GovTech solutions: global market overview
ISE Corporate Accelerator together with Kreston Ukraine, the Ministry of Digital Transformation of Ukraine, the Ministry of Economy of Ukraine, and the Reform Delivery Office of the Cabinet of Ministers of Ukraine, presents the results of the research “The global market of Govtech solutions” as of February 2023.
Government spending on technology solutions is growing every year. In 2021, such spending amounted to USD 535.4 billion; in 2022, it reached USD 551.5 billion. The figure is expected to increase to USD 589 billion in 2023 by 6.8%.
The market is highly competitive, but only a few companies have achieved real success. There are only ten companies in the world with a market capitalization of more than USD 2.4 billion, including eight located in the USA.
In general, the United States is the industry leader in all possible dimensions: the amount of public spending, the number of investors, the number of GovTech developers, etc. Therefore, the experience of this country is valuable for any market player. However, the experience of Europe and Asia is also worth considering, as despite having different models of working with GovTech solution providers they both have achieved unique results.
Ukraine also does not stand aside from the global processes of public services digital transformation and has something to offer the international community. For example, the Diia portal and mobile app have proven their high quality and usefulness, especially in wartime, and have already drawn the attention of other countries. Specifically, Estonia implemented a similar solution inspired by the Ukrainian one.
So how does the GovTech sector operate, and what distinctive features does it have in different parts of the world? Which of the existing solutions for public services digitalisation can be of interest to countries that are just at the beginning of this journey?
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