Worldwide Federal Government Software Market Forecast 2024-2029, $M - APPS RUN THE WORLD
Worldwide Federal Government Software Market Forecast 2024-2029, $M – APPS RUN THE WORLD

In 2024, the global Federal Government software market grew to $9.8 billion, marking a 14.7% year-over-year increase. The top 10 vendors accounted for 51.3% of the total market. Microsoft led the pack with a 26.7% market share, followed by Palantir Technologies, SAP, and Oracle.

Through our forecast period, the Federal Government applications market size is expected to reach $13 billion by 2029, compared with $9.8 billion in 2024 at a CAGR of 5.9%, as shown in the Apps Top 500 Report – Excel Edition [Preview] .

Federal Government (Federal government agencies) – Grants and performance management, Computer Assisted Dispatch, Courts Management, Tax Collections, Records Management, Financials, HR, Procurement

e-Government is the catalyst for new system purchases, especially among developing countries. Apps designed to improve tax revenue collection will continue to take precedence over other front-office systems.

Top 10 Federal Government Vendors in 2024 and their Market Shares

RankVendorFederal Government Apps2022 Federal Government Apps Revenues, $M2023 Federal Government Apps Revenues, $M2024 Federal Government Apps Revenues, $MYoY Growth2024 Federal Government Market Share, %
1MicrosoftMicrosoft 365, Microsoft SharePoint, Microsoft Power BI, Microsoft Teams, Microsoft Intune Subscribe Subscribe Subscribe7.8% Subscribe
2Palantir TechnologiesPalantir Foundry Subscribe Subscribe Subscribe28.8% Subscribe
3SAPSAP S/4 HANA, SAP Concur, SAP SuccessFactors Employee Central, SAP Ariba, SAP Integrated Business Planning, SAP Business Technology Platform (BTP) Subscribe Subscribe Subscribe14.6% Subscribe
4OracleOracle NetSuite for Government, Oracle Cloud ERP, Oracle Cloud HCM, Oracle Analytics Cloud, Oracle Cloud EPM Subscribe Subscribe Subscribe17.7% Subscribe
5Zoom Video CommunicationsZoom Subscribe Subscribe Subscribe3.0% Subscribe
6Tyler TechnologiesTyler Workforce Case Management, Tyler EEO Case Management, Tyler Incode ERP, Tyler Munis ERP, Tyler New World ERP, Tyler EDEN ERP, Tyler ERP Pro Subscribe Subscribe Subscribe19.7% Subscribe
7WorkdayWorkday Government Cloud, Workday HCM, Workday Financial Management, Workday Adaptive Planning (ex Adaptive Insights), Workday People Analytics Subscribe Subscribe Subscribe16.8% Subscribe
8ServiceNowServiceNow ITSM, ServiceNow HR, ServiceNow Public Sector Digital Services, Subscribe Subscribe Subscribe23.1% Subscribe
9GoogleGoogle Workspace (Formerly Google G-Suite), Google Analytics 360, Google Looker, Google Meet Subscribe Subscribe Subscribe12.1% Subscribe
10CGI GroupCGI Advantage Financial Management, CGI Momentum  Subscribe Subscribe Subscribe3.9% Subscribe
Subtotal Subscribe Subscribe Subscribe12.0% Subscribe
Other Subscribe Subscribe Subscribe17.7% Subscribe
Total78198548980514.7%100.0%

Source: Apps Run The World, July 2025

Other Federal Government software providers included in the report are Accela, Atos (Including Evidian), ACI Worldwide, Inc., Journyx, Adobe, ADP, Advanced, Asseco Group, Atlassian, Avue Technologies, Berger-Levrault, Blackbaud, Blackboard, Capita Software, Cegid, Celayix Software, CentralSquare Technologies, Dayforce, Civica, Cisco Systems, Citrix, Computer Modeling Group, Dileoz, Dropbox, DocuSign, Inc., Dassault Systemes, FIS Global, Fiserv, Google, Granicus, Hexagon, Informatica, Infor, Intime Solutions, Itineris, Ivanti, IBM, Kofax, Laserfiche, Motorola Solutions, NEOGOV, Nice Systems, Oleeo, Open Text Corporation, OpenGov Inc., PROACTIS Group, Roper Technologies, Inc., Salesforce, Serviceaide, ServiceNow, SAS Institute, Silverlake Axis, Squiz, TCP Software, TeamDynamix, Teradata Corporation, TechnologyOne, TMA Systems, UNIT4, Visma, Verint Systems Inc., Vitech Systems Group, West Technology Grop, Wex, Workday, XCD HR Limited, and others.

