Asia Pacific Smart Cities Market
Asia Pacific Smart Cities Market by Focus Area (Transportation (Roadways, Railways, Airways), Building (Residential, Commercial, Industrial), Utility (Energy, Gas, Water), Citizen Services) - Forecast to 2030
OVERVIEW
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
The Asia Pacific smart cities market size is projected to grow from USD 207.0 billion in 2025 to USD 457.2 billion by 2030 at a CAGR of 17.2% during the forecast period. Smart city programs are driven through government funding, policy support, and public–private partnerships. Countries with major investments include China, India, South Korea, Japan, and Singapore. In India, operations are implemented through Integrated Command and Control Centres for the Smart Cities Mission to enhance civic services. In South Korea, smart city development is being tested in national pilot projects, including the Sejong 5-1 and Busan Eco Delta projects, across mobility, healthcare, environment, and citizen-centric governance. In China, continued priority is being given to investment in urban digital platforms and infrastructure upgrades, particularly in areas related to flood control and water systems. Throughout Aisa Pacific, the major focus is on smart transport, utilities, governance, and building technology.
KEY TAKEAWAYS
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By Focus AreaThe smart citizen services segment accounted for a 47.5% share in 2025.
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By Smart UtilityBy smart utilities solution, the distribution management system segment is expected to register the highest CAGR of 16.1%.
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By Smart Citizen ServiceBy smart citizen service, the smart education segment is projected to grow the fastest from 2025 to 2030.
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Competitive Landscape - Key PlayersCompanies such as Huawei, Hitachi, Microsoft, and Siemens were identified as some of the star players in the Asia Pacific smart cities market, given their strong market share and product footprint.
Asia Pacific is emerging as one of the fastest-growing markets for smart cities, supported by rapid urbanization, rising incomes, and sustained economic growth. Countries such as China, India, Southeast Asian nations, and Australia face increasing pressure on transportation networks, utilities, and public services. In response, city authorities are favoring digital solutions over purely physical expansion. This shift is accelerating the adoption of integrated command-and-control centers, smart mobility systems, and utility digitalization across urban areas.
TRENDS & DISRUPTIONS IMPACTING CUSTOMERS' CUSTOMERS
The impact on customers’ businesses in the Asia Pacific smart cities market is driven by increasing digitalization, smart city initiatives, and growth in smart cities. The adoption of digital technology in traffic management, utilities, and overall municipal services is increasing at a rapid pace in smart cities. The utilities sector is upgrading its energy infrastructure in smart cities in order to support renewable energy and manage demand in real-time. At the same time, cities are selectively exploring advanced connectivity and data-led services in areas such as transport coordination and urban healthcare. However, adoption remains uneven due to gaps in infrastructure readiness, cybersecurity concerns, and differences in data governance and technical standards across the region.
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
MARKET DYNAMICS
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Government-led Smart City and Digital Infrastructure Programs

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Rising Focus on Sustainability and Energy Efficiency in Cities
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Limited Budgets and Outdated Infrastructure in Emerging Cities
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Data Privacy and Local Data Storage Requirements
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Growth of Smart Mobility and Autonomous Transport Trials
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Accelerated Growth in 5G & Edge Computing
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Cybersecurity Risks and Cross-border Data Restrictions
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Uneven Digital Infrastructure Maturity Across Cities
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
Driver: Massive Government-driven Urban Digitalization Programs Across Asia Pacific
Smart city growth across the Asia Pacific region is being supported mainly by national and city-level government programs. In China, urban digitalization is being pushed through infrastructure investments linked to connectivity, data platforms, and transport systems. Singapore continues to expand its Smart Nation agenda with a focus on digital public services and connected infrastructure. In Japan and South Korea, smart city development is being shaped by long-term policy frameworks that emphasize mobility, data use, and urban efficiency. Together, these programs are creating steady demand for smart city technologies, particularly in capital cities and major economic hubs.
Restraint: Limited Budgets and Outdated Infrastructure in Emerging Cities
Smart city adoption across the Asia Pacific varies widely between large metropolitan areas and smaller or developing cities. While cities such as Tokyo, Seoul, and Singapore have advanced digital infrastructure, many urban centers in Indonesia, Vietnam, India, and the Philippines continue to rely on older systems. Limited municipal budgets and basic infrastructure gaps slow technology deployment in these markets. High population density further complicates the installation and maintenance of connected systems. As a result, the region remains fragmented, with advanced smart city projects concentrated in select cities and gradual progress elsewhere.
