Smart Government Market Size

Smart Government Market size is assessed at USD 41.2 billion in 2024 and is likely to exceed USD 391.8 billion by the end of 2037, registering over 18.9% CAGR during the forecast period i.e., between 2025-2037. In 2025, the industry size of smart government is evaluated at USD 48.9 billion.

The burgeoning market for smart government solutions is attributed to a rapid rate of digitization. Innovations in internet of things (IoT), artificial intelligence (AI), and cloud computing have facilitated streamlining government operations, propelling the growth of the market.

The United Nations has an E-Government Development Index (EGDI) for all its member states. The E-Government Index assesses the incorporation of infrastructure technology for better service to people. In 2024, the 13^th edition of the UN E-Government survey was released showing an upward trend in the development of digital government globally and improvement in the global average value of the EGDI, with population lagging in digital government reducing from 45% in 2022 to 22.4% in the current year. The trends indicate for the robust growth of smart government market.

The shift towards data-centric government is encouraging substantial investments in smart government solutions from both government and service providers accelerating the market’s growth. Smart government solutions can foster a responsive and citizen-centric approach to governance. For instance, the government in India launched the Aarogya Setu app in 2020 during the COVID-19 pandemic for self-assessment and contact tracing digital service. The government application became the fastest growing app globally after its release. As the penetration of 5G services continue to improve, the smart government services are poised to be disseminated to larger section of people.