Market Analysis and Insights
According to estimates, the market for smart cities would be valued USD 648.39 billion in 2020 and USD 6,061.03 billion in 2030, with a CAGR of 25.6%.
.jpg "The Global Smart City Market 2020-2030 (USD Billion)")
The rapidly increasing world population as well as the rapidly growing urban population are driving the demand for sustainable infrastructure globally. The creation of smart cities is being pushed for by the governments of many different nations, who are taking action and investing extensively to allay worries about the growing urbanization of the population. The three main areas that smart cities effectively manage are utilities, safety, and transportation
Smart City Market Scope :
| Metrics | Details |
| Base Year | 2023 |
| Historic Data | 2018-2022 |
| Forecast Period | 2024-2030 |
| Study Period | 2018-2030 |
| Forecast Unit | Value (USD) |
| Revenue forecast in 2030 | USD 6,061.03 billion |
| Growth Rate | CAGR of 25.6% during 2020-2030 |
| Segment Covered | by Smart Utilities ,by Smart Governance,by Application,by Region. |
| Regions Covered | North America, Europe, Asia Pacific, South America, Middle East and Africa |
| Key Players Profiled | Siemens, IBM, Cisco, Hitachi, Microsoft, Intel, NEC, Schneider Electric, Huawei, ABB, and AGT International. |
Market Definition
A smart city is one that employs technology and data-driven solutions to raise the standard of living for its citizens, increase the effectiveness of municipal operations and services, and lower resource consumption and expenditures.
The goal behind a "smart city" is to use connectivity, data analytics, and digital technology to address numerous urban concerns and improve a city's sustainability, resilience, and livability. In order to gather and transmit data, smart cities have a strong digital infrastructure that includes high-speed internet access, sensors, and communication networks. The city has installed sensors and IoT (Internet of Things) devices to gather information on a variety of topics, including energy use, traffic movement, and more. After then, this data is examined in order to learn more and guide decisions.
The main goals of smart transport systems are to ease traffic congestion, enhance public transit, and encourage the use of other forms of mobility like cycling and walking. This can incorporate intelligent parking systems, real-time transportation data, and traffic control technologies. Smart towns strive to boost renewable energy sources and lower energy use. This may entail the use of smart networks, energy-efficient structures, and the incorporation of solar and wind energy.
Key Market Segmentation
Insights on Application
The Smart Utility Segment is Valued for the Highest Share
A market share of more than 28% was held by the smart utility segment in 2022, which dominated the industry. The several industries that make up the smart utility segment, a vital part of municipal infrastructure, including water treatment, energy distribution, integrated data management, and administration of the civil distribution infrastructure. The growth of smart grids has a considerable impact on the adoption of smart utilities. The combination of cloud computing and improved data analytics is also projected to encourage industry development. In order to meet the rapidly expanding demand for energy, organizations and governments are developing and putting into action strategies to increase the proportion of renewable energy sources in overall energy output.
Insights on Smart Utilities
The Energy Management Segment Valued for the Highest Share
By accounting for more than 55.03% of sales in 2022, the energy management segment led the smart utilities industry. In order to provide security and efficiency in response to the increased demand for energy, virtual power plants that depend on AI, machine learning, and IoT are already employed widely. The major players in the market are focusing on establishing a strong R&D infrastructure to support the advancement and overview of sophisticated energy management systems and design analytics solutions to include cutting-edge technologies like blockchain.
The waste management market is predicted to grow significantly over the forecast period, with a CAGR of 27.03%. For the installation of smart garbage cans in numerous cities, several governments are contacting system integrators, distributors, and OEMs. Major players in the implementation of city-level waste management programmes include local governments, technological solution suppliers, distributors, and system integrators. Various mobile applications are also being created to monitor trash fill levels and improve user comfort. To implement smart trash cans and other waste management tools and assist the industry's expansion, OEMs and system integrators are concentrating especially on locations that are busier and frequently generate bigger quantities of waste.
Insights on Region
The North America Region Accounted for the Highest Share
In 2022, North America had around 32.02% of the market share for smart cities worldwide. The market for smart cities is growing in North America as a result of the quick advancements in technology and the switchover to digital business models across a range of various industrial sectors, including telecommunications, banking, IT, and retail. The regional municipal and federal governments of North America collaborate closely with a range of ICT startups and suppliers, and the area has a well-established information and communication technology (ICT) infrastructure. The market growth for smart cities there over the past several years has been considerably boosted by these reasons. The growing deployment of civic connection infrastructure will lead to an expansion of the market for smart cities.
Key Company Profiles
The key players operating in the market include Siemens, IBM, Cisco, Hitachi, Microsoft, Intel, NEC, Schneider Electric, Huawei, ABB, and AGT International.
COVID-19 Impact and Market Status
Due to delays in supply chains and building operations, many smart city projects particularly those requiring physical infrastructure and large-scale deployments experienced delays. Movement restrictions and lockdowns also slowed down the project's development.
Governments and municipalities saw financial difficulties as they allocated funds to the pandemic response and healthcare. As a result, there was less money available for smart city projects.
During the epidemic, cities reorganised their technological investments. While certain healthcare and emergency response-related projects were expedited, others were deprioritized or postponed.
