Smart Cities Market by Focus Area, Smart Transportation, Smart Buildings, Smart Utilities, Smart Citizen Services (Public Safety, Smart Healthcare, Smart Education, Smart Street Lighting, and E-Governance) and Region - Global Forecast to 2027
Smart Cities Market Analysis, Industry Size & Forecast
The global Smart Cities Market size was crossed $511.6 billion in 2022 and is anticipated to exhibit a CAGR of 14.9% to reach over $1024.4 billion by the end of 2027.The growing mobile subscriber base, broadband penetration, and the adoption of advanced technologies across businesses drive the smart cities market.
To know about the assumptions considered for the study, Request for Free Sample Report
Smart Cities Market Dynamics
Driver: AI and ML to accelerate development of smart cities
In the smart cities market research report study, the technologies such as Artificial Intelligence (AI) and Machine Learning (ML) are helping smart cities empower individuals, organizations, or systems to be self-sufficient and futuristic. These technologies acquire massive amounts of data to upgrade the systems and components that run the cities and make them capable of making intelligent decisions without much human intervention. Artificial intelligence and machine learning algorithms are now fundamental parts of industries and are crucial to building smart cities. The deployment of AI-enabled intelligent machines powered by machine learning creates cyber-physical space, which includes traffic sensors, medical monitoring, industrial control systems, video cameras, environment sensors, and smart meters. The data obtained through machines help in predictive analysis and decision-making for smart city planning.
Restraint: Privacy and security concerns over IoT
Privacy and security are major areas of concern in smart city projects. As the smart cities market ecosystem depends majorly on IoT and central access points for different data, the vulnerability of the whole ecosystem is high. To solve the privacy and security challenges in smart cities, stakeholders (security professionals and smart city planners) must address issues holistically to ensure that the challenges will not continue plaguing the rest of the smart network. The need for a technically suitable solution to guarantee the security and privacy of customers adopting various identification systems has been increasing.
Opportunity: Advancements in technologies, such as AI, cloud, IoT, and analytics
In recent years, there have been rapid advancements in emerging technologies, such as AI, ML, cloud, data analytics, IoT, and cybersecurity. The augmented adoption of these technologies in the smart cities environment has enabled better connectivity, resulting in a complete remodeling of the smart cities market ecosystem. With the help of IoT devices, the system can collect data from multiple sources and share it with a centralized control center by leveraging the cloud. Such advanced technologies are not only used to enrich the lives of citizens but are also used in other areas, such as security, privacy, and environmental sustainability. For instance, a Mexican city uses AT&T’s AT&T Control Center, an IoT platform, to efficiently manage connected devices in real time.
Challenge: Absence of appropriate infrastructure in developing and underdeveloped economies
The developing and underdeveloped nations still use legacy telecom infrastructure incapable of delivering low latency and high-capacity connectivity. Poor internet speed can lead to a poor experience. Since smart cities market ecosystem solutions require high-speed and low-latency internet, having a slow connection will cause reduced quality of service. The lack of high-speed internet makes it very difficult to implement smart city solutions. The governments in such countries do not have the budget to afford the expensive infrastructures required to establish and ensure the smooth functioning of smart city solutions.
Smart cities market by smart healthcare services to register higher CAGR during forecast period
With the growing digitalization and increasing connectivity and innovations in the modern healthcare ecosystem, the IoT in the healthcare industry is witnessing significant growth. Smart healthcare solutions are helping organizations in managing various bottlenecks in caregiving and bridging the gap between the patients and care providers by providing solutions, such as remote patient monitoring, remote medical assistance, simultaneous monitoring and reporting, patient care workflow automation, notifications and alert management, real-time staff tracking, mobile health, smart hospitals, smart pills, and enhanced chronic disease treatment.
