This report describes and explains the smart cities market and covers 2019-2024, termed the historic period, and 2024-2029, 2034F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.
The global smart cities market reached a value of nearly $792.02 billion in 2024, having grown at a compound annual growth rate (CAGR) of 11.41% since 2019. The market is expected to grow from $792.02 billion in 2024 to $1.88 trillion in 2029 at a rate of 18.89%. The market is then expected to grow at a CAGR of 18.61% from 2029 and reach $4.41 trillion in 2034.
Growth in the historic period resulted from the expansion of IoT and smart devices, increasing traffic congestion and mobility challenges, adoption of 5G technology and rising investments in infrastructure development. Factors that negatively affected growth in the historic period were cybersecurity vulnerabilities and high capital and implementation cost.
Going forward, increasing demand for smart homes, growing environmental regulations, rising demand for energy efficiency and smart grid and rising demand for sustainable and green buildings will drive growth. Factors that could hinder the growth of the smart cities market in the future include trade war and tariffs, regulatory and legal uncertainties and socio-political and ethical constraints.
The smart cities market is segmented by component into solutions and services. The solutions market was the largest segment of the smart cities market segmented by component, accounting for 75.11% or $594.91 billion of the total in 2024. Going forward, the services segment is expected to be the fastest growing segment in the smart cities market segmented by component, at a CAGR of 23.66% during 2024-2029.
The smart cities market is segmented by application into smart governance, smart building, smart utilities, smart transportation, smart healthcare and other applications. The smart transportation market was the largest segment of the smart cities market segmented by application, accounting for 28.29% or $224.04 billion of the total in 2024. Going forward, the smart transportation segment is expected to be the fastest growing segment in the smart cities market segmented by application, at a CAGR of 21.59% during 2024-2029.
Asia-Pacific was the largest region in the smart cities market, accounting for 46.32% or $366.88 billion of the total in 2024. It was followed by North America, Western Europe and then the other regions. Going forward, the fastest-growing regions in the smart cities market will be Asia-Pacific and Eastern Europe where growth will be at CAGRs of 22.36% and 19.40% respectively. These will be followed by Africa and South America where the markets are expected to grow at CAGRs of 19.19% and 15.69% respectively.
The global smart cities market is fragmented, with a large number of small players operating in the market. The top 10 competitors in the market made up 9.48% of the total market in 2024. Cisco Systems Inc. was the largest competitor with a 2.58% share of the market, followed by Siemens AG with 2.34%, Honeywell International Inc. with 0.74%, Microsoft Corporation with 0.67%, Schneider Electric SE, with 0.64%, Hitachi Ltd. with 0.63%, NEC Corporation with 0.62%, ABB Ltd. with 0.49%, Huawei Technologies Co Ltd. with 0.39% and International Business Machines (IBM) Corporation with 0.38%.
The top opportunities in the smart cities markets segmented by component will arise in the solutions segment, which will gain $716.33 billion of global annual sales by 2029. The top opportunities in the smart cities markets segmented by application will arise in the smart transportation segment, which will gain $371.43 billion of global annual sales by 2029. The smart cities market size will gain the most in China at $292.86 billion.
Market-trend-based strategies for the smart cities market include smart cities advancing with real-time location tracking, transforming urban infrastructure with multi-functional smart lighting systems, smart cities fostering smart urban ecosystems through public-private partnerships and scaling integrated traffic management via AI-cloud collaborations.
Player-adopted strategies in the smart cities market include focus on expanding its business capabilities through strategic investment to expand its operational capabilities.
To take advantage of the opportunities, the analyst recommends the smart cities market companies to focus on innovative service development to enhance urban efficiency, focus on integrated smart lighting to strengthen urban infrastructure, focus on AI-driven traffic management to enhance urban mobility, focus on services to capture the fastest growing segment in smart cities, focus on smart transportation to maximize growth opportunities, expand in emerging markets, continue to focus on developed markets, focus on public-private partnerships to accelerate smart urban growth, focus on value-based pricing to capture growth in smart cities, focus on integrated awareness campaigns, focus on targeted stakeholder engagement and focus on building end-user engagement in transportation and mobility.
