Digital public goods market projected to reach $100B by 2030
The number of registered digital public goods has increased from 87 to 142 in March.
The digital public goods (DPG) market is set for rapid expansion, with projections estimating its value to reach around $100 billion by 2030, according to Benjamin Chiang, EY Asean Government & Public Sector Leader.
Chiang based his prediction on Gartner's analysis that annual government IT spending will hit approximately $590 billion in 2023. With a conservative compound annual growth rate (CAGR) of 7.5%, this figure is expected to surge to $1 trillion annually by 2030.
He said that significantly, over half of this expenditure will be in software and IT services, the key sectors encompassing DPG.
Chiang explained, “If the DPG makes up one-fifth of software and IT services, then it becomes a $100 billion a year market.” He added that this sizable market presents vast opportunities for system integrators, particularly in building data exchange infrastructure, digital identification, and other sectoral infrastructures.
“DPGs are a great way to achieve sustainable development goals, from increasing access to vital resources to reducing social and economic disparity, and empowering communities to make lasting impacts,” Chiang remarked. EY's early investment in DPGs, both as an advocate and in capability-building, underlines its belief in the sector's potential.
Chiang cited India's digital identification initiative as a testament to the positive impact of DPGs, saying that India's implementation of a nationwide ID system, which now includes almost 100% of the adult population, has significantly enhanced government service delivery.
He mentioned that this system played a crucial role during the COVID-19 pandemic, enabling direct relief support to over 420 million beneficiaries through digital Benefit Transfer. The success of this initiative in reducing fraud and inefficiency has driven broader inclusion, especially in banking and financial services.
However, Chiang said that the success of DPGs hinges on collaborative efforts between governments, the private sector, and communities. He pointed out the challenges in this collaboration, mainly around technical and financial sustainability.
“Not all governments have the technical competence necessary to manage the DPGs,” he said, highlighting the need for a sustainable ecosystem comprising the tech community, nonprofits, and funding from various sources, including philanthropies and international development funds.