Globally, the size of the Smart City Market is set to grow at a CAGR of 15.5%, estimated to reach USD 1549.86 Billion by 2030 driven by the rising demand for public safety and communication infrastructure. The smart cities concept has gained some decent forward movement because of the expanded consciousness of "shrewd stuff," which is incomplete because of all go-between innovations. Moreover, Smart City Market development has been overwhelmingly determined by expanded ventures by regional authorities, focal/central state-run services, and devoted overseeing associations.
Supporting and subsidizing models, mechanical environments, administration game plans, and framework ventures all assume significant parts in shrewd city arrangements. They are probably going to fuel market development during the projection time frame.
In 2020, North America ruled the market, representing over 30% of absolute deals. The steadily advanced upheaval across numerous industry areas like telecom, retail, and banking has added to the increment. As a result of its very much evolved ICT framework, administrative and city states' association with ICT merchants and new businesses, and the presence of huge innovation sellers, North America has arisen as the prevailing area. These components are anticipated to invigorate savvy innovation development in the locale.
Smart city technology companies should expect consistent adoption of solutions in sectors including smart transportation, smart utilities, smart buildings, and smart citizen services. In these application areas, there is a growing demand for novel smart city solutions that can successfully combine IoT, big data, analytics, cloud, security, and network connectivity. As regulatory authorities in various countries are primarily focused on monitoring the health, safety, and living standard of their citizens, the adoption of IoT in smart city focus areas such as smart utilities and smart citizen services is expected to boost the adoption of smart city solutions during the pandemic. Smart city solution vendors must improve their management capabilities to meet the need for controlling IoT devices across many cities.
Drivers: The rising demand for public safety and communication infrastructure is a driving force: Telecommunications infrastructure, as well as its use for public safety, are critical to the successful implementation of smart city projects. To achieve the notion of smart cities in an open and resource-efficient manner, every city must ensure that communication platforms are built and accessible. Every city aspiring to become "smart" must have access to contemporary, fundamental data connection infrastructure. Fixed networks, mobile networks, and dedicated networks for IoT applications, for example, will all be crucial in such cities. Opportunities: Concerns about the environment are growing, and green projects are becoming more popular: Urbanized areas consume a significant amount of energy and are responsible for up to 80% of worldwide greenhouse gas emissions. As the usage of energy sources increases, so does the quantity of energy dissipated and carbon emissions, necessitating the urgent need for a more sustainable and efficient energy use. Almost a quarter of CO2 emissions come from electricity generation. Concerns about global warming and ozone depletion have spurred governments' efforts to minimise their carbon footprint, with governments enacting stronger rules to curb emissions in both developed and developing countries.
Restraints: Concerns regarding IoT privacy and security: In smart city projects, privacy and security are key considerations. Because the smart city ecosystem is heavily reliant on IoT and central data access points, the ecosystem as a whole is highly vulnerable. Stakeholders (security professionals and smart city planners) must handle privacy and security difficulties in smart cities comprehensively to ensure that the issues do not spread throughout the smart network.
Challenges: Massive start-up costs: Project funding for large initial CAPEX is one of the primary hurdles facing the smart city market growth. It is now the primary responsibility of the national/local government to heavily invest in the smart city infrastructure transformation process. Even when governments have the need, vision, and clarity for such transformations, the lack of budgetary allocations for large-scale implementations slows the transformation process down, either directly or indirectly.
Cumulative Growth Analysis: The smart city market is estimated reach USD 1933 billion by 2030. The smart city market is predicted to expand as a result of rising public safety demands, urban population growth, and government initiatives. Video surveillance, DNA phenotyping, and real-time licence plate and facial recognition are commonly employed for public safety in smart cities, emphasising the need for monitoring to safeguard people' safety.
Value Chain Analysis: The demand for long-term infrastructure as a result of rising population and urbanisation has become a major smart city market driver. Governments all over the world are attempting to address these issues related to population growth and fast urbanisation by implementing smart city programmes in areas such as utility management, mobility, and safety. In addition, considerations such as rising traffic congestion and greenhouse gas emissions are driving the adoption of smart mobility and energy management apps.
