USD 692.61 billion
Report ID:
SQMIG45D2058 |
Region:
Global |
Published Date: June, 2024
Pages:
157
|Tables:
66
|Figures:
75
Global Smart Cities Market size was valued at USD 692.61 Billion in 2022 and is poised to grow from USD 870.61 Billion in 2023 to USD 5426.3 Billion by 2031, growing at a CAGR of 25.7% in the forecast period (2024-2031).
A smart city is a framework that implements, develops, and promotes sustainable urban development using information and communication technology (ICT). The emergence of smart solutions for buildings and transportation is driving market revenue growth. 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. 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, smart 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. On the other hand, privacy and security are major factors influencing smart city programs. 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 692.61 billion
Largest Segment
Services
Fastest Growth
Software
Growth Rate
25.7% CAGR
To get more reports on the above market click here to Buy The Report
Smart Cities Market is segmented based on Smart Transportation, Smart Building, Smart Utilities, Smart Citizen Service, and Region. Based on Smart Transportation, the market is segmented into Offering (Solutions [Smart Ticketing, Traffic Management {Parking Management, Traffic Surveillance}, Passenger Information, Connected Logistics, Others], Services [Consulting, Deployment & Integration, Infrastructure Monitoring & Management]), Type (Roadways, Railways, Airways). Based on Smart Building, the market is segmented into Offering (Solutions [Building Infrastructure Management {Parking Management System, Smart Water Management System, Elevators And Escalators Management System}, Security & Emergency Management {Access Control System, Video Surveillance System, Safety System}, Energy Management {HVAC Control Systems, Lighting Systems}, Network Management, Integrated Workplace Management System], Services [Consulting, Deployment & Integration, Infrastructure Monitoring & Management]), Type (Residential, Commercial, Industrial). Based on Smart Utilities, the market is segmented into Offering (Solutions [Advanced Metering Infrastructure, Meter Data Management {Meter Data Analytics, Smart Meters, Others}, Distribution Management System, Substation Automation, Others], Services [Consulting, Deployment & Integration, Infrastructure Monitoring & Management]), Type (Energy, Gas, Water, Others). Based on Smart Citizen Service, the market is segmented into Smart Healthcare (Medical Devices, Systems & Software, Services), Smart Education (Solutions, Services), Smart Public Safety (Solutions, Services), Smart Street Lighting, E-governance (Solutions, Services). By Region, the market is segmented into North America, Europe, Asia-Pacific, Middle East and Africa, and Latin America.
Analysis by Smart Utilities
The smart utilities solution segment’s largest market share is expected to be dominated by advanced metering infrastructure. Growth will be driven by demand response management’s development, efficient energy management, and reducing energy consumption. AMI systems allow data transfer in both directions between customers and utilities facilitating real-time collection and analysis of information. Improved billing accuracy, fast outage detection, and customer service are some of the benefits associated with this sector. According to our findings, the AMI market is projected to reach USD 10 billion by 2025, which showcases the huge investment in energy infrastructure modernization.
The fastest-growing segment in the smart utilities market is Infrastructure Monitoring & Management. This aggressive growth rate is due to the need for reliability and safety of critical infrastructure systems. Solutions provide round-the-clock monitoring and real-time data analysis, which aids in early detection of pending issues, thus facilitating proactive maintenance. For example, smart sensors and IoT devices are employed to track the condition of water pipes, bridges, and power lines, thus minimizing their possible failures and connected expensive repairs.
Analysis by Smart Citizen Service
In 2023, Smart healthcare services have registered the highest CAGR in the smart cities market during the forecast period. This growth is driven by the increasing demand for advanced healthcare solutions that improve patient outcomes and enhance the efficiency of healthcare delivery. Factors such as the integration of IoT devices, telemedicine, and AI-driven diagnostics are revolutionizing healthcare in smart cities. These technologies enable remote patient monitoring, real-time health data analysis, and personalized treatment plans, significantly improving healthcare access and quality. Additionally, the ongoing global health challenges have accelerated the adoption of smart healthcare solutions, further boosting market growth.
The smart street lighting segment is expected to grow at a significant CAGR of 25.8% 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.
To get detailed analysis on other segments, Request For Free Sample Report
In 2023, more than 30% of the global market for smart cities was recorded by North America. The increase in the regional market can be attributed to an ongoing digital revolution in numerous sector verticals such as government, telecom, finance among others. 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 area. During the forecast period, these factors will support the expansion of the regional market.
Asia-Pacific is expected to grow at a significant CAGR of 29.2% growth 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 for the development of applications like smart building, smart utilities, smart transportation, and smart governance.
To know more about the market opportunities by region and country, click here to
Buy The Complete Report
Smart Cities Market Drivers
Increasing Investment in Smart City Designs
The increased investment in smart city designs is one of the positive elements fueling growth in the smart cities market. Because everything will be integrated into these smart cities and some regions would profit from the use of smart cities for garbage collection, certain plans are setting the standard in emerging countries where governments are investing billions of dollars in smart city designs. The cost of internet of things (IoT) sensors is another important element driving the expansion of the industry for smart cities. Sensors will be implemented in data visualization programs and screening support since they will help with the comfortable collection of trash.
