Smart City Technologies Market Global Report 2026

The smart city technologies market size has grown rapidly in recent years. It will grow from $727.5 billion in 2025 to $821.8 billion in 2026 at a compound annual growth rate (CAGR) of 13.0%. The growth in the historic period can be attributed to increasing urbanization and population growth, rising investment in modernizing urban infrastructure, growing demand for efficient public services, increasing need for enhanced traffic management, and rising focus on sustainable resource utilization.

The smart city technologies market size is expected to see rapid growth in the next few years. It will grow to $1.31 trillion in 2030 at a compound annual growth rate (CAGR) of 12.5%. The growth in the forecast period can be attributed to expanding smart city development projects, increasing demand for intelligent urban infrastructure, rising adoption of predictive urban service management, growing investment in connected public utilities, and increasing need for integrated citywide service platforms. Major trends in the forecast period include increasing deployment of real-time urban service monitoring platforms, growing adoption of integrated city management platforms, rising use of digital twins for urban infrastructure planning, increasing implementation of interoperable urban technology systems, and growing demand for centralized management of city services.

The rising investments in smart city and infrastructure development are expected to propel the growth of the smart city technologies market in the coming years. Smart city and infrastructure development refers to the planning, construction, modernization, and integration of urban infrastructure using digital technologies, data analytics, and connected systems to improve the efficiency, sustainability, resilience, and quality of public services and city operations. Rising investments in smart city and infrastructure development are driven by rapid urbanization, as expanding urban populations require modern, connected, and sustainable infrastructure to efficiently manage transportation, utilities, public safety, and other essential city services. Investments in smart city and infrastructure development accelerate the adoption of smart city technologies by supporting the deployment of connected infrastructure, IoT networks, intelligent transportation systems, smart utilities, and data-driven urban management solutions. For instance, in April 2026, according to Patent Professional Corporation, a US-based technology-forward law firm, global IoT infrastructure spending for smart cities increased from $130 billion in 2023 to $200 billion by 2025, representing an annual growth rate of approximately 25%. Therefore, the rising investments in smart city and infrastructure development are driving the growth of the smart city technologies market.

Major companies operating in the smart city technologies market are focusing on developing innovative platforms, such as AI-powered smart city management platforms, to improve urban safety, intelligent traffic management, environmental monitoring, and data-driven city governance. AI-powered smart city management platforms combine artificial intelligence, Internet of Things (IoT) devices, computer vision, and multimodal analytics within a unified operational framework, enabling cities to automate monitoring, predictive decision-making, and emergency response compared with traditional smart city systems that primarily depend on isolated surveillance infrastructure and manual data analysis. For instance, in November 2025, Zhejiang Dahua Technology Co Ltd., a China-based AIoT solution and video-centric technology company, launched next-generation Smart City Solutions powered by Xinghan Large-scale AI Models at the Smart City Expo World Congress (SCEWC) 2025. The solution combines vision, multimodal, and language intelligence to provide deep visual understanding and contextual reasoning for complex urban environments. It integrates cameras, radars, and IoT sensors into a unified city operation center for real-time monitoring, rapid emergency response, and coordinated governance. The platform also provides AI-enabled traffic management through dynamic signal control, AI-based incident detection, advanced speed enforcement, and intelligent bus and fleet management to improve mobility and reduce congestion. Additionally, it supports city governance through AI-driven text-image search, large language model interaction, and environmental monitoring, while extending capabilities for nature protection through thermal imaging, drone-based sensing, and early forest fire detection, supporting safer, more efficient, and sustainable urban operations.

In November 2024, Almaviva S.p.A., an Italy-based information technology and digital services company, acquired Iteris Inc. for an undisclosed amount. Through this acquisition, Almaviva aimed to strengthen its global presence, accelerate expansion in the North American market, broaden its proprietary smart mobility solutions portfolio, and enhance its technological capabilities for intelligent transportation infrastructure management. Iteris Inc. is a US-based company specializing in smart city technologies and intelligent mobility solutions.

Major companies operating in the smart city technologies market are Alphabet Inc., Huawei Technologies Co. Ltd., Siemens AG, Dell Technologies Inc., Robert Bosch GmbH, Hitachi Ltd., Schneider Electric SE, NVIDIA Corporation, Cisco Systems Inc., Toshiba Corporation, Fujitsu Limited, Intel Corporation, ABB Ltd., Johnson Controls International plc, Telefonaktiebolaget LM Ericsson, Nokia Corporation, NEC Corporation, Qualcomm Incorporated, Dassault Systemes SE, Legrand SA, Hexagon AB, Bentley Systems Incorporated, Trimble Inc., Environmental Systems Research Institute Inc., PTC Inc., Samsara Inc., Verra Mobility Corporation, Badger Meter Inc.

North America was the dominant region in the smart city technologies market in 2025. Asia-Pacific is expected to be the rapidly growing region in the forecast period. The regions covered in the smart city technologies market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the smart city technologies market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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