North America Smart Cities Market is estimated to grow with a CAGR of 16.48% during the forecast period, reaching USD YY billion in 2027, from its recorded value of USD 223.41 billion in 2019.
The market is driven by the need for energy management solutions, availability of low-cost devices, and wireless DIY installations. The availability of affordable DIY smart home automation products is expected to make the IoT a feasible option in North America during the forecast period.
The US was the largest contributor in the North America smart cities market, with the credit of having the maximum number of smart services deployed in a country in the region.
The stimulus funds offered by the US government and the emergence of strong technically advanced vendors have been driving the market in the US. Seattle, Boston, San Francisco, Washington DC, New York, Toronto, Vancouver, Portland, Chicago, and Montreal were the top ten cities in North America adopting smart services.
Many utilities have completed various pilot programs and are in the process of rolling out smart projects that will help in the growth of the smart cities market in the United States from USD 169.80 billion in 2019, to USD 559.54 billion in 2027, growing with a CAGR of 17.05% during the forecast period.
For instance, New York City launched a smart city initiative called the Hudson Yards project in 2015. The project is a $20 billion project.
Buildings in Seattle were consuming lots of energy. According to the US Department of Energy, more than 4.2 million commercial buildings waste an average of 30% of the total available energy of Seattle. Also, commercial buildings account for 20% of greenhouse gas emissions in the US. This necessitates efficient conservation of energy in the buildings. This has created the demand for smart buildings in the country.
The Boston Department of Innovation and Technology has created five city apps for various uses, allowing citizens to report neighborhood problems and help commuters find on-street parking in the Innovation District. These applications empower citizens to extend the sensor network at no additional cost. Boston has more than 70 universities and colleges, eight of which are dedicated research universities with $1.5 billion in R&D expenditures annually.
In addition, the city's Beta Blocks Action Research initiative involves residents in the smart city planning process. The project aims to encourage public discussion about smart city tools and provide a venue for civic experiments. Smart Streets sensors and citywide autonomous vehicle testing, among other programs, have been part of these experiments in the past.
With the Renew Atlanta bond issue, Atlanta began pursuing smart city initiatives in 2015. In September 2017, the SmartATL team partnered with the Georgia Institute of Technology to launch the North Avenue Smart Corridor. With over 100 IoT sensors, adaptive signal timing, and V2X communication, the 2.3-mile corridor was transformed from a busy and crash-prone corridor to a bike-friendly corridor with far less traffic congestion.
Pennsylvania received $10.9 million in funding from the U.S. Department of Transportation as part of its $165 million dedicated to smart city projects. Using these funds, it has been actively building smart traffic lights designed to improve pedestrian and cyclist access, reduce traffic congestion and ultimately save millions of dollars.
Florida received a $21 million grant from the U.S. Department of Transportation to test V2X communications. Using these funds, it will equip as many as 1,600 residents with connected vehicle technologies and sensors to reduce emissions and collisions and improve cyclist and pedestrian safety.
Nearly 80% of enterprises in the US have been using IoT products and services, with the support of cloud platforms and data analytics, to improve their business efficiency. This trend is expected to continue during the forecast period.
In addition, the US federal government expenditure for the development of cities in the region is rising significantly. Recently, the US announced a new initiative called Smart Cities to help cities resolve local issues. The administration is set to invest $160 million in federal research and new technology collaborations.
Under the proposed investment plan, the National Science Foundation and the National Institute of Standards and Technology will receive more than $35 million to build research infrastructure for smart cities. To that end, numerous industry verticals (such as energy, transportation, and healthcare) will receive approximately $105 million from various government departments in the US.
Moreover, Canada is primed to take the lead in smart city technology, as it is an early adopter of LED lighting. Of the more than three million streetlights in Canada, 75 percent have been, or will soon be, converted to LEDs.
Smart grid technology, for example, provides cities with data that can help government employees work more efficiently. Collected traffic data has the ability to help pedestrians avoid traffic, city planners mitigate high areas of congestion and emergency and police vehicles arrive to a crash scene faster.
Cities in Canada, such as Toronto, have already taken steps to encourage smart city adoption, appointing a Chief Transformation Officer in 2017 to help the city digitize. Over the next ten years, this trend toward smart city digitization has the potential to save $1.2 billion.
According to the IESE Cities study Motion Index for 2018, which ranks 165 global cities based on economic and social indicators, the Ontario capital broke into the top 10 smartest cities in the world. Vancouver, Ottawa and Montreal weren’t far behind, all placing in the top 30 cities worldwide for smart city adoption.
Leading technology firms have emerged as important partners in the city's introduction of IoT platforms that essentially give the infrastructure a smart upgrade. For instance, Nokia and Current powered by GE partnered to deploy CityIQ sensors in cities across Canada using a system that transforms outdoor street light poles into a digital infrastructure. With this platform in place, CityIQ sensors are activated to collect data and distribute valuable insights to cities via Nokia’s safe and secure communications networks.
Toronto is partnering with Alphabet’s Sidewalk Labs to turn its Quayside waterfront area into a high-tech smart city. The plan calls for self-driving cars, heated cycle lanes and sidewalks, green energy, public WiFi and a subterranean level populated by robots responsible for delivering freight and removing waste.
Hence, with a growing number of smart city initiatives by the government, the market for smart cities in Canada is likely to reach USD YY billion in 2027, from its recorded value of USD 31.00 billion in 2019.
On the other hand, Mexico smart cities market is expected to grow with a CAGR of 14.89%. Mexico City and Monterrey are the most advanced cities in the implementation of new technologies and are included in the Smart Cities Index of EasyPark and the Cities in Motion Index of the IESE Business School.
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