The epidemic brought attention to the value of digital services in urban settings. To enable remote employment, online education, and healthcare BPO services, cities boosted their expenditures in digital infrastructure, particularly high-speed internet connectivity.
Latest Trends
1. Technology for smart cities might undergo a transformation with the deployment of 5G networks. In order to support real-time data transfer for applications like driverless cars, IoT devices, and augmented reality, it provides high-speed, low-latency connections.
2. In contrast to processing data in centralized data centers, edge computing includes processing data closer to the source, or at the network's edge. By doing this, latency is decreased and the responsiveness of programmes for smart cities is improved, especially for crucial jobs like traffic control and public safety.
3. The enormous amount of data gathered in smart cities is being analyzed using artificial intelligence and machine learning. Predictive analytics are made possible by these technologies for public safety, energy efficiency, and traffic control.
4. The potential for blockchain technology to improve security and trust in smart city systems is being investigated.
Significant Growth Factors
More people are relocating to cities as part of the global urbanization movement. In order to effectively manage urban expansion, this puts strain on urban infrastructure and services, making the adoption of smart city solutions desirable.
Implementing smart city solutions is becoming more practical and affordable because of advancements in technology like IoT, AI, 5G connection, and data analytics. The growing interest in smart city efforts centered on energy efficiency, renewable energy, and decreased carbon emissions is a result of growing worries about climate change and environmental sustainability.
By improving public transportation, healthcare, education, and other services, smart city initiatives seek to improve the quality of life for citizens and make cities more desirable places to live and work. In order to promote the creation of smart infrastructure, several governments, and local authorities have started programmes and initiatives for smart cities. These programmes and initiatives provide cash, incentives, and regulatory assistance.
Private businesses and investors are investing in infrastructure and technology initiatives, frequently through public-private partnerships (PPPs), since they perceive potential in the market for smart cities. Better city planning and resource allocation are made possible by the capacity to gather and analyze data from multiple urban systems.
Restraining Factors
Smart city initiatives may be expensive to implement, and for financially challenged towns, finding appropriate funds can be difficult. Some ventures' return on investment (ROI) may not be realized for several years.
Smart city data management and collection pose issues with cybersecurity and data privacy. It is essential to guarantee the protection of sensitive data. There may be difficulties with compatibility and interoperability because several suppliers are involved in the development of many smart city systems and gadgets.
A coherent smart city ecosystem requires the seamless integration of many technologies. A crucial difficulty is ensuring that all inhabitants, particularly those in underprivileged neighbourhoods, have fair access to smart city services and technology. Existing disparities may be made worse by the digital divide.
Smart city efforts frequently have to manage complicated legal and regulatory hurdles, which can delay implementation and raise implementation-related risks.
Certain smart city technologies may encounter resistance from communities and residents because of worries about monitoring, employment displacement, and personal privacy.
Recent Developments in the Global Smart City Market: A Snapshot
• The acquisition of ASKI - Industrie-elektronik Gesellschaft m.b.h. by ABB Ltd. took place in October 2022. The crew and the ASKI brand would stay in Zell am Moos, Austria, under the ABB Smart Power banner. The purpose of this transaction is to grow the digital energy management ecosystem and the energy market. The acquisition helps ABB achieve its goal of creating innovative energy management features that will save CO2 emissions and energy costs.
• The end-to-end mining software firm Micromine will be purchased by AspenTech, a majority-owned subsidiary of Emerson, in July 2022. This purchase is anticipated to broaden AspenTech's software offering, advancing the company's metals and mining market diversification strategy and supporting the sector's sustainability and digital transformation objectives. Emerson's software strategy is expedited by the agreement with AspenTech, which also shows the firm's dedication to creating a portfolio with more growth potential and greater diversity. The proposed acquisition of Micromine is an illustration of how Emerson and AspenTech would promote growth through ongoing investment and mergers & acquisitions.
Key Segments Smart City Market
by Smart Utilities
• Water Management,
• Waste Management,
• Energy Management
by Smart Governance
• CCS
• E-governance
• City Surveillance
• Smart Infrastructure
• Smart Lighting
by Application
• Smart Building
• Smart Governance
• Smart Utilities
• Smart Transportation
• Environmental Solution
• Smart Healthcare
• Smart Mobility Management
• Smart Public Safety
Regional Overview
North America
• U.S
• Canada
Europe
• Germany
• France
• UK
• Rest of Europe
Asia Pacific
• China
• India
• Japan
• Rest of Asia Pacific
South America
• Mexico
• Brazil
• Rest of South America
Frequently Asked Questions (FAQ) :
The smart cities market is expected to grow at a compound annual growth rate is 25.6% from 2020 to 2030 .
The market value of iot in smart cities market in 2030 was USD 6,061.03 billion
Some key players operating in the smart cities market include Siemens, IBM, Cisco, Hitachi, Microsoft, Intel, NEC, Schneider Electric, Huawei, ABB, and AGT International.
The report sample for smart cities market report can be obtained on demand from the website. Also, the 24*7 chat support & direct call services are provided to procure the sample report.
The base year for the report is 2023 in iot in smart cities market