The IoT Chip Market in Government is estimated at US$2,852.847 million for the year 2019. Internet of Things (IoT) has the potential to transform the public sector by changing the way how government entities collect data and information with emerging trends of mobility, automation, and data analytics. The growing usage of connected devices is increasing the volume of big data worldwide. As such, the demand for the application of IoT in the government sector is rising in order to gather and process this large volume of data, thereby driving the IoT chip market growth across the government sector. The use of IoT in the government sector can ensure the smooth functioning of day-to-day public activities while focusing on long-term, demanding projects.
IoT is being increasingly adopted in key public areas including water control, emergency management, and waste management. Increasing investments in smart cities is one factor that is fuelling the demand for IoT chips across the government sector. Government agencies are using IoT to analyse factors such as population, zoning, mapping, water delivery, and even land use that are essential for planning and making policies.
Rising cases of disaster, both man-made and natural, are further boosting the adoption of IoT solutions across this sector thus positively impacting the IoT chip market growth. Governments are increasingly using IoT and big data-enabled disaster prevention and management systems to reduce the loss of life and property during times of unforeseen disasters. For example, forest fires are common for which IoT solutions are being used to detect fires in their early stages so as to curb the spread of the fire and its consequent devastating effects. Also, IoT can help to detect and monitor water bodies and alert authorities in areas that are prone to flooding by letting them know when the water level rises at an alarming rate.
Rising focus on the intelligent transportation system, in order to reduce traffic congestions, road accidents, and carbon footprint as well, is another key area where governments are funneling investments into IoT solutions which is also spurring the demand for IoT chips. In November 2019, Transition Networks announced its collaboration with New York City’s transportation agency on an intelligent transportation project to use IoT to connect, power, and manage traffic data. Telia Finland, together with public transport company Pohjolan Likkenne, is developing smarter bus traffic IoT solutions in the Helsinki metropolitan area in order to optimize driving while reducing fuel emissions by monitoring real-time data for fuel consumption as well as electricity usage. Other factors that are bolstering the growth of the IoT chip market in government include rising use of IoT for video surveillance solutions in public places and burgeoning demand for roadside signage for smart roads and highways which displays toll rates, real-time road status, and lane closures.
By geography, IoT Chip market in Government is segmented as North America, South America, Europe, Middle East and Africa (MEA), and Asia Pacific (APAC). North America accounted for a significant market share in 2019 owing to the high rate of adoption of IoT solutions and services across the government sector. Governments in countries like the U.S. and Canada are increasingly incorporating IoT technology in different key areas, especially in law enforcement. According to the study conducted by the Center for Data Innovation in 2016, the U.S. government is using various IoT devices in key areas to help improve facilities while reducing costs. Amazon’s video doorbell Ring, a home security IoT product, is being used by law enforcement agencies across the United States, allowing police to view home surveillance footage so as to assist with their investigations.
Moreover, these governments are also focusing on security measures on account of rising cases of cyberattacks related to IoT products and systems. In 2017, the U.S. government introduced a new bill- the Internet of Things Cybersecurity Improvement Act of 2017- to help enforce security measures on IoT products sold for government use. This act covers any sensors, wearables, or internet-connected tools sold to federal agencies. In September 2019, California Governor implemented a new law aimed at regulating the security of IoT devices which took effect on January 1, 2020. The law aims to better address the data security risks associated with increased levels of connectivity at the workplace. This is the first IoT-specific security law in the United States which requires all IoT devices sold in California to be equipped with reasonable security measures. Europe also holds a noteworthy market share owing to the adoption of the increase of IoT technology by government agencies. APAC IoT Chip market in Government is projected to witness a substantial CAGR during the forecast period. The major factor behind the growth of this regional market is the rapid adoption of IoT technology for disaster management solutions in APAC countries. In April 2018, Japan’s KDDI entered into a partnership with Toyota and geology consulting services company OYO Corporation to develop IoT-based disaster prevention and mitigation system. The system aims to improve the accuracy and speed of decision making regarding the issuance of evacuation warnings and regulating traffic to ensure the safety of local residents. An increasing number of connected devices along with the rapidly rising internet penetration in the region is also contributing to the growth of the IoT chip market in government. For instance, South Korea has a very high Wi-Fi penetration rate with telecommunication companies having their own Narrow Band IoT and LTE-M networks. The country is already using the application of IoT services such as fire sensors in subways and water meters in cold climate.
Prominent key market players in the IoT chip market in Government include Intel Corporation, Qualcomm Technologies, Inc., Texas Instruments Incorporated, Cypress Semiconductor Corporation, and NXP Semiconductors among others. These companies hold a noteworthy share in the market on account of their good brand image and product offerings. Major players in the IoT Chip market in Government have been covered along with their relative competitive position and strategies. The report also mentions recent deals and investments of different market players over the last two years.
|Market size value in 2019||US$2,852.847 million|
|Growth Rate||CAGR of during the forecast period|
|Forecast Unit (Value)||USD Million|
|Segments covered||Connectivity, And Geography|
|Companies covered||Intel Corporation, Qualcomm Technologies, Inc., Texas Instruments Incorporated, Cypress Semiconductor Corporation, NXP Semiconductors, Silicon Laboratories Inc., Analog Devices, Inc., STMicroelectronics, Renesas Electronics Corporation, Nordic Semiconductor|
|Customization scope||Free report customization with purchase|