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The global smart cities market reached a value of nearly $792.02 billion in 2024, having grown at a compound annual growth rate (CAGR) of 11.41% since 2019. The market is expected to grow from $792.02 billion in 2024 to $1.88 trillion in 2029 at a rate of 18.89%. The market is then expected to grow at a CAGR of 18.61% from 2029 and reach $4.41 trillion in 2034.
Growth in the historic period resulted from the expansion of IoT and smart devices, increasing traffic congestion and mobility challenges, adoption of 5G technology and rising investments in infrastructure development. Factors that negatively affected growth in the historic period were cybersecurity vulnerabilities and high capital and implementation cost.
Going forward, increasing demand for smart homes, growing environmental regulations, rising demand for energy efficiency and smart grid and rising demand for sustainable and green buildings will drive growth. Factors that could hinder the growth of the smart cities market in the future include trade war and tariffs, regulatory and legal uncertainties and socio-political and ethical constraints.
The smart cities market is segmented by component into solutions and services. The solutions market was the largest segment of the smart cities market segmented by component, accounting for 75.11% or $594.91 billion of the total in 2024. Going forward, the services segment is expected to be the fastest growing segment in the smart cities market segmented by component, at a CAGR of 23.66% during 2024-2029.
The smart cities market is segmented by application into smart governance, smart building, smart utilities, smart transportation, smart healthcare and other applications. The smart transportation market was the largest segment of the smart cities market segmented by application, accounting for 28.29% or $224.04 billion of the total in 2024. Going forward, the smart transportation segment is expected to be the fastest growing segment in the smart cities market segmented by application, at a CAGR of 21.59% during 2024-2029.
Asia-Pacific was the largest region in the smart cities market, accounting for 46.32% or $366.88 billion of the total in 2024. It was followed by North America, Western Europe and then the other regions. Going forward, the fastest-growing regions in the smart cities market will be Asia-Pacific and Eastern Europe where growth will be at CAGRs of 22.36% and 19.40% respectively. These will be followed by Africa and South America where the markets are expected to grow at CAGRs of 19.19% and 15.69% respectively.
The global smart cities market is fragmented, with a large number of small players operating in the market. The top 10 competitors in the market made up 9.48% of the total market in 2024. Cisco Systems Inc. was the largest competitor with a 2.58% share of the market, followed by Siemens AG with 2.34%, Honeywell International Inc. with 0.74%, Microsoft Corporation with 0.67%, Schneider Electric SE, with 0.64%, Hitachi Ltd. with 0.63%, NEC Corporation with 0.62%, ABB Ltd. with 0.49%, Huawei Technologies Co Ltd. with 0.39% and International Business Machines (IBM) Corporation with 0.38%.
The top opportunities in the smart cities markets segmented by component will arise in the solutions segment, which will gain $716.33 billion of global annual sales by 2029. The top opportunities in the smart cities markets segmented by application will arise in the smart transportation segment, which will gain $371.43 billion of global annual sales by 2029. The smart cities market size will gain the most in China at $292.86 billion.
Market-trend-based strategies for the smart cities market include smart cities advancing with real-time location tracking, transforming urban infrastructure with multi-functional smart lighting systems, smart cities fostering smart urban ecosystems through public-private partnerships and scaling integrated traffic management via AI-cloud collaborations.
Player-adopted strategies in the smart cities market include focus on expanding its business capabilities through strategic investment to expand its operational capabilities.