Vendor Snapshot: Federal Government Market Leaders

ARTW - Top 10 Federal Government Software Vendors - Reward Badge - APPS RUN THE WORLDMicrosoft

Microsoft’s federal platform has evolved into an AI-centric backbone for agencies, embedding conversational Copilots and orchestration agents across its cloud and productivity suite. Recent updates have introduced Copilot Tuning in Government Community Cloud, letting teams spin up domain-tuned AI agents without code, and a multi-agent orchestration layer in Azure Government, so agencies can assemble chains of specialized bots that collaborate autonomously. This agent framework is now surfaced directly inside Teams, Outlook, and Intune consoles, enabling truly seamless, end-to-end workflows, from automatically triaging security alerts to generating policy-compliant spending forecasts, while preserving rigorous FedRAMP and CMMC controls.

Palantir Technologies

Palantir deepened its Foundry platform with Autonomous Analytic Agents that can continuously monitor classified and unclassified data lakes, detect emerging threats or anomalies, and enact pre-authorized response playbooks, all with minimal human touchpoints. Palantir released a no-code experiment builder that empowers mission teams to configure and deploy custom AI agents for cybersecurity, logistics forecasting, or personnel readiness. These agents can converse via secure chat interfaces or integrate with agency ticketing systems, ensuring Palantir’s roadmap remains focused on a self-learning, programmatically extensible analytic fabric tailor-made for complex government missions.

SAP

SAP’s federal cloud portfolio embeds its Joule AI copilot and autonomous process agents into every layer of the enterprise stack. Agencies can use low-code tools on the Business Technology Platform to spin up agents that automate travel-and-expense approvals, orchestrate multi-party procurement workflows, or forecast supply-chain disruptions across government distribution networks. A strategic partnership added classified-data support for SAP’s intelligent planning agents—allowing defense and civilian agencies to run “what-if” simulations in real time.

Oracle

Oracle’s Government Cloud has been hardened for FedRAMP High and now offers an Agent Studio for building AI-powered processing bots that work across finance, HR, and asset management. Oracle rolled out pre-built autonomous agents for P-card auditing and grant reconciliation that can ingest PDF invoices, cross-reference them against contract databases, and either approve or flag exceptions automatically. Oracle’s roadmap is uniting Student, ERP, HCM, and analytics under one self-optimizing platform tailored to federal operations.

Zoom Video Communications

Zoom’s shift from pure conferencing to an AI-driven collaboration hub is evident in its Government-grade offering. Zoom introduced Smart Room Agents, embedded bots that handle session summaries, action-item tracking, and real-time language translation for classified briefings. These agents can also integrate with agency calendars and ticketing tools, auto-scheduling follow-up workshops, or deploy secure transcripts into case-management systems. With a new low-code SDK, agencies can build custom bots that join Zoom sessions, monitor keywords, and trigger automated workflows, making Zoom a front-door for both collaborative and autonomous operations.

Tyler Technologies

Tyler’s government ERP suite now includes Smart Case Agents within its workforce and case-management solutions. Tyler launched an autonomous review agent that triages incoming EEO complaints, categorizes them, and generates draft investigation workflows, all within the same secure environment. On the finance side, its Munis ERP now features AI-driven forecasting agents that simulate revenue impacts under different tax or fee scenarios, then feed approved recommendations back into budget-building workflows.

Workday

Workday’s Government Cloud has embedded its People Assistant and Financial Companion AI agents directly into agency pay, HR, and budgeting modules. These assistants autonomously reconcile ledger entries, suggest staffing mix optimizations based on mission priorities, or automatically enroll personnel in mandatory training if certifications lapse. The recent release of a no-code agent builder within Workday Studio allows civilian and defense HR teams to craft their own conversational workflows, such as automated security clearance status checks, while preserving strict data residency and audit requirements.

ServiceNow

ServiceNow’s Federal Digital Services suite treats AI agents as first-class citizens: Now Assist bots can not only handle tier-1 IT tickets but also orchestrate multi-system processes—like deprovisioning user access across email, VPN, and database systems in a single, autonomous workflow. The 2025 release extends generative scheduling agents for mission-critical asset maintenance, and the low-code App Engine now includes AI-driven form-and-flow generation from simple natural-language prompts. ServiceNow’s vision is to transform all public-sector case, HR, and facilities management into a continuous, self-optimizing cycle of agentic workflows and conversational touchpoints.

Google

Google is advancing federal operations by embedding agentic AI and autonomous systems across its cloud and analytics platforms, enabling agencies to automate complex workflows and data-driven decision-making. Its FedRAMP High–authorized AI environment integrates reasoning and planning capabilities, while recent investments in AI infrastructure in Oklahoma expand secure, scalable deployments. Enhancements to its low-code/no-code developer tools further empower agencies to create intelligent agents and conversational interfaces with minimal coding, accelerating adoption across departments.

