Smart Cities Market By Component (Hardware, Software), Application (Smart Governance, Smart Mobility), Technology (IOT, Cloud Computing, 5G Networks), & Region for 2024-2031
Report ID: 137183|No. of Pages: 202
Smart Cities Market Valuation – 2024-2031
The demand for smart cities is fast expanding due to Urbanization and population increase are raising the demand for effective and sustainable municipal management solutions. Technological breakthroughs such as IoT, AI, and big data are enabling the creation of new smart city applications. The market size surpass USD 662.39 Billion valued in 2024 to reach a valuation of around USD 1723.92 Billion by 2031.
The increased emphasis on environmental sustainability and enhanced quality of life is encouraging governments and corporations to invest in smart city projects. As a result, the market for smart cities is expanding rapidly, with rising demand for technology and solutions that can meet the difficulties and opportunities posed by urbanization. The rising demand for cost-effective and efficient smart cities is enabling the market grow at a CAGR of 14.01% from 2024 to 2031.
Smart Cities Market: Definition/ Overview
Smart Cities use digital technology and data analytics to improve the quality and performance of urban services, lower costs, and better engage citizens. This entails combining information and communication technology (ICT) with the Internet of Things (IoT) to efficiently manage assets and resources. Smart city technology applications include smart traffic management systems to improve traffic flow, smart grids for more efficient energy distribution, and smart water management systems to conserve resources. These technologies provide real-time monitoring and management of urban infrastructure, resulting in better public services, less environmental impact, and a higher quality of life for people.
The future of smart cities assures substantial growth and innovation. As technology progresses, smart cities are projected to employ more complex AI and machine learning algorithms to forecast and respond to urban difficulties in real time. Enhanced data analytics will promote customized offerings, increase predictive infrastructure maintenance, and enable more sustainable urban growth.
The incorporation of new technologies such as 5G will provide more rapid more dependable connectivity, allowing for a wider range of applications. As cities become more networked, the emphasis will move toward data security and privacy, resulting in more robust and adaptable urban settings.
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Will the Internet of Things (IoT) and 5G Technology Advancements Drive the Smart Cities Market?
The Internet of Things (IoT) and 5G technology breakthroughs are propelling the smart cities market. The increasing proliferation of IoT devices, with connections estimated to reach 25 billion by 2025 (up from 12 billion in 2019, according to the GSM Association), is allowing for the creation of more complex urban solutions. Cities can employ advanced technology for traffic management, energy use, and waste collection when combined with the spread of 5G networks, which provide quicker and more dependable communication. These solutions enable cities to run more effectively and sustainably, tackling critical urban concerns in real time.
Climate change and sustainability are major drivers of the smart cities market. According to the C40 Cities Climate Leadership Group, urban areas consume more than two-thirds of global energy and contribute more than 70% of global CO2 emissions. To solve these environmental concerns, cities are implementing smart technology. Smart city solutions help to optimize energy usage, reduce emissions, and promote sustainable living, making them important instruments in addressing climate change.
Will the High Costs Impact the Growth of the Smart Cities Market?
High costs have an impact on the growth of the smart cities market. The initial investment in modern technologies and infrastructure, such as IoT devices and 5G networks, can be significant. These costs may be a challenge for cities, particularly those with limited finances. The high cost of implementation and maintenance may inhibit the adoption of smart city solutions, potentially delaying widespread integration and hindering overall market growth.
Regulatory restrictions impede the growth of the smart cities market. Complex and varying legislation across different locations can impede the application of smart technologies. Compliance with various standards and acquiring required approvals can hinder implementation and increase expenses. Inconsistencies in legislative frameworks hamper innovation and integration efforts, slowing the overall pace of smart city development and market expansion.
Category-Wise Acumens
How Do Growing Responsive Governance Fuel the Smart Governance Segment for the Smart Cities Market?
Smart Governance is currently the dominating segment in the smart cities market. Growing responsive governance will propel the Smart Governance segment of the smart cities market. Cities are increasingly focusing on improving transparency, efficiency, and citizen participation, therefore responsive governance solutions based on data analytics, real-time feedback, and digital platforms are vital. These technologies enable governments to make more informed decisions, streamline public services, and better meet citizens’ needs, fostering enhanced trust and involvement in the governance process.
