We see the companies in this report as disruptors in the space focusing on software and technologies that provide improved citizen experiences and build sustainable relationships for key differentiators. Citizens are the new market-makers and act as a catalyst for change across the GovTech industry.
Our report highlights several trends that governments are executing on – we expect to see governments embrace new technology that drives innovation and enhances connections with citizens, making it easier for them to stay informed and access vital services.
Key trends:
- The global GovTech market is projected to reach over $1TN by 2027 at a CAGR of 16.4% during 2022-2027, driven by strong demand for digital transformation that has accelerated dramatically since the pandemic
- Governments are embracing new technology and are investing in omnichannel strategies to understand citizens’ needs, attitudes, and behaviors and to map end-to-end citizen journeys
- Government agencies are leveraging immersive reality technologies for a wide variety of applications and also using artificial intelligence and robotic process automation to eliminate manual processes and accelerate service delivery
- Governments have been introducing digital payment systems and are working with banks and telecom companies to manage fulfillment of requests through e-payments
- Since 2020, GovTech administration players have raised a total funding of $6.4BN in 69 deals followed by the public safety segment that raised $1.5BN in 18 deals
- The first nine months of 2022 saw 15 acquisitions in the GovTech space for $2.3BN and 25 private transactions with at least $5MM of capital raised with an $80MM average investment size