Smart City Market Segment Overview:
The global Smart City market is divided into different segments as by the two components. Here the largest market share and sub-segments are given below. By Smart Transportation: In 2020, the Intelligent Transportation System (ITS) segment dominated the smart transportation industry, accounting for more than 40% of sales. One of the main elements fueling the demand for ITS is the requirement to provide real-time traffic information to drivers and passengers. Transportation officials can respond to emergencies more quickly as traffic efficiency improves. The deployment of such systems improves traffic management efficiency, decreases travel time, and encourages more people to use public transportation.
In 2020, North America dominated the global smart city market, accounting for more than 30% of total sales. The constant digital revolution across many industry sectors such as telecom, retail, and banking has contributed to the increase. Because of its well-developed ICT infrastructure, federal and municipal governments' partnership with ICT vendors and start-ups, and the presence of significant technology vendors, North America has emerged as the dominant region. These elements are predicted to stimulate smart technology innovation in the region. Over the forecast period, Asia Pacific is expected to increase at the fastest rate. The increased attention on the development of digital infrastructure in the region can be linked to this increase. Furthermore, over the forecast period, rising urbanisation and disposable income are expected to fuel regional market expansion. Over the projection period, governments across the area are likely to increase their attention on improving parking management and reducing traffic congestion and air pollution, fueling demand for smart parking systems.
ABB Limited, Cisco Systems, Inc., Schneider Electric SE, International Business Machines Corporation, Siemens AG, and Microsoft Corporation are among the prominent industry participants. Smart city solutions are also being developed by companies including Honeywell International Inc., Oracle Corporation, Huawei Technologies Co. Ltd., Hitachi, Ltd., and Intel Corporation. List of Competitive Companies:
Cisco and Connexin collaborated with Quantela in February 2020 to speed up the formation of savvy urban communities in the United Kingdom. Sheffield's roadway network has carried out the most up to date IoT-based savvy city advancements accessible in the UK. This arrangement is based on the City OF stage, consolidating Cisco Kinetic's best-of-breed capacities with Quantela's Atlantis smart city advances.
Quantela and Cisco declared the accessibility of result-based project finance in November 2019. Quantela and Cisco worked together to make a market-evolving, result-based project supporting methodology.
Sund and Blt, and IBM coordinated in April 2019. Sund and Blt, an organization that possesses and runs a portion of the world's biggest framework, collaborated with IBM to make an AI-fueled IoT answer to help clients oversee and screen spans, passages, motorways, and rail lines. Sund and Blt could involve the Maximo for Civil Infrastructure answer to help them run and fix the basic public framework more productively.
This report provides all the information about the growth of the global Smart City market in the forecast period. There are different sections available that help to get in-depth information such as opportunities, challenges, drivers, COVID 19 analysis, regional analysis, competitive landscape, and others. All of the information is gathered from primary and secondary sources to provide the expected market growth of Smart City by 2022.
|Market Size||USD 1549.86 Billion|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||component, application|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Honeywell Corporation (the US), Huawei Technologies Co Ltd. (China), Siemens AG (Germany), Cisco Systems Inc. (US), Schneider Electric SE (France), IBM Corporation (US), Siemens AG (Germany), AT&T Inc. (US), Ericsson (Sweden), Oracle Corporation (US), Hitachi Corporation (Japan), Microsoft Corporation (US)|
|Key Market Opportunities||Governments are increasingly taking up and investing in the smart city mission that can also drive economic growth while enhancing the quality of life of people|
|Key Market Drivers||
As per the analysis of Market Research Future (MRFR), the global smart city market is expected to value at USD 1549.86 Billion by 2030
IBM Corporation (U.S.) and Huawei Technologies Co Ltd. (China) are some of the major players of the global smart city market.
Increase in urban migration and rise in comfort threshold of people are main drivers identified by MFFR causing fast-paced expansion of the smart city market.
North America, followed by Asia Pacific, is expected to hold a large share of the global smart city market by 2030.
The transportation industry is expected to generate considerable traction for the global smart city market as the industry largely deploy smart city solutions.
IoT and 5G technology has kept cities connected amid a pandemic. Using digital technologies, smart cities improve quality of life, significantly boost the economy, and attempt to further the human race prosperity in coming years.