IoT Chip Market In Government Size, Share, Opportunities, COVID 19 Impact, And Trends By Connectivity (Cellular, Wi-Fi, Bluetooth, ZigBee, NFC, MQQT, Others) And Geography - Forecasts From 2022 To 2027

Published:  Jul 2022 Report Code: KSI0616135994 Pages: 110

The IoT chip market in government was valued at US$2,872.532 million in 2020.

Internet of Things (IoT) has the potential to transform the public sector by changing the way 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 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 are one factor that is fueling the demand for IoT chips across the government sector. Government agencies are using IoT to analyze 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 to curb the spread of the fire and their 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.

 Another key area where governments are funnelling investments into IoT solutions to reduce traffic congestion, road accidents, and carbon footprint is the growing focus on intelligent transportation systems, which is also driving 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 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 the rising use of IoT for video surveillance solutions in public places and burgeoning demand for roadside signage for smart roads and highways that display toll rates, in real-time road status, and lane closures.

North America holds a significant market share

By geography, the 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 into different key areas, especially in law enforcement. According to a 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 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, the 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 IoT technology by government agencies. The 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 an 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 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 climates.

Recent Developments and expansions

  • A Memorandum of Understanding (MoU) for cooperation in the area of IoT/M2M was signed in May 2022 by the Centre for Development of Telematics (C-DOT), the premier R&D centre of the Ministry of Communications, Department of Telecommunications, Government of India, and Vodafone Idea Limited, one of the major telecom operators of India. By signing an MOU, both firms will be able to benefit from one another's expertise in their respective fields as they work to develop and implement IoT/M2M solutions in India.
  • The newest generation of Intel Xeon W-3300 processors, which are only available to its system integrator partners, was released in July 2021. In a single-socket solution, Intel Xeon W-3300 processors provide enterprise-grade security and dependability in addition to uncompromised performance and increased platform capabilities.

COVID-19 Impact

COVID-19 had a significant effect on the IoT chips market. Projects for smart cities and other government development programs were delayed as a result of the pandemic. The manufacturing process was halted by factory closures. For instance, due to the pandemic, the Union Housing and Urban Affairs Ministry has delayed the deadline for implementing the Smart Cities Mission until June 2023. This has a negative impact on the government market for IoT chips. The market may, however, rebound in the projected time frame owing to COVID-19 stimulus money put aside for infrastructure and sustainability-focused projects.

IoT Chip Market in Government Scope:

Report Metric Details
 Market size value in 2020  US$2,872.532 million
 Growth Rate  CAGR of during the forecast period
 Base year  2020
 Forecast period  2022–2027
 Forecast Unit (Value)  USD Million
 Segments covered  Connectivity, And Geography
 Regions covered  North America, South America, Europe, Middle East and Africa, Asia Pacific
 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

 

Segmentation

  • By Connectivity
    • Cellular
    • Wi-Fi
    • Bluetooth
    • ZigBee
    • NFC
    • MQQT
    • Others
  • By Geography
    • North America
      • USA
      • Canada
      • Mexico
    • South America
      • Brazil
      • Argentina
      • Others
    • Europe
      • Germany
      • France
      • United Kingdom
      • Spain
      • Others
    • Middle East and Africa
      • Saudi Arabia
      • Israel
      • Others
    • Asia Pacific
      • China
      • Japan
      • South Korea
      • India
      • Others
1. Introduction
1.1. Market Definition
1.2. Market Segmentation
 
2. Research Methodology
2.1. Research Data
2.2. Assumptions
 
3. Executive Summary
3.1. Research Highlights
 
4. Market Dynamics
4.1. Market Drivers
4.2. Market Restraints
4.3. Porters Five Forces Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. Threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis
 
5. IoT Chip Market in Government Analysis, By Connectivity
5.1. Introduction
5.2. Cellular
5.3. Wi-Fi
5.4. Bluetooth
5.5. ZigBee
5.6. NFC
5.7. MQQT
5.8. Others
 
6. IoT Chip Market in Government Analysis, By Geography
6.1. Introduction
6.2. North America
6.2.1. USA
6.2.2. Canada
6.2.3. Mexico
6.3. South America
6.3.1. Brazil
6.3.2. Argentina
6.3.3. Others
6.4. Europe
6.4.1. Germany
6.4.2. France
6.4.3. United Kingdom
6.4.4. Spain
6.4.5. Others
6.5. Middle East and Africa
6.5.1. Saudi Arabia
6.5.2. Israel
6.5.3. Others
6.6. Asia Pacific
6.6.1. China
6.6.2. Japan
6.6.3. South Korea
6.6.4. India
6.6.5. Others
 
7. Competitive Environment and Analysis
7.1. Major Players and Strategy Analysis
7.2. Emerging Players and Market Lucrativeness
7.3. Mergers, Acquisitions, Agreements, and Collaborations
7.4. Vendor Competitiveness Matrix
 
8. Company Profiles
8.1. Intel Corporation
8.2. Qualcomm Technologies, Inc.
8.3. Texas Instruments Incorporated
8.4. Cypress Semiconductor Corporation
8.5. NXP Semiconductors
8.6. Silicon Laboratories Inc.
8.7. Analog Devices, Inc. 
8.8. STMicroelectronics
8.9. Renesas Electronics Corporation
8.10. Nordic Semiconductor

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

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