USD 445.26 billion
Report ID: SQMIG45D2058 | Region: Global | Published Date: February, 2024 | Pages: 157 | Tables: 120 | Figures: 77
Smart Cities Market size was valued at USD 445.26 billion in 2021 and is poised to grow from USD 511.6 billion in 2022 to USD 1554.15 billion by 2030, growing at a CAGR of 14.9% in the forecast period (2023-2030).
A smart city is a framework that implements, develops, and promotes sustainable urban development using information and communication technology (ICT). Also, it helps with public information transmission, increased operational effectiveness, and improved citizen welfare. A smart city promotes mixed-land use for unplanned areas, which offers a range of facilities in one location and helps in the best use of existing space, using hardware components like chips, sensors, and actuators as well as software solutions like user interfaces (UIs), communication networks, and Internet of Things (IoT) devices. Rising security demand, as well as positive government initiatives in various countries to create advanced video surveillance, real-time vehicle number plate identification, and facial recognition systems utilized for safety in smart cities, highlighting the significance of monitoring to maintain people's safety, are important factors driving market revenue growth. The need for more sustainable and efficient energy consumption is also highlighted by rising energy demand, which raises energy dissipation and carbon emissions. Concerns about global warming and ozone depletion have led the government to step up efforts to reduce the country's carbon footprint. Also, stringent emissions regulations in both developed and developing nations are expected to support the market's revenue growth.
Additionally, the emergence of smart solutions for buildings and transportation is driving market revenue growth. For instance, a fundamental component of a smart city is a reliable, efficient, and accessible transportation system that enables quick response times and convenient access to locations in case of crises. In addition, mobility options for getting around in smart cities include ridesharing, carsharing, and networked public transit, among others. These options encourage a person to leave their cars at home more frequently, which leads to a more sustainable environment. Smart communities must incorporate charging stations as the number of electric vehicles rises so that owners may readily charge their cars and contribute to the sustainability of the environment as a whole. To raise their standard of living, cities are developing smart solution networks. According to research by the European Commission, the European Union (EU) transportation system implemented 82 initiatives to achieve a green and digital transformation through the European Green Deal, which will reduce vehicular emissions by 90% by 2050 and result in the creation of a smart, competitive, safe, accessible, and reasonably priced transportation system.
In addition, government programs and PPP plans for the use of smart cities, the Internet of Things (IoT), and automation are boosting market revenue growth. Rising analytics penetration, as well as ongoing technical advancements by leading providers, are improving the user experience and boosting market revenue development. Due to technical advancements in transportation and a rise in demand for the creation of linked cards, these cities are becoming a reality. Governments all over the world are also working to upgrade railways by emphasizing the development of smart cities as urbanization rises. The demand for smart railroads is rising in response to the increased demand for metropolitan metros and ultrafast trains for long-distance travel. The growth of the logistics industry for the timely delivery of products is being driven by soaring shipments and a huge increase in construction projects.
Privacy and security are major factors in smart city programs. Since the ecosystem for smart cities mostly relies on central access points and parking lots for a variety of data, it is seriously vulnerable. To avoid issues from spreading to the rest of the smart network, stakeholders, including security experts and smart city architects, must handle privacy and security concerns in smart cities holistically. Additionally, the initial cost of implementing smart solutions is quite costly, and the lack of clearly defined policies is preventing their adoption, which is hampering market revenue growth.
US Smart Cities Market is poised to grow at a sustainable CAGR for the next forecast year.
Global Market Size
USD 445.26 billion
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Global smart cities market is segmented on the basis of application, smart governance, smart utilities, smart transportation and region. By application, the market is segmented into smart governance, smart building, environmental solution, smart utilities, smart transportation and smart healthcare. By smart governance, market is segmented into smart lighting, smart infrastructure, c.c.s., e-governance, and city surveillance. By smart utilities, market is segmented into waste management, energy management, and water management. By smart transportation, market is segmented into intelligent transportation system, parking management and smart ticketing & travel assistance. By region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Smart Cities Market Analysis by Application
In 2021, the smart utility segment led the market and held a share of more than 28%. The smart utility segment, which includes many domains including water treatment, integrated data management, energy distribution, and civil distribution infrastructure management, among others, is a crucial component of the municipal infrastructure. Adoption of smart utilities is significantly influenced by the development of smart grids as well. Integration of cloud technology and enhanced data analytics is also anticipated to fuel market expansion. Companies and governments are developing and putting into action initiatives to increase the share of renewable sources to total energy production in response to the fast rising demand for energy.
