Smart Infrastructure Market Size was valued at USD 99.8 Billion in 2022. The Smart Infrastructure Market industry is projected to grow from USD 124.9 Billion in 2023 to USD 754.3 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 25.20% during the forecast period (2023 - 2032). The swift pace of urbanization and digital transformation, coupled with an increasing demand for resource management efficiency, continuous technological progress, and the implementation of various supportive government programs are expected to be a significant market driver for the Smart Infrastructure Market.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Market CAGR for smart infrastructure is being driven by the Increasing Focus on Sustainability and switching to Green Energy Resources. The surging pace of urbanization has led to an increased demand for resources, presenting a multitude of challenges for smart cities in their pursuit of sustainable solutions and mitigating environmental risks. Heightened concerns about warming and carbon emissions have intensified the focus on green energies and reducing the carbon footprint. An illustrative example is Israel's Ministry of Energy, which, on April 19, 2021, unveiled an ambitious plan to achieve an 80% reduction in greenhouse gas emissions. This comprehensive plan involves the closure of coal-fired power plants, advancements in power grid technologies, and a substantial increase in electricity generation through renewable energy sources.
Similarly, the U.S. Environmental Protection Agency (EPA) is actively formulating plans for clean energy, emphasizing the implementation of smart grids, distribution networks, and other initiatives that significantly contribute to minimizing carbon emissions. In the automotive sector, Hyundai Motor Company and Kia Motor Corporation have played a pivotal role in delivering mobility solutions. They developed the world's first predictive Information Communication and Technology (ICT) connected shift system, allowing vehicles to automatically optimize gears based on traffic and road conditions. Furthermore, Mitsubishi has showcased the commercial application of Vehicle-to-Grid (V2G) technology, utilizing electric vehicles (EVs) as an energy source. These strategic initiatives are poised to drive substantial growth in the market.
As a result, it is anticipated that throughout the projection period, demand for the Smart Infrastructure Market will increase due to the Increasing Focus on Sustainability and switching to Green Energy Resources. Thus, driving the Smart Infrastructure Market revenue.
The Smart Infrastructure Market segmentation, based on Type includes Smart Grid, Smart Water Networks, Intelligent Buildings, Intelligent Transportation Networks, and Others. The Smart grid segment dominated the market, accounting for 58% of market revenue (57.8 Billion). The adoption of smart transport technologies, including traffic monitoring systems, intelligent traffic signals, and smart parking, is gaining traction due to escalating concerns about traffic congestion, transportation efficiency, and safety. This momentum is further supported by the ongoing transition to a more sustainable energy ecosystem and a heightened focus on reducing carbon emissions, contributing to the overall growth of the market.
The Smart Infrastructure Market segmentation, based on End-User includes Utility, Transport, Communications, and The Built Environment. The built environment segment dominated the market, accounting for 58% of market revenue (57.8 Billion). The rising demand for intelligent transportation systems (ITS), smart traffic management, and connected vehicles is playing a pivotal role in optimizing traffic flow, reducing congestion, and enhancing road safety. This increased adoption aligns with the broader market expansion efforts. Moreover, the surge in smart city projects leveraging data analytics, IoT, and connected infrastructure for improved urban planning, resource management, and overall quality of life presents lucrative opportunities for market growth.
Figure 1: Smart Infrastructure Market, by End-User, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
By region, the study provides market insights into North America, Europe, Asia-Pacific, and Rest of the World. The anticipated expansion of the Smart Infrastructure market in North America can be attributed to several key factors. This surge can be attributed to the rapid industrialization and urbanization in the region. Additionally, the escalating demand from residents, commuters, and workers has driven the increased adoption of new technologies and solutions. This, in turn, is creating opportunities for the development of more intelligent infrastructure and the delivery of flexible solutions. Notably, collaborations such as the one between Intel and the City of San Jose underscore this trend, where Intel's IoT smart city demonstration platform is being implemented for the City's green vision initiative, aiming at environmental sustainability and enhancing the quality of life. Another illustrative example is the Array of Things (AoT) project in Chicago, designed to elevate the living experience through real-time data collection.
Further, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: SMART INFRASTRUCTURE MARKET SHARE BY REGION 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe's Smart Infrastructure Market accounts for the second-largest market share as The European Commission has devised two strategies to facilitate the integration of smart urban technologies. An illustrative project is CITY KEYS, designed as a smart city performance measurement system to address regulatory barriers and enhance performance monitoring. The initiative seeks to validate and establish a framework for measuring performance, fostering a standardized, transparent, and comparable monitoring system for smart city solutions across European cities. Further, the German Smart Infrastructure Market held the largest market share, and the UK Smart Infrastructure Market was the fastest-growing market in the European region
The Asia-Pacific Smart Infrastructure Market is expected to grow at the fastest CAGR from 2023 to 2032. The Asia Pacific region is experiencing rapid progress in the development of smart cities, surpassing other regions, driven by the widespread availability of IoT sensors and robust IT infrastructure. Developed nations like Singapore, Hong Kong, Japan, Thailand, and Australia are at the forefront, initiating numerous smart city concepts. These initiatives serve as blueprints for emerging Asian cities, especially those facing challenges related to rapidly aging populations. As an illustration, Thailand has launched The Eastern Economic Corridor (EEC) to transform three provinces into smart cities, with a broader goal of establishing 100 smart cities by 2024. Moreover, China’s Smart Infrastructure Market held the largest market share, and the Indian Smart Infrastructure Market was the fastest-growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development to expand their product lines, which will help the Smart Infrastructure market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Smart Infrastructure industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Smart Infrastructure industry to benefit clients and increase the market sector. In recent years, the Smart Infrastructure industry has offered some of the most significant advantages to the urban landscape, enhancing efficiency, sustainability, and quality of life for residents and businesses alike. Major players in the Smart Infrastructure Market, including K Siemens (Germany), Schneider Electric (Spain), Indra (France), Sensus (U.S.), Aclara (U.S.), Topcon (Japan), Cree (U.S.), Holophane (U.K.), Dialog Semiconductor (U.K.), and Philips (Netherlands). are attempting to increase market demand by investing in research and development operations.