Opportunity: Growth of Smart Mobility and Autonomous Transport Trials
Smart mobility is emerging as a key opportunity area across the Asia Pacific as cities look to manage congestion and improve transport efficiency. Pilot programs for autonomous transport are being tested in South Korea and Japan, while Singapore has already begun working on a controlled autonomous mobility environment. China has further extended the infrastructure of connected vehicles. The rising requirement for transport management and coordination platforms, especially in light of the steadily increasing number of people moving around city centers, has led to smart mobility investments being a priority.
Challenge: Cybersecurity Risks and Cross-border Data Restrictions
Rapid digitalization has increased cybersecurity risks across smart city systems in the Asia Pacific region. High volumes of connected devices have expanded potential attack surfaces for municipal networks and public services. Incidents affecting government and utility systems have highlighted weaknesses in security readiness in several countries. At the same time, data governance rules differ widely across the region. Requirements related to data storage, access, and national security vary by country, making regional deployments more complex. These factors add time and cost to smart city projects and require vendors to adapt solutions to local regulatory conditions.
ASIA PACIFIC SMART CITIES MARKET: COMMERCIAL USE CASES ACROSS INDUSTRIES
| COMPANY | USE CASE DESCRIPTION | BENEFITS |
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Singapore Smart Nation Digital Identity and Surveillance Systems: NEC supplies biometric identification, facial recognition, and public safety analytics for government-led smart city initiatives. | Secure digital identity services, enhanced public safety, and efficient citizen authentication processes. |
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Shenzhen Smart City Platform: Huawei supports Shenzhen’s city-level cloud and data platform, integrating traffic control, utilities, emergency response, and city operations dashboards. | Centralized city operations, reduced congestion, and real-time decision support for municipal authorities. |
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Yokohama Smart Mobility and Energy Project: Fujitsu delivers data platforms that integrate energy usage, electric vehicle infrastructure, and urban mobility data. | Optimized energy consumption, support for electric vehicle adoption, and improved mobility planning. |
Logos and trademarks shown above are the property of their respective owners. Their use here is for informational and illustrative purposes only.
MARKET ECOSYSTEM
The Asia Pacific smart cities market has a robust ecosystem, supported by government initiatives and collaborations between global technology vendors and regional players. Organizations such as Huawei, NEC, Hitachi, Samsung, and Fujitsu offer platforms for smart mobility, intelligent buildings, utilities automation, and citizen services. Telecom operators such as NTT, Singtel, China Mobile, and Jio offer IoT connectivity on a large scale along with private 5G networks. System integrators support end-to-end deployments by integrating Artificial Intelligence (AI), sensors, and cloud infrastructure across multiple city functions.
Logos and trademarks shown above are the property of their respective owners. Their use here is for informational and illustrative purposes only.
MARKET SEGMENTS
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
Asia Pacific Smart Cities Market, By Smart Transportation Type
The air transport sector is experiencing a rise in the adoption of intelligent technologies in the Asia Pacific region. As governments and airport operators are investing in smart airway management systems involving biometric passenger screening, automated security screening, and predictive maintenance for aviation assets. AI-enabled air traffic management and IoT-based baggage tracking are being adopted by the airport sector to enhance airport operations. The major airports in Singapore, Japan, South Korea, and Australia have started using digital twins and autonomous ground handling solutions. These initiatives aim to improve passenger experience, operational efficiency, and regional air mobility.
Asia Pacific Smart Cities Market, By Smart Building Solution
The security and emergency management systems for intelligent buildings are also gaining momentum in the Asia Pacific smart cities market. Governments and private developers are deploying AI-enabled surveillance, real-time incident detection, smart access control, and emergency response automation. These systems are increasingly used across commercial, residential, and public infrastructure projects. Cities such as Tokyo, Seoul, Singapore, and Hong Kong are integrating intelligent command centers and cloud-based building management platforms to enhance situational awareness. These solutions support faster decision-making, improve compliance with safety regulations, and strengthen urban resilience.
