NEW
YORK, July 15, 2024 /PRNewswire/ -- The global
smart city market size is estimated to grow by USD 345.8 billion from 2024-2028, according
to Technavio. The market is estimated to grow at a CAGR of
24.81% during the forecast period. Increase in
IT consolidation and modernization is driving market
growth, with a trend towards proliferation of smart city
projects in emerging economies. However, high cost of
upgrading smart grids poses a challenge. Key market players
include ABB Ltd., Accenture Plc, Aeris Communications Inc.,
Alphabet Inc., Cisco Systems Inc., General Electric Co., Hewlett
Packard Enterprise Co., Hitachi Ltd., Honeywell International Inc.,
Huawei Technologies Co. Ltd., International Business Machines
Corp., Itron Inc., LG Electronics Inc., Microsoft Corp., Oracle
Corp., SAP SE, Schneider Electric SE, Siemens AG, Semtech Corp.,
and Signify NV.
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Smart City Market
Scope
|
Report
Coverage
|
Details
|
Base year
|
2023
|
Historic
period
|
2018 - 2022
|
Forecast
period
|
2024-2028
|
Growth momentum &
CAGR
|
Accelerate at a CAGR of
24.81%
|
Market growth
2024-2028
|
USD 345.8
billion
|
Market
structure
|
Fragmented
|
YoY growth 2022-2023
(%)
|
19.53
|
Regional
analysis
|
Europe, North America,
APAC, South America, and Middle East and Africa
|
Performing market
contribution
|
APAC at 32%
|
Key
countries
|
US, UK, Germany, Spain,
and Japan
|
Key companies
profiled
|
ABB Ltd., Accenture
Plc, Aeris Communications Inc., Alphabet Inc., Cisco Systems Inc.,
General Electric Co., Hewlett Packard Enterprise Co., Hitachi Ltd.,
Honeywell International Inc., Huawei Technologies Co. Ltd.,
International Business Machines Corp., Itron Inc., LG Electronics
Inc., Microsoft Corp., Oracle Corp., SAP SE, Schneider Electric SE,
Siemens AG, Semtech Corp., and Signify NV
|
Market Driver
Developed economies in North
America and Europe have
been leading the way in smart city development for over a decade,
implementing numerous projects. The Asia-Pacific region is currently the
fastest-growing market for smart city technologies, driven by urban
population growth and infrastructure development in emerging
countries. India and China are among the key players in this
region, with the Indian government announcing smart city projects
in 100 cities and China building
500. ASEAN's Smart Cities Network is also working on sustainable
urban development in 26 cities by 2025. The rapid urbanization in
countries like India necessitates
the roll-out of smart city projects, enabling faster responses from
end-users such as government agencies, healthcare, and
transportation providers. The generation of vast amounts of data
from smart devices in these cities requires analysis to enhance
business quality and innovate for a better future with faster
connectivity. Consequently, the growth of smart cities in emerging
economies is expected to significantly impact the market during the
forecast period.
Smart City Market is witnessing significant growth due to the
integration of advanced technologies for environmental
sustainability and resource management. Key trends include the use
of smart city technologies for environmental monitoring, traffic
safety, and public safety. Solutions like facial recognition,
data-driven policing, and gunshot detection sensors are enhancing
crime-fighting capabilities. Energy savings and long-term cost
savings are major functions of smart city solutions, addressing
tight budgets. Cities like Amsterdam and Chengdu are leading the way with large-scale
investments and government backing. Integration of video cameras,
gunshot detection sensors, and public safety officials with rapid
response times is crucial. Software integration, networking, and
big data analytics are essential for cost-effective systems, but
integration complexities remain a challenge. Existing
infrastructure and urban sources are being leveraged to reduce
operational and maintenance costs. Traffic signal management,
emergency response protocols, and law enforcement responses are
being optimized through intelligent surveillance and home security
systems.
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Market Challenges
- The global smart city market may experience hindrances in
growth due to the substantial costs associated with upgrading power
grids for compatibility with smart grid data management solutions.
These costs encompass additional investments in distribution
systems, transmission line replacements, power delivery systems,
substation digitalization, and digital controls. Power utilities
and independent power producers face substantial initial capital
investments as a result. The aging power infrastructure of these
utilities, coupled with the growing need for renewable power grid
integration, will escalate their grid renovation budgets in the
upcoming years. This reluctance to upgrade power grids, due to high
costs, poses a significant barrier to the adoption of smart grid
data management solutions. According to the US Department of
Energy, US-based power utility companies are projected to spend
approximately USD3.5 billion annually
between 2018 and 2030 on grid modernization projects.
- In the digital era, Smart Cities present transformative
potential for addressing challenges such as commute times and smart
grid efficiency. Business leaders recognize the market's
transformative potential, driving innovative business models in
areas like digitalization, connectivity, and sustainable urban
development. However, cybersecurity and data stewardship are
crucial concerns, with ownership, interoperability, cross-border
portability, and metrics key to success. The Smart City Market
encompasses various sectors, including healthcare. Smart Healthcare
Solutions offer improvements in patient care delivery through
advanced metering solutions, telecommunications infrastructure, and
novel technologies. Utilities-related information, such as smart
metering data, is crucial for centralized hubs, requiring IT
integration and a unified repository for billing processes and
revenue assurance. Network operators and care providers must ensure
data security and privacy while analyzing losses, planning
capacity, and engaging consumers. In the Smart Healthcare Market,
caregivers, patients, and healthcare organizations benefit from
advanced solutions, improving the modern healthcare landscape.
