Smart Cities Market Size to Reach USD 5151.86 Billion by 2032; The Expanding ICT Infrastructure will Bolster Growth, says The Brainy Insights

The market smart cities will experience rapid growth due to the rapid urbanization anticipated during the forecast period. The increasing automation and digitization of economies and the development of novel technologies such as IoT, AI, API and data analytics will contribute significantly to the market's development and growth.

Newark, June 28, 2023 (GLOBE NEWSWIRE) -- The Brainy Insights estimates that the USD 650 billion in 2022 global smart cities market will reach USD 5151.86 billion in 2032. The smart city mission of the Union government of India aims to transform the country's major cities into smart cities enabled through technologies and state-of-the-art infrastructure. The goals are to identify 100 smart cities nationwide and fund them from the central and state government treasuries to facilitate their transformation. Similar projects have been mooted worldwide given the rising population, automation, digitization, technological advancements, urbanization and growing demand for a better quality of life. Therefore, the concerted efforts of citizens, civil society, government and private players to develop smart cities will bode well for the market's growth in the forecast period.

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Key Insight of the Global smart cities Market

Asia Pacific is expected to rise the fastest during the forecast period.

The market will grow as a result of rising industrialization and urbanization. The construction of smart cities will proceed more quickly, thanks to the rising ICT infrastructure. The market will benefit from rising government capital spending and missions to create smart cities. The market for smart cities will expand favourably as the Asia Pacific economies concentrate on meeting their UN SDG targets by 2030. The required inputs to the market's development and expansion will be provided by the climate pledges to protect future generations' future. The countries that will spearhead the technical advancements that substantially impact development initiatives for smart cities include China, Japan, South Korea, and Taiwan.

In 2022, the hardware segment dominated the market with the largest market share of 47% and market revenue of 305.50 billion.

The component segment is divided into hardware, services, and software. In 2022, the hardware segment dominated the market with the largest market share of 47% and market revenue of 305.50 billion.

In 2022, the smart energy segment dominated the market with the largest market share of 30% and market revenue of 195 billion.

The application segment is divided into smart infrastructure, smart energy, smart healthcare, smart education, smart governance, smart buildings, smart mobility management, smart security, and others. In 2022, the smart energy segment dominated the market with the largest market share of 30% and market revenue of 195 billion.

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Advancement in market

June 2023 - With the potential to drastically improve the lives of millions of people worldwide, the Toyota Mobility Foundation has launched a USD 9 million global challenge in collaboration with Challenge Works and the World Resources Institute. By expanding access to jobs, education, and other important services, the Sustainable Cities Challenge seeks to improve people's quality of life. Cities and entrepreneurs will collaborate on implementing mobility solutions that might lower carbon emissions, increase accessibility, and leverage data to create resilient transportation systems.

Market Dynamics

Driver: the quick urbanization.

The world has become much more urbanized due to rising industry, rising disposable income, and rising population. But because this urbanization has been haphazard, ad hoc, and unplanned, resources should be used more efficiently and wisely. Unplanned urban clusters are crowded, dirty, and difficult, with poor housing conditions and insufficient healthcare and educational facilities. They could be more effective and overworked. It is essential to repurpose and rebuild them using smarter technologies To make cities more effective, resilient, and sustainable. Smart cities will provide cutting-edge infrastructure supporting the smart government, prompt service delivery, and seamless urban mobility options. The market will develop and increase significantly due to the economies' rising automation and digitalization, as well as the creation of cutting-edge technologies like IoT, AI, APIs, and data analytics. Demand on the market will also be boosted by rising government spending and beneficial programmes.

Restraints: the high costs of investments.

Given the public nature of goods like public transit systems, healthcare, education, and roads, among others, government institutions alone have the duty, motive and finance to make the capital investments necessary to construct smart cities. Additionally, private actors do not typically fund large-scale projects with protracted incubation periods. As a result, the government is the only funding source for efforts to construct smart cities. Given the substantial quantity of technology purchase, adoption, and integration, these projects have high capital investment. Additionally, systemic issues like corruption, red tape, and bureaucracy result in delays and rising prices. Consequently, the market's expansion will be hampered by the hefty capital investments.

Opportunities: Creating novel technologies like AI, API, and IoT.

Research and development spending is increasing in AI, API, IoT, big data, machine learning, artificial intelligence, and the Internet of Things. AI, for instance, may evaluate surveillance footage to determine which parts of the city are most dangerous. To maintain safety, it can monitor activity in public areas. Big data can examine massive volumes of data in real time to assist in resource optimization for cities, enhancing productivity, sustainability, and efficiency. Over the projection period, the development of new technologies to enhance governance, record keeping, infrastructure durability, and traffic management will all impact the growth of the global smart cities market.

Challenges: Data privacy and security concerns.

The scale of automation and digitization renders large amounts of confidential and sensitive data vulnerable to cyber-attacks. These attacks can shut cities or the economy without robust preventive and corrective measures. It can destabilize or shut down critical infrastructure or institutions, causing chaos. The interconnected city communications network can be manipulated by authorities for misinformation and swaying public opinions. Therefore, data privacy and security concerns will challenge the market's growth.

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Some of the major players operating in the global smart cities market are:

• ABB Limited
• AGT International
• Cisco Systems, Inc.
• Ericsson
• General Electric
• Hitachi Ltd.
• Huawei Technologies Co. Ltd.
• IBM Corporation
• Microsoft Corporation
• Schneider Electric

Key Segments cover in the market:

By Component

• Hardware
• Services
• Software

By Application

• Smart Infrastructure
• Smart Energy
• Smart Healthcare
• Smart Education
• Smart Governance
• Smart Buildings
• Smart Mobility Management
• Smart Security
• Others

By Region

• North America (U.S., Canada, Mexico)
• Europe (Germany, France, the UK, Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America)
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

About the report:

The market is analyzed based on value (USD Billion). All the segments have been analyzed worldwide, regional, and country basis. The study includes the analysis of more than 30 countries for each part. The report analyses driving factors, opportunities, restraints, and challenges to gain critical market insight. The study includes Porter's five forces model, attractiveness analysis, Product analysis, supply, and demand analysis, competitor position grid analysis, distribution, and marketing channels analysis.

About The Brainy Insights:

The Brainy Insights is a market research company, aimed at providing actionable insights through data analytics to companies to improve their business acumen. We have a robust forecasting and estimation model to meet the clients' objectives of high-quality output within a short span of time. We provide both customized (clients' specific) and syndicate reports. Our repository of syndicate reports is diverse across all the categories and sub-categories across domains. Our customized solutions are tailored to meet the clients' requirements whether they are looking to expand or planning to launch a new product in the global market.

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