Report Details:
15 Companies Covered
187 Pages
Rising Urbanization and Government Initiatives to Drive the Global Smart City Market at a CAGR of 18.30% During the Forecast Period 2025–2035
Market Research Future (MRFR) has published a cooked research report on the “Global Smart City Market” that contains information from 2019 to 2035. The Smart City Market is estimated to register a CAGR of 18.30% during the forecast period of 2025 to 2035.
MRFR recognizes the following companies as the key players in the Global Smart City Market — Honeywell Corporation, Huawei Technologies, Siemens AG, CISCO Systems, Schneider Electric SE, IBM Corporation, AT&T Inc., Oracle, Microsoft, ABB, SAP SE, Hitachi Vantara, Telefonaktiebolaget LM Ericsson, Itron Inc., and TietoEVRY.
Market Highlights
The Global Smart City Market is accounted for to register a CAGR of 18.30% during the forecast period and is estimated to reach USD 15.05 billion by 2035 from USD 2.37 billion in 2024.
The growth of the Smart City Market is primarily driven by increasing government initiatives, rapid urbanization, and the rising adoption of IoT, sensors, and data analytics for effective urban management. These technologies enable improved city operations, sustainability, and citizen engagement. The hardware segment dominated the market with a 43.2% share in 2022, while the utility application segment held a 27.2% share during the same year.
North America led the market in 2022 due to robust infrastructure and technology adoption, while the Asia-Pacific region is expected to record the fastest growth rate during the forecast period owing to large-scale investments in smart city projects in China, Japan, India, and South Korea.
Market Drivers
1. Government Initiatives and Funding
Governments across the globe are prioritizing smart city development through funding and strategic programs. The European Union, for example, continues to invest heavily in sustainability and smart infrastructure projects, while the US and India have launched national smart city missions promoting innovation, energy efficiency, and data-driven governance.
2. Technological Advancements
The integration of IoT, AI, cloud computing, and big data analytics has transformed the urban landscape. These technologies enable smart energy management, waste control, and efficient transportation systems. Cities such as Los Angeles and Singapore have demonstrated measurable success with smart lighting and traffic management systems.
3. Environmental Sustainability
The push for eco-friendly urban environments is driving the adoption of smart grids, renewable energy systems, and green infrastructure. Cities like Copenhagen are at the forefront, implementing sustainable energy networks to minimize carbon emissions and enhance urban resilience.
4. Public Safety and Security
As urban populations expand, the need for enhanced safety measures becomes critical. Cities are deploying smart surveillance systems, AI-based emergency response, and data analytics platforms to improve crisis management and citizen safety.
Segment Analysis
The Global Smart City Market has been segmented based on Component, Application, and Region.
- By Component: Hardware, Software, Services.
The hardware segment accounted for the largest market share of 43.2% in 2022, encompassing sensors, communication devices, and infrastructure equipment critical for real-time data capture and city operations.
- By Application:
Utilities, Transportation, Public Safety, Healthcare, and Others.The utility segment led the market with a 27.2% share in 2022, driven by applications in smart energy, lighting, and waste management systems that enhance efficiency and sustainability.
Regional Analysis
By Region, the Smart City Market is segmented into North America, Europe, Asia-Pacific, the Middle East & Africa, and South & Central America.
- North America held the largest market share in 2022, driven by the presence of leading technology providers and advanced 5G and IoT infrastructure.
- Asia-Pacific is projected to witness the fastest CAGR during 2025–2035, fueled by rapid urban development and large-scale government-led smart city initiatives in China, Japan, India, and South Korea.
- Europe continues to focus on sustainable and energy-efficient smart city ecosystems through regional collaboration and innovation programs.
Industry Developments
- March 2024: Connected Urban introduced modular smart poles integrating antennas, CCTV, and lighting to enhance city connectivity and 5G readiness.
- February 2024: NEC Corp India launched smart city solutions including Mi-Command, Mi-City, and Mi-Eye for efficient operations and citizen engagement.
- February 2024: BT announced the launch of its NB-IoT network covering 97% of the UK population, enabling large-scale smart city applications.
- March 2023: AT&T partnered with Fortress Solutions to deploy 5G Smart City infrastructure in Washington, D.C.
- October 2022: Honeywell initiated the Smart City Accelerator Program supporting urban development projects in multiple U.S. cities.
- July 2021: Microsoft and AT&T collaborated to migrate 5G mobile network operations to Azure cloud infrastructure.
Key Findings of the Study
- The Global Smart City Market is expected to reach USD 15.05 billion by 2035, at a CAGR of 18.30% during 2025–2035.
- North America accounted for the largest market share in 2022, while Asia-Pacific is expected to be the fastest-growing region.
- Hardware was the dominant component segment in 2022.
- Utility applications such as smart energy and lighting management led the market.
- Major players include Honeywell Corporation, Huawei Technologies, Siemens AG, Cisco Systems, Schneider Electric SE, IBM Corporation, AT&T Inc., Oracle, Microsoft, ABB, SAP SE, Hitachi Vantara, Ericsson, Itron Inc., and TietoEVRY.
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https://www.marketresearchfuture.com/reports/smart-city-market-2624