Smart City Market Research Report - Forecast 2032

Smart City Market Research Report Information By Component (Hardware, Software, Services), Application (Utility (Smart Meter Management, Smart Lighting Management, Smart Energy Management, Other), Transport (Smart Parking Management, Smart Ticketing, Intelligent Transportation System, Other), Government (Smart Governance, Smart Environmental Solutions, Other), Residential (Smart Homes, Smart Building), Smart Education, Smart Healthcare, Other), and Region (North America, Europe, Asia-Pacific & Rest Of The World)- Industry Forecast 2032

ID: MRFR/SEM/1955-CR | 187 Pages | Author: Aarti Dhapte | November 2023         

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Global Smart City Market Overview


Global Smart City Market Size was valued at USD 1,642.7 billion in 2022. The Smart City Market industry is projected to grow from USD 1,956.7 billion in 2023 to USD 8,890.3billion by 2032, exhibiting a compound annual growth rate (CAGR) of 18.3% during the forecast period (2023 - 2032). Increasing government initiatives for Smart City Market projects, rapid urbanization around the globe are the primary reasons driving the growth of the Smart City Market.


Government initiatives play a pivotal role in driving the growth of the Smart City Market. As urbanization accelerates and cities face unprecedented challenges, the concept of smart cities has gained prominence as a solution to enhance the quality of life, efficiency, and sustainability of urban areas. Increasingly, governments around the world are launching ambitious initiatives to transform their cities into technologically advanced ecosystems. These initiatives serve as a catalyst for the expansion of the Smart City Market.


Smart City Market initiatives typically involve the deployment of Internet of Things (IoT) devices, sensors, data analytics, and artificial intelligence to gather and process data in real time. This data-driven approach enables better decision-making, efficient resource allocation, and improved urban planning. For instance, smart transportation systems can optimize traffic flow, reduce travel time, and decrease emissions. Smart energy grids enhance energy distribution and consumption patterns, promoting sustainability. Healthcare services become more accessible and effective through telemedicine and digital health platforms.


GLOBAL Smart City Market SIZE (USD BILLION) (2018-2032)


GLOBAL Smart City Market SIZE (USD BILLION) (2018-2032)


Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review


Smart City Market Trends




  • Development of IoT Technologies & Devices to Foster Growth of Smart City Market Concepts




The development of IoT (Internet of Things) technologies and devices stands as a compelling opportunity to catalyze the growth of Smart City Market concepts within the Smart City Market. As urban areas grapple with the complexities of rapid urbanization, resource constraints, environmental sustainability, and the overall well-being of citizens, IoT emerges as a transformative force that can empower cities to evolve into connected, efficient, and responsive urban ecosystems.


IoT involves interconnecting everyday devices and objects via the internet, enabling them to gather and share data. In the context of smart cities, IoT's potential is vast, offering multifaceted opportunities. Infrastructure optimization becomes achievable through real-time monitoring and predictive maintenance of vital structures, minimizing downtime and enhancing operational efficiency. Resource management and sustainability are bolstered as IoT devices facilitate the real-time monitoring of resource consumption and environmental conditions, aiding in optimal allocation and waste reduction. Ultimately, the development of IoT technologies and devices in the context of smart cities opens avenues for enhanced efficiency, sustainability, citizen engagement, and economic prosperity, paving the way for urban landscapes that are interconnected, technologically advanced, and people-centric


Smart City Market Segment Insights:


Smart City Market Component Insights


The Smart City Market segmentation, based on component, includes hardware, software, services. Among them, hardware segment is the held a largest market share of 43.2% in 2022.


The hardware segment forms the tangible foundation of Smart City Market implementations. It encompasses a diverse range of physical components, from sensors and devices to communication infrastructure and advanced equipment. These elements play a pivotal role in capturing real-time data from the urban environment, enabling the seamless flow of information required for informed decision-making.


