This report describes and explains the smart city ICT infrastructure market and covers 2020-2025, termed the historic period, and 2025-2030, 2035F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.
The global smart city ICT infrastructure market reached a value of nearly $2.01 trillion in 2025, having grown at a compound annual growth rate (CAGR) of 18.1% since 2020. The market is expected to grow from $2.01 trillion in 2025 to $4.15 trillion in 2030 at a rate of 15.1%. The market is then expected to grow at a CAGR of 13.9% from 2030 and reach $7.94 trillion in 2035.
Growth in the historic period resulted from rise in deployment of 5G networks, expansion of smart city initiatives, expansion of intelligent transportation systems (ITS) and smart mobility solutions and government investment and support towards ICT infra development. Factors that negatively affected growth in the historic period were cybersecurity vulnerabilities and high capital and implementation cost.
Going forward, increasing adoption of IoT solutions, growing importance of smart security and surveillance systems, rising demand for energy efficiency and smart grid and demand for sustainability, carbon reduction, and climate-resilient cities will drive the growth. Factors that could hinder the growth of the smart city ICT infrastructure market in the future include interoperability and integration challenges, data privacy regulations and impact of trade war and tariffs.
The smart city ICT infrastructure market is segmented by type into smart grid, smart building, smart water network, smart healthcare, smart education, smart security, smart transport and other types. The smart grid market was the largest segment of the smart city ICT infrastructure market segmented by type, accounting for 22.8% or $460.6 billion of the total in 2025. Going forward, the smart water network segment is expected to be the fastest-growing segment in the smart city ICT infrastructure market segmented by type, at a CAGR of 21.6% during 2025-2030.
The smart city ICT infrastructure market is segmented by components into hardware, software and services. The hardware market was the largest segment of the smart city ICT infrastructure market segmented by components, accounting for 42.2% or $851.6 billion of the total in 2025. Going forward, the software segment is expected to be the fastest-growing segment in the smart city ICT infrastructure market segmented by components, at a CAGR of 17.1% during 2025-2030.
The smart city ICT infrastructure market is segmented by deployment type into on-premises, cloud-based and hybrid solutions. The cloud-based market was the largest segment of the smart city ICT infrastructure market segmented by deployment type, accounting for 43.9% or $885.6 billion of the total in 2025. Going forward, the hybrid solutions segment is expected to be the fastest-growing segment in the smart city ICT infrastructure market segmented by deployment type, at a CAGR of 19% during 2025-2030.
The smart city ICT infrastructure market is segmented by technology into internet of things, artificial intelligence, big data analytics, cloud computing and other technologies. The internet of things market was the largest segment of the smart city ICT infrastructure market segmented by technology, accounting for 35% or $705.9 billion of the total in 2025. Going forward, the artificial intelligence segment is expected to be the fastest-growing segment in the smart city ICT infrastructure market segmented by technology, at a CAGR of 18.2% during 2025-2030.
The smart city ICT infrastructure market is segmented by application into communications industry, transportation industry, express industry, government, education and other applications. The communications industry market was the largest segment of the smart city ICT infrastructure market segmented by application, accounting for 28.2% or $570.1 billion of the total in 2025. Going forward, the transportation industry segment is expected to be the fastest-growing segment in the smart city ICT infrastructure market segmented by application, at a CAGR of 17.4% during 2025-2030.
North America was the largest region in the smart city ICT infrastructure market, accounting for 33% or $666.9 billion of the total in 2025. It was followed by Asia Pacific, Western Europe and then the other regions. Going forward, the fastest-growing regions in the smart city ICT infrastructure market will be Asia Pacific and Middle East where growth will be at CAGRs of 19.8% and 16.5% respectively. These will be followed by South America and North America where the markets are expected to grow at CAGRs of 14.2% and 13.9% respectively.
The global smart city ICT infrastructure market is highly fragmented, with large number of small players operating in the market. The top 10 competitors in the market made up 3.15% of the total market in 2024. Cisco Systems Inc. was the largest competitor with a 0.66% share of the market, followed by Siemens AG with 0.54%, Huawei Technologies Co. Ltd. with 0.45%, Microsoft Corporation with 0.37%, International Business Machines Corporation (IBM) with 0.25%, Verizon Communications with 0.24%, AT&T Inc. with 0.22%, Vodafone Group Plc. with 0.18%, Telefonaktiebolaget LM Ericsson with 0.17% and Nokia Corp. with 0.07%.
