Smart Government Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Smart Government Market is Segmented by Type (Solution and Service) by Deployment(On Premise, Cloud), and Geography.

Market Snapshot

Smart Government Market Summary
Study Period: 2020-2027
Base Year: 2021
Fastest Growing Market: Asia Pacific
Largest Market: North America
CAGR: <17.2 %
Smart Government Market Major Players

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Market Overview

The smart government market is expected to register a CAGR of 18.23% during the forecast period. The main factor driving the market is the ability of the citizen to interact with the government service in a new way, thanks to the rising smart technologies and the adoption of smart technologies by governments across various countries.

  • The generation of government data is expanding due to a number of factors, including the growing census data (ever-increasing population), the introduction of new policies and initiatives, partnerships with other regions, and an increase in GDP as a result of the mushrooming of new businesses. Physical hardware-based legacy systems are inefficient and may run out of room. Consequently, there is a growing need for smart governance.
  • For instance, to better coordinate sanitation services, the city of Louisville, in the United States, offers junk pickup reminders to residents through GovDelivery, segmented by location. More than 12,000 households signed up to receive text message alerts one week before and one day before the junk is scheduled for curbside pickup.
  • Vendors are offering public, private, or hybrid cloud solutions for government data related to its administration, security, backup, or compliance, making cloud for government the newest big thing.
  • The systematic openness of government data increased quickly on a global scale. Government data transparency is due to the cloud, which encourages government accountability and lowers corruption. Additionally, it aids in empowering citizens and resolving complex societal issues by utilizing a more extensive range of skills and information.
  • Even though smart governance has many benefits, the government faces numerous difficulties. For instance, the government needs significant resources and commitment to build digital infrastructure and connect everything online. Developing nations experience financial hardship due to various development initiatives, poor tax collection, substantial foreign debt, trade deficits, and other social issues.
  • In terms of supply, the COVID-19 epidemic has wreaked havoc on the economies of the small, medium, and large-scale enterprises that produce the hardware tools necessary for service deployment worldwide. Lockdowns imposed on individual nations by governments worldwide (to stop the virus from spreading) have made matters worse by damaging global supply chains and disrupting manufacturing activities. ​

Scope of the Report

Smart Government is an extension of e-government, which applies information, communication, and operational technologies to all operational areas across multiple domains, process areas, and jurisdictions to generate sustainable public value.

The scope of the study is currently focused on key regions such as North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa. The study also tracks the key market parameters, underlying growth influencers, and major vendors operating in the industry, which supports the market estimations and growth rates over the forecast period.

By Type
Solution
Government Resource Planning System
Remote Monitoring
Security
Other Solutions (Open Data Platform and Network Management)
Service
Financial
Healthcare
Power and Utilities
Telecom
Oil and Gas
Other Services (Education and Transportation)
By Deployment
On Premise
Cloud
By Geography
North America
Europe
Asia Pacific
Latin America
Rest of World

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Key Market Trends

E-governance Services to Drive Market Growth

  • Smart governance is primarily fueled by e-government and public participation in the decision-making process. For instance, the Use of Information and Communication Technology refers to collecting, processing, sharing, and retrieving data using computers, the internet, telecommunications, and digital equipment. Better information transmission over telecommunications channels like cable, radio, telephones, and satellite systems.
  • With so many benefits, e-Government has become not only a requirement but also an essential component of every country. Governments all around the country are making a lot of effort to integrate technology and information into their operations.
  • E-consultation: The key component of smart governance is citizen participation. Government and citizens must be able to communicate effectively. They must be free to express their views on policies, plans, and other government initiatives. Direct communication with leaders, counselors, city managers, or the local head is required for their comments.
  • Because the necessity for citizen participation in the democratic process is growing daily, E-governance aims to rethink citizen participation in the democratic process while also changing how governments operate. Government to citizen (G2C), government to business (G2B), and government to government (G2G) solutions and services are integrated through the use of e-government, giving citizens and the government unprecedented authority.
  • The COVID-19 pandemic has made it even more important for the public sector to go digital. Most nations have expanded their public internet services and adopted digital strategies as the need for quick access to credible information and efficient communication between individuals, and government agencies have increased. For instance, South Korea has a highly developed ICT sector and has successfully digitalized its government services during the past few years.
  • Additionally, technology can be used to save and provide care for millions of people worldwide under the banner of eHealth. The finest example of the need for e-governance is the Egyptian government's e-health application, which provides free breast cancer tests to Egyptian women over 45. The system's reliance on satellite connectivity enables transmission of the tests from far-off units. This online program offers non-discriminatory support for breast cancer treatment in its early stages.
  • Moreover, In India, e-Governance programs have always had to deal with the combined issues of automating government offices and making online services accessible to the general public. The new India has made significant strides in e-Governance, using ICT for everything from elections and censuses to computerizing all government facilities and digital lockers for e-Transportation, e-Health, e-Education, and e-Taxation.
Smart Government Market : Share of Citizens Using E-government Services in South Korea from 2017 to 2021, in%

