The global smart cities market size is highly anticipated to value at USD 2.57 trillion by 2025. The market is subject to witness a substantial growth due to the growing requirement for smart city solutions to meet rising demands of urban population. Factors responsible for the market growth are systematic management of natural resources, and emphasis on environmental factors such as pollution and industrial waste management. The smart cities market is expected to showcase a massive CAGR of 18.4% during the forecast period.
Applications of smart city project extends wider in a range of sectors and areas with the adoption of modern technology and its efficient use, in order to offer world-class services. Applications of smart city project helps cities to sustain itself as an attractive tourism hub or a structured community to bear adverse environmental conditions. Smart city solutions are most suitable to the diverse lifestyle of urban living. Growing urbanization, outdated infrastructure, integration of latest technologies, and requirement of enhanced life style are key factors responsible for the growth in recent years.
The smart city projects analyze a specific set of demands similar to high mobility, smart and intelligent building and homes models, minimum energy consummation, and efficient administrative services. Growing implementation of innovative technologies offer efficient management of cities to meet the future demands is a key factor driving the market growth. Numerous initiatives implemented by both central and state government authorities alongside local businesses to carry out smart city project in most efficient way is further attributing to the expansion of smart cities market in upcoming years.
A smart city project is mainly executed in an urban area consists of various electronic sensors collecting real time data which is used to handle assets and natural resources efficiently. Such data is analyzed and processed to handle different scenarios such as management of traffic and transportation systems, electrical power units, water supply networks, garbage collection, and law enforcement. Other services offered by smart city project are numerous public services like that of schools, libraries, hospitals, and more.
Smart city creates a framework involving number of electronic systems connected to one single network that embeds information and communication technology (ICT), and range of the internet of things or IoT devices in order to enhance operational capabilities and services while constantly communicating with citizens through social media to inform about various activities happening in the city. Smart city project involves both citizens and city officials in regards to the city development and programs by government authorities.
Efficient power consummation and distribution is one of the key focus in the smart city project. The use of intelligent devices like smart sensors, transducers and Wi-Fi enabled devices serves purposes such as smart streetlights dimmers and traffic management. The advanced technologies are implemented such as smart grid technology to carry out tasks efficient power management, operations, and distribution to limit power surges and power failures. Smart city helps critical initiatives that are aimed toward monitoring and addressing environmental concerns like climate change and air pollution. Sanitation systems are also utilized for limit and maintain hygienic environment around with the help of internet-linked trash can systems and IoT-based management systems for waste management. Smart city project also looks after quality and amount.
The market is divided into regional segment such as North America, Europe, Asia-Pacific, Latin America and Africa. Asia-Pacific region is predicted to hold the major share in the smart cities market with massive growth in forecast period. Countries such as India, China and Singapore are leading the Asia-Pacific’s smart cities market with numerous government initiatives and growing investment by market players due to potential opportunities in the region. North America and Europe has shown major growth in recent years owing to the rise implementation of latest technologies and constant requirement for well-established infrastructure. The key players in the smart cities industry are ABB Group, Accenture Co., Cisco Systems, Schneider Electric, Siemens Ltd., IBM Co., General Electric Inc., and Microsoft Co.
Smart Cities Application Outlook (Revenue, USD Billion, 2014 - 2025)
• Smart Education
• Smart Governance
• Smart Buildings
• Smart Mobility
• Smart Healthcare
• Smart Utilities
Smart Cities Component Outlook (Revenue, USD Billion, 2014 - 2025)
• Integration & Deployment
• Professional Services
Smart Cities Regional Outlook (Revenue, USD Billion, 2014 - 2025)
• North America
• Asia Pacific
• South America
• Middle East & Africa
Research Support Specialist, USA