The global smart cities market was surpassed at USD 1,226.97 billion in 2022 and is expected to hit around USD 12,208.88 billion by 2032, growing at a CAGR of 25.83% from 2023 to 2032.
|Market Size in 2022||USD 1,226.97 billion|
|Revenue Forecast by 2032||USD 12,208.88 billion|
|Growth rate from 2023 to 2032||CAGR of 25.83%|
|Forecast Period||2023 to 2032|
|Regions Covered||North America, Europe, Asia Pacific, Latin America, Middle East & Africa|
|Companies Covered||ABB Limited; AGT International; AVEVA Group plc.; Cisco Systems, Inc.; Ericsson; General Electric; Honeywell International Inc.; International Business Machines Corporation; Itron Inc.; KAPSCH Group; Huawei Technologies Co., Ltd.; Microsoft Corporation; Oracle Corporation; Osram Gmbh; SAP SE; Schneider Electric SE; Siemens AG; Telensa; Verizon; Vodafone Group plc|
The increasing urbanization, the need for efficient management of resource utilization, public safety concerns, and increasing demand for an environment with efficient energy utilization are the major driving factors for the smart cities' market growth. Due to the COVID-19 pandemic, countries followed strict lockdowns and mobility constraints to avoid the spread of the virus. During the pandemic, the dependence of global economies on urban areas and the importance of public healthcare in smart city initiatives have been brought to light. However, organizations are trying to implement emerging technologies such as the Internet of Things (IoT) and Artificial Intelligence (A.I.) to overcome the challenges faced during the pandemic.
The need for sustainable structure due to the growing population and urbanization has become significant for market growth. Several regional governments are trying to handle these problems via smart city initiatives across serviceable segments, such as mobility, utility, safety, and management. The local governments have also been at the forefront of stimulating organizational and institutional changes, enabling steady investments, and creating a consortium for bringing diverse businesses together. The emergence of a new genre of public-private partnerships is also a particular development attributable to the smart city’s developments. Further, infrastructure development financing and funding models and governance systems are playing a major role in fueling the smart cities market.
The smart cities' market growth can be attributed to the growing adoption of nanotechnology, Artificial Learning (A.I.), Machine Learning (ML), cloud computing, IoT, cognitive computing, big data analytics, and open data. Moreover, the increasing implementation of Build-Own-Operate (B.O.O.), Build-Operate-Transfer (B.O.T.), Original Brand Manufacturer (O.B.M.), and Bill of Material (B.O.M.) business models is also driving the successful project execution of smart cities. Asian countries have been pursuing numerous initiatives to encourage the adoption of digital technologies for smart cities while seeking to maintain consumer data privacy. Moreover, several government initiatives worldwide are anticipated to drive market growth further. For instance, in December 2021, the U.A.E. government achieved a 100% paperless transformation under the Smart Dubai Plan 2021.
Though smart city projects need a diverse set of technologies, such as IoT, A.I., and smart sensors, to monitor city infrastructure, their application varies across projects and from city to city. The key driving factors for implementing smart city solutions are the need to improve resilient cities, reduce energy, and concern over the increase of environmental waste. Additionally, the vendors invest in Research & Development (R&D) to establish new systems and technologies for connected infrastructure across smart city projects. The key players in the market, such as Cisco Systems, Siemens AG, and IBM Corporation, are actively investing in R&D activities related to connected infrastructure in smart city development worldwide.
Smart Cities Market Segmentations:
|By Application||By Smart Governance||By Smart Utilities||By Smart Transportation|
Intelligent Transportation System
Smart Ticketing & Travel Assistance