Why Capgemini & WEF Value Sustainable GovTech at US$10tn
We could be looking at a digital revolution in public administration.
Governments across the globe are rapidly adopting government technology (GovTech) solutions to modernise public administration, boost efficiency and improve sustainability.
A recent report by the World Economic Forum (WEF), developed in collaboration with Capgemini, highlights the profound impact GovTech could have on the public sector over the next decade.
It estimates that the market will grow from US$606bn in 2024 to US$1.4tn by 2034, generating up to US$9.8tn in public value.
Much of this value will be realised through three key drivers: efficiency gains, transparency improvements and sustainability benefits.
While digitalisation has long been a priority for governments, the scale and speed of transformation in the coming decade are set to be unprecedented.
Unlocking sustainability through GovTech
Sustainability is emerging as a core advantage of GovTech adoption. Digital solutions are increasingly being deployed to reduce waste, optimise resource use and lower carbon emissions.
The WEF report projects that sustainability-focused efficiencies could result in savings of US$2.9tn by 2034.
Marc Reinhardt, Executive Vice President and Public Sector Global Industry Leader at Capgemini, is an expert on this subject.
“We expect GovTech to encourage governments to practice responsible environmental stewardship,” he says.
“Digital solutions, scaled across industries, have been predicted to reduce global emissions by as much as 20%.”
In Berlin, for example, local government officials are using data-driven dashboards to monitor progress towards sustainability goals, improving decision-making around urban planning and energy use.
Meanwhile, in Malaysia, a government-led initiative is helping small and medium-sized enterprises (SMEs) digitise their operations, enhancing efficiency while reducing energy consumption.
Ukraine’s EcoSystem platform is enabling citizens to report environmental hazards in real time, ensuring quicker government responses to pollution and waste issues.
Beyond these case studies, the potential sustainability gains of GovTech span numerous areas, from digitised supply chains that cut waste to AI-powered traffic management systems that reduce congestion and vehicle emissions.
By minimising reliance on physical infrastructure, GovTech is driving efficiencies that extend beyond cost savings and into broader environmental benefits.
The critical components of the GovTech revolution
Sustainability is only one piece of the puzzle. The WEF report finds that efficiency gains will account for the largest share of GovTech’s impact, with projected savings of US$5.8tn.
Streamlining government operations through digital transformation allows for cost reductions, faster service delivery and improved citizen engagement.
One success story is Azerbaijan’s e-visa system, which has reduced application processing times from several days to just three hours.
In Rwanda, the IremboGov platform enables citizens to access more than 98 government services online, eliminating the need for in-person visits and saving an estimated 50 million working hours.
Transparency is another key driver, with digital tools helping to curb corruption and enhance public trust.
According to the report, GovTech could reduce transparency-related costs by 15%, amounting to potential savings of US$1.1tn.
By implementing digital procurement systems and open data platforms, governments can ensure greater accountability and reduce inefficiencies associated with manual processes.
“We expect to see transparency gains, with enhanced accountability, reduced corruption and enhanced public trust,” Marc explains.
Initiatives like Ukraine’s Unified State Electronic System in the Construction Sector (USESCS) illustrate this impact by providing a digital platform for tracking public funds and minimising opportunities for malpractice.
‘The foundation of effective and sustainable public administration’
While the benefits of GovTech are substantial, the transition is not without its challenges. The report notes that the effectiveness of GovTech adoption will vary by region, political landscape and existing infrastructure.
Some governments may face hurdles in digitising legacy systems or ensuring data security. Others may struggle with public buy-in or workforce adaptation.
Despite these obstacles, the overall trajectory remains clear: governments worldwide are accelerating their digital transformations, not just to improve governance but to drive meaningful sustainability progress.
As Marc puts it: “Technology isn’t just a nice to have, but a foundation of effective and sustainable public administration.”
If the full potential of GovTech is realised, it could redefine the relationship between governments and citizens while positioning technology at the core of sustainable governance.
With the right investments, policies and partnerships, the next decade could mark a turning point in how digital innovation reshapes the public sector for the better.
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