Smart Cities Market Overview
The Global Smart Cities Market is expected to grow at a CAGR of 22.9% during the forecasting period (2024-2031).
A smart city refers to an urban area that uses various types of electronic methods and sensors, intending to collect data. Insights acquired from that data are used to manage resources, assets, and services efficiently; that data is used to enhance the operations across the city. This includes data collected from devices, citizens, buildings, and assets that are then analyzed and processed to monitor and manage power plants, water supply networks, traffic and transportation systems, utilities, waste, crime detection, information systems, across several areas, such as schools, libraries, hospitals, and other community services.
Market Scope
| Metrics | Details |
| Market CAGR | 22.9% |
| Segments Covered | By Smart Buildings, By Smart Transportation, By smart citizen services, and By Region |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other key insights. |
| Fastest Growing Region | Asia Pacific |
| Largest Market Share | North America |
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Smart Cities Market Dynamics
The smart cities market is driven by the increasing demand for public safety, growing government initiatives, and rising urban population. In smart cities, technologies such as DNA phenotyping, video surveillance, and real-time license plate and facial recognition are broadly used for public safety, indicating the necessity for surveillance to make sure the safety of citizens.
Rising need for public safety and communication infrastructure
Successful enactment of smart city projects primarily depends on telecommunications infrastructure and its usage for public safety. Every city needs to make sure that communication platforms are accessible and established to realize the model of smart cities in an open and resource-efficient manner. Entry to modern cities includes the basic infrastructure for data communication, which is the key component for every city seeking to become “smart.” For instance, mobile networks, fixed networks, and dedicated networks for IoT applications will be crucial for such cities.
Increasing environmental concerns and demand for green initiatives
Urbanized areas hold a huge portion of global energy consumption and are expected to release up to 80% GHG. The increasing usage of energy sources results in the rising amount of carbon emissions and energy dissipation, which urgently raises the demand for sustainable and efficient use of energy. Electricity generation reports for almost one-fourth of CO2 emissions globally. Increasing concerns over ozone depletion and global warming have accelerated the efforts of governments of developed and emerging nations to control their carbon footprint, with governments enforcing stricter regulations to limit emissions.
Huge initial investments
One of the major challenges associated with the growth of the smart cities market is project funding for huge initial CAPEX. It has come to be the national/local government’s major responsibility to invest in the transformation process of smart city infrastructure. It is easy to understand that governments possess the need, vision, and clarity for such transformations; however, the lack of budgetary allocations for large-scale implementations impedes the pace of the transformation process, either directly or indirectly. Such heavy investments could add to the economic burden of debt-ridden governments or local municipal authorities, which adversely affects future general budgets.
COVID-19 Impact on Market
Smart city technology providers have witnessed a steady adoption of solutions for several areas, such as smart transportation, smart buildings, smart citizen services, and smart citizen services. The necessity of innovative smart city solutions, which can be efficiently coupled with big data, IoT, cloud, security, analytics, and network connectivity, are on the rise across these application areas. The implementation of IoT in smart cities focus areas, such as smart city services and smart citizen services, is expected to increase the adoption of smart city solutions during the pandemic, as regulatory authorities of several countries are primarily focused on monitoring the safety, health, and living standard of their citizens. To cater to the need for coping IoT devices across various cities, smart city solution vendors need to improve the management capabilities of their solutions.
Smart Cities Market Segmentation Analysis
Based on smart buildings, the smart cities market has been classified into the smart building, smart transportation, and smart services.
Based on smart building, the smart cities market is segmented into type, solution, and services
The deployment of novel smart building systems can be challenging for organizations that lack skilled personnel to deploy the product. Moreover, integrating new smart building solutions with the current IT infrastructure can also be a challenging job. In such cases, deployment and integration services are useful in implementing smart building solutions. Incorporating the best solutions for various requirements of a smart building instead of using one single package facilitates the higher performance of the smart building components.
Based on smart citizen services, the smart cities market has been classified into public safety, smart healthcare, smart education, smart street lighting and e-governance.
Among smart citizen services solutions, the citizen safety system segment to grow at a higher CAGR during the forecast period
Citizen safety is the topmost priority for every government organization. People are highly dependent on the safety services that are offered by the government at the local, state, or federal levels. Various solutions, such as real-time crime reports, aerial systems, video analytics for law enforcement and Integrated Emergency Management Systems (IEMS), can help government authorities provide better security to citizens.
Smart Cities Market Geographical Share
Based on geography, the study analyzes the smart cities market in the global market, including North America, Europe, Asia-Pacific, South America, and the Middle East & Africa.
North America is estimated to hold the largest share in the global market
North America governed dominated the overall smart cities market in terms of revenue in 2019 due to the significant adoption of smart cities solutions aided by high ICT spending among government organizations and rising demand for connected solutions across the region. However, Asia-Pacific is expected to witness the fastest growth rate during the forecast period due to factors such as a rise in IT spending supported by government initiatives in emerging economies such as India, China, Singapore, and South Korea.
Smart Cities Market Companies and Competitive Landscape
The smart cities market is highly competitive. The key smart cities players which are contributing to the growth of the global market include Cisco Systems, IBM, Siemens AG, Schneider Electric, Ericsson, Vodafone, Itron Inc., Verizon, Telensa, ABB, Honeywell International Inc., SAP SE, KAPSCH Group, and AGT International, Zhongshan Woli Lighting, Foshan Kaicheng Lighting, SHENZHEN LONG SUN OPTOELECTRONICS TECHNOLOGY Co., Ltd, Yangzhou Bright Solar Solutions Co., Ltd., GUANGDONG WORLD OPTO-ELECTRONIC CO., LTD., among others. The major players are adopting new product launch and expansion strategies for global growth in the smart cities market.
ABB:
ABB Ltd. is a technology company engaged in the development and provision of electrification and automation solutions. The company operates via the following business segments, such as Electrification, Motion, Industrial Automation, Robotics & Discrete Automation and Corporate, and Other. The company primarily deals in robotics, power, automation technology, and heavy electrical equipment. Additionally, the company provides customer service in the utilities, transport, infrastructure, and industry sector across the globe. The company operates in four divisions’ that is robots &automation, electrification products, power grids, and industrial automation. The company was founded in January 1988 and is headquartered in Zurich, Switzerland.
Product Portfolio: The Company’s portfolio comprises circuit breakers, UPS solutions, motors, generators, drives and robotics, automatic solutions, among others.
Why Purchase the Report?
- Visualize the smart cities market segmentation composition by smart transportation, smart buildings, smart citizen services and region, highlighting the critical commercial assets and players.
- Identify commercial opportunities in the smart cities market by analyzing trends and co-development deals.
- Excel data sheet with thousands of data points of smart cities market - level 2 segmentation.
- PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
- Product mapping in excel for the key product of all major market players
The global smart cities market report would provide access to an approx. 79 market data table, 61 figures and 180 pages.
Target Audience
- Service Providers/ Buyers
- Industry Investors/Investment Bankers
- Education & Research Institutes
- Research Professionals
- Emerging Companies
- Manufacturers