CGI Group

CGI is at the forefront of integrating agentic AI into its federal solutions, notably through its Momentum and Advantage platforms. The latest Momentum 8.2 release introduces the Momentum AI Assistant, an intelligent agent designed to streamline workflows and enhance decision-making within federal agencies. This advancement reflects CGI’s commitment to embedding autonomous capabilities that reduce manual intervention and improve operational efficiency. The company’s approach includes the development of accelerators like CGI PulseAI and Intelligent Modular Agent, which facilitate the deployment of agentic AI solutions across various federal operations.

ARTW Technographics Platform: Federal Government customer wins

Since 2010, our research team has been studying the patterns of Federal Government software purchases, analyzing customer behavior and vendor performance through continuous win/loss analysis. Updated quarterly, the ARTW Technographics Platform provides deep insights into thousands of Federal Government customer wins and losses, helping users monitor competitive shifts, evaluate vendor momentum, and make informed go-to-market decisions.

List of Federal Government customers  

CustomerIndustryEmpl.RevenueCountryProductCategory
AmeriCorpsGovernment3000$135MUnited StatesTyler Workforce Case ManagementCompliance
Australian Health Practitioner Regulation AgencyGovernment1604$162MAustraliaZoomAudio Video and Web Conferencing
Belgian DefenceGovernment24676$7.7BBelgiumServiceNow ITSMIT Service Management
United States CourtsGovernment32000$9.1BUnited StatesCGI MomentumGovernment ERP
Cabinet OfficeGovernment9888$1.2BUnited KingdomWorkday HCMCore HR
Centers for Medicare & Medicaid ServicesGovernment6000$1.2BUnited StatesTyler Workforce Case ManagementCompliance
Crown Commercial ServiceGovernment7000$1.0BUnited KingdomWorkday Financial ManagementERP Financial
Crown Prosecution ServiceGovernment7000$760MUnited KingdomServiceNow ITSMIT Service Management
Department of AgricultureGovernment100000$230.0BUnited StatesCGI MomentumGovernment ERP
Department of Employment and Workplace RelationsGovernment3200$670MAustraliaZoomAudio Video and Web Conferencing
Department of Premier and Cabinet TASGovernment661$72MAustraliaSAP SuccessFactors Employee CentralCore HR
Department of the Prime Minister and CabinetGovernment1373$287MAustraliaServiceNow HRHR Service Delivery
Department of Transport and PlanningGovernment4761$6.4BAustraliaMicrosoft Power BIAnalytics and BI
Government of CataloniaGovernment240000$45.0BSpainGoogle Workspace (Formerly Google G-Suite)Collaboration
eHealth NSWGovernment2000$195MAustraliaOracle Cloud EPMEPM
Federal Employment AgencyGovernment101000$40.5BGermanySAP S/4 HANAERP Financial
Ministry of Justice, United KingdomGovernment85000$208.9BUnited KingdomGoogle Workspace (Formerly Google G-Suite)Collaboration
United States Patent and Trademark Office (USPTO)Government13103$3.5BUnited StatesCGI MomentumGovernment ERP
HM Revenue & CustomsGovernment67500$9.5BUnited KingdomSAP S/4 HANAERP Financial
HM TreasuryGovernment1603$366MUnited KingdomOracle Cloud HCMCore HR