The top opportunities in the smart city ICT infrastructure market segmented by type will arise in the smart grid segment, which will gain $426.3 billion of global annual sales by 2030. The top opportunities in the smart city ICT infrastructure market segmented by components will arise in the hardware segment, which will gain $826.3 billion of global annual sales by 2030. The top opportunities in the smart city ICT infrastructure market segmented by deployment type will arise in the cloud-based segment, which will gain $1.05 trillion of global annual sales by 2030. The top opportunities in the smart city ICT infrastructure market segmented by technology will arise in the internet of things segment, which will gain $740.5 billion of global annual sales by 2030. The top opportunities in the smart city ICT infrastructure market segmented by application will arise in the communications industry segment, which will gain $659.9 billion of global annual sales by 2030. The smart city ICT infrastructure market size will gain the most in the USA at $545.1 billion.
Market-trend-based strategies for the smart city ICT infrastructure market include focus on partnerships to deploy artificial intelligence (AI) (artificial intelligence)-driven urban intelligence platforms, launches and partnerships that accelerate the deployment of autonomous systems and smart mobility solutions, launching and partnering to build digitally integrated urban health monitoring and connected care platforms, launching and partnering on cloud-based smart education platforms and connected campus initiatives, launching and deploying cloud-connected building management systems that integrate AI and advanced analytics to enable intelligent control, collaborations and launching initiatives that integrate sustainability, climate technology and circular economy principles, partnerships and platform deployments to accelerate the adoption of AI-enabled smart grid management solutions and partnerships and large-scale IoT deployments to accelerate smart water monitoring systems.
Player-adopted strategies in the smart city ICT infrastructure market include focus on enhancing business expertise through new launches, focus on expanding business capabilities through strategic investments and focus on expanding operational capabilities through strategic collaborations.
To take advantage of the opportunities, the analyst recommends the smart city ICT infrastructure companies to focus on building partnerships for AI-driven urban intelligence platforms, focus on advancing autonomous and connected urban mobility solutions, focus on scaling digitally integrated urban health platforms, focus on expanding cloud-based smart education infrastructure, focus on deploying cloud-connected building management systems, focus on advancing sustainability-driven urban infrastructure initiatives, focus on scaling AI-enabled smart grid management platforms, focus on expanding smart water network infrastructure, focus on expanding software-led smart city platforms, focus on expanding cloud-based smart city infrastructure, expand in emerging markets, continue to focus on developed markets, focus on expanding multi channel distribution networks, provide competitively priced offerings, focus on flexible and value based pricing models, focus on targeted government and enterprise engagement, focus on digital channels and thought leadership positioning and focus on transportation industry for high growth opportunities.
This product will be delivered within 3-5 business days.
The global smart city ICT infrastructure market reached a value of nearly $2.01 trillion in 2025, having grown at a compound annual growth rate (CAGR) of 18.1% since 2020. The market is expected to grow from $2.01 trillion in 2025 to $4.15 trillion in 2030 at a rate of 15.1%. The market is then expected to grow at a CAGR of 13.9% from 2030 and reach $7.94 trillion in 2035.
Growth in the historic period resulted from rise in deployment of 5G networks, expansion of smart city initiatives, expansion of intelligent transportation systems (ITS) and smart mobility solutions and government investment and support towards ICT infra development. Factors that negatively affected growth in the historic period were cybersecurity vulnerabilities and high capital and implementation cost.
Going forward, increasing adoption of IoT solutions, growing importance of smart security and surveillance systems, rising demand for energy efficiency and smart grid and demand for sustainability, carbon reduction, and climate-resilient cities will drive the growth. Factors that could hinder the growth of the smart city ICT infrastructure market in the future include interoperability and integration challenges, data privacy regulations and impact of trade war and tariffs.
The smart city ICT infrastructure market is segmented by type into smart grid, smart building, smart water network, smart healthcare, smart education, smart security, smart transport and other types. The smart grid market was the largest segment of the smart city ICT infrastructure market segmented by type, accounting for 22.8% or $460.6 billion of the total in 2025. Going forward, the smart water network segment is expected to be the fastest-growing segment in the smart city ICT infrastructure market segmented by type, at a CAGR of 21.6% during 2025-2030.
The smart city ICT infrastructure market is segmented by components into hardware, software and services. The hardware market was the largest segment of the smart city ICT infrastructure market segmented by components, accounting for 42.2% or $851.6 billion of the total in 2025. Going forward, the software segment is expected to be the fastest-growing segment in the smart city ICT infrastructure market segmented by components, at a CAGR of 17.1% during 2025-2030.
