Agentic Artificial Intelligence AI Government Global Market Expected to Reach $10.21 Billion in 2029

The Business Research Company's Agentic Artificial Intelligence AI Government Global Market Report 2025 – Market Size, Trends, And Global Forecast 2025-2034

LONDON, GREATER LONDON, UNITED KINGDOM, May 26, 2025 /EINPresswire.com/ -- The Business Research Company’s Latest Report Explores Market Drivers, Trends, Regional Insights - Market Sizing & Forecasts Through 2034

The growth of the agentic artificial intelligence AI government market has been astronomical in recent years. It grew from $1.62 billion in 2024 to an impressive $2.34 billion in 2025 at a compound annual growth rate CAGR of 44.9%. This remarkable growth can be credited to the increasing integration of AI, the expanding implementation of AI in personalized patient care, a surge in customer satisfaction, and the growing utilization of multi-agent systems.

Where Is The Agentic Artificial Intelligence AI Government Market Headed In The Future?
Further analysis reveals that the agentic artificial intelligence AI government market size is set to continue its upward trend, predicted to reach $10.21 billion in 2029 with a CAGR of 44.5%. This surge in the forecast period can be attributed to the increasing demand for automation, a growing emphasis on digital transformations, a rising demand for an enhanced customer experience, compounded by significant investments in AI research, and development. Major trends in the forecast period include AI governance platforms, automated compliance monitoring, autonomous decision-making systems, and strategic collaborations.

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What's Fueling The Growth Of The Agentic Artificial Intelligence AI Government Market?
Aiding this surge, the increasing demand for automation is a notable growth driver. Automation allows for the use of technology, systems, or machinery to perform tasks with minimal human intervention. The demand for automation - rooted in the need for improved public service delivery that streamlines operations - is on the rise. As a consequence, agentic AI, acting as a facilitating factor in the shift towards automation, has seen a significant uptick. Autonomous decision-making and process execution afforded by agentic AI enable governments to automate complex tasks such as policy enforcement, resource allocation, and citizen service management.

Who Are The Key Players In The Agentic Artificial Intelligence AI Government Market?
Companies leading the drive in the agentic artificial intelligence AI government market include Amazon.com Inc., Microsoft Corporation, Accenture plc., NVIDIA Corporation, International Business Machines Corporation, Oracle corporation, SAP SE, BAE Systems plc., Capgemini SE, NTT DATA Group Corporation, Infosys Limited, Leidos Holdings Inc., DXC Technology Company, HCL Technologies Limited, Booz Allen Hamilton Holding Corporation, Zoho Corporation, OpenAI Inc., Mphasis Limited, UiPath Inc., Beam AI Inc.

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What's The Latest Trend In The Agentic Artificial Intelligence AI Government Market?
These organizations are leading the pack and enhancing the industry with innovative technologies like generative AI. Agentic AI software is developed with the capabilities of decision-making automation, administrative task automation, and improving public service delivery.

How Is The Agentic Artificial Intelligence AI Government Market Segmented?
Agentic Artificial Intelligence AI Government Market segmentation is also diverse. It spans:
1 By Product Type: Ready-To-Deploy Agents, Build-Your-Own Agents
2 By Deployment Model: On-Premises, Cloud-Based
3 By Application Area: Citizen Services, Public Procurement, Healthcare Management, Urban Infrastructure, Other Applications

Subsegments:
1 By Ready-To-Deploy Agents: Virtual Assistants For Public Services, Automated Compliance Agents, Citizen Support Chatbots, Artificial Intelligence AI Monitoring And Surveillance Agents, Document Processing Agents
2 By Build-Your-Own Agents: No-Code Or Low-Code Agent Platforms, Application Programming Interface-Based Agent Frameworks, Open-Source Agent Toolkits, Customizable Natural Language Processing NLP Agents, Workflow Automation Builders

What Are The Regional Insights Of The Agentic Artificial Intelligence AI Government Market?
From a regional perspective, North America maintained its lead as the largest region in the agentic artificial intelligence AI government market in 2024. However, the growth is not limited to one region, extending to markets across Asia-Pacific, Western Europe, Eastern Europe, South America, Middle East, Africa.

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