U.S. Department of Veterans AffairsGovernment371000$301.0BUnited StatesCGI MomentumGovernment ERP
Ministry of Defence UKGovernment192409$75.3BUnited KingdomPalantir PlatformAnalytics and BI
Ministry of Education (New Zealand)Government7300$12.4BNew ZealandSAP SuccessFactors Employee CentralCore HR
Ministry of Education, Saudi ArabiaGovernment11800$31.5BSaudi ArabiaMicrosoft Dynamics 365 Business CentralERP Financial
Ministry of Health of Saudi ArabiaGovernment254795$2.0BSaudi ArabiaMicrosoft SharePointEnterprise Content Management
Ministry of Justice, United KingdomGovernment85000$208.9BUnited KingdomOracle Cloud ERPERP Financial
Ministry of Social DevelopmentGovernment8934$1.8BNew ZealandZoomAudio Video and Web Conferencing
U.S. Department of the InteriorGovernment70000$17.6BNetherlandsGoogle Workspace (Formerly Google G-Suite)Collaboration
The U.S. Department of the TreasuryGovernment100000$24.0BUnited StatesCGI MomentumGovernment ERP
New Zealand Ministry of Foreign Affairs and TradeGovernment1249$335MNew ZealandOracle Cloud ERPERP Financial
New Zealand Ministry of Foreign Affairs and TradeGovernment1249$335MNew ZealandZoomAudio Video and Web Conferencing
NSW Ministry of HealthGovernment183000$32.3BAustraliaMicrosoft Project OnlineProject Portfolio Management
Department for Digital, Culture, Media and Sport (DCMS)Government900$2.5BNetherlandsGoogle MeetEvent Management
Revenue and Customs (HMRC)Government65852$11.3BUnited KingdomOracle Procurement CloudProcurement
Singapore Ministry of HealthGovernment2200$8.6BSingaporeWorkday Financial ManagementERP Financial
Singapore Public Service DivisionGovernment1210$200MSingaporeWorkday HCMCore HR
Swedish Armed ForcesGovernment80000$9.9BSwedenSAP S/4 HANAERP Financial
The General Secretariat of the CouncilGovernment3147$197MBelgiumServiceNow Governance, Risk, and Compliance (GRC)Governance, Risk and Compliance
The Ministry of Finance SingaporeGovernment4000$1.0BSingaporeWorkday HCMCore HR
U.S. ArmyGovernment453551$65.3BUnited StatesPalantir FoundryAnalytics and BI
U.S. Commercial ServiceGovernment1500$300MUnited StatesServiceNow ITSMIT Service Management
U.S. Department of Homeland SecurityGovernment260000$64.0BUnited StatesPalantir FoundryAnalytics and BI
U.S. Department of JusticeGovernment115600$35.3BUnited StatesPalantir FoundryAnalytics and BI
U.S. Government Publishing OfficeGovernment1647$360MUnited StatesTyler EEO Case ManagementCompliance
United States Air ForceGovernment330159$139.6BUnited StatesPalantir FoundryAnalytics and BI
United States Patent and Trademark Office (USPTO)Government13103$3.5BUnited StatesTyler EEO Case ManagementCompliance
US Government Accountability OfficeGovernment3350$650MUnited StatesTyler Workforce Case ManagementCompliance
Office for National StatisticsGovernment5328$500MUnited KingdomGoogle Analytics 360Marketing Analytics
Washington Secretary Of State Legislative BuildingGovernment10000$2.5BUnited StatesZoomAudio Video and Web Conferencing
Welsh GovernmentGovernment6142$33.3BUnited KingdomMicrosoft Dynamics 365 Human ResourcesCore HR