Global Smart City Market SIZE (USD BILLION) component 2022 VS 2032


GLOBAL Smart City Market SIZE (USD BILLION) component 2022 VS 2032


Smart City Market Application Insights


According to sales channel, the segment is divided into OEM, and aftermarket. Further, Utility segmented held a largest market share of 27.2% among overall market in 2022. Utility segment further includes smart meter management, smart lighting management, smart energy management, smart waste management, others.


Smart Energy Management optimizes the distribution and consumption of energy resources within cities. It integrates renewable energy sources, energy storage systems, and sophisticated demand-response mechanisms. These technologies enable efficient energy utilization, load balancing, and grid stability, leading to reduced carbon footprints and increased resilience against power outages.


Smart Lighting Management transforms urban lighting infrastructure into intelligent networks. By utilizing motion sensors, ambient light sensors, and connected systems, cities can dynamically adjust lighting levels based on environmental conditions and human presence.


Global Smart City Market Size (USD BILLION) application 2022 VS 2032




GLOBAL Smart City Market Size (USD BILLION) application 2022 VS 2032


Source: Secondary Research, Primary Research, MRFR Database and Analyst Review


Smart City Market Regional Insights


By Region, the study segments the market into North America, Europe, Asia-Pacific, Middle East & Africa, and South and Central America.


North America accounted for the largest share of revenue in 2022. North America, consisting of the US, Canada, and Mexico, stands at the forefront of technological innovation and urban development. The region's rapid adoption of Smart City Market solutions is driven by a combination of private sector investment and rapid development. Smart City Market technologies are poised to revolutionize various sectors, with a particular focus on enhancing efficiency, sustainability, and citizen well-being. The integration of broadband-enabled infrastructure and advanced information technology is a cornerstone of this transformation. The emergence of advanced wireless standards, such as 5G and Wi-Fi 6E, propels Smart City Market growth in North America.


Asia Pacific is expected to dominate the market in terms of CAGR in upcoming period. The Smart City Market in the Asia-Pacific region is witnessing significant growth and development, with key countries such as China, Japan, South Korea, India, and the rest of APAC at the forefront of this transformation. China, Japan, South Korea, and India are all actively engaged in developing smart cities with innovative technologies. In China, cities like Shanghai and Shenzhen are implementing IoT sensors, AI analytics, and smart grids to enhance urban living and establish global technological leadership. Japan focuses on energy efficiency and disaster management, integrating renewable energy, smart grids, and real-time monitoring for resilient cities.


Further, the countries considered in the scope of the Smart City Market are the US, Canada, Mexico, Germany, UK, France, Spain, China, India, Japan, South Korea.


Global Smart City Market SIZE (USD BILLION) REGION 2022 VS 2032


GLOBAL Smart City Market SIZE (USD BILLION) REGION 2022 VS 2032


Source: Secondary Research, Primary Research, MRFR Database and Analyst Review


Smart City Market Key Market Players & Competitive Insights


Several industry players are focusing on enhancing their products with the integration of improved technologies. Moreover, these companies are prominent providers of Smart City Market and compete in the Smart City Market to increase their geographic presence and expand their customer base through strategic presence.


Major market players are spending a lot of money on R&D to increase their product lines, which will help the Smart City Market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, including new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Smart City Market industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.


Key Companies in the Smart City Market include



  • 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.

  • TietoEVRY


Smart City Market Industry Developments


March 2023: AT&T has chosen Fortress Solutions as a partner to provide facilities management services for fiber optics, edge data centers, and 5G infrastructure as part of its ambition to build "the US' first 5G Smart City Market at scale" in Washington, DC.


October 2022: Honeywell and Accelerator for America unveiled the Honeywell Smart City Market Accelerator Program, which assists communities in strategically planning their futures and building capacity to support transformational initiatives. Honeywell is working with five cities including Kansas City, Louisville, San Diego, Cleveland, and Waterloo, among others in the United States to give in-kind assistance in order to speed the development of their Smart City Market strategy planning.


