Smart Cities Market Size, Market Share, Application Analysis, Regional Outlook, Growth Trends, Key Players, Competitive Strategies and Forecasts, 2021 To 2029

With the increasing rate of urbanization, globalization and ageing infrastructure, the cities are required to become more enhanced in terms of ICT infrastructure, technological up gradation, and so on. Smart cities technologies have been developed to address a range of issues such as public safety, street lighting, urban mobility, water management, and energy management. These solutions can be supported by general development in areas, including cloud computing, data analytics, sensor networks and wireless communications. Governments all around the world are thus, keeping constant focus to build smart cities to leverage the technological advancements for better infrastructure solutions. The global smart city market is expected to grow at a CAGR 14.5% during forecast period of 2021-2029.

Smart Building Infrastructure to Dominate In terms of Market Revenues

The global smart cities market has been segmented on the basis of various management systems under the smart city framework such as Smart Building and Infrastructure, Smart Energy Management, Smart Transportation, and so on. Smart building and infrastructure is the primary base for creating smart cities. The smart building & infrastructure market had the highest market share of 32.5% in 2020. However, the growing population has led the government to place major focus on issues such as increasing energy consumption, growing traffic, and various security issues. Thus, smart energy management and smart transportation management are estimated to be the fastest growing segments, recording a CAGR of 15% during forecast period. Governments are focusing on promoting sustainability, integrating sustainable development concepts into broader operations, and realizing cost efficiency and short-term and long-term benefits from sustainability initiatives. The increasing consumption of energy resources and the increasing carbon footprint is a major cause of environmental concerns. The governments are looking for a solution that will provide alternative sources of energy so as to fulfill the demand for growing population without damaging the environment. A solution to check the growing environmental issues is the need of the time.

Government Has the Key Role in Compelling Market Growth for Smart Cities

Smart cities acquire all the technological advancements with the concentration on major segments like transport, energy management, water management, waste management, and proper healthcare. Smart infrastructure refers to ICT-enabled infrastructure, which is easy to introduce and replace as compared to legacy infrastructure. Smart city technology market is a collection of software companies, hardware companies, electric companies, and some other specialized companies that collectively provide smart solutions to the cities. Almost 80% of the world’s GDP is generated from urban centers. Also, there is a significant shift of population from rural to urban areas. The governments need smarter solutions to leverage this growth in urban population. With smart cities solutions, the governments will focus on promoting sustainability, integrating sustainable development concepts into broader operations, and realizing cost efficiency and short-term and long-term benefits from sustainability initiatives.

Highest Level of Urbanization Drives the Revenues in North America

North America is a developed economy with more than 80% population living in urban areas. However, the ageing infrastructure is a major challenge before North America. Similarly, in Europe, changing weather conditions demand better infrastructure facilities. Moreover, Europe’s urban structure is not very concentrated: 23 cities are populated by more than one million citizens, 345 cities by more than 100,000, and only 7% of the European Union (EU) population lives in cities of over 5 million. Thus all these issues in North America and European region compel the governments to think for better infrastructure solutions. The smart building & infrastructure sector surpassed $17 billion investment in 2019 from $7 billion in 2015. Although all the three regions i.e., Asia Pacific, North America, and Western Europe will lead smart building spending due to a combination of policy and business dynamics, North America’s smart building spending will be led by corporations trying to increase their efficiency while European growth is spurred by the EU and government regulations.

Key Market Players

Along with IBM & CISCO, General Electric and Schneider Electric play major roles in energy and technology domains. They deal with energy management solutions like, smart traffic system utilities, LED traffic signals, and so on. In present world, the concentration is hugely on energy, transport, and traffic. Siemens is transforming the cities for the better through sustainable technology. It deals with integrated mobility, safety solutions, power distribution, and management, and provides many parallel solutions to all of them. Hitachi, Toshiba, and Panasonic deal with energy management solutions and provide hardware support along with software solutions with their collaborated companied - Accenture & Lving Plan IT. Toshiba deals with city energy management system, Panasonic deals with home energy management system and Hitachi deals with both city as well as home energy management solutions. 

Historical & Forecast Period

This research report presents the analysis of each segment from 2019 to 2029 considering 2020 as the base year for the research. Compounded annual growth rate (CAGR) for each respective segment are calculated for the forecast period from 2021 to 2029.

Report Methodology

Market revenues and CAGR were derived from primary and secondary research. Both quantitative and qualitative trends were considered for extrapolation of market revenues. The derived market estimates were further validated from top down, bottom strategies and primary research. The scope of the market is limited to the following segments of product categories and region.

Segmentation

 By Management Systems (2019-2029; US$ Bn)

• Smart building & infrastructure
  • Energy
  • Water management
  • Lighting
  • HVAC
  • Security
  • Elevator
  • Others
  
  
• Smart energy management
• Smart transportation management system
  • RFID in Transportation System
  • Traffic management
  • Passenger Information System
  • Ticketing System
  • Parking Management System
  
  
• Smart healthcare system
• Smart water management
• Security and Safety solutions

 Region Type Segment (2019-2029; US$ Mn)

• North America
• Europe
• Asia Pacific
• Latin America
• Africa

Global Impact of Covid-19 Segment (2020-2021; US$ Mn)

• Pre Covid-19 situation
• Post Covid-19 situation

Key questions answered in this report

• What are the key market segments in current scenario and in the future by product categories?
• What are the key market segments in current scenario and in the future by regions?
• What is the key impact of Covid-19 over market revenues and market determinants in the sulphur recovery technology market?
• What are the primary and secondary macro and micro factors influencing the market growth currently and during the forecast period?
• What are the primary and secondary macro and micro factors deterring the market growth currently and during the forecast period?
• How to overcome the current market challenges and leverage the opportunities in each of the market segment?
• Who are the key players in the smart cities market and what are their key product categories and strategies?
• What are the key strategies – mergers/acquisitions/R&D/strategic partnerships etc that companies are deploying to enhance market revenues and growth?