resources between people, businesses, and governments in a blockchain-based model of governance. By removing a single point of failure, this system safeguards private information belonging to citizens and the government.

RESTRAINING FACTORS

"Unreliability and Time- Consuming Resource Set Up to Impede the Market"

The procurement procedures used in innovation mechanisms are seen to be unreliable and dangerous. It takes a lot of time, energy, and resources to set them up, and the outcome is unpredictable. Public institutions avoid taking part in public procurement of process innovations not only due to risk perception but also because they believe the work at hand is too challenging and the issue at hand is too complicated to be resolved.

GovTech Market REGIONAL INSIGHTS

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"Asia Pacific to Hold the Largest Global Govtech Market Share"

Due to government initiatives aimed at accelerating urbanization and increasing population, which in turn is driving up demand for energy-based goods and services, the Asia Pacific market is predicted to grow quickly in the global market. North America is also expected to grow quickly due to the region's high energy consumption and the advancement of technology in all areas. The region's and especially the US's energy consumption has been rising; the main energy sources consumed are nuclear power, fossil fuels, coal, renewable energy, and natural gas. The industry as a whole is being dominated by the segment of petroleum and natural gas.

KEY INDUSTRY PLAYERS

"Key Players Focus on Partnerships to Gain a Competitive Advantage "

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead in the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolio.

List of Market Players Profiled

• Citizen Lab (Belgium)
• Bio bot Analytics (U.S.)
• Next door (U.S.)
• GTY Technology Holdings (U.S.)
• Accela (U.S.)
• Coord (U.S.)
• CSS (U.S.)
• RM plc (UK.)
• Granicus (U.S.)
• Motorola Solutions (U.S.)
• Axon (U.S.)
• Acivilate (U.S.)
• Tyler Technologies (U.S.)
• Leidos (U.S.)

REPORT COVERAGE

The market research study examines the worldwide market in detail, focusing on important elements such as leading players, product/services or type, and leading end-use applications. Aside from that, the research analyses major advancements and provides insights into lighting market trends. In addition to the causes indicated above, the paper includes a number of other factors that have contributed to recent growth.