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Smart Cities Market Size, Growth, Research, 2027 | Industry Report

Smart Cities Market Analysis Report By Application, By Region And Segment Forecasts From 2020 To 2027

Report ID: MN17613848  |  Published: August 2020  |  No of Pages: 657
Format: Electronic (PDF)  |  Industry: Technology  |  Publisher: Grand View Research

Industry Insights

The global smart cities market size was accounted for USD 83.9 billion in 2019. The market is projected to witness 24.7% CAGR over the forecast period, 2020 to 2027. Owing to the increasing awareness for “smart everything”, the smart cities concept is gaining traction. In addition, increasing investment by central governments, technology providers and local governments are further attributing to the development of smart cities.

With the efficient use of technologies, smart cities enhance the living standard of its people. According to the UN Department of Economic and Social Affairs (UN DESA), there are 55.0% people, as of 2018, are residing in urban areas. By 2050, this number is estimated to be 68%. The increasing need for sustainable development amid population influx is driving the construction of smart cities. Owing to the rapidly growing population, smart traffic management, reduction of greenhouse emission and safety of citizens have become the need of the hour. Smart cities help in addressing these issues through technologies equipped infrastructure.

U.S. smart cities market

With increasing development in transport, governance, intelligence, healthcare and energy sectors, the market is projected to witness significant growth. Adoption of cutting-edge technologies such as IoT, artificial intelligence, big data, open data, cognitive computing and cloud has benefitted smart cities. Further, growing implementation of Public-Private Partnerships (PPP) models like BOT, BOO, BOM and OBM have resulted in the successful implementation of smart cities projects. In addition, various initiatives undertaken by governments in India, U.K and China are predicted to spur the market growth.

Smart cities developers make use of various technologies and sensors. However, the application of these technologies varies from cities to cities. Increasing need to develop cities with the sharing economy and energy-saving features also play a crucial role in the development of smart cities. Considering the growing demand and opportunity in smart cities market, key companies such as IBM, Cisco and Siemens AG have upped their investments on research & development.

The emergence of AI is expected to affect human life in many ways by bringing various related technologies into the play. Increasing focus on renewable energy, electric vehicles and autonomous vehicles are estimated to supplement the growth of the market. Therefore, technology proliferation is a key factor driving the growth of the market.

Governance and Financial Funding Model

Governance & financial funding models are directly affecting the design and execution of several smart cities projects. The implementation and deployment timelines depend on the governance & funding models. Infrastructural development and technology integration are the key features of smart cities; as a result, smart cities involve various stakeholders. The complex nature of smart cities results in collaboration of both government bodies and private firms. Often, private firms work as financiers, collaborators and service providers.

The traditional financing methods such as debt instruments are still being used. However, due to the multi-disciplinary nature of smart cities projects, various new financing models are emerging. Regional economy and divergent nature of funding also play an important part in financing smart cities. Majority of the smart cities projects are funded by the government institutions while some projects are also funded by PPPs.

Application Insights

Based on the application, the market is segregated into building, smart governance, environment solutions, transportation, healthcare and utilities. In 2019, the utility category accounted for the highest share in the market. Further, the segment is anticipated to witness significant growth over the forecast duration. Cities across the globe are emphasizing on the development of deploying digital technologies for billing and distribution of LPG, water and electricity. Increasing demand for smart meters and energy grids are further supplementing the growth of the market.

Europe smart transportation marketOn the other hand, smart transportation & building categories are also projected to register considerable growth over the forecast duration. Government focus on improving the transportation systems along with the rise in the consumption of renewable energy is driving the growth of the segment. Technical advancements have also paved the way for the development of related technologies used in smart cities.

Regional Growth

Across the world, the smart cities market is witnessing considerable growth. Europe held a significant share in the market in 2019 owing to the developed marketplace in the region as compared to other regions. The initiatives undertaken by the European government along with the contribution of local government bodies are driving the development of smart cities across Europe. Additionally, factors such as technology eco-system, developer infrastructure, governance structures and financing models are further supplementing the growth of the region.

On the other hand, it is estimated that Asia Pacific would register the highest growth over the forecast duration owing to the rising demand for an efficient transportation system, infrastructure management and energy management. Growing migration to cities is also a major factor supporting the growth of the regional market.

Impact of COVID-19

The COVID-19 outbreak has affected several construction activities and smart cities were no exception. The pandemic outbreak has halted the ongoing infrastructural development required for smart cities. Due to the coronavirus, migrant labors in the different parts of the world returned to their homes, thereby, delaying the various construction projects. In addition, several countries including the USA and India limited their trade activities with China, thereby, disrupting the supply chain for raw materials.

COVID-19 has also caused significant damage to the economy of both emerging and developing countries. However, investment in smart cities projects was made way before the pandemic. In all likelihood, once the pandemic situations return to normal, the market for smart cities would witness significant growth.

Smart Cities Market Share Insights

Major companies operating in the region are ABB Limited, Cisco Systems, IBM Corporation, Microsoft Corporation and Accenture among others. The industry is projected to witness an increase in the number of small companies that provide customized solutions. The increasing number of partnerships between private firms and government bodies are also bolstering the industry growth. Major players are emphasizing on the development of the smart solution for transportation, utilities, energy management and surveillance. Some of the other companies such as Huawei Technologies, Honeywell International, Intel Corporation and Oracle Corporation are also playing a key role in the development of smart cities.

Report Scope

Attribute

Details

Base year for estimation

2019

Actual estimates/Historical data

2016 - 2018

Forecast period

2020 - 2027

Market representation

Revenue in USD Million and CAGR from 2020 to 2027

Regional scope

North America, Europe, Asia Pacific, Latin America, and MEA

Country scope

U.S., Canada, U.K., Germany, Nordic Region, Eastern Europe, China, Japan, India, Australia, ASEAN, Brazil, and Mexico

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

15% free customization scope (equivalent to 5 analyst working days)

If you need specific information that is not currently within the scope of the report, we will provide it to you as a part of the customization.


Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels, and provides an analysis on latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Million Insights has segmented the global smart cities market report on the basis of application and region:

• Application Outlook (Revenue, USD Million, 2016 - 2027)
    • Smart Governance
        • City Surveillance
        • Command & Control Solution
        • E-governance
        • Smart Lighting
        • Smart Infrastructure
    • Smart Building
    • Environmental Solution
    • Smart Utilities
        • Energy Management
        • Water Management
        • Waste Management
    • Smart Transportation
        • Intelligent Transportation System
        • Parking Management
        • Smart Ticketing & Travel Assistance
    • Smart Healthcare

• Regional Outlook (Revenue, USD Million, 2016 - 2027)
    • North America
        • U.S.
        • Canada
    • Europe
        • U.K.
        • Germany
        • Nordic Region
        • Eastern Europe
    • Asia Pacific
        • China
        • India
        • Japan
        • Australia
        • ASEAN
    • Latin America
        • Brazil
        • Mexico
    • Middle East and Africa

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