GovTech will be US$1.4 trillion opportunity by 2034, says WEF

While countries like Singapore and Estonia have been the early pioneers in digitalising public service delivery, more countries worldwide are looking to follow suit, according to the World Economic Forum (WEF). 

As a result, government technology (GovTech) is expected to reach US$1.4 trillion (S$1.9 trillion) in value by 2034, up from US$606 billion in 2024, according to WEF. 

The organisation notes that using technology in government processes is not new as it has been used for decades in various services like online tax filing, digital permitting and electronic voting.

However, most of these efforts have been fragmented and isolated. 

What is new, according to the WEF, is that today’s GovTech efforts have taken a whole-of-government approach, paired with foundational digital public infrastructure (DPI) and frontier technologies such as artificial intelligence (AI) and quantum computing, which are set to transform how governments serve their people.  

As an example, since 2022 about 98 per cent of Singapore government service transactions are completed digitally end-to-end and citizen satisfaction with e-services remained high at 83 per cent in 2023.  

Three key value drivers 

WEF estimated that the growth in GovTech will be realised through three key value drivers.  

The first is efficiency gains that come from streamlining processes, reducing costs and improving service quality. 

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Another major growth driver is transparency gains that come with enhancing accountability in the process, reducing corruption and building public trust.  

The final one will be the sustainability gains that will come due to optimising resources, cutting waste and supporting environmental sustainability. 

The report added that 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. Beyond its immediate impact on governance, GovTech stands to spur innovation across sectors, job creation and global economic growth.  

In this sense, GovTech is not just a tool for modernising bureaucracy; it emerges as a potent engine for global progress, WEF said. 

Slow movers 

The report highlighted the fact that governments aren’t always known for moving quickly. 

Legacy systems, bureaucratic inertia and tight budgets have left many struggling to match the pace of technological innovation, it noted. 

Many governments still rely on outdated, fragmented infrastructure that wasn’t designed for today’s digital demands. Overhauling them can be expensive, time-consuming and politically fraught, WEF observed. 

Meanwhile, public expectations continue to rise. Citizens now expect government services to work more seamlessly, intuitively and instantaneously. 

Failing to meet those expectations isn’t just a missed opportunity; it’s a risk. When governments lag, gaps widen – between rich and poor, urban and rural, connected and disconnected.  

As governments continue their digital transformation journeys, they must take concerted action to close these divides and ensure no one is left behind. 

Look beyond piecemeal efforts 

The report notes that to be successful, government digital transformation requires bold action, strategic investments and a willingness to rethink how governments serve their citizens in a connected world.  

It notes that governments must look beyond piecemeal efforts and be ready to embrace systemic change. 

These changes include a commitment from the leadership to digital transformation becoming a government priority which is embedded in national strategies. 

Global collaboration is also a major requirement, and countries should share best practices and learn from each other, building a global ecosystem of GovTech innovation, WEF said.  

Another major requirement for the success of GovTech initiatives is inclusive digital access. 

Apart from technology, this requires government efforts to enhance digital literacy and inclusion so that all citizens benefit. 

The report noted that governments must focus on building scalable and secure digital infrastructure while modernising outdated systems to ensure uninterrupted services.  

This can be done in collaboration with the private sector, and there needs to be accountability and transparency in the process. 

Success stories 

Sharing some success stories outside the known stars in GovTech like Singapore and Estonia, the WEF report notes that for Malaysia, digital transformation is a central pillar of its goal to become a high-income, tech-powered economy by 2030. 

The report notes that this effort is spearheaded by the Ministry of Digital (MyDIGITAL), and the initiative seeks to boost the digital economy’s contribution to GDP from 23.5 per cent to 25.5 per cent this year and further to 30-35 per cent by 2030. 

Another example shared in the report was Rwanda’s IremboGov platform which has digitised over 98 public services. This has saved citizens an estimated 50 million work hours since its launch.  

In Brazil, an algorithmic risk assessment tool can help identify fraud and corruption in public contracting, boosting fiscal transparency and trust among citizens, WEF said. 

In Ukraine, the Diia platform integrates over 30 government services and key documents into a single digital interface, providing Ukrainians worldwide access to essential government resources.

The WEF report concludes that global governments are at a pivotal moment in terms of service delivery. If governments fail to embrace this opportunity, the cost wouldn’t just be measured in dollars – it would be measured in trust, social cohesion and the resilience of institutions, WEF said.  

If governments embrace GovTech, they could lead the way into the intelligent age, transforming public systems into models of innovation and inclusivity, the report added.