July 2021: Microsoft had planned to buy AT&T's network cloud technologies and intellectual property. In exchange, AT&T will relocate its 5G mobile network to Azure. The companies will begin with AT&T's 5G core and work their way up. The collaboration expands on an existing USD 2 billion agreement in which AT&T relocated its back-end office to Microsoft Azure.


Intended Audience



  • Smart City Market Hardware Manufacturers

  • Smart City Market Software Companies

  • Technology Investors

  • Regulatory Industries

  • Government Bodies

  • Manufacturing Industry

  • Environment Regulators

  • Smart City Market Operators

  • Others


Smart City Market Segmentation:


Smart City Market Component Outlook (USD Billion, 2018-2032)



  • Hardware

  • Software

  • Service


    • Consulting Services

    • Deployment & Integration Services

    • Infrastructure Monitoring and Management Services



Smart City Market Sales Channel Outlook (USD Billion, 2018-2032)



  • OEM

  • Aftermarket


Smart City Market Application Outlook (USD Billion, 2018-2032)



  • Utility


    • Smart Meter Management

    • Smart Lighting Management

    • Smart Energy Management

    • Smart Waste Management

    • Others


  • Transport


    • Smart Parking Management

    • Smart Ticketing

    • Intelligent Transportation System

    • Connected Car System

    • Others


  • Government


    • Smart Governance

    • Smart Environmental Solutions

    • Others


  • Residential


    • Smart Homes

    • Smart Building

    • Smart Education

    • Smart Healthcare

    • Others



Smart City Market Regional Outlook



  • North America


    • US

    • Canada

    • Mexico


  • Europe


    • Germany

    • UK

    • France

    • Spain

    • Rest of Europe


  • Asia-Pacific


    • China

    • India

    • Japan

    • South Korea

    • Rest of Asia-Pacific


  • Middle East & Africa


    • South America


Report Scope:

Report Attribute/Metric Details
Market Size 2022 USD 1,642.7 billion
Market Size 2023 USD 1,956.7 billion
Market Size 2032 USD 8,890.3billion
Compound Annual Growth Rate (CAGR) 18.3% (2023-2032)
Base Year 2022
Forecast Period 2023-2032
Historical Data 2018-2021
Forecast Units Value (USD Billion)
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Segments Covered By component, application
Geographies Covered North America, Europe, Asia Pacific, Middle East & Africa, and South America
Countries Covered The US, Canada, Mexico, Germany, UK, France, Spain, China, India, Japan, South Korea.
Key Companies Profiled 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.
Key Market Opportunities 路聽聽聽聽聽聽 Increasing demand for AI solutions in transportation 路聽聽聽聽聽聽 Development of IoT technologies & devices to foster growth of smart city concepts
Key Market Dynamics 路聽聽聽聽聽聽 Increasing government initiatives for smart city projects 路聽聽聽聽聽聽 Rapid urbanization around the globe




Frequently Asked Questions (FAQ) :

The Smart City Market Size was valued at USD 1,642.7 Billion in 2022

Smart City Market is predicted to reach USD 8,890.3 billion in 2032

Smart City market is expected to grow at a CAGR of 18.3`%

North America held the largest market share in the Smart City market due to the rapid adoption of smart city solutions is driven by a combination of private sector investment and growing governmental initiatives.

The key players in the global Smart City Market are 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.

Key Questions Answered

  • Global Market Outlook
  • In-depth analysis of global and regional trends
  • Analyze and identify the major players in the market, their market share, key developments, etc.
  • To understand the capability of the major players based on products offered, financials, and strategies.
  • Identify disrupting products, companies, and trends.
  • To identify opportunities in the market.
  • Analyze the key challenges in the market.
  • Analyze the regional penetration of players, products, and services in the market.
  • Comparison of major players鈥 financial performance.
  • Evaluate strategies adopted by major players.
  • Recommendations
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