(MENAFN- GlobeNewsWire - Nasdaq) The AI in government sector offers key growth opportunities driven by digital transformation, enhanced citizen services, and improved national security. Key segments include cloud and on-premises deployments with focus on machine learning, NLP, and real-time applications. Growth also stems from AI governance and responsible AI emphasis.

Dublin, Oct. 08, 2025 (GLOBE NEWSWIRE) -- The "AI in Government Sector Market 2025-2029" has been added to ResearchAndMarkets's offering.

The AI in government sector market is poised for significant growth, with projections indicating an increase of USD 36.23 billion during the 2024-2029 period. This expansion reflects a compound annual growth rate (CAGR) of 20.3% throughout the forecast timeline.

Comprehensive analysis within the report assesses market size, forecasts, trends, growth drivers, and challenges, alongside a detailed vendor analysis covering approximately 25 industry players. The market is primarily driven by the pressing need for digital transformation and operational efficiency, alongside a heightened demand for advanced data processing within national security and defense sectors. Additionally, there's a growing demand for enhanced and personalized citizen services.

Among the factors driving market growth is the strategic integration of generative AI to boost productivity and engagement. Along with the establishment of AI governance frameworks and responsible AI practices, there's a rising implementation of AI at the edge to enable real-time and autonomous operations. These elements are expected to drive considerable demand within the sector.

The report's findings are underpinned by robust research methodologies, combining primary and secondary data sourced from key industry participants. It provides extensive regional segmentation and insights into the competitive landscape, with historical and forecast data included.

The AI in government sector market is segmented by:

Deployment

• Cloud
• On-premises

Technology

• Machine learning
• Natural language processing
• Computer vision
• Others

Application

• Public safety and security
• Administrative services
• Healthcare and social services
• Smart cities and infrastructure
• Others

Geographical Landscape

• North America
• APAC
• Europe
• Middle East and Africa
• South America

The report covers the following areas:

• AI In Government Sector Market Sizing
• AI In Government Sector Market Forecast
• AI In Government Sector Market Industry Analysis

Vendor analysis featured in the report is designed to enhance clients' market positioning, offering detailed evaluations of leading vendors like Accenture PLC, Amazon Web Services Inc., BAE Systems PLC, and others. The report also discusses upcoming trends and challenges that will affect market dynamics, providing companies with strategic insights to exploit growth opportunities. The report synthesizes data from multiple sources, analyzing key parameters such as profit, pricing, and competition.

A selection of companies mentioned in this report includes, but is not limited to:

• Accenture PLC
• Amazon Web Services Inc.
• BAE Systems Plc
• C3 Inc.
• Capgemini Service SAS
• Fujitsu Ltd.
• Google LLC
• HCL Technologies Ltd.
• Hitachi Ltd.
• International Business Machines Corp.
• Infosys Ltd.
• Microsoft Corp.
• NEC Corp.
• NVIDIA Corp.
• Oracle Corp.
• Palantir Technologies Inc.
• Salesforce Inc.
• SAP SE
• Siemens AG
• Tata Consultancy Services Ltd.

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