The growing use of smart governance solutions will propel the Smart Governance segment of the smart cities market. As cities strive for greater efficiency, transparency, and citizen participation, smart governance technologies provide capabilities for real-time data analysis, faster administrative operations, and better contact with residents. This rising emphasis on using technology to improve public services and decision-making drives demand for smart governance solutions, resulting in market development in this category.
How will the Data Collection and Communication Raise the IoT Segment for the Smart Cities Market?
IoT (Internet of Things) is the leading segment of the smart cities market. Data gathering and communication will power the IoT portion of the smart cities market. The ability to collect massive volumes of data from numerous sensors and devices and efficiently communicate this information in real time is essential to the operation of smart city solutions. IoT technologies use reliable data collecting and transmission to monitor and manage urban infrastructure, maximize resources, and improve city services. Due to their essential function in enabling data-driven decision-making and operational efficiency, data collection and communication are significant drivers for the growth of the IoT segment in smart cities.
Smart transportation, smart buildings, smart utilities, and public safety will power the IoT segment of the smart cities market. These applications rely significantly on IoT technologies to perform properly, as they require extensive data collecting, real-time monitoring, and communication among multiple devices and systems. IoT allows smart transportation systems to control traffic flow, smart buildings to optimize energy consumption, and smart utilities to improve resource management. The incorporation of these IoT-driven solutions into urban infrastructure promotes efficiency, safety, and sustainability, resulting in the expansion of the IoT segment in the smart cities market.
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Country/Region-wise Acumens
Will the Strong Technological Infrastructure in the North America Bolster Growth of the Smart Cities Market?
North America is a leading player in the smart cities market, and its strong technology infrastructure will fuel growth. According to the US Census Bureau’s 2021 American Community Survey, 91.8% of US households own a computer or smartphone, and 85.2% own broadband internet, laying the groundwork for smart city efforts. The U.S. Department of Transportation’s projection that 90% of new vehicles will be equipped with V2X communication by 2028 supports advances in smart traffic management. According to the GSMA Intelligence report, North America will lead global 5G adoption, with 5G connections expected to exceed 400 million in 2025.
Early adoption will propel the smart cities market in North America. The region’s proactive embrace of smart city technologies, combined with significant investments, positions it as a leader in urban innovation. With smart city spending estimated to reach USD 118.5 Billion by 2023 and a CAGR of 18.8% between 2018 and 2023, North America’s commitment to these technologies is clear. Over 70 million smart meters have been installed, and 66% of US cities have invested in smart technology. Initiatives such as New York City’s USD 100 Million NYCx Technology Leadership program demonstrate the region’s rapid adoption and transformation.
Will the Rapid Urbanization in the Asia Pacific Region Boost the Smart Cities Market?
The Asia-Pacific region is experiencing rapid urbanization and economic growth. Rapid urbanization is propelling the Asia Pacific smart cities market. With a projected urban population of 3.5 billion by 2050, cities have exceptional issues in transportation, energy, water, and waste management. To solve these issues, smart solutions such as adaptive traffic systems, smart grids, and IoT-based water and waste management are being deployed. These technologies are essential for managing rising infrastructure needs, increasing efficiency, and improving quality of life, all of which contribute to the growth of the smart cities market.
Technological advances are propelling the Asia Pacific smart cities market. Rapid advancements in 5G networks, AI, IoT, cloud computing, and big data analytics are allowing cities to become more connected and efficient in addressing urban concerns. 5G adoption is predicted to reach 1.14 billion connections by 2025, while AI and IoT investment are expected to explode, driving innovation in sectors such as traffic control, public safety, and water conservation. These improvements give the infrastructure and technologies required for cities to improve quality of life while addressing growing urbanization concerns, hence driving the smart cities market.
Competitive Landscape
The smart cities market is a dynamic and competitive space, characterized by a diverse range of players vying for market share. These players are on the run for solidifying their presence through the adoption of strategic plans such as collaborations, mergers, acquisitions, and political support.
The organizations are focusing on innovating their product line to serve the vast population in diverse regions. Some of the prominent players operating in the smart cities market include:
- Cisco Systems
- IBM Corporation
- Siemens AG
- Schneider Electric SE
- Huawei Technologies Co., Ltd.
- Microsoft Corporation
- Oracle Corporation
- Hitachi, Ltd.
- Google LLC
- Intel Corporation
Latest Developments
- In January 2023, Oracle, a US technology company, plans to invest $1.5 billion in Saudi Arabia to boost the Arab world’s largest economy’s cloud computing capacity.