Siemens, a conglomerate specializing in electrification, automation, and digitalization, is a key player in power generation, transmission, and medical diagnostics. Renowned for developing energy-efficient and resource-saving technologies, Siemens excels in smart infrastructure solutions. Their products contribute to creating safe and healthy indoor environments, reducing contaminants, and enhancing air quality through advanced HVAC maintenance and filtration strategies. Siemens leverages IoT technology to manage energy performance, provide real-time updates on space utilization, and deliver emergency notifications. In a significant announcement on March 8, 2021, Siemens Smart Infrastructure revealed plans to transform its Zug, Switzerland headquarters into a carbon-neutral facility by 2030. The Zug campus, Siemens's largest Swiss location, serves as a model for smart buildings, showcasing innovative technologies for enhanced energy efficiency and decarbonization
Schneider Electric SE, formerly known as Schneider Electric SA, is a prominent energy management and automation company specializing in the development of technologies and solutions for electricity distribution. The company's extensive product portfolio includes automation and control products, low voltage systems, solar and energy storage solutions, medium voltage distribution, grid automation, and critical power, cooling, and racks. Schneider Electric also offers a range of services, encompassing energy and sustainability services, field and automation services, cloud services, as well as consulting and training services. Catering to diverse industries such as banking and finance, food and beverage, healthcare, life sciences, marine, metals, minerals and cement, mining, oil and gas, retail, and automotive and mobility, Schneider Electric has established a presence with operations in Africa, Europe, Asia-Pacific, the Middle East, South America, and North America. Headquartered in Rueil-Malmaison, France, Schneider Electric entered into a significant agreement with Roco Group in May 2021, a leader in bathroom space design. This collaboration entails a three-phase approach, involving the definition of a vision, environmental analysis, commitment to energy reduction, implementation of a sustainable energy generation unit, and advancement in the digitization of Roco Group's processes, optimizing energy management.
Siemens (Germany)
Schneider Electric (Spain)
Indra (France)
Sensus (U.S.)
Aclara (U.S.)
Topcon (Japan)
Cree (U.S.)
Holophane (U.K.)
Dialog Semiconductor (U.K.)
Philips (Netherlands)
June 2021: Cityzenith became a member of the Digital Twin Consortium, introducing the SmartWorldOS software platform. This platform creates virtual replicas of buildings, cities, and infrastructure, enabling the tracking, monitoring, and optimization of carbon emissions while minimizing environmental impact.
January 2021: Philips strengthened its position in patient care management solutions for hospitals by acquiring Capsule Technologies Inc., a prominent provider of medical devices and data technologies for healthcare organizations. This strategic acquisition aligns with Philips's goal of revolutionizing care delivery through integrated solutions. The collaboration involves combining Philips's portfolio with Capsule's leading medical device information platform to expand management solutions across the healthcare spectrum.
Smart Grid
Smart Water Networks
Intelligent Buildings
Intelligent Transportation Networks
Others
Utility
Transport
Communications
The Built Environment
North America
US
Canada
Europe
Germany
France
UK
Italy
Spain
Rest of Europe
Asia-Pacific
China
Japan
India
Australia
South Korea
Australia
Rest of Asia-Pacific
Rest of the World
Middle East
Africa
Latin America
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 99.8 Billion |
| Market Size 2023 | USD 124.94 Billion |
| Market Size 2032 | USD 754.34 Billion |
| Compound Annual Growth Rate (CAGR) | 25.20% (2023-2032) |
| Base Year | 2022 |
| Market Forecast Period | 2023-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, End-user, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Siemens (Germany), Schneider Electric (Spain), Indra (France), Sensus (U.S.), Aclara (U.S.), Topcon (Japan), Cree (U.S.), Holophane (U.K.), Dialog Semiconductor (U.K.), and Philips (Netherlands) |
| Key Market Opportunities | Continuous technological advancements, such as IoT, AI, and data analytics, enable real-time monitoring, automation, and data-driven decision-making |
| Key Market Dynamics | Rising Implementation of Telecommunication Networks |
Frequently Asked Questions (FAQ) :
The Smart Infrastructure Market size was valued at USD 99.8 Billion in 2022.
The Smart Infrastructure Market is projected to grow at a CAGR of 25.20% during the forecast period, 2023-2032.
North America had the largest share of the market
The key players in the market are Siemens (Germany), Schneider Electric (Spain), Indra (France), Sensus (U.S.), Aclara (U.S.), Topcon (Japan), Cree (U.S.), Holophane (U.K.), Dialog Semiconductor (U.K.), and Philips (Netherlands)
The Smart Grid segment dominated the market in 2022.
The Built Environment segment had the largest share in the market.
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