Increasing Hyper-connectivity and the Emergence of Innovative Technologies
Hyper-connectivity is attractive because it enables for active engagement between people and devices. As the Internet of Things continues to develop, billions of devices will be able to connect and communicate with one another, which will help the market for smart cities expand. Governments have also recognized the importance of disruptive technology as a component of smart cities. As governments implement these technologies to handle urban concerns such as increased electricity usage, safety, productivity, environmentally friendly transportation, water distribution and management, and crime and terrorist protection/security, it helps in the formulation of plans.
Restraints
High Cost of System Deployment
For those economical systems where resources are limited, the adoption of smart city solutions cannot be afforded because the creation of such a system is very pricey. According to the deep analysis carried out by Skyquest, the development and integration of smart city infrastructure can be so expensive, with an estimate running over $100 million for mid-sized cities. While energy efficiency and operating cost may be improved with smarter infrastructure, upfront cost is certainly a huge barrier.
Data Privacy and Security Concerns
Data privacy and security concerns significantly restrain the smart city market. As smart city initiatives are much based on the collection and analysis of vast amounts of data from a range of sources, including IoT devices, sensors, and interactions of the citizens, ensuring security and privacy for this data is paramount. High-profile data breaches and cyber-attacks increase awareness regarding the vulnerabilities of the smart city infrastructure, deterring investment and adoption.
Request Free Customization of this report to help us to meet your business objectives.
The smart cities market is already highly competitive and fragmented globally. Major industry players are focusing on product innovations, new product launches, and geographical expansions to acquire a substantial market share. But with the introduction of many start-ups and new ventures, the competition is increasing steadily. Because many vendors work together on projects to supply 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 to innovate the product/service while adhering to delivery timelines.
Smart Cities Market Top Player’s Company Profiles
Smart Cities Market Recent Developments
In January 2024, Honeywell has designed a new platform that supervises some of the tasks related to building management. It is called Advance Control for Buildings. It also has an embedded cyber security system, better connectivity to the network as well as some solutions to make the building wise, secure and environment friendly. Besides, Honeywell has also noted that the new systems will aggravate the call for more efficient and less constriction-based buildings.
In December 2023, MoU was signed between Msheireb Properties (MP), a property development company based in Qatar and the Microsoft Corporation. The plan envisages creation of a ‘Smart Experience’ for visitors, retailers, residents and the commercial clients within the Msheireb Downtown Doha (MDD) project in MP. This project aims to transform how citizens of MDD interact with their environment through the integration of new solutions that will improve the lives of the people belonging to the MDD community.
In August 2023, NEC Corporation India started a Smart City project for the Tirupati Smart City Corporation Limited in Tirupati city; India. Under this program, dissemination of ICT solutions will be carried across the city while the establishment of City Operation Centre (COC) would be done in Tirupati by NEC Corporation India. Such ICT solutions as a command-and-control center and integrated services will ensure real time data and bi-directional communication as one of the requirements. This will be useful as it will facilitate formulation of better responses to challenges on environmental and health safety.
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 the Skyquest analysis, exponential growth of the smart cities market has already been registered through growing investment in smart city infrastructure, deeper integration with cutting edge ICT solutions, such as IoT, AI, cloud computing, and others. The key sectors of Smart Buildings and Transportation occupy the central position in optimizing urban space and operational efficiencies being impeccable. Despite this change, there are still huge challenges such as high initial deployment costs, as well as scepticism regarding the privacy and security of data. The growth rate at which smart energies and other civic amenities are being adopted especially within healthcare systems and street lightening is an indication there is global alignment towards sustainable urban development that supports good living standards.
Report Metric | Details |
---|---|
Market size value in 2022 | USD 692.61 Billion |
Market size value in 2031 | USD 5426.3 Billion |
Growth Rate | 25.7% |
Base year | 2023 |
Forecast period | 2024-2031 |
Forecast Unit (Value) | USD Billion |
Segments covered |
|
Regions covered | 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) |
Companies covered |
|
Customization scope | Free report customization with purchase. Customization includes:-
|
To get a free trial access to our platform which is a one stop solution for all your data requirements for quicker decision making. This platform allows you to compare markets, competitors who are prominent in the market, and mega trends that are influencing the dynamics in the market. Also, get access to detailed SkyQuest exclusive matrix.
Buy The Complete Report to read the analyzed strategies adopted by the top vendors either to retain or gain market share
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
For the 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 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.
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Smart Cities Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Smart Cities Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
Our industry expert will work with you to provide you with customized data in a short amount of time.
REQUEST FREE CUSTOMIZATIONWant to customize this report? This report can be personalized according to your needs. Our analysts and industry experts will work directly with you to understand your requirements and provide you with customized data in a short amount of time. We offer $1000 worth of FREE customization at the time of purchase.
Report ID: SQMIG45D2058