The environmental solution segment is expected to grow at a considerable CAGR during the forecast period. The growth of the market is attributed to increasing government measures to reduce pollution, maximize the use of renewable energy sources, and create a sustainable corporate ecosystem. To strengthen their brand identities and boost their market revenues, industry players concentrate on enhancing their range of environmental solutions.
Smart Cities Market Analysis by Smart Governance
In 2022, the smart infrastructure sector dominated the market, accounting for more than 28% of the market. The need for smart infrastructure solutions in a variety of industries, including BFSI, healthcare, retail, manufacturing, and F&B, is expected to increase as a result of various governments shifting their focus toward digitization of their corporate operations. Most governments, including those in the United Kingdom, Australia, India, Canada, the United Arab Emirates, and the United States, are making investments in smart infrastructure solutions for economic digitization. For example, in December 2021, the Australian government invested USD 135.9 million as part of its aim to transform the economy into a digital economy by 2030. The government will also establish the BFSI infrastructure's regulatory framework in order to support, monitor, and manage the development of payment systems and crypto-ecosystems.
The smart lighting segment is expected to grow at a significant CAGR during the forecast period. Smart lighting can support a variety of smart city applications, including traffic management, public safety, environmental monitoring, and smart parking, extended Wi-Fi, and cellular communications, among others, while also improving the city's energy efficiency and lowering energy and maintenance costs. The development of human-centric lighting using light-emitting diodes and organic light-emitting diodes has given smart lighting a lot of traction recently.
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In 2022, North America accounted for more than 30% of the global market for smart cities. The ongoing digital revolution in a number of sector verticals, including government, telecom, and finance, among others, can be credited with the expansion of the regional market. The area has a strong information and communication technology (ICT) infrastructure, federal and municipal governments work closely with ICT providers, and there are several well-known technology vendors there. These service providers and other local government bodies have broadly implemented certain elements of the civic connectivity infrastructure, which will facilitate the planning of the development of smart cities in the region. During the forecast period, these factors will support the expansion of the regional market.
Asia Pacific is expected to grow at a significant CAGR over the forecast period. The increase in disposable income, the emergence of digital infrastructure, globalization, and economic advancements are all factors that have contributed to the region's growth. Organizations in the Asia Pacific region are eager to take use of the advantages of cloud-based solutions, such as cost effectiveness, which is encouraging the development of applications like smart building, smart utilities, smart transportation, and smart governance.
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Smart Cities Market Drivers
Increasing investment in smart city designs
Increasing hyper-connectivity and the emergence of innovative technologies
Smart Cities Market Restraints
High cost of system deployment
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Global smart cities market is very competitive and fragmented. To capture a significant portion of the market, major industry players are concentrating on product advancements, new product launches, and geographic expansions. However, as more start-ups and new ventures are launched, the rivalry is progressively getting more intense. Due to the fact that many of the vendors work together on projects to supply certain solutions, mergers, and acquisitions play a significant role in the competitive environment of the smart city. Furthermore, prominent competitors have been known to engage heavily in R&D operations in order to innovate the product/service while adhering to delivery timelines.
Smart Cities Market Top Player’s Company Profiles
Smart Cities Market Recent Developments
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates and Analyses the Data collected by means of Primary Exploratory Research backed by the robust Secondary Desk research.
According to our global smart cities market analysis, rising analytics penetration, as well as ongoing technical advancements by leading providers, is improving the user experience and boosting market revenue development. Due to technical advancements in transportation and a rise in demand for the creation of linked cards, these cities are becoming a reality. Additionally, the emergence of smart solutions for buildings and transportation is driving market revenue growth. Rising analytics penetration, as well as ongoing technical advancements by leading providers, are improving the user experience and boosting market revenue development. In 2021, the smart utility segment led the market and held a share of more than 28%. In 2021, the smart infrastructure sector dominated the market, accounting for more than 28% of the market. In 2021, North America accounted for more than 30% of the global market. Asia Pacific is expected to grow at a significant CAGR over the forecast period. The key trend in the global smart city market is the spread of smart city projects in emerging economies.
|Market size value in 2021
|USD 445.26 billion
|Market size value in 2030
|USD 1554.15 billion
|Forecast Unit (Value)
|North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA)
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Parent Market Analysis
KEY MARKET INSIGHTS
MARKET DYNAMICS & OUTLOOK
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For the Global Smart Cities Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Global Smart Cities Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
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