• Home
  • » Technology
  • » Smart Cities Market Size, Growth & Forecast Report, 2030

Smart Cities Market Size, Share & Trends Analysis Report By Application, By Smart Governance, By Smart Utilities, By Smart Transportation, By Region And Segment Forecasts From 2022 To 2030

Report ID: MN17613848  |  Published: November 2022  |  No of Pages: 180
Format: Electronic (PDF)  |  Industry: Technology

The global smart cities market size is expected to value USD 6,965.02 billion by 2030, exhibiting a CAGR of 24.2% from 2022 to 2030. Smart cities use advanced information and communication technologies to gain long-term economic developments, manage resources effectively, and offer their residents an enhanced quality of life. A smart city uses its advanced infrastructure to help local businesses, transport and mobility, environment, lifestyle, healthcare, and governance.

The popularity of smart cities is primarily due to growing urbanization globally and the need for a better lifestyle. The main objective of intelligent cities is to drive economic growth and enhance the quality of life of residents by empowering local area development and using high technology that offers smart results.

It is worth noting that smart city encourages the use of emerging technologies like IoT, AI, cloud storage technologies, data analytics, and big data to collect and analyze data and use key information to manage assets, services, and resources.

Private entities together with public authorities are undertaking initiatives to work on smart city projects in order to ensure economic growth. Many countries have passed laws that ensure that smarter technologies are being used in infrastructure development. This will not only prove to be safer for people but will also improve the look and feel of the living conditions. The aforementioned factors will positively influence the global smart cities market growth in the times to come.

Based on application insights, smart transportation led the industry to scale over the years. Rapid urbanization along with rising economic activities has led to an increase in traffic congestion. This has encouraged governments globally to adopt smart transportation solutions that help manage traffic thereby reducing travel time for people along with improving infrastructure. Another major factor supplementing growth in smart transportation is the growing concern regarding harmful carbon emission levels. The government in both developed, as well as developing countries, is striving hard to improve the condition by passing strict emission laws along with promoting the use of electric vehicles. The growing use of AI and IoT in the transportation sector to regulate factors like pollution levels, speed, etc, will continue to boost the demand for smart transportation services.

Smart governance is also expected to be one of the fastest-growing segments during the period in focus. The growing adoption of smart technologies by the government to enhance and promote transparency, accountability, security, and collaboration will continue to boost this segment. With the support of OEMs and distributors, the government is gradually deploying video surveillance solutions in order to ensure public safety and remove criminal activities.

On the basis of smart governance, city surveillance segment led the market share primarily due to the rising need to ensure public safety amidst the growing safety concerns with regard to theft, murders, etc. These situations have driven the need for effective video management solutions and IP cameras that enhance safety allowing police and other security personals to manage and monitor the area. City surveillance is an important parameter in developing a smart city to manage other facets of a city— for instance, monitoring and managing- public assets, civil bodies, transportation systems, as well as community services.

With regards to smart utilities, energy management led the segment over time. Urbanization has led to an increase in industries, MNCs, commercial establishments, and residential complexes- all of which have driven the energy demand. This demand has steered the use of virtual power plants, that operate on machine learning, AI, and IoT, to enhance security and offer superior efficiency. Notable market players are increasingly focusing on establishing a robust R&D infrastructure that drives the development and overview of advanced energy management solutions in order to combine emerging technologies like blockchain.

Regionally speaking, North America has emerged as a key revenue pocket for smart cities market with respect to revenue. This significant growth is mainly due to the substantial implementation of smart city solutions supported by increased investment from government organizations along with the high demand for connected devices in the region. Additionally, increased awareness among people regarding the need to reduce the carbon footprint has led to the increased adoption of smart transportation technologies like electric vehicles.

Although, Asia Pacific smart cities market is not far behind. It is projected to showcase the highest growth rate during the forecasted period owing to factors like a substantial rise in IT spending, supported by government efforts in developing economies like Singapore, China, India, and South Korea.

Smart Cities Market Report Key Takeaways

  • In terms of application, smart transportation segment accounted for a market share of more than 20% in 2021. An increase in traffic congestion globally has propelled the government to integrate smart technology in the transportation system with the help of IoT and AI that may help detect busy routes and direct the drivers to take the quickest route possible, thereby dividing the traffic. Additionally, the need to reduce CO2 emissions has led to the invention of smart transportation mediums like electric vehicles
  • Smart government segment is likely to witness considerable application in the industry exhibiting a CAGR of 23.7% over the projected period. Governments world over are adopting smart technologies to promote transparency, and accountability, and boost security
  • Smart governance-wise, city surveillance led the market holding 20% of the revenue share in 2021. The segment growth is supported by rising security and public safety concerns that encourage the use of IP cameras and video management solutions
  • Based on smart utilities, energy management segment held the largest revenue share of more than 55% in 2021. This is mainly due to the rise in the need for energy from industries, companies, and the residential sector. This has driven the use of virtual power plants that operate on IoT, AI, and machine learning
  • Geographically speaking, North America held the major share of more than 30% in 2021. The rapid growth may be accredited due to the efforts taken by the government to promote the establishment of smart cities along with heavy investments made toward it
  • Asia Pacific is expected to showcase a CAGR of 27.7% over the period in focus primarily due to the economic development along with a developing IT sector


Smart Cities Market Segments 

  • Smart Cities Application Outlook (Revenue, USD Million, 2017 - 2030)
    • Smart Governance
    • Smart Building
    • Environmental Solution
    • Smart Utilities
    • Smart Transportation
    • Smart Healthcare
  • Smart Cities Smart Governance Outlook (Revenue, USD Million, 2017 - 2030)
    • City Surveillance
    • CCS
    • E-governance
    • Smart Lighting
    • Smart Infrastructure
  • Smart Cities Smart Utilities Outlook (Revenue, USD Million, 2017 - 2030)
    • Energy Management
    • Water Management
    • Waste Management
  • Smart Cities Smart Transportation Outlook (Revenue, USD Million, 2017 - 2030)
    • Intelligent Transportation System
    • Parking Management
    • Smart Ticketing & Travel Assistance
  • Smart Cities Regional Outlook (Revenue, USD Million, 2017 - 2030)
    • North America
      • U.S.
      • Canada
    • Europe
      • U.K.
      • Germany
      • France
      • Italy
      • Spain
      • Russia
      • Nordic Region
      • Eastern Europe
    • Asia Pacific
      • China
      • Japan
      • India
      • Australia
      • ASEAN
    • Latin America
      • Brazil
      • Mexico
    • MEA  
  • List of Key Players in the Smart Cities Market
    • ABB Limited
    • AGT International
    • AVEVA Group plc.
    • Cisco Systems, Inc.
    • Ericsson
    • General Electric
    • Honeywell International Inc.
    • International Business Machines Corporation
    • Itron Inc.
    • KAPSCH Group
    • Huawei Technologies Co., Ltd.
    • Microsoft Corporation
    • Oracle Corporation
    • Osram Gmbh
    • SAP SE
    • Schneider Electric SE
    • Siemens AG
    • Telensa
    • Verizon
    • Vodafone Group plc
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...