REGION
ANZ is expected to be the fastest-growing country in the Asia Pacific smart cities market during the forecast period.
Strong government commitments to urban digitalization, sustainability mandates, and early adoption of advanced technologies are driving the Australia and New Zealand (ANZ) smart cities market. Both countries are investing in smart mobility, renewable energy–driven infrastructure, and next-generation connectivity initiatives such as 5G and IoT-enabled city operations. Major cities, including Sydney, Melbourne, and Auckland, are deploying integrated command centers, smart grids, and intelligent transportation systems. In addition, strong regulatory frameworks and high digital literacy support the adoption of Artificial Intelligence (AI), cloud platforms, and data-driven urban services.

ASIA PACIFIC SMART CITIES MARKET: COMPANY EVALUATION MATRIX
In the Asia Pacific smart cities market matrix, Hitachi, positioned as a “Star,” maintains a strong regional presence through its Lumada-based platforms, energy systems, and transportation solutions deployed across government and smart district projects. These deployments across utilities, mobility, and citizen services support Hitachi’s position as an integrated smart city solutions provider. Samsung, categorized as a “Pervasive Player,” complements this landscape through its connected devices, 5G partnerships, and smart building offerings. These solutions are widely adopted across South Korea, India, and Southeast Asia, supporting citizen-facing smart city applications.
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
KEY MARKET PLAYERS
- Siemens (Germany)
- Cisco (US)
- Microsoft (US)
- IBM (US)
- Hitachi (Japan)
- Huawei (China)
- NEC Corporation (Japan)
- Fujitsu (Japan)
- TCS (India)
- Samsung (South Korea)
- Gaia (India)
- Hitach (Japan)
- Advantech (Taiwan)
- Hikvision (China)
- Dahua Technology (China)
- XENIUS (India)
- Hon Hai Precision Industry (Taiwan)
- LTIMindtree (India)
MARKET SCOPE
| REPORT METRIC | DETAILS |
|---|---|
| Market Size in 2024 (Value) | USD 179.6 Billion |
| Market Forecast in 2030 (Value) | USD 457.2 Billion |
| Growth Rate | CAGR of 17.2% during 2025-2030 |
| Years Considered | 2019-2030 |
| Base Year | 2024 |
| Forecast Period | 2025-2030 |
| Units Considered | Value (USD Billion) |
| Report Coverage | Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
| Segments Covered |
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| Regions Covered | Asia Pacific |
WHAT IS IN IT FOR YOU: ASIA PACIFIC SMART CITIES MARKET REPORT CONTENT GUIDE

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RECENT DEVELOPMENTS
- April 2025 : Indian Oil Corporation has digitalized its national pipeline network using ABB’s digital automation and control platform, enabling centralized monitoring and real-time management of critical energy infrastructure. This initiative highlights the growing adoption of city-scale digital control platforms to manage critical energy and utility infrastructure in an integrated and data-driven manner.
- March 2024 : DNB, in collaboration with Ericsson, ZTE, and China Mobile, led a digital transformation initiative for Malaysian manufacturing with 5G and AI. The effort promotes 5G adoption, showcases global 5G factory use cases, and aims to drive operational efficiency, smart city transformation, and economic growth across Malaysia.
- August 2023 : NEC India was selected as a master system integrator by UPSRTC for the Vehicle Location Tracking-Passenger Information System (VLT-PSIS) project. The project pioneers live bus tracking, emergency safety features, and real-time passenger information across UPSRTC's fleet, aiming to improve safety and travel experience through advanced technologies and a state-of-the-art Integrated Command Control Center.
Table of Contents
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Methodology
This research study utilized a wide range of secondary sources, including directories and databases such as Dun & Bradstreet (D&B) Hoovers, and Bloomberg BusinessWeek, to gather valuable insights for a technical, market-oriented, and commercial analysis of the Asia Pacific Smart Cities Market. Industry experts from core and related sectors, as well as preferred suppliers, manufacturers, distributors, service providers, technology developers, and organizations connected to all segments of the value chain in this market were interviewed as part of the study. To obtain and verify critical qualitative and quantitative information, in-depth interviews were conducted with key industry participants, subject matter experts, C-level executives from leading market players, and industry consultants.