By smart utilities solution, advanced metering infrastructure to account for largest market share during forecast period
Smart metering and Meter Data Management (MDM) solutions for utilities are handled by enterprise applications to centralize the collection, process, and storage and perform complex analysis of meter and other utilities-related data. The MDM solution captures volumes of interval data produced by metering systems. Moreover, MDM simplifies the IT integration of meters and consolidates the reading data from multiple collection systems into a centralized repository. After the data is processed, it can be accessed across utility organizations for a wide range of applications, such as billing, revenue assurance, leak management and loss analysis, system capacity planning, and consumer engagement.
North America to account for largest market share during forecast period
North America is expected to hold the largest share of the overall smart cities market. The US has high adoption of smart city technologies in this region. North America leads smart city usage, with the US and Canada at the forefront. These countries have sustainable and well-established economies, which empower them to invest strongly in R&D activities, thereby contributing to developing new technologies. Network operators in this region constantly invest in expanding and upgrading their telecom networks and transition toward 5G infrastructure. This leverages technologies, such as cloud edge computing and network slicing, thereby actuating the adoption of smart cities at a low cost for strategic urban management.
To know about the assumptions considered for the study, download the pdf brochure
Top Companies in Smart Cities Market
The top companies in smart cities market have implemented various types of organic and inorganic growth strategies, such as new product launches, product upgrades, partnerships and agreements, business expansions, and mergers and acquisitions to strengthen their offerings in the market. The top companies in smart cities market include
- Cisco (US)
- IBM (US)
- Siemens (Germany)
- Microsoft (US)
- Hitachi (Japan)
- Schneider Electric (France)
- Huawei (China)
- Intel (US)
- NEC (Japan)
- ABB (Switzerland)
- Ericsson (Sweden)
- Oracle (US)
- Fujitsu (Japan)
- Honeywell (US)
- Accenture (Ireland)
The study includes an in-depth competitive analysis of these key market players along with their profiles, recent developments, and key market strategies.
Get online access to the report on the World's First Market Intelligence Cloud
- Easy to Download Historical Data & Forecast Numbers
- Company Analysis Dashboard for high growth potential opportunities
- Research Analyst Access for customization & queries
- Competitor Analysis with Interactive dashboard
- Latest News, Updates & Trend analysis
Request Sample Scope of the Report
Get online access to the report on the World's First Market Intelligence Cloud
- Easy to Download Historical Data & Forecast Numbers
- Company Analysis Dashboard for high growth potential opportunities
- Research Analyst Access for customization & queries
- Competitor Analysis with Interactive dashboard
- Latest News, Updates & Trend analysis
Report Metrics |
Details |
Market Size in 2022 |
US $511.6 Billion |
Revenue Forecast Size in 2027 |
US $1024.4 Billion |
Market Growth Rate |
14.9% CAGR |
Largest Market |
North America |
Market Growth Drivers |
|
Market Opportunities |
|
Segments covered | By focus area, smart transportation, smart building, smart utility, smart citizen service, and region |
Regions covered | North America, Europe, Asia Pacific, Middle East, and Africa, and Latin America |
This research report categorizes the smart cities market to forecast revenues and analyze trends in each of the following subsegments:
Market by Focus Area Type:
- Smart Transportation
- Smart Building
- Smart Utilities
- Smart Citizen Services
Market by Smart Transportation
-
By Component:
-
Solutions
- Smart Ticketing
- Traffic Management
- Parking Management
- Traffic Surveillance
- Passenger Information Management
- Connected Logistics
- Other Solutions
-
Services
- Consulting
- Deployment and Integration
- Infrastructure Monitoring and Management
-
Solutions
-
By Type:
- Roadway
- Railway
- Airway
Market by Smart Building
-
BY Component:
-
Solutions
-
Building Infrastructure Management
- Parking Management System
- Smart Water Management System
- Elevator and Escalators Management System
-
Safety and Security Management
- Access Control System
- Video Surveilliance System
