• Home
  • » Technology
  • » 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

Industry Insights

The global smart cities market size was accounted for USD 83.9 billion in 2019. The market is projected to witness a 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 is further attributed to the development of smart cities.

With the efficient use of technologies, smart cities enhance the living standard of their people. According to the UN Department of Economic and Social Affairs (UN DESA), there are 55.0% of 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 emissions, 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. The adoption of cutting-edge technologies such as IoT, artificial intelligence, big data, open data, cognitive computing, and cloud has benefitted smart cities. Further, the 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 market growth.

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

The emergence of AI is expected to affect human life in many ways by bringing various related technologies into 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 the collaboration of both government bodies and private firms. Often, private firms work as financiers, collaborators, and service providers.

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. The regional economy and divergent nature of funding also play an important part in financing smart cities. The majority of the smart cities projects are funded by 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 the development of deploying digital technologies for the billing and distribution of LPG, water, and electricity. Increasing demand for smart meters and energy grids is 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 the 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 laborers 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 industry growth. Major players are emphasizing the development of smart solutions 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



The base year for estimation


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 of the latest industry trends in each of the sub-segments from 2016 to 2027. For this study, Million Insights has segmented the global smart cities market report based on 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
        • the U.S.
        • Canada
    • Europe
        • the U.K.
        • Germany
        • Nordic Region
        • Eastern Europe
    • The Asia Pacific
        • China
        • India
        • Japan
        • Australia
        • ASEAN
    • Latin America
        • Brazil
        • Mexico
    • the Middle East and Africa

What questions do you have? Get quick response from our industry experts. Request More information
Key questions answered in the report include
key questions
We also offers customization on reports based on specific client requirement.
Request for Customization

Choose License Type

Research Assistance

Ryan Manuel
Ryan Manuel

Research Support Specialist, USA

  1. Phone: +1-408-610-2300
  2. Toll Free: +1-866-831-4085
  3. Email: [email protected]
Connect With Expert
  • World's largest premium report database
  • Transparent pre & post sale customer engagement model
  • Unparalleled flexibility in terms of rendering services
  • Safe & secure web experience
  • 24*5 Research support service

Get a Free Sample

FREE sample contains market data points, ranging from trend analyses to market estimates & forecasts. See for yourself...