Smart Cities Market worth $1024.4 billion by 2028, growing at a CAGR of 14.9%: Report by MarketsandMarkets™

As per the report by MarketsandMarkets, the global Smart Cities Market size is projected to reach USD 1024.4 billion by 2028, at a CAGR of 14.9% during the forecast period, 2022-2027

Chicago, Aug. 28, 2023 (GLOBE NEWSWIRE) -- The Smart Cities Market to grow from USD 511.6 billion in 2022 to USD 1024.4 billion by 2027, at a CAGR of 14.9 % during the forecast period, according to a new report by MarketsandMarkets™. The market is gaining traction due to the rising popularity of smart devices & technologies among people. Also growing environmental concerns across the world, and the need for smarter resources can be considered among the major drivers for the market.

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214 - Tables
57 - Figures
316 - Pages

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Scope of the Report

Report Metrics Details
Market Size in 2022 US $511.6 Billion
Revenue Forecast Size in 2027 US $1024.4 Billion
Market Growth Rate 14.9% CAGR
Largest Market North America
Market Growth Drivers
  • AI and ML to accelerate the development of smart cities
  • Growing urbanization to drive adoption of smart city solutions
  • Need for efficient management and utilization of resources
Market Opportunities
  • Advancements in AI, cloud, IoT, and analytics technologies
  • Rise of 5G
  • Use of drones to enforce compliance during pandemics
Segments covered By focus area, smart transportation, smart building, smart utility, smart citizen service, and region
Regions covered North America, Europe, Asia Pacific, Middle East, and Africa, and Latin America

The scope of this report covers the Smart Cities Market by focus area, smart transportation, smart building, smart utility, smart citizen service, and region.

By smart building solution, energy management is projected to register the highest CAGR during the forecast period. Keeping operational expenses low is a continuous challenge for the owners and managers of multi-story buildings, schools, or complexes.

Energy management solutions typically comprise two major components: Energy Information System (EIS) and Building Energy Management System (BEMS). EIS shows energy-usage information for processes within a facility, while BEMS manages controls that govern the processes. These systems also enable building operators to adjust certain HVAC settings, such as temperature, pressure, schedule, and lighting schedule from a centralized location.

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By smart transportation service, deployment and integration service is estimated to hold a larger market share in 2022. The deployment and integration services segment involved in the smart transportation industry perform designing, engineering, and customized product development as per the needs of users. It begins with collecting customer requirements and deploying, integrating, testing, and rolling out the solutions. The deployment and integration of service providers help end users integrate smart infrastructure solutions with their existing infrastructure.

By region, North America is estimated to account for the largest market share in 2022, and this trend is projected to continue until 2027. The US and Canada are the leading markets in this region. The market has been steadily showing positive trends in the region, as several companies and industries are adopting smart city services and solutions at various levels as a part of their business strategy to sustain their position in the market. Moreover, the startup culture in North America is growing more rapidly in comparison to other regions. Rapid digitalization across industry verticals and the increasing adoption of smart connected devices, such as IoT, and the rising technological advancements have fueled the growth of the Smart Cities Market in this region.

Top Key Companies in Smart Cities Market:

The major vendors covered in the Smart Cities Market include Cisco (US), IBM (US), Siemens (Germany), Microsoft (US), Hitachi (Japan), Schneider Electric (France), Huawei (China), Intel (US), NEC (Japan), ABB (Switzerland), Ericsson (Sweden), Oracle (US), Fujitsu (Japan), Honeywell (US), Accenture (Ireland), Vodafone (UK), AWS (US), Thales (France), Signify (Netherlands), Kapsch (Austria), Motorola (US), GE (US), Google (US), TCS (India), AT&T (US), Nokia (Finland), Samsung (South Korea), SAP (Germany), TomTom (Netherlands), AppyWay (UK), Ketos (US), Gaia (India), TaKaDu (Israel), FlamencoTech (India), XENIUS (India), Bright Cities (Brazil), Maydtech (Mexico), Zencity (Israel), and IXDen (Israel).

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Top Trends in Global Smart Cities Market:

  • The Internet of Things (IoT) proved crucial in the development of smart cities. The incorporation of numerous devices and sensors into metropolitan infrastructure improved data collecting, analysis, and optimisation of services ranging from transportation to trash management.
  • Smart cities were adopting sustainable practises more and more as there was an increased focus on environmental issues. These techniques included effective waste management, use of renewable energy sources, and green architecture.
  • Making educated decisions was made possible by the use of artificial intelligence and data analytics by city planners and administrators. It was possible to improve city services and provide real-time responses to problems thanks to data gathered through sensors, social media, and other sources.
  • Electric and driverless vehicles, better public transport networks, and real-time traffic control were all being actively investigated by smart cities as means of reducing emissions and congestion.
  • Technology was being used by city planners to design more functional and livable cities. This entailed creating the best layouts for buildings, roads, and public areas using 3D modelling, virtual reality, and simulation techniques.
  • Smart towns are increasingly need reliable digital infrastructure and high-speed internet connection. This was essential for both enabling various smart services and apps as well as for facilitating citizen connectivity.
  • By incorporating citizens in decision-making through digital platforms and feedback mechanisms, smart cities were focusing on citizen-centric services. As a result, there was an increase in sense of ownership and general quality of life.
  • Ensuring the security and privacy of citizen data grew increasingly important as cities became more linked. To protect against cyber threats and data breaches, sophisticated cybersecurity measures were being put in place.
  • The resilience of smart cities is being improved due to the rising frequency of catastrophes and natural disasters. This involved the development of effective disaster response systems, early warning systems, and resilient infrastructure.

Key Industry Development:

  • By enabling quicker and more dependable communication between devices and sensors, the rollout of 5G networks was predicted to revolutionise smart cities. This would enable the collecting and processing of data in real-time for numerous applications, including smart grids and driverless vehicles.
  • Before fully implementing smart city technologies, many cities across the world started pilot programmes and testbeds to experiment with the technology on a smaller scale. These projects assisted in identifying barriers to wider adoption as well as effective strategies.
  • Regulations governing data security and privacy have come into greater prominence as the amount of data collected by smart city technologies has grown. Governments and organisations were adopting regulations to safeguard citizen data and guarantee its ethical usage.
  • Circular economy ideas were being adopted by smart cities, with an emphasis on waste reduction, resource reuse, and material recycling. This included efficient waste management systems, environmentally friendly supply chains, and cutting-edge recycling methods.
  • Systems for smart cities were being enhanced with artificial intelligence and predictive analytics. Cities were able to improve their services because to these technology, which made it possible to predict traffic patterns, energy use, and other factors better.
  • Numerous intelligent cities were looking into how to incorporate wind and solar energy into their electricity infrastructures. This contributed to lowering carbon emissions while also supplying a more reliable and sustainable energy source.
  • With the increasing use of smart building technologies, amenities like automated climate management, occupancy sensors, and energy-efficient lighting have become more widespread. Energy efficiency and occupant comfort were the goals of these solutions.

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