- Safety System
-
Energy Management
- HVAC System
- Lighting System
- Network Management
- Integrated Workspace Management System
-
Building Infrastructure Management
-
Services
- Consulting
- Deployment and integration
- Infrastructure monitoring and management
-
Solutions
-
By Type:
- Residential
- Commercial
- Industrial
Market by Smart Utilities
-
By Component:
-
Solutions
-
Advanced metering infrastructure
- Meter Data Management
- Meter Data Analytics
- Smart Meter
- Others
- Distribution management system
- Substation automation
- Others
-
Advanced metering infrastructure
-
Services
- Consulting
- Deployment and integration
- Infrastructure monitoring and management
-
Solutions
-
By Type:
- Energy/power
- Water
- Gas
- Others
Market by Smart Citizen Services Type:
-
Smart Healthcare
- Medical Devices
- System and Software
- Services
-
Smart Education
- Solution
- Services
-
Smart public safety
- Solution
- Services
-
Smart street lighting
- Solution
- Services
-
E-governance
- Solution
- Services
Market By Region:
-
North America
- US
- Canada
-
Europe
- UK
- France
- Germany
- Spain
- Italy
- Nordics
- Rest of Europe
-
Asia Pacific
- China
- Japan
- India
- Australia and New Zealand
- South East Asia
- Rest of Asia Pacific
-
Middle East and Africa
-
Middle East
- United Arab Emirates
- Kingdom of Saudi Arabia
- Rest of Middle East
-
Africa
- South Africa
- Egypt
- Nigeria
- Rest of Africa
-
Middle East
-
Latin America
- Brazil
- Mexico
- Rest of Latin America
Smart Cities Market Technology Trends:
- In October 2021, Siemens Mobility, a subsidiary of Siemens, acquired Squills, a leading Software as a Service (SaaS) provider for inventory management, reservation, and ticketing software. This strengthened Siemens’ portfolio of innovative, smart, and comprehensive mobility solutions.
- In May 2021, Itron and Microsoft collaborated to provide customers with highly scalable cloud-based MDM services.
- In October 2021, Hitachi partnered with Bao Viet Insurance to drive innovation in the insurance business using AI and medical big data. Bao Viet Insurance would use Hitachi’s technologies to improve health by predicting the risk of developing a disease.
Frequently Asked Questions (FAQ):
What is a smart city?
How big is the smart cities market?
Which are the key drivers supporting the growth of the smart cities market?
Who are the key vendors in the smart cities market?
To speak to our analyst for a discussion on the above findings, click Speak to Analyst
This research study involved the use of extensive secondary sources, directories, and databases, to identify and collect information useful for this technical, market-oriented, and commercial study of the smart cities market. The primary sources were mainly several industry experts from core and related industries and preferred suppliers, manufacturers, distributors, Service Providers (SPs), technology developers, alliances, and organizations related to the segments of this industry’s value chain. In-depth interviews were conducted with various primary respondents that included key industry participants, subject-matter experts, C-level executives of key market players, and industry consultants to obtain and verify critical qualitative and quantitative information, as well as assess prospects. The following illustrative figure shows the market research methodology applied in making this report on the smart cities market.
Secondary Research
The market size of the companies offering smart cities hardware, solutions, and services globally was arrived at based on the secondary data available through paid and unpaid sources. It was also arrived at by analyzing the product portfolios of the major companies and rating companies based on their performance and quality.
In the secondary research process, various secondary sources were referred to for identifying and collecting information for the study. The secondary sources included annual reports, press releases, investor presentations of companies, white papers, certified publications, and articles from recognized associations and government publishing sources. Smart city spending of various countries was extracted from the respective sources. The secondary research was mainly used to obtain key information about industry insights, the market’s monetary chain, the overall pool of key players, market classification, and segmentation according to industry trends to the bottom-most level, regional markets, and key developments from both market and technology-oriented perspectives.