Source: ARTW Buyer Insights Technographic Database

Custom data cuts related to the Federal Government Applications market are available:

  • Top 750+ Federal Government Applications Vendors and Market Forecast 2024-2029
  • 2024 Federal Government Applications Market By Functional Market (16 Markets)
  • 2024 Federal Government Applications Market By Country (USA + 45 countries)
  • 2024 Federal Government Applications Market By Region (Americas, EMEA, APAC)
  • 2024 Federal Government Applications Market By Revenue Type (License, Services, Hardware, Support and Maintenance, Cloud)
  • 2024 Federal Government Applications Market By Customer Size (revenue, employee count, asset)
  • 2024 Federal Government Applications Market By Channel (Direct vs Indirect)
  • 2024 Federal Government Applications Market By Product

Worldwide Enterprise Applications by Vertical Market

Exhibit 3 provides a forecast of the worldwide enterprise applications by vertical market from 2024 to 2029, highlighting market sizes, year-over-year growth, and compound annual growth rates across different industry sectors from Aerospace and Defense to Utilities.

Exhibit 3: Worldwide Enterprise Applications by Vertical Market Forecast 2024-2029 by Functional Market ($M)

Vertical Market, $M202220232024YoY Growth20292024-2029 CAGR, %
Aerospace & Defense Subscribe Subscribe Subscribe Subscribe Subscribe6.6
Automotive Subscribe Subscribe Subscribe Subscribe Subscribe5.6
Banking and Financial Services Subscribe Subscribe Subscribe Subscribe Subscribe5.5
Communications Subscribe Subscribe Subscribe Subscribe Subscribe6.2
Construction Subscribe Subscribe Subscribe Subscribe Subscribe6.1
Real Estate Subscribe Subscribe Subscribe Subscribe Subscribe5.8
Consumer Packaged Goods Subscribe Subscribe Subscribe Subscribe Subscribe6.3
Distribution Subscribe Subscribe Subscribe Subscribe Subscribe6.6
K-12 Subscribe Subscribe Subscribe Subscribe Subscribe6.2
Higher Education Subscribe Subscribe Subscribe Subscribe Subscribe6.6
Federal Government Subscribe Subscribe Subscribe Subscribe Subscribe5.9
State and Local Government Subscribe Subscribe Subscribe Subscribe Subscribe5.7
Public Safety Subscribe Subscribe Subscribe Subscribe Subscribe6.5
Healthcare Subscribe Subscribe Subscribe Subscribe Subscribe5.7
Life Insurance Subscribe Subscribe Subscribe Subscribe Subscribe5.7
P&C Insurance Subscribe Subscribe Subscribe Subscribe Subscribe6.1
Specialty Insurance Subscribe Subscribe Subscribe Subscribe Subscribe7.1
Leisure and Recreation Subscribe Subscribe Subscribe Subscribe Subscribe6.6
Hospitality and Lodging Subscribe Subscribe Subscribe Subscribe Subscribe6.1
Life Sciences Subscribe Subscribe Subscribe Subscribe Subscribe5.9
Manufacturing Subscribe Subscribe Subscribe Subscribe Subscribe5.9
Media Subscribe Subscribe Subscribe Subscribe Subscribe6.5
Faith-Based Nonprofit Subscribe Subscribe Subscribe Subscribe Subscribe5.7
Youth & Elderly Care Nonprofit Subscribe Subscribe Subscribe Subscribe Subscribe5.9
Special Cause Nonprofit Subscribe Subscribe Subscribe Subscribe Subscribe5.9
Oil and Gas Subscribe Subscribe Subscribe Subscribe Subscribe5.8
Professional Services Subscribe Subscribe Subscribe Subscribe Subscribe6.9
Retail Subscribe Subscribe Subscribe Subscribe Subscribe6.9
Transportation Subscribe Subscribe Subscribe Subscribe Subscribe6.9
Utility Subscribe Subscribe Subscribe Subscribe Subscribe5.3
Total Subscribe Subscribe Subscribe Subscribe Subscribe6.2

Source: Apps Run The World, July 2025

Exhibit 4 shows our projections for the enterprise applications market by vertical segment, based on the buying preferences and the customer propensity to invest in new software within those industries as they continue to upgrade and replace many legacy industry-specific applications that have been identified and tracked in our Buyer Insight Database.

Worldwide Enterprise Applications Market Forecast 2024-2029, By Vertical Market, $M
Worldwide Enterprise Applications Market Forecast 2024-2029, By Vertical Market, $M
Worldwide Enterprise Applications Market Forecast 2024-2029, By Functional Market, $M
Worldwide Enterprise Applications Market Forecast 2024-2029, By Functional Market, $M

More Enterprise Applications Research Findings

Based on the latest annual survey of 10,000+ enterprise software vendors, Apps Run The World is releasing a number of dedicated reports, which profile the world’s 1,500 largest Enterprise Applications Vendors ranked by their 2024 product revenues. Their 2024 results are being broken down, sorted and ranked across 16 functional areas (from Analytics and BI to Treasury and Risk Management) and by 21 vertical industries (from Aerospace to Utility), as shown in our Taxonomy. Further breakdowns by subvertical, country, company size, etc. are available as custom data cuts per special request.

Research Methodology

Each year our global team of researchers conduct an annual survey of thousands of enterprise software vendors by contacting them directly on their latest quarterly and annual revenues by country, functional area, and vertical market.

We supplement their written responses with our own primary research to determine quarterly and yearly growth rates, In addition to customer wins to ascertain whether these are net new purchases or expansions of existing implementations.

Another dimension of our proactive research process is through continuous improvement of our customer database, which stores more than one million records on the enterprise software landscape of over 2 million organizations around the world.

The database provides customer insight and contextual information on what types of enterprise software systems and other relevant technologies are they running and their propensity to invest further with their current or new suppliers as part of their overall IT transformation projects to stay competitive, fend off threats from disruptive forces, or comply with internal mandates to improve overall enterprise efficiency.

The result is a combination of supply-side data and demand-generation customer insight that allows our clients to better position themselves in anticipation of the next wave that will reshape the enterprise software marketplace for years to come.

Buyer Intent: Companies Reading this Research Report
ARTW Buyer Intent uncovers actionable customer signals, identifying software buyers actively reading this research report. Gain ongoing access to real-time prospects and uncover hidden opportunities. Companies Actively accessing this research report include:
  1. William Blair, a United States based Banking and Financial Services organization with 1950 Employees
  2. Automation Exchange., a United States based Professional Services company with 40 Employees
  3. Data Systems Analysts, ..., a United States based Professional Services organization with 10 Employees
LogoCompanyIndustryEmployeesRevenueCountryEvaluated