Novel technologies, like cloud edge computing and network slicing,
are essential for urban management, enhancing the overall Smart
City experience. The Smart City Market's success relies on the
collaboration of various stakeholders, including businesses,
governments, and communities, to create a sustainable future.
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Segment Overview
This smart city market report extensively covers market
segmentation by
- Application
- 1.1 Smart infrastructure
- 1.2 Smart energy
- 1.3 Smart mobility
- 1.4 Smart security
- 1.5 Others
- Component
- 2.1 Hardware
- 2.2 Software
- 2.3 Services
- Geography
- 3.1 Europe
- 3.2 North America
- 3.3 APAC
- 3.4 South America
- 3.5 Middle East and
Africa
1.1 Smart infrastructure- The Smart City Market
refers to the growing industry of developing and implementing
technology-driven solutions for urban areas. This market
encompasses various sectors such as energy management,
transportation, public safety, and waste management. Companies
provide innovative products and services to enhance city
infrastructure, improve efficiency, and provide better quality of
life for residents. Smart City solutions include sensors, IoT
devices, and data analytics to optimize resource usage and address
urban challenges. This market is expected to expand significantly
due to increasing urbanization and government investments.
For more information on market segmentation with
geographical analysis including forecast (2024-2028) and historic
data (2017-2021) - Download a Sample Report
Learn and explore more about Technavio's in-depth research
reports
The global Smart City Information and Communication Technologies
(ICT) Infrastructure market is experiencing rapid growth, driven by
urbanization and the need for efficient city management. The Smart
City Platform market is expanding as cities adopt integrated
solutions for data collection, analysis, and management to enhance
urban living. Similarly, the Smart City Communication market is
booming, focusing on reliable connectivity and advanced
communication systems to support smart city operations. Key players
are investing in innovative technologies to meet the rising demand
for smarter, sustainable urban environments.
Research Analysis
Smart City Market: Transforming Urban Spaces with Environmental
Sustainability and Technological Innovation Smart City Market is
revolutionizing urban living by integrating advanced technologies
to enhance resource management, environmental monitoring, and
public safety. Environmental sustainability is at the core of these
solutions, which utilize smart city technologies to optimize energy
usage, reduce waste, and minimize carbon footprints. Resource
management systems monitor and analyze urban sources in real-time,
ensuring efficient use of resources. Environmental monitoring
solutions employ sensors, facial recognition, and video cameras to
assess air quality, noise levels, and crowd management. Public
safety is prioritized with data-driven policing, traffic safety
systems, gunshot detection sensors, and drones for rapid response.
Cost-effective systems offer long-term savings and seamless
integration with existing infrastructure. Cities like Amsterdam and Chengdu are leading the way with large-scale
investments and government backing. However, integration
complexities must be addressed to ensure access to AI capabilities,
real-time data analysis, and quick emergency response protocols.
Ultimately, these smart city solutions prioritize citizens' safety
and well-being while minimizing urban challenges.
Market Research Overview
In the digital era, Smart City Market is revolutionizing urban
living by integrating environmental sustainability with advanced
technologies. Resource management and environmental monitoring are
major functions, with solutions including facial recognition for
public safety and surveillance. Smart city technologies are
transforming traffic safety through data-driven policing, emergency
response protocols, and crime-fighting capabilities. First
responders and call centers utilize real-time data for efficient
field operations. Traffic signal management and emergency vehicle
prioritization optimize urban sources, reducing crime rates and
energy savings. Big data analytics, networking, and software
integration facilitate cost-effective systems, balancing long-term
cost savings with tight budgets. Existing infrastructure in cities
like Amsterdam and Chengdu is being enhanced through government
backing, incorporating gunshot detection sensors, video cameras,
drones, and AI access. Smart city initiatives prioritize
cybersecurity and data stewardship, ensuring interoperability and
cross-border portability. Innovative business models and
digitalization are modernizing sectors like healthcare, with smart
healthcare solutions streamlining patient care delivery and
caregiving.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
- Application
-
- Smart Infrastructure
- Smart Energy
- Smart Mobility
- Smart Security
- Others
- Component
-
- Hardware
- Software
- Services
- Geography
-
- Europe
- North America
- APAC
- South America
- Middle East And Africa
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory
company. Their research and analysis focuses on emerging market
trends and provides actionable insights to help businesses identify
market opportunities and develop effective strategies to optimize
their market positions.
With over 500 specialized analysts, Technavio's report library
consists of more than 17,000 reports and counting, covering 800
technologies, spanning across 50 countries. Their client base
consists of enterprises of all sizes, including more than 100
Fortune 500 companies. This growing client base relies on
Technavio's comprehensive coverage, extensive research, and
actionable market insights to identify opportunities in existing
and potential markets and assess their competitive positions within
changing market scenarios.
Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/
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