United States GovTech Market Size, Share, and COVID-19 Impact Analysis, By Type (IT Services, Hardware, and Software), By Application (Citizen-Centric Service Delivery, Citizen Participation, and Government Core Operations), and United States GovTech Market Insights, Industry Trend, Forecasts to 2035

United States GovTech Market Insights Forecasts to 2035 

• The USA GovTech Market Size is Expected to Grow at a CAGR of around 13.2% from 2025 to 2035.
• The United States GovTech Market Size is Expected to Hold a Significant Share by 2035.

According to a research report published by Spherical Insights & Consulting, the U.S. govtech market is expected to hold a significant share by 2035, growing at a CAGR of 13.2% from 2025 to 2035. The USA govtech market is growing rapidly due to increased digital transformation, cloud adoption, and demand for efficient public services. Advances in AI, data analytics, and cybersecurity enhance government operations. Smart city initiatives and rising citizen expectations drive innovation, while strong venture capital investments fuel development, making govtech a key focus for modernization and efficiency.

Market Overview

The USA govtech market is defined as the development and deployment of technology solutions aimed at enhancing government operations, public services, and citizen engagement through digital transformation. This market includes software, hardware, and services that enable efficient data management, cybersecurity, and streamlined communication across government agencies. Various drivers fueling growth are the increasing demand for digital government services, the need for secure and transparent data handling, and the rise of smart city initiatives and IoT integration. The market’s strengths lie in the U.S.’s advanced technological infrastructure, substantial government funding, and a strong presence of innovative technology firms specializing in public sector solutions. Significant opportunities exist as governments modernize outdated legacy systems, adopt artificial intelligence and data analytics for informed decision-making, and enhance citizen experiences through mobile platforms and cloud technologies. Government initiatives such as the Federal Cloud Computing Strategy, increased investment in cybersecurity, and public-private partnerships are accelerating the market’s expansion.

Report Coverage

This research report categorizes the market for the United States govtech market based on various segments and regions, and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the USA govtech market. Recent market developments and competitive strategies such as expansion, product launch, development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the U.S. govtech market.

Driving Factors

The growing demand for efficient and accessible digital government services that enhance citizen engagement and satisfaction. Increasing concerns over data security and privacy are pushing governments to adopt advanced cybersecurity solutions. The rise of smart city projects and the integration of IoT technologies are creating new opportunities for tech-enabled public infrastructure management. Additionally, the need to modernize aging legacy systems drives investments in cloud computing, artificial intelligence, and data analytics to improve operational efficiency and decision-making. Government policies and funding initiatives supporting digital transformation further stimulate market growth. Public-private partnerships also foster innovation by encouraging collaboration between tech companies and government agencies, making the overall environment conducive to the rapid adoption of govtech solutions.

Restraining Factors

Complex regulatory compliance, budget constraints, and resistance to change within government agencies. Legacy system integration challenges and data privacy concerns also slow adoption. Additionally, cybersecurity risks and procurement complexities create barriers, limiting the speed and scale at which new technologies can be implemented across public sector organizations.

Market Segmentation

The United States govtech market share is classified into type and application.

• The software segment held the highest share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The USA govtech market is segmented by type into IT services, hardware, and software. Among these, the software segment held the highest share in 2024 and is expected to grow at a significant CAGR during the forecast period. This is due to increasing digital transformation efforts across government agencies. Software enables automation, data integration, and improved public service delivery. Its scalability and adaptability make it more cost-effective than hardware, while also supporting transparency and citizen engagement through platforms for budgeting, permits, service requests, and data analytics.

• The citizen-centric service delivery segment held a substantial share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The U.S. govtech market is segmented by application into citizen-centric service delivery, citizen participation, and government core operations. Among these, the citizen-centric service delivery segment held a substantial share in 2024 and is expected to grow at a significant CAGR during the forecast period. This segment grows due to rising expectations for digital, user-friendly interfaces. Modern platforms improve efficiency, transparency, and trust, making citizen-focused technology investments a top priority at all levels of government.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the United States govtech market, along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborate analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Appian
• Pegasystems
• ServiceNow
• Voatz
• FiscalNote
• OpenGov
• CivicActions
• RapidSOS
• Flock Safety
• Chainalysis
• CivicPlus
• Accela
• GovOS
• ClearGov
• Sequent
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at the USA, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the U.S. govtech market based on the below-mentioned segments:

United States GovTech Market, By Type

• IT Services
• Hardware
• Software

United States GovTech Market, By Application

• Citizen-Centric Service Delivery
• Citizen Participation
• Government Core Operations