Primary Research
In the primary research process, various primary sources from both the supply and demand sides were interviewed to obtain qualitative and quantitative information for this report. The primary sources from the supply side included industry experts, Chief Experience Officers (CXOs), Vice Presidents (VPs), directors from business development, marketing, and product development/innovation teams, and related key executives from smart cities solution vendors, system integrators, professional service providers, industry associations, and key opinion leaders.
Primary interviews were conducted to gather insights, such as market statistics, data on revenue collected from the hardware, solutions, and services, market breakups, market size estimations, market forecasting, and data triangulation. Primary research also helped understand various trends related to technology, application, deployment, and region. Stakeholders from the demand side, such as Chief Information Officers (CIOs), Chief Technology Officers (CTOs), Chief Strategy Officers (CSOs), and installation teams of the governments/end users that use smart cities solutions were interviewed to understand the buyer’s perspective on the suppliers, products, service providers, and their current use of smart cities solutions, which is projected to impact the overall smart cities market growth.
To know about the assumptions considered for the study, download the pdf brochure
Smart Cities Market Size Estimation
Multiple approaches were adopted for the estimation of the smart cities market. The first approach involved estimating the market size by the summation of company revenues generated through the different focus areas, smart transportation, smart buildings, smart utilities, and smart citizen services. The top-down and bottom-up approaches were used to estimate and validate the size of the smart cities market and various other dependent subsegments. The research methodology used to estimate the market size included the following details: the key players are not limited to Cisco (US), IBM (US), Siemens (Germany), Microsoft (US), Hitachi (Japan), Schneider Electric (France), Huawei (China), Intel (US), NEC (Japan), ABB (Switzerland), Ericsson (Sweden), and Oracle (US); other players in the market were identified through extensive secondary research, and their revenue contribution in the respective regions was determined through primary and secondary research. The entire procedure included the study of the annual and financial reports of top market players and extensive interviews for key insights from industry leaders, such as Chief Executive Officers (CEOs), VPs, directors, and marketing executives. All percentage splits and breakups were determined using secondary sources and verified through primary sources.
All the possible parameters that affect the market covered in the research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data. The data was consolidated and added with detailed inputs and analysis from MarketsandMarkets.
Top-down and Bottom-up Approaches
To know about the assumptions considered for the study, Request for Free Sample Report
Data Triangulation
After arriving at the overall market size using the market size estimation processes explained above, the market was split into several segments and subsegments. The data triangulation and market breakup procedures were employed, wherever applicable, to complete the overall market engineering process and arrive at the exact statistics of each market segment and subsegment. The data was triangulated by studying various factors and trends from both the demand and supply sides.
Report Objectives
- To determine and forecast the smart cities market based on focus areas; smart transportation, smart buildings, smart utilities, smart citizen services, and region from 2022 to 2027, and analyze various macro and microeconomic factors that affect the market growth.
- To forecast the size of the market’s segments with respect to five main regions: North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa.
- To provide detailed information about the major factors (drivers, restraints, opportunities, and challenges) influencing the growth of the market.
- To analyze each submarket with respect to individual growth trends, prospects, and contributions to the total market.
- To analyze opportunities in the market for stakeholders by identifying the high-growth segments of the smart cities market.
- To profile key market players (top vendors and startups); provide a comparative analysis based on their business overviews, regional presence, product offerings, business strategies, and key financials; and illustrate the market’s competitive landscape.
- To track and analyze competitive developments, such as mergers and acquisitions, new product launches and developments, partnerships, agreements, collaborations, business expansions, and Research & Development (R&D) activities, in the market.
Available customizations
Along with the market data, MarketsandMarkets offers customizations as per a company’s specific needs. The following customization options are available for the report:
Product Analysis
- Product Matrix which gives a detailed comparison of the product portfolio of each company
Company Information
- Detailed analysis and profiling of additional market players (up to 5)
Growth opportunities and latent adjacency in Smart Cities Market