This report identifies key demand-side trends in the state and local government industry that can help enterprises fine-tune their digital strategies. It also provides an overview of enterprise challenges in this space based on Avasant’s assessment.
Why read this Market Insights?
State and local governments are navigating a rapidly evolving landscape marked by the increasing demand for citizen-centric digital experiences and the growing need for integrated public services. At the same time, workforce shortages are adding pressure on agencies to maintain service delivery, prompting a greater focus on streamlining operations and automating routine tasks. To meet these challenges, governments are accelerating technology upgrades that break down silos across agencies and jurisdictions, enabling more cohesive and accessible services for citizens. With public data flowing through interconnected systems, safeguarding sensitive information has become a critical priority. In addition, an emphasis on fair access and sustainability is influencing policy decisions as governments work to secure an inclusive and resilient future for everyone.
The State and Local Government Digital Services 2025 Market Insights™ aids governments in this sector in identifying important market trends and challenges for any digital project they participate in.
Methodology
The industry insights presented in this report are based on our ongoing interactions with enterprise CXOs and other key executives; targeted discussions with service providers, subject matter experts, and Avasant Fellows; analyst insights from primary and secondary research; and lessons learned from consulting engagements.
Table of contents
About the report (Page 3)
Executive summary (Pages 4–7)
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- Scope of coverage
- Key market drivers and enterprise response
- Avasant recognizes 16 top-tier service providers supporting the state and local government space in digital transformation
Demand-side trends (Pages 8–13)
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- Governments are modernizing legacy systems by adopting cloud-based infrastructure and integrating IoT sensor technologies, enabling scalable, efficient, and citizen-centric digital services through real-time resource monitoring and enhanced cross-department collaboration.
- Governments are adopting intelligent automation to streamline repetitive tasks like data entry and form processing, boosting efficiency, reducing costs, and enabling staff to focus on complex work for better citizen services.
- Governments are advancing cross-border data sharing by aligning legal frameworks, adopting common standards, and building decentralized, sovereign ecosystems to ensure secure, interoperable, and trusted exchanges.
- Governments are strengthening cybersecurity by deploying advanced technologies like multifactor authentication and threat detection, while investing in employee training and public awareness to protect citizen data
- Governments are advancing ESG goals by ensuring equitable access to essential services and investing in sustainable infrastructure and green technologies for a fairer, more resilient future
Key contacts (Page 14)
Read the Research Byte based on this report. Please refer to Avasant’s State and Local Government Digital Services 2025 RadarView™ for detailed insights on the service providers and supply-side trends.