Digital Sovereignty in Government Market 2026-2030: Exploring Growth Trends and Recent Updates

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The Business Research Company's Digital Sovereignty In Government Market Report 2026 – Market Size, Trends, And Global Forecast 2026-2035

LONDON, GREATER LONDON, UNITED KINGDOM, February 21, 2026 /EINPresswire.com/ -- "The importance of digital sovereignty in government has become more pronounced as nations seek greater control and security over their digital assets and infrastructure. With the rise of cyber threats and evolving regulatory demands, governments worldwide are investing heavily to protect their data and technological environments. Let’s explore the current market status, key drivers, leading regions, and emerging trends shaping the digital sovereignty in government sector.

Steady Expansion Forecast for the Digital Sovereignty in Government Market
The digital sovereignty in government market has witnessed rapid growth in recent years and is projected to expand further. From a valuation of $17.66 billion in 2025, it is expected to reach $19.75 billion by 2026, growing at a compound annual growth rate (CAGR) of 11.8%. This historical growth is mainly driven by increasing cyber threats targeting government systems, heavy reliance on foreign cloud infrastructure, heightened focus on data protection by government bodies, early consulting service adoption, and the absence of standardized frameworks for digital sovereignty.

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Looking ahead, the market is set to accelerate its growth trajectory, with projections estimating it will reach $31.18 billion by 2030. This represents a CAGR of 12.1% during the forecast period. Key factors supporting this surge include the deployment of sovereign cloud platforms, enhanced cybersecurity and infrastructure protection services, widespread adoption of digital identity management solutions, stricter regulatory compliance requirements, and modernization efforts for public-sector digital applications. Major trends expected to influence the market by 2030 involve expanding sovereign cloud infrastructure, enforcing data localization and residency policies, upgrading government applications for security, adopting digital identity and access management systems, and integrating national cybersecurity risk assessments.

Understanding Digital Sovereignty in Government Context
Digital sovereignty in government describes the capacity of a nation’s government to exercise control over its digital infrastructure, data, and technologies while aligning with national laws and strategic objectives. This concept ensures public-sector digital services operate securely, with transparency and regulatory compliance. It plays a crucial role in protecting sensitive governmental information, preserving regulatory authority, and delivering resilient and trustworthy digital public services.

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Rising Cybersecurity Threats Fuel Market Demand
One of the primary factors propelling the digital sovereignty in government market is the growing frequency and complexity of cybersecurity threats. These threats target digital systems, networks, applications, and data, aiming to disrupt operations, steal sensitive information, or undermine system integrity. The rapid proliferation of digital connectivity and cloud-based technologies has expanded potential vulnerabilities, making cyber threats more pervasive. By adopting digital sovereignty strategies, governments can strengthen their national resilience through full control over data storage, system governance, and cybersecurity frameworks. This approach mitigates risks and safeguards sensitive information while ensuring continuity of operations. For instance, in June 2024, the United States Office of Management and Budget’s FISMA Annual Report to Congress highlighted that federal agencies experienced 32,211 cybersecurity incidents during fiscal year 2023, marking an increase of nearly 9.9% from 29,319 incidents reported in fiscal year 2022. Such rising threats underline the critical need for enhanced digital sovereignty measures.

Geographical Leadership and Growth Prospects in Digital Sovereignty
In 2025, North America held the leading position in the digital sovereignty in government market. However, Asia-Pacific is anticipated to be the fastest-growing region in the coming years, reflecting increased investments and heightened awareness in this area. The market analysis encompasses major regions such as Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa, providing a comprehensive understanding of global developments and regional dynamics.

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