The smart city ICT infrastructure market is segmented by deployment type into on-premises, cloud-based and hybrid solutions. The cloud-based market was the largest segment of the smart city ICT infrastructure market segmented by deployment type, accounting for 43.9% or $885.6 billion of the total in 2025. Going forward, the hybrid solutions segment is expected to be the fastest-growing segment in the smart city ICT infrastructure market segmented by deployment type, at a CAGR of 19% during 2025-2030.
The smart city ICT infrastructure market is segmented by technology into internet of things, artificial intelligence, big data analytics, cloud computing and other technologies. The internet of things market was the largest segment of the smart city ICT infrastructure market segmented by technology, accounting for 35% or $705.9 billion of the total in 2025. Going forward, the artificial intelligence segment is expected to be the fastest-growing segment in the smart city ICT infrastructure market segmented by technology, at a CAGR of 18.2% during 2025-2030.
The smart city ICT infrastructure market is segmented by application into communications industry, transportation industry, express industry, government, education and other applications. The communications industry market was the largest segment of the smart city ICT infrastructure market segmented by application, accounting for 28.2% or $570.1 billion of the total in 2025. Going forward, the transportation industry segment is expected to be the fastest-growing segment in the smart city ICT infrastructure market segmented by application, at a CAGR of 17.4% during 2025-2030.
North America was the largest region in the smart city ICT infrastructure market, accounting for 33% or $666.9 billion of the total in 2025. It was followed by Asia Pacific, Western Europe and then the other regions. Going forward, the fastest-growing regions in the smart city ICT infrastructure market will be Asia Pacific and Middle East where growth will be at CAGRs of 19.8% and 16.5% respectively. These will be followed by South America and North America where the markets are expected to grow at CAGRs of 14.2% and 13.9% respectively.
The global smart city ICT infrastructure market is highly fragmented, with large number of small players operating in the market. The top 10 competitors in the market made up 3.15% of the total market in 2024. Cisco Systems Inc. was the largest competitor with a 0.66% share of the market, followed by Siemens AG with 0.54%, Huawei Technologies Co. Ltd. with 0.45%, Microsoft Corporation with 0.37%, International Business Machines Corporation (IBM) with 0.25%, Verizon Communications with 0.24%, AT&T Inc. with 0.22%, Vodafone Group Plc. with 0.18%, Telefonaktiebolaget LM Ericsson with 0.17% and Nokia Corp. with 0.07%.
The top opportunities in the smart city ICT infrastructure market segmented by type will arise in the smart grid segment, which will gain $426.3 billion of global annual sales by 2030. The top opportunities in the smart city ICT infrastructure market segmented by components will arise in the hardware segment, which will gain $826.3 billion of global annual sales by 2030. The top opportunities in the smart city ICT infrastructure market segmented by deployment type will arise in the cloud-based segment, which will gain $1.05 trillion of global annual sales by 2030. The top opportunities in the smart city ICT infrastructure market segmented by technology will arise in the internet of things segment, which will gain $740.5 billion of global annual sales by 2030. The top opportunities in the smart city ICT infrastructure market segmented by application will arise in the communications industry segment, which will gain $659.9 billion of global annual sales by 2030. The smart city ICT infrastructure market size will gain the most in the USA at $545.1 billion.
Market-trend-based strategies for the smart city ICT infrastructure market include focus on partnerships to deploy artificial intelligence (AI) (artificial intelligence)-driven urban intelligence platforms, launches and partnerships that accelerate the deployment of autonomous systems and smart mobility solutions, launching and partnering to build digitally integrated urban health monitoring and connected care platforms, launching and partnering on cloud-based smart education platforms and connected campus initiatives, launching and deploying cloud-connected building management systems that integrate AI and advanced analytics to enable intelligent control, collaborations and launching initiatives that integrate sustainability, climate technology and circular economy principles, partnerships and platform deployments to accelerate the adoption of AI-enabled smart grid management solutions and partnerships and large-scale IoT deployments to accelerate smart water monitoring systems.
Player-adopted strategies in the smart city ICT infrastructure market include focus on enhancing business expertise through new launches, focus on expanding business capabilities through strategic investments and focus on expanding operational capabilities through strategic collaborations.
To take advantage of the opportunities, the analyst recommends the smart city ICT infrastructure companies to focus on building partnerships for AI-driven urban intelligence platforms, focus on advancing autonomous and connected urban mobility solutions, focus on scaling digitally integrated urban health platforms, focus on expanding cloud-based smart education infrastructure, focus on deploying cloud-connected building management systems, focus on advancing sustainability-driven urban infrastructure initiatives, focus on scaling AI-enabled smart grid management platforms, focus on expanding smart water network infrastructure, focus on expanding software-led smart city platforms, focus on expanding cloud-based smart city infrastructure, expand in emerging markets, continue to focus on developed markets, focus on expanding multi channel distribution networks, provide competitively priced offerings, focus on flexible and value based pricing models, focus on targeted government and enterprise engagement, focus on digital channels and thought leadership positioning and focus on transportation industry for high growth opportunities.
