Smart Cities Global Market Report 2024

The smart cities market size has grown exponentially in recent years. It will grow from $667.51 billion in 2023 to $808.46 billion in 2024 at a compound annual growth rate (CAGR) of 21.1%. The expansion in the historical period can be ascribed to swift urbanization, concerns about environmental sustainability, issues related to traffic congestion and mobility, considerations for energy efficiency and resource management, and government initiatives and funding.

The smart cities market size is expected to see rapid growth in the next few years. It will grow to $1652.36 billion in 2028 at a compound annual growth rate (CAGR) of 19.6%. The expansion in the projected timeframe can be linked to the integration of 5G networks, an emphasis on health and safety, resilience, and disaster preparedness, as well as citizen engagement and inclusivity. Key trends anticipated in the forecast period encompass citizen engagement platforms, the adoption of edge computing for real-time processing, smart building automation, public safety and emergency response systems, and the use of digital twin technology for city modeling.

The global growth of smart cities is anticipated due to the rising urbanization trend. Urbanization involves the movement of the population from rural to urban areas, leading to increased human population densities in urban settings. A smart city utilizes electronic technologies, voice activation methods, and sensors to gather information and enhance urban area management and citizens' quality of life. According to the United Nations Department of Economic and Social Affairs, it is projected that 68% of the world's population, approximately 2.5 billion people, will live in urban areas by 2050. Hence, the escalating urbanization worldwide is a key driver for the growth of the decorative coatings market.

The expected growth of the smart cities market is propelled by the increasing traffic congestion globally. Traffic congestion occurs when road capacity is surpassed, resulting in slower speeds and longer trip times. Smart cities address this issue by implementing technologies such as smart parking systems, promoting public transportation, and enhancing road safety. According to gov.UK, motor vehicle traffic on British roadways rose by 8.8% between 2021 and 2022, reaching 323.8 billion vehicle miles. The escalating traffic congestion is driving the growth of the smart cities market.

Technological advancements are driving trends in the smart cities market, with major companies emphasizing innovative technologies to modernize urban transit infrastructure. Yunex Traffic, part of Siemens Mobility, launched Yutraffic Studio in December 2023. This cloud-based advanced traffic management system offers planning, monitoring, and optimization tools to handle traffic challenges swiftly and efficiently. It can handle current transportation management issues and adapt to future changes in traffic demands, utilizing massive volumes of data from various sources, including linked cars.

Major companies are forming partnerships to develop new products and strengthen their market positions. Collaborations and partnerships foster innovation, leverage complementary expertise, and accelerate the development and commercialization of advanced solutions. In May 2021, Itron Inc., a US-based technology company, partnered with Microsoft Corporation to offer cloud-based meter data management (MDM) services. This collaboration aims to create solutions addressing challenges such as carbon reporting, energy transition, and distribution automation for utility companies and smart cities.

In July 2021, Signify, a Netherlands-based lighting company, acquired Telensa for an undisclosed sum. This acquisition positions Signify to serve a broader clientele, making smart city infrastructure more accessible to cities utilizing the unlicensed radio spectrum. Telensa, based in the UK, specializes in providing smart city solutions.

Major companies operating in the smart cities market report are Microsoft Corporation, AT&T Inc., Huawei Technologies Co. Ltd., Hitachi Ltd., Siemens AG, General Electric Company, Siemens Mobility GmbH, Accenture PLC, Intel Corporation, International Business Machines Corporation, Cisco Systems Inc., Schneider Electric SE, Honeywell International Inc., ABB Ltd., Nokia Corporation, Telefonaktiebolaget LM Ericsson, Koninklijke Philips N.V., Infineon Technologies AG, Emerson Electric Co., NXP Semiconductors N.V., Atsuke, Xerox Holdings Corporation, Giesecke+Devrient GmbH, Cubic Corporation, HID Global Corporation, CPI Card Group Inc., Scheidt & Bachmann GmbH, Vix Technology Ltd., Verimatrix Inc., Confidex Ltd., Robert Bosch GmbH, Capgemini SE, Cognizant Technology Solutions Corporation, Dell Technologies Inc., Fujitsu Limited, HP Inc., Infosys Limited, NEC Corporation, Oracle Corporation, SAP SE.

North America was the largest region in the smart cities market in 2023. The regions covered in the smart cities market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the smart cities market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary components in smart cities consist of solutions and services. Solutions refer to smart implementations such as smart parking, utilities, metering, healthcare, buildings, and governance. These solutions play a role in accelerating citizen growth across residential, commercial, and industrial sectors. Various types include residential, commercial, and industrial, with applications spanning smart governance, building, utilities, transportation, healthcare, and more.

The smart cities market research report is one of a series of new reports that provides smart cities market statistics, including smart cities industry global market size, regional shares, competitors with a smart cities market share, detailed smart cities market segments, market trends and opportunities, and any further data you may need to thrive in the smart cities industry. This smart cities market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The smart cities market includes revenues earned by entities by providing solutions and services that automate the processes of energy management, street light monitoring, temperature monitoring, parking management, water resource management, smart metering solutions, and unified command & control platform to improve and optimize the operational efficiency of any city and making critical infrastructure elements such as energy, lighting, water work in a smart manner. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.