HOME › Research Insight › The Strategy of Partnerships, Agreements, and Collaborations Accounted for the Largest Share of 55% of the Total Strategic Developments in the Global Smart Cities Market
The Strategy of Partnerships, Agreements, and Collaborations Accounted for the Largest Share of 55% of the Total Strategic Developments in the Global Smart Cities Market
The smart cities market refers to the smarter utilization of available resources to achieve better living, higher efficiency, economic stability, reduced energy consumption, and better environmental protection. Various focus areas, such as transportation, buildings, utilities, and citizen services are more digitalized and improved with the deployment of smart solutions based on the technologies- IoT, cloud, mobile, and sensors. MarketsandMarkets expects the global smart cities market size to grow from USD 312.03 Billion in 2015 to USD 757.74 Billion by 2020, at a Compound Annual Growth Rate (CAGR) of 19.4% from 2015 to 2020. The smart cities market is expected to grow substantially owing to the technological advancements in Information and Communication Technology (ICT), growing demographics & hyper-urbanization, and increasing concerns for environmental protection.
The key players in the smart cities market include IBM, Cisco, Microsoft, Schneider Electric, Siemens, Oracle, Huawei, Ericsson, Toshiba, and Hitachi. SAP, ABB, General Electric, Silver Spring Networks, AGT, Itron, Alstom, Kapsch, Alcatel Lucent, Honeywell International, and Maven Systems are identified as key innovators in the market. These players have adopted various strategies to expand their global presence and increase their market shares. Partnerships, agreements, & collaborations; new product launches; mergers & acquisitions; and business expansions are some of the major strategies adopted by the market players to grow in the smart cities market.
The strategy of partnerships, agreements, and collaborations accounted for the largest share of 55% of the total strategic developments in the global smart cities market. Key market players, such as Microsoft, IBM, Cisco, Oracle, Siemens, Hitachi, Huawei, Ericsson, Schneider Electric, and Toshiba have adopted this strategy. For instance, in February 2016, Ericsson, the Global M2M Association (GMA), the Bridge Alliance, and Samsung entered into a strategic partnership for the development and innovations in IoT. In November 2015, Ericsson entered into a strategic partnership with Cisco to offer next-generation network architectures based on 5G, cloud & IP, and the IoT.
The key players also launched many new products which accounted for a share of 32% of their growth strategies. In March 2016, Siemens released an array of products in the field of power distribution, automation & drive technology, and industrial software. In February 2016, Oracle introduced a new water management solution, namely, Oracle’s Utilities Smart Water Network Management that implements smarter processes and control systems across water distribution networks. Furthermore, in August 2015, Huawei unveiled a series of smart energy solutions comprising digital pipeline, digital production, cloud data center, and mobile office.
The major players also acquired various companies to strengthen their product portfolio and to expand their geographic footprints into existing and emerging markets. For instance, in January 2016, Siemens acquired CD-adapco, an engineering simulation company, to enhance its solutions for digital business and expanding its business in the area of industry software. In June 2014, Landis+Gyr, an independent growth corporation of Toshiba, acquired GRIDiant Corporation to further enhance Toshiba’s capabilities in utility analytics.
Smart cities solution providers, across the world, are constantly adding innovation to their products and services through in-house developments, partnerships or acquisitions to offer augmented solution offerings and serve customers in a better manner. Smart cities solutions and services are being increasingly adopted by cities from all over the world. Europe is expected to hold the largest market share during the forecast period, whereas Asia-Pacific (APAC) and Latin America are expected to exhibit potential growth opportunities for the smart cities ecosystem players to explore and cater to new clients.
Smart Cities Market by Solution and Services for Focus Areas (Transportation - Rail & Road, Utilities - Energy, Water, & Gas, Buildings - Commercial & Residential, and Smart Citizen Services - Education, Healthcare, & Security) - Global Forecast to 2020
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