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 City ICT Infrastructure Growth Analysis and Strategic Analysis Framework
9 Global Smart City ICT Infrastructure Market Segmentation
10 Smart City ICT Infrastructure 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
24 Opportunities and Strategies
25 Smart City ICT Infrastructure Market, Conclusions and Recommendations
26 Appendix
Executive Summary
Smart City ICT Infrastructure Global Market Opportunities and Strategies to 2035 provides the strategists; marketers and senior management with the critical information they need to assess the global smart city ICT infrastructure 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 city ICT infrastructure? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The smart city ICT infrastructure 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 city ICT infrastructure 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 type, by component, by deployment type, by technology 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 (2020-2025) and forecast (2025-2030, 2035F) 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).
- Regional and Country Analysis Historic (2020-2025) and forecast (2025-2030, 2035F) market values and growth and market share comparison by region and country.
- Market Segmentation Contains the market values (2020-2025) (2025-2030, 2035F) and analysis for each segment by type, by component, by deployment type, by technology and by application in the market. Historic (2020-2025) and forecast (2025-2030) and (2020-2035) market values and growth and market share comparison by region market.
- Regional Market Size and Growth Regional market size (2025), historic (2020-2025) and forecast (2025-2030, 2035F) 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 city ICT infrastructure 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
1) By Type: Smart Grid; Smart Building; Smart Water Network; Smart Healthcare; Smart Education; Smart Security; Smart Transport; Other Types
2) By Components: Hardware; Software; Services
3) By Deployment Type: On-Premises; Cloud-Based; Hybrid Solutions
4) By Technology: Internet Of Things; Artificial Intelligence; Big Data Analytics; Cloud Computing; Other Technologies
5) By Application: Communications Industry; Transportation Industry; Express Industry; Government; Education; Other Applications
Companies Mentioned: Cisco Systems Inc.; Siemens AG; Huawei Technologies Co. Ltd.; Microsoft Corporation; International Business Machines Corporation (IBM)
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 city ICT infrastructure indicators comparison.
Data segmentations: 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
- Huawei Technologies Co. Ltd.
- Microsoft Corporation
- International Business Machines Corporation (IBM)
- Verizon Communications
- AT&T Inc.
- Vodafone Group Plc.
- Telefonaktiebolaget LM Ericsson
- Nokia Corp.
- Reliance Industries Limited (RIL)
- Alibaba Group Holding
- Baidu, Inc.
- China Mobile
- Indosat
- Wipro Limited
- NTT Data
- Naver Corporation
- Tencent
- iFlytek
- SenseTime
- Megvii
- CloudWalk Technology
- Cambricon Technologies
- DeepBlue Technology
- SK Telecom
- Chunghwa Telecom Co., Ltd.
- Advantech Co., Ltd.
- Moxa Technologies, Inc.
- AAEON Technology Inc.
- Ubiik Corp.
- FarEasTone Telecommunications Co., Ltd.
- Ericsson (Telefonaktiebolaget LM Ericsson)
- Singapore Technologies Engineering Ltd (ST Engineering)
- NCS Pte. Ltd. (Singtel Group)
- PT Telkom Indonesia (Persero) Tbk
- Telekom Malaysia Berhad (TM)
- Advanced Info Service Public Company Limited (AIS)
- Viettel Group (Military Industry and Telecoms Group)
- PLDT Inc.
- Telefónica, S.A.
- Indra Sistemas,
- Cellnex Telecom, S.A.
- SAP SE
- Telensa
- Sitronics Group
- Tata Consultancy Services (TCS)
- Itron, Inc.
- Schneider Electric SE
- Intel Corporation
- General Electric (GE Digital)
- ABB Ltd.
- Hitachi Ltd.
- Verizon
- Telefonaktiebolaget LM Ericsson
- SAP SE
- Oracle
- Honeywell
- Kapsch Group
- Azure Middle East
- Turkcell
- Turk Telecom
- Etisalat Group
- du Telecommunications
- Dimension Data (an NTT company)
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 412 |
| Published | May 2026 |
| Forecast Period | 2025 - 2035 |
| Estimated Market Value ( USD | $ 2.01 Trillion |
| Forecasted Market Value ( USD | $ 7.94 Trillion |
| Compound Annual Growth Rate | 14.7% |
| Regions Covered | Global |
| No. of Companies Mentioned | 65 |