To take advantage of the opportunities, the analyst recommends the smart cities market companies to focus on innovative service development to enhance urban efficiency, focus on integrated smart lighting to strengthen urban infrastructure, focus on AI-driven traffic management to enhance urban mobility, focus on services to capture the fastest growing segment in smart cities, focus on smart transportation to maximize growth opportunities, expand in emerging markets, continue to focus on developed markets, focus on public-private partnerships to accelerate smart urban growth, focus on value-based pricing to capture growth in smart cities, focus on integrated awareness campaigns, focus on targeted stakeholder engagement and focus on building end-user engagement in transportation and mobility.
This product will be delivered within 3-5 business days.
Table of Contents
1 Executive Summary
6 Market Characteristics
7 Major Market Trends
8 Global Smart Cities Growth Analysis And Strategic Analysis Framework
9 Global Smart Cities Market Segmentation
10 Smart Cities Market, Regional and Country Analysis
11 Asia-Pacific Market
12 Western Europe Market
13 Eastern Europe Market
14 North America Market
15 South America Market
16 Middle East Market
17 Africa Market
18 Competitive Landscape And Company Profiles
19 Other Major And Innovative Companies
22 Key Mergers And Acquisitions
23 Recent Developments In The Smart Cities Market
24 Opportunities And Strategies
25 Smart Cities Market, Conclusions And Recommendations
26 Appendix
Executive Summary
Smart Cities Global Market Opportunities And Strategies To 2034 provides the strategists; marketers and senior management with the critical information they need to assess the global smart cities market as it emerges from the COVID-19 shut down.Reasons to Purchase:
- Gain a truly global perspective with the most comprehensive report available on this market covering 15 geographies.
- Understand how the market is being affected by the coronavirus and how it is likely to emerge and grow as the impact of the virus abates.
- Create regional and country strategies on the basis of local data and analysis.
- Identify growth segments for investment.
- Outperform competitors using forecast data and the drivers and trends shaping the market.
- Understand customers based on the latest market research findings.
- Benchmark performance against key competitors.
- Utilize the relationships between key data sets for superior strategizing.
- Suitable for supporting your internal and external presentations with reliable high-quality data and analysis.
Description
Where is the largest and fastest-growing market for smart cities? How does the market relate to the overall economy; demography and other similar markets? What forces will shape the market going forward? The generative smart cities market global report answers all these questions and many more.The report covers market characteristics; size and growth; segmentation; regional and country breakdowns; competitive landscape; market shares; trends and strategies for this market. It traces the market’s history and forecasts market growth by geography. It places the market within the context of the wider smart cities market; and compares it with other markets.
The report covers the following chapters
- Introduction And Market Characteristics - Brief introduction to the segmentations covered in the market, definitions and explanations about the segment by component and by application.
- Key Trends - Highlights the major trends shaping the global market. This section also highlights likely future developments in the market.
- Growth Analysis And Strategic Analysis Framework - Analysis on PESTEL, end use industries, market growth rate, global historic (2019-2024) and forecast (2024-2029, 2034F) market values and drivers and restraints that support and control the growth of the market in the historic and forecast periods, forecast growth contributors and total addressable market (TAM).
- Global Market Size And Growth - Global historic (2019-2024) and forecast (2024-2029, 2034F) market values and drivers and restraints that support and control the growth of the market in the historic and forecast periods.
- Regional And Country Analysis - Historic (2019-2024) and forecast (2024-2029, 2034F) market values and growth and market share comparison by region and country.
- Market Segmentation - Contains the market values (2019-2024) (2024-2029, 2034F) and analysis for each segment by component and by application in the market. Historic (2019-2024) and forecast (2024-2029) and (2029-2034) market values and growth and market share comparison by region market.
- Regional Market Size And Growth - Regional market size (2024), historic (2019-2024) and forecast (2024-2029, 2034F) market values and growth and market share comparison of countries within the region. This report includes information on all the regions Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa and major countries within each region.
- Competitive Landscape - Details on the competitive landscape of the market, estimated market shares and company profiles of the leading players.
- Other Major And Innovative Companies - Details on the company profiles of other major and innovative companies in the market.
- Competitive Benchmarking - Briefs on the financials comparison between major players in the market.
