Global Smart Cities Market – Industry Trends and Forecast to 2029

Global Smart Cities Market, By Component (Hardware, Services, Software), Application (Smart Transportation, Smart Utilities, Smart Education, Smart Healthcare, Smart Public Safety, Smart Governance, Smart Lighting Solutions, Smart Buildings), – Industry Trends and Forecast to 2029

Market Analysis and Size

The primary goal of intelligent cities is to generate economic growth and improve people's quality of life by empowering local area development and leveraging technology to achieve smart results.

Data Bridge Market Research analyses that the smart cities market was valued at USD 390.13 billion in 2021 and is expected to reach the value of USD 1874.83 billion by 2029, at a CAGR of 21.68% during the forecast period of 2022 to 2029.

Market Definition

A smart city is a framework that uses information and communication technology (ICT) to deploy, develop, and promote sustainable urban development. It also aids in the dissemination of information to the public, the improvement of operational efficiency, and the enhancement of citizen welfare. A smart city uses hardware components such as chips, sensors, and actuators, as well as software solutions such as user interfaces (UIs), communication networks, and Internet of Things (IoT) devices to promote mixed-land use for unplanned areas, which offers a variety of facilities in one location and aids in the optimum utilisation of available space.

Report Scope and Market Segmentation

Smart Cities Market Dynamics

Drivers

• Increasing investment in smart city designs

One of the encouraging factors driving growth in the smart cities market is the increasing investment in smart city designs. Certain plans are leading the way in developing countries, where governments are investing billions of dollars in smart city designs because everything will be combined in these smart cities, garbage collection with the use of smart cities will benefit certain regions. Furthermore, lowering the cost of internet of things (IoT) sensors is a significant factor driving growth in the smart cities syndicate. Consumption administration businesses are taking this very seriously as sensors will be installed in data visualisation programmes and screening support, as it will aid in the comfortable collection of garbage.

• The rising popularity of hyper connectivity and advent of disruptive technologies

Hyper-connectivity is popular because it allows for active interaction between people and devices. The gradual evolution of the Internet of Things allows billions of devices to connect and interact, boosting the growth of the smart cities market. Furthermore, governments have identified disruptive technology as a critical component in smart cities. It aids in the development of strategies as governments incorporate these technologies to address metropolitan challenges such as rising power usage, safety, productivity, environmentally friendly transportation, water distribution and management, and crime and terrorism protection/security.

Opportunity

Maintaining relationships between public and private entities aids in reshaping how smart digital infrastructure is developed, financed, and delivered in the coming years. Increasing collaborations between the public and private sectors with the goal of delivering smart cities-specific services and infrastructure are key factors driving the smart cities market's growth. Collaborations have recently helped suggest and recommend a wide range of technologies and solutions to notify vision or functionality of smart cities. Aside from that, government organisations all over the world are taking various steps to launch smart cities projects and are collaborating with major technology companies to implement IoT across cities. These collaborations and partnerships with technology vendors for the development of IoT applications are creating potential growth opportunities.

Restraints

Due to the high cost of deploying these systems, economies with limited resources are unable to implement smart city solutions. Integrating major functions such as big data analytics necessitates extensive design, coding, testing, and documentation. The cost of transforming existing infrastructure serves as a deterrent for governments to continue large-scale investments. Though smarter infrastructure helps reduce operating costs and increase energy efficiency, the initial costs are a significant barrier.

This smart cities market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the smart cities market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

COVID-19 Impact on Smart Cities Market

Due to the COVID-19 outbreak, various countries have implemented strict lockdowns, shutdowns, and mobility restrictions in order to prevent the virus from spreading. The pandemic has reduced manpower efforts, with Silicon Valley almost completely shut down during the crisis, affecting the government's and other stakeholders' ability to meet the needs of smart cities for strategic management and planning. COVID-19 has had an impact on the healthcare and energy industries all over the world. However, in order to overcome the challenges posed by the pandemic, these industries are attempting to adopt emerging technologies such as AI and IoT. Adoption of e-health and e-government services, as well as trends such as online education and remote work, has increased, resulting in a significant reduction in traffic and pollution.

Recent Development

• Siemens will acquire Wattsense, a French provider of plug-and-play IoT management systems, in October 2021. Siemens' building automation offering for small and medium-sized buildings was expanded as a result of this acquisition.
• Hitachi will collaborate with Bao Viet Insurance in October 2021 to drive innovation in the insurance industry through the use of AI and medical big data. Bao Viet Insurance plans to use Hitachi's technology to improve health by predicting the likelihood of developing a disease in the future.
• Microsoft and Honeywell will collaborate in October 2020 to improve enterprise workplace performance and energy efficiency. To access operational data, Honeywell would combine the Microsoft Azure cloud platform and connect Microsoft Dynamics 365 with Honeywell Forge.

Global Smart Cities Market Scope

The smart cities market is segmented on the basis of component, and application. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Component

• Hardware
• Services
• Software

End users

• Smart Transportation
• Parking management
• Ticketing & travel management
• Traffic management
• Passenger information management system
• Freight information system
• Smart Utilities
• Smart energy management
• Meter data management
• Pv monitoring
• Smart grid
• Power electronics converters
• Smart energy storage
• Smart meter
• Smart water management

  • Smart distribution management
  • Smart waste management

• Smart Education
• Smart Healthcare

                       Connected health care solutions

                       Telemedicine

• Smart Public Safety

                        Surveillance

                        Command and control solutions                        

• Smart Governance

                         E-governance solutions

                         Smart emergency management

                         Smart law enforcement

                         Smart city planning

• Smart Lighting Solutions

                         Smart lighting control systems

                         Smart energy management system

                         Smart facility management system

• Smart Buildings

Smart Cities Market Regional Analysis/Insights

The smart cities market is analysed and market size insights and trends are provided by country, component, and application as referenced above.

The countries covered in the smart cities market report are U.S., Canada, Mexico, Germany, France, U.K., Italy, Spain, Switzerland, Netherlands, Russia, Turkey, Belgium, Rest of Europe, Japan, China, South Korea, India, Australia & New Zealand, Singapore, Thailand, Malaysia, Indonesia, Philippines, Rest of Asia-Pacific, South Africa, Israel, U.A.E., Saudi Arabia, Egypt, Rest of Middle East and Africa, Brazil, Argentina and Rest of South America.

North America commanded the largest share of the global smart cities market and is expected to maintain its dominance over the forecast period. However, the Asia-Pacific region continues to experience rapid technological growth in all areas. At the moment, smart city adoption is low in this region, but it has a high potential for market growth in the coming years. Factors such as rapid population growth, increasing economic development, and technological advancement for resource management and sustainable development are fueling this region's rapid growth in the global smart cities market. The countries in this region are among the most technologically developing in the world, providing significant growth opportunities for market participants.

The country section of the report also provides individual market impacting factors and changes in market regulation that impact the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of Global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.   

Competitive Landscape and Smart Cities Market Share Analysis

The smart cities market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, Global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to smart cities market.

Some of the major players operating in the smart cities market are:

• IBM (US)
• SAP SE (Germany)
• Sensoneo (Finland)
• Big belly solar, LLC (US)
• Inogen Environmental Alliance, Inc. (US)
• Ecube Labs (South Korea)
• Covanta Holding Corporation (US)
• Pepperl+Fuchs (Germany)
• OnePlus Systems Inc. (US)
• Urbiotica (Spain)