Secondary Research
In the secondary research process, various sources were consulted to gather information for the study. These sources included annual reports, press releases, investor presentations from companies, white papers, certified publications, and articles from recognized associations and governmental publications. Several journals and conferences, such as the 27th IEEE International Conference on Intelligent Transportation Systems (IEEE ITSC 2024) and the Smart Building Conference at Integrated Systems Europe (ISE) 2024, were also referenced. This secondary research aimed to obtain crucial information about industry insights, the monetary flow within the market, the landscape of key players, market classification and segmentation based on current industry trends, regional markets, and significant developments from both, market and technology-oriented perspectives.
Primary Research
In the primary research process, various sources from both the supply and demand sides were interviewed to gather qualitative and quantitative information for the report. On the supply side, the primary sources included industry experts such as Chief Executive Officers (CEOs), Chief Technology Officers (CTOs), Chief Operating Officers (COOs), Vice Presidents (VPs), marketing directors, technology and innovation directors, and other key executives from significant companies and organizations involved in the Asia Pacific Smart Cities Market. On the demand side, the primary sources consisted of smart cities end users, consultants, specialists, Chief Information Officers (CIOs), and subject-matter experts from enterprises and government associations.
Market Size Estimation
Several methods were used to estimate and forecast the Asia Pacific Smart Cities Market size. The first method involves calculating the market size by adding the revenue generated by companies from the sale of smart city solutions.
Both, the top-down and bottom-up approaches were used to estimate and validate the total size of the Asia Pacific Smart Cities Market. These methods were extensively used to estimate the size of various segments in the market. The research methodology used to estimate the market size includes the following.
- Key players in the market were identified through extensive secondary research.
- In terms of value, the industry’s supply chain and market size were determined through primary and secondary research processes.
- All percentage shares, splits, and breakups were determined using secondary sources and verified through primary sources.
Data Triangulation
Upon determining the overall market size, the Asia Pacific Smart Cities Market was segmented into various segments and subsegments. A data triangulation process was employed to finalize the overall market engineering and achieve precise statistics for each segment and subsegment, as applicable. This triangulation involved analyzing various factors and trends from both, the demand and supply perspectives. Additionally, the market size was validated using both, the top-down and bottom-up approaches, alongside the data triangulation and market breakdown procedures.
Market Definition
The European Union defines a smart city as a place where traditional networks and services are made more efficient with the use of digital solutions for the benefit of its inhabitants and businesses.
A smart city encompasses more than just the application of digital technologies to enhance resource efficiency and reduce emissions. It includes improved urban transport networks, upgraded water supply and waste disposal systems, and more efficient methods for lighting and heating buildings. Additionally, a smart city features a more interactive and responsive administration, safer public spaces, and addresses the needs of an aging population.
Stakeholders
- National/State Governments
- Municipal Authorities
- Real Estate Developers
- Information Technology (IT) Solution Providers
- Platform Providers
- System Integrators
- Telecom Service Providers
- Networking Solution Providers
- Utility Companies
- Transportation Service Providers
- Independent Software Vendors (ISVs)
- Network Equipment Providers
- Communication Service Providers (CSPs)
Report Objectives
- To determine and forecast the Asia Pacific Smart Cities Market size based on focus areas: smart transportation, smart buildings, smart utilities, smart citizen services, and regions from 2025 to 2030, and analyze the various macroeconomic and microeconomic factors that affect market growth
- To provide detailed information about the major factors (drivers, restraints, opportunities, and challenges) influencing the growth of the Asia Pacific Smart Cities Market.
- To analyze each submarket concerning individual growth trends, prospects, and contributions to the overall Asia Pacific Smart Cities Market
- To analyze opportunities in the market for stakeholders by identifying the high-growth segments of the Asia Pacific Smart Cities Market
- To profile key market players, provide a comparative analysis based on business overviews, regional presence, product offerings, business strategies, and key financials, and illustrate the market’s competitive landscape.
- To analyze competitive developments in the market, such as mergers & acquisitions, product developments, partnerships, collaborations, and research & development (R&D) activities
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Growth opportunities and latent adjacency in Asia Pacific Smart Cities Market