- Competitive Dashboard - Briefs on competitive dashboard of major players.
- Key Mergers And Acquisitions - Information on recent mergers and acquisitions in the market covered in the report. This section gives key financial details of mergers and acquisitions, which have shaped the market in recent years.
- Recent Developments - Information on recent developments in the market covered in the report.
- Market Opportunities And Strategies - Describes market opportunities and strategies based on findings of the research, with information on growth opportunities across countries, segments and strategies to be followed in those markets.
- Conclusions And Recommendations This section includes recommendations for smart cities providers in terms of product/service offerings geographic expansion, marketing strategies and target groups.
- Appendix - This section includes details on the NAICS codes covered, abbreviations and currencies codes used in this report.
Markets Covered:
1) By Component: Solutions; Services2) By Application: Smart Governance; Smart Building; Smart Utilities; Smart Transportation; Smart Healthcare; Other Applications
Companies Mentioned:Cisco Systems Inc; Siemens AG; Honeywell International Inc; Microsoft Corporation; Schneider Electric SE.
Countries: China; Australia; India; Indonesia; Japan; South Korea; USA; Canada; Brazil; France; Germany; UK; Italy; Spain; Russia
Regions:Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
Time Series: Five years historic and ten years forecast.
Data: Ratios of market size and growth to related markets; GDP proportions; expenditure per capita; smart cities indicators comparison.
Data Segmentation: Country and regional historic and forecast data; market share of competitors; market segments.
Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
Companies Mentioned
- Cisco Systems Inc
- Siemens AG
- Honeywell International Inc
- Microsoft Corporation
- Schneider Electric SE
- Hitachi Ltd.
- NEC Corporation
- ABB Ltd.
- Huawei Technologies Co Ltd.
- International Business Machines (IBM) Corporation
- Fujitsu Limited
- Govee
- Telkom
- PT Solusi Tunas Pratama Tbk. (STP)
- PT Len Industri (Persero)
- PT Sisindokom Lintasbuana
- Qualcomm Technologies
- SB Technology (SBT)
- Cybertrust Japan Co., Ltd.
- ZTE
- Inspur
- CRRC
- SenseTime
- Yitu Technology
- Dahua Technology
- Hikvision
- SuperMap
- Tuya Inc.
- WeRide
- Sentient KK
- Intel Corporation
- ABB Group
- Nokia Corporation
- Accenture
- Capgemini
- Dell Technologies
- Infosys Limited
- Ecube Labs
- Seoul Robotics
- Neubility
- Deep In Sight Co., Ltd.
- SAP SE
- Koninklijke Philips N.V.
- Infineon Technologies AG
- General Electric Company
- AT&T Inc.
- Emerson Electric Co.
- NXP Semiconductors N.V.
- Atsukè
- Giesecke+Devrient GmbH
- HID Global Corporation
- Scheidt & Bachmann GmbH
- Robert Bosch GmbH
- Oracle Corporation
- Patrizia
- Telefónica, S.A.
- Yunex GmbH
- BT Group plc
- Milestone Systems
- Urbana Smart Solutions SRL
- Actility
- GoodVision
- Rekola
- ECOTEN
- Sensority, s.r.o.
- DataFromSky
- Glovo
- Mycroft Mind, a.s.
- InnoConnect s.r.o.
- SENSORTEC s.r.o.
- ParkingDetection.com
- CITIQ s.r.o.
- Cities Ai
- AI4Cities
- Telensa
- ENIS Solutions
- AiVA Vision
- NTechLab
- Rostec
- Sitronics Group
- 2GIS
- Verizon
- Ericsson
- Kapsch Group
- Nice Systems
- Airobotics
- Verint Systems
- Mobily
- Nemo
- DataVolt
- Turkcell
- Turk Telecom
- Etisalat Group
- du Telecommunications
- Orange
- Rabbit Mobility
- Dimension Data (an NTT company)
- EOH Holdings