- In January 2023, BitSight and Schneider Electric collaborated to quantify operational risk. The new collaboration seeks to provide enterprises with greater clarity and risk detection competency for network and critical infrastructure operations and maintenance.
Report Scope
REPORT ATTRIBUTES | DETAILS |
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STUDY PERIOD | 2021-2031 |
Growth Rate | CAGR of ~14.01% from 2024 to 2031 |
Base Year for Valuation | 2024 |
Historical Period | 2021-2023 |
Forecast Period | 2024-2031 |
Quantitative Units | Value in USD Billion |
Report Coverage | Historical and Forecast Revenue Forecast, Historical and Forecast Volume, Growth Factors, Trends, Competitive Landscape, Key Players, Segmentation Analysis |
Segments Covered |
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Regions Covered |
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Key Players | Cisco Systems, IBM Corporation, Siemens AG, Schneider Electric SE, Huawei Technologies Co., Ltd., Microsoft Corporation, Oracle Corporation, Hitachi, Ltd., Google LLC, Intel Corporation |
Customization | Report customization along with purchase available upon request |
Smart Cities Market, By Category
Component:
- Hardware
- Software
- Service
Application:
- Smart Governance
- Smart Mobility
- Smart Energy Management
Technology:
- IOT
- Artificial Intelligence
- Cloud Computing
- Machine Learning
- 5G Networks
Region:
- North America
- Europe
- Asia-Pacific
- South America
- Middle East & Africa
Research Methodology of Verified Market Research:
To know more about the Research Methodology and other aspects of the research study, kindly get in touch with our Sales Team At Verified Market Research.
Reasons to Purchase this Report
• Qualitative and quantitative analysis of the market based on segmentation involving both economic as well as non-economic factors
• Provision of market value (USD Billion) data for each segment and sub-segment
• Indicates the region and segment that is expected to witness the fastest growth as well as to dominate the market
• Analysis by geography highlighting the consumption of the product/service in the region as well as indicating the factors that are affecting the market within each region
• Competitive landscape which incorporates the market ranking of the major players, along with new service/product launches, partnerships, business expansions and acquisitions in the past five years of companies profiled
• Extensive company profiles comprising of company overview, company insights, product benchmarking and SWOT analysis for the major market players
• The current as well as a future market outlook of the industry with respect to recent developments (which involve growth opportunities and drivers as well as challenges and restraints of both emerging as well as developed regions
• Includes in-depth analysis of the market of various perspectives through Porter’s five forces analysis
• Provides insight into the market through Value Chain
• Market dynamics scenario, along with growth opportunities of the market in the years to come
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Customization of the Report
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Frequently Asked Questions
1. Introduction
• Market Definition
• Market Segmentation
• Research Methodology
2. Executive Summary
• Key Findings
• Market Overview
• Market Highlights
3. Market Overview
• Market Size and Growth Potential
• Market Trends
• Market Drivers
• Market Restraints
• Market Opportunities
• Porter’s Five Forces Analysis
4. Smart Cities Market, By Vertical End-User
• Government and Public Services
• Commercial and Industrial
• Residential
5. Smart Cities Market, By Application Area
• Transportation
• Energy
• Infrastructure
6. Smart Cities Market, By Technology Type
• Smart Governance
• Smart Mobility
• Smart Energy Management
7. Regional Analysis
• North America
• United States
• Canada
• Mexico
• Europe
• United Kingdom
• Germany
• France
• Italy
• Asia-Pacific
• China
• Japan
• India
• Australia
• Latin America
• Brazil
• Argentina
• Chile
• Middle East and Africa
• South Africa
• Saudi Arabia
• UAE
8. Market Dynamics
• Market Drivers
• Market Restraints
• Market Opportunities
• Impact of COVID-19 on the Market
9. Competitive Landscape
• Key Players
• Market Share Analysis
10. Company Profiles
• Cisco Systems
• IBM Corporation
• Siemens AG
• Schneider Electric SE
• Huawei Technologies Co., Ltd.
• Microsoft Corporation
• Oracle Corporation
• Hitachi, Ltd.
• Google LLC
• Intel Corporation
11. Market Outlook and Opportunities
• Emerging Technologies
• Future Market Trends
• Investment Opportunities
12. Appendix
• List of Abbreviations
• Sources and References