North America to Hold a Significant Market Share

  • The growing adoption of smart infrastructure, followed by smart city initiatives across the region, has boosted the market for smart government in North America. Industries such as grid automation monitoring have driven the demand.​
  • Due to the growing adoption of the Internet of Things (IoT) and cloud computing, which have accelerated this region's market growth, the area is gaining substantial traction in the smart government industry. Additionally, the emergence of essential businesses that provide services and solutions for smart government is fostering market expansion in this area.
  • Also, the United States has massive ongoing investments in the microgrid movement in California, which has mandated that all its electricity is from zero-emission sources by 2045. ​​ Smart Mobility deployments are also on the rise in the United States. For example, Florida Senate recently passed a unanimous bill that would allow companies like Uber, Lyft, and General Motors to start deploying autonomous vehicles. ​​
  • Furthermore, the New York state saw the launch of a USD 11 million prize fund to drive renewable microgrid development after being battered by Superstorm Sandy. Such initiatives are aiding the market for smart government.​
  • The digital-government ecosystem in North America is developing and maturing as new technologies become available and public expectations of government services changes. Strong policies are in place at various levels in both the US and Canada to direct efforts to digitize the whole federal government. Canada published its first digital-government strategy in 2021 to streamline digital operations, modernize IT infrastructure, accelerate technology adoption, and enhance service provision.
  • The assistance of Canadian Digital Service Enhances public services by increasing government-wide capability for human-centered service design, iterative development, and Statistics Canada by giving the public access to government data, statistics, and information on Canada's economy, society, and environment, as well as by strengthening government transparency and trust.
Smart Government Market - Growth Rate By Region (2022-2027)

Competitive Landscape

The smart government market is fragmented in nature. The companies operating in the market are executing mergers and acquisitions, strategic partnerships, and product development to gain market share. The major players include ABB Ltd, Amazon Web Services Inc., and Cisco Systems Inc. A few recent developments are:

  • March 2021:- IT company Amazon Web Services and Niti Aayog announced a tie-up to train students on the fundamentals of cloud computing through Atal Tinkering Labs. A statement of intent (SoI) was signed between Niti Aayog and Amazon Internet Services Private Limited (APL) to roll out the project, undertaking the resale and marketing of AWS Cloud services in India.

Major Players

  1. ABB Ltd.

  2. Amazon Web Services, Inc.

  3. Avaya Inc.

  4. Capgemini S.A.

  5. Cisco Systems, Inc.

Smart Government Market Concentration

Recent Development

  • March 2022:- E-governance will be crucial to India's development of its infrastructure. The government gave the infrastructure sector a significant boost in the most recent Union Budget, which was presented on February 1. It projected spending more than Rs 10 lakh crore in the fiscal year 2022–23.
  • March 2022 - According to research results published by Amazon Web Services (AWS), the epidemic has increased the need for digital skills training. According to the survey, the number of Indian workers who need digital skills for their professions is expected to increase by 27.3 million over the next year, accounting for 7% of the country's labor force.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Industry Value Chain Analysis

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Bargaining Power of Suppliers

      2. 4.3.2 Bargaining Power of Consumers

      3. 4.3.3 Threat of New Entrants

      4. 4.3.4 Intensity of Competitive Rivalry

      5. 4.3.5 Threat of Substitute Products

    4. 4.4 Impact of COVID-19 on the Market

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Government Initiatives for Digital Transformation

      2. 5.1.2 Adoption of SMAC (Social, Mobile, Analytics, and Cloud)

    2. 5.2 Market Challenges

      1. 5.2.1 Lack of Uniform Laws and Regulations on Data Sharing

      2. 5.2.2 Data Privacy and Data Theft-related Issues

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Type

      1. 6.1.1 Solution

        1. 6.1.1.1 Government Resource Planning System

        2. 6.1.1.2 Remote Monitoring

        3. 6.1.1.3 Security

        4. 6.1.1.4 Other Solutions (Open Data Platform and Network Management)

      2. 6.1.2 Service

        1. 6.1.2.1 Financial

        2. 6.1.2.2 Healthcare

        3. 6.1.2.3 Power and Utilities

        4. 6.1.2.4 Telecom

        5. 6.1.2.5 Oil and Gas

        6. 6.1.2.6 Other Services (Education and Transportation)

    2. 6.2 By Deployment

      1. 6.2.1 On Premise

      2. 6.2.2 Cloud

    3. 6.3 By Geography

      1. 6.3.1 North America

      2. 6.3.2 Europe

      3. 6.3.3 Asia Pacific

      4. 6.3.4 Latin America

      5. 6.3.5 Rest of World

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles

      1. 7.1.1 ABB Ltd

      2. 7.1.2 Amazon Web Services Inc.

      3. 7.1.3 Avaya Inc.

      4. 7.1.4 Capgemini SA

      5. 7.1.5 Cisco Systems Inc.

      6. 7.1.6 Entrust Datacard Corporation

      7. 7.1.7 Huawei Technologies Co. Ltd

      8. 7.1.8 Hughes Identification Devices (HID) Global Corporation

      9. 7.1.9 International Business Machines (IBM) Corporation

      10. 7.1.10 Imex Systems Inc.

      11. 7.1.11 Nokia Corporation

      12. 7.1.12 OpenGov

      13. 7.1.13 Oracle Corporation

      14. 7.1.14 UTI Group

    2. *List Not Exhaustive
  8. 8. INVESTMENT ANALYSIS

  9. 9. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability
** Qualitative Trend Analysis
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Frequently Asked Questions

The Smart Government Market market is studied from 2020 - 2027.

The Smart Government Market is growing at a CAGR of <17.2% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2021.

ABB Ltd., Amazon Web Services, Inc., Avaya Inc., Capgemini S.A., Cisco Systems, Inc. are the major companies operating in Smart Government Market.

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