Smart cities utilize information and communication technology to improve operational efficiency, share information with public and provide a better quality of government service and citizen welfare. The market is majorly driven by the growing need for public safety and communication infrastructure. Furthermore, increasing number of government initiatives and PPP models for smart cities, are also expected to contribute to the market growth. For instance, in 2018-19, Government of India allocated around USD 828.86 million in its budget for development of 5 new smart cities. This budget increased by 7% to about USD 866.61 million in 2019-20. Additionally, rising focus on environmental sustainability and investments in 5G technologies for smart city developments are also factors leading to positive influence on the market.
Growing requirement of communication infrastructure and public safety
Public safety is an ongoing challenge for various cities across the globe. However, as urban populations are growing, smart cities are leveraging novel digital technologies for monitoring and optimising energy and water consumption for creating effective transportation infrastructures, enhancing citizen access to services, and delivering city-wide connectivity required by businesses as well as citizens. For instance, the City of San Diego in 2016 invested in smart streetlight technology and installed more cost effective as well as brighter LED lights in its neighbourhoods. Earlier the city used the sensor data collected by the lighting system to inform municipal decisions around traffic flow and pedestrian crossings. As of 2019, the smart streetlight technology along with the video management system was used by San Diego. By August 2019, the city only had 1800 officers for a population of 1.3 million spread over 300 square miles. It aimed at using this data collected by the smart streetlights for aiding to provide evidence for violent crime investigations and fatal or near fatal car collisions.
Rising number of government initiatives and PPP models for smart cities
Various government initiatives along with public private partnerships are boosting the market growth. For instance, China has various smart city initiatives which are combining metering devices, embedded sensors, and other such monitoring technologies with artificial intelligence analysis and big data processing for assisting in managing the public spaces as well as the cities. As of 2020, the country has near about 800 smart cities pilot programs in planning or processes. This is about half of the total smart cities across the globe. Such initiatives are anticipated to boost the market growth over the forecast period.
Growing focus on environmental sustainability
Apart from advantages such as time, safety, health, jobs, connectedness, and cost of living, smart cities market also has potential to be realized in the environmental sector. Smart applications contributing most to environmental advancements include improvements in saving water & energy, improving mobility, and reducing waste. Smart city solutions such as energy use optimization, air quality monitoring, and water, waste, & electricity tracking have potential to 30 to 130 fewer kgs of waste produced per person per year, to reduce 10-15% fewer CHG emissions, and to save 25 to 80 litres of water saved per person per day. Such applications of smart cities to improve environmental sustainability are expected to fuel the market growth.
5. technology - Key enabler of smart city developments
The 5G technology is expected to enable a new kind of communication network to interconnect everything. This is set to impact societies and economies to provide the necessary communication infrastructure required by various smart city applications. One of the many smart city applications that can be fulfilled using 5G technologies is the intelligent transporting system (ITS). The technology had laid a foundation for building smart technology, productive industry, and innovative ways of communicating. Also, 5G acts as a communication network to support the IoT infrastructure required by various smart city vertical industries. Therefore, various applications of 5G technology to enable many smart city developments are expected to boost the market growth.
The global smart cities market is segmented into technology, component, application, and deployment.
- Artificial Intelligence
- Deep Machine Learning
- Artificial Neural Network
- Voice Recognition
- Pattern Recognition
- Natural Language Processing
- Big Data Big Data Analytics
- Cellular Technology
- 5G Technology
- Cloud Technology
- Edge Computing
- High Performance Computing
- Internet of Things (IoT)
- Satellite Network
- Cellular Network
- Radio Frequency Identification
- Near Field Communication
- Wi Fi
- Quantum Computing
- Smart Robots
- Cloud (IoT) Platform
- Data Management & Analytics
- Cyber Security
- Remote Monitoring
- System Integration and Deployment
- Support and Maintenance
- Managed Services
- Smart Transportation
- Parking Management
- Ticketing & Travel Management
- Traffic Management
- Passenger Information Management System
- Freight Information System
- Other Smart Transportation Systems
- Smart Utilities
- Energy management
- Advanced Metering Infrastructure
- Smart Grid
- Water Management
- Distribution Management
- Other Smart Utilities
- Smart Governance
- E Governance Solutions
- Smart Public Safety
- Law Enforcement
- City Planning
- Other Governance Services
- Smart Home & Building
- Building Automation System
- Energy Management Systems
- Parking Management System
- Emergency Management System
- Other Smart Building System
- Smart Citizen Service
- Smart Education
- Smart Healthcare
- Emergency Response System
- Video Surveillance System
- Assisted Living Solution
- Other Citizen Services
- Smart Mobility
- Electric Vehicle Charging
- Tunnel Management
- Tolling Management
- Other Mobility Solutions
- Other Applications
On regional basis, the global Smart Cities market is segmented into North America, Europe, Asia Pacific, Middle East, Africa, and South America.
The North American region accounted for the largest market share of more than 30% in the global market owing to the well-developed ICT infrastructure and the presence of prominent technology vendors. Also, the presence of various international councils in the region is also anticipated to drive the market growth.
The Asia Pacific region holds the second largest market share as well as is expected to grow at the fastest growth rate owing to rising focus on the development of digital infrastructure and presence of fast-developing economies, such as India and China, where their governments are investing heavily to develop smart cities.
Key players operating in the global Smart Cities market include ABB Ltd., Accenture Plc., Alphabet Inc., AT&T, Cisco Systems Inc., Ericsson, Foxconn Electronics Inc., Fujitsu Ltd., General Electric Company, Hitachi, Honeywell, Huawei Technologies, IBM Corporation, INTEL Corporation, LG Electronics Inc., Microsoft Corp., Oracle Corp., Qualcomm Technologies Inc., Schneider Electric SE, Siemens AG, and Toshiba Corporation, among others.
The cumulative market share of the four major players is near about 43.5%. These market players are engaged in partnerships, new product launches, mergers & acquisitions to strengthen their market presence. For instance, in June 2021, Fujitsu collaborated with the industrial city of Kawasaki for developing a new smart city fabric using the latest connectivity, compute, and analytics solutions.
The global Smart Cities market report provides insights on the below pointers:
- Market Penetration: Provides comprehensive information on the market offered by the prominent players
- Market Development: The report offers detailed information about lucrative emerging markets and analyzes penetration across mature segments of the markets
- Market Diversification: Provides in-depth information about untapped geographies, recent developments, and investments
- Competitive Landscape Assessment: Mergers & acquisitions, certifications, product launches in the global Smart Cities market have been provided in this research report. In addition, the report also emphasizes the SWOT analysis of the leading players.
- Product Development & Innovation: The report provides intelligent insights on future technologies, R&D activities, and breakthrough product developments
The global Smart Cities market report answers questions such as:
- What is the market size and forecast of the Global Smart Cities Market?
- What are the inhibiting factors and impact of COVID-19 on the Global Smart Cities Market during the assessment period?
- Which are the products/segments/applications/areas to invest in over the assessment period in the Global Smart Cities Market?
- What is the competitive strategic window for opportunities in the Global Smart Cities Market?
- What are the technology trends and regulatory frameworks in the Global Smart Cities Market?
- What is the market share of the leading players in the Global Smart Cities Market?
- What modes and strategic moves are considered favorable for entering the Global Smart Cities Market?
1.1 Research Objective
1.2 Product Overview
1.3 Market Segmentation
Chapter 2. Research Methodology
2.1 Qualitative Research
2.2 Quantitative Research
2.3 Breakdown of Primary Research Respondents, By Region
2.4 Assumption for the Study
2.5 Market Size Estimation
2.6. Data Triangulation
Chapter 3. Executive Summary: Global Smart Cities Market
Chapter 4. Global Smart Cities Market Overview
4.1. Industry Value Chain Analysis
4.2. Industry Outlook
4.3. PESTLE Analysis
4.4. Porter's Five Forces Analysis
4.5. Market Dynamics and Trends
4.6. Market Definition
4.7. Covid-19 Impact Assessment on Market Growth Trend
4.8. Market Growth and Outlook
4.9. Competition Dashboard
Chapter 5. Global Smart Cities Market Analysis, By Technology
5.1. Key Insights
5.2. Market Size and Forecast, 2017 - 2027 (US$ Mn)
Chapter 6. Global Smart Cities Market Analysis, By Component
6.1. Key Insights
6.2. Market Size and Forecast, 2017 - 2027 (US$ Mn)
Chapter 7. Global Smart Cities Market Analysis, By Deployment
7.1. Key Insights
7.2. Market Size and Forecast, 2017 - 2027 (US$ Mn)
Chapter 8. Global Smart Cities Market Analysis, By Application
8.1. Key Insights
8.2. Market Size and Forecast, 2017 - 2027 (US$ Mn)
Chapter 9. Global Smart Cities Market Analysis, By Region/Country
9.1. Key Insights
9.2. Market Size and Forecast, 2017 - 2027 (US$ Mn)
Chapter 10. North America Smart Cities Market Analysis
10.1. Key Insights
10.2. Market Size and Forecast, 2017 - 2027 (US$ Mn)
Chapter 11. Europe Smart Cities Market Analysis
11.1. Key Insights
11.2. Market Size and Forecast, 2017 - 2027 (US$ Mn)
Chapter 12. Asia Pacific Smart Cities Market Analysis
12.1. Key Insights
12.2. Market Size and Forecast, 2017 - 2027 (US$ Mn)
Chapter 13. Middle East Smart Cities Market Analysis
13.1. Key Insights
13.2. Market Size and Forecast, 2017 - 2027 (US$ Mn)
Chapter 14. Africa Smart Cities Market Analysis
14.1. Key Insights
14.2. Market Size and Forecast, 2017 - 2027 (US$ Mn)
Chapter 15. South America Smart Cities Market Analysis
15.1. Key Insights
15.2. Market Size and Forecast, 2017 - 2027 (US$ Mn)
Chapter 16. Japan Smart Cities Market Analysis
16.1. Key Insights
16.2. Market Size and Forecast, 2017 - 2027 (US$ Mn)
Chapter 17. Company Profile (Company Overview, Financial Matrix, Key Product landscape, Key Personnel, Key Competitors, Contact Address, and Business Strategy Outlook)
17.1. ABB Ltd.
17.2. Accenture Plc
17.3. Alphabet Inc.
17.5. Cisco Systems Inc.
17.7. Foxconn Electronics Inc.
17.8. Fujitsu Ltd.
17.9. General Electric Company
17.12. Huawei Technologies
17.13. IBM Corporation
17.14. INTEL Corporation
17.15. LG Electronics Inc.
17.16. Microsoft Corp.
17.17. Oracle Corp.
17.18. Qualcomm Technologies Inc.
17.19. Schneider Electric SE
17.20. Siemens AG
17.21. Toshiba Corporation
A selection of companies mentioned in this report includes:
- ABB Ltd.
- Accenture Plc
- Alphabet Inc.
- Cisco Systems Inc.
- Foxconn Electronics Inc.
- Fujitsu Ltd.
- General Electric Company
- Huawei Technologies
- IBM Corporation
- INTEL Corporation
- LG Electronics Inc.
- Microsoft Corp.
- Oracle Corp.
- Qualcomm Technologies Inc.
- Schneider Electric SE
- Siemens AG
- Toshiba Corporation