PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1308741
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1308741
According to Stratistics MRC, the Global Smart Cities Market is accounted for $813.11 billion in 2023 and is expected to reach $3624.08 billion by 2030 growing at a CAGR of 23.8% during the forecast period. A smart city is a cutting-edge idea for metropolitan areas that makes use of modern technology and data analysis to improve citizen quality of life, increase sustainability, and streamline urban services and decision-making. In most cases, this entails utilizing digital solutions to manage a city's resources and infrastructure more effectively, cut waste and costs, enhance communication between residents and city authorities, and deliver better public services. Smart cities seek to raise living standards and give residents a higher quality of life by integrating technology into a variety of urban services. By lowering carbon emissions and protecting natural resources, smart city projects seek to create a livable and environmentally friendly urban environment.
According to the United Nations Department of Economic and Social Affairs, the urban population in 2019 was 55.7%, which is projected to reach to 68.4% by 2050.
The government's investments in the creation of smart cities are being boosted by a number of factors, including increasing urbanization, a growing need for infrastructure management, and asset management. The internet of things technology has been widely adopted in smart cities to manage traffic flows, monitor city infrastructure, and check the quality of the air and water. This is due to advancements in technology. During the forecast period, it is anticipated that the market for smart cities will grow at a faster rate due to the increasing need to ensure public safety, resource efficiency, rising demand for energy efficiency, and healthy environments.
The legacy telecom infrastructure still in use in developing and underdeveloped countries is unable to provide low latency and high-capacity connectivity. A bad experience may result from slow internet. Due to the need for high-speed and low-latency internet for smart city ecosystem solutions, a slow connection will result in a lower level of service. The implementation of smart city solutions is very challenging due to the lack of high-speed internet. These nations' governments lack the funding to establish and guarantee the efficient operation of smart city solutions, which require expensive infrastructure.
The global development of smart cities and platforms is fueled by the increased adoption of the internet and the internet of things. To increase energy efficiency, local governments in other areas are spending money on intelligent and adaptable streetlights. The trend of growing IoT and connected devices is anticipated to continue over the forecast period as a result of smart city initiatives. The adoption of IoT-connected devices such as smart meters, smart homes, smart lighting, and smart transportation is expected to drive the development of platforms for smart cities.
Given that the entire city is networked, the use of security cameras and smart systems is excessively risky. Hackers can access your home network through the connected systems and look into your personal information. A further obstacle to maintaining anonymity is that smart systems are connected to numerous locations. Such issues limit the adoption of smart cities over the forecast period.
Due to the COVID-19 outbreak, numerous governments and local authorities have enacted strict lockdowns that have caused a shortage of workers and hampered their ability to meet the requirements of initiatives and planning for smart cities. However, many businesses have tried integrating cutting-edge technologies like AI and IoT in order to address the issues caused by the pandemic. In the upcoming years, it is anticipated that the adoption of e-health and e-government services, as well as trends like remote working and online education, will contribute to the adoption of digital cities.
Over the anticipated period, the market was dominated by the energy management segment. The adoption of virtual power plants, which rely on AI, machine learning, and IoT to provide security and efficiency in response to the rising demand for energy, has been sparked by this trend. The main market players are concentrating on building a solid R&D infrastructure to support the advancement and overview of advanced energy management systems and designing analytics solutions to incorporate cutting-edge technologies like blockchain. These factors are helping the segment drive the market's expansion.
Over the course of the forecast period, the smart lighting segment is anticipated to experience highest CAGR growth. Smart lighting can support a variety of smart city applications, including traffic management, public safety, environmental monitoring, smart parking, extended Wi-Fi, and cellular communications, among others, while also improving the city's energy efficiency and lowering energy and maintenance costs. Moreover, the development of human-centric lighting using light-emitting diodes and organic light-emitting diodes has given smart lighting a lot of traction recently.
Smart city technologies are widely used in this region, especially in the US. With the US and Canada at the forefront, North America is the region that has the most smart cities. Because of their enduring and established economies, these nations are able to make significant investments in R&D projects, which helps advance the creation of new technologies. This makes use of cutting-edge technologies like cloud edge computing and network slicing to encourage the adoption of smart cities for strategic urban management at a low cost. During the projection period, these factors will support the growth of the market.
During the projected timeline, Asia Pacific is anticipated to witness lucrative growth. The rise in disposable income, the emergence of digital infrastructure, globalization, and economic advancements are all factors that have contributed to the region's growth. Asia Pacific businesses are eager to take advantage of the cost-effectiveness and other advantages of cloud-based solutions, which is encouraging for the development of applications like smart building, smart utilities, smart transportation, and smart governance.
Some of the key players profiled in the Smart Cities Market include ABB Limited, AGT International, AT&T Intellectual Property, AVEVA Group plc., Cisco Systems, Inc., Ericsson, General Electric Co., Hitachi, Ltd, Honeywell International Inc., Huawei Technologies Co., Ltd., IBM Corporation, Intel Corporation, International Business Machines Corporation, Itron Inc., KAPSCH Group, Koninklijke Philips NV, Microsoft Corporation, Oracle Corporation, Osram Gmbh, SAP SE, Schneider Electric SE, Siemens AG and Telensa.
In November 2022, Emerson Electric Co. announced the completion of the previously announced USD 3-billion sale of its InSinkErator business to Whirlpool Corporation. It manufactures food waste disposers and instant hot water dispensers for home and commercial use. Whirlpool Corporation, a home appliance industry leader, is well-positioned to capitalize on InSinkErator's substantial legacy and performance to achieve long-term growth and success.
In July 2022, Ericsson Inc. acquired Vonage, and Vonage became a wholly-owned subsidiary of Ericsson. With this acquisition with Vonage on board, Ericsson would create a market for simple global network Application Program Interfaces ("APIs"), driving the next wave of digitalization. Ericsson would benefit from bringing Vonage Unified Communications as a Service (UCaaS) and Contact Center as a Service (CCaaS) solutions to its existing customers in the near term.
Note: Tables for North America, Europe, Asia Pacific, South America and Middle East & Africa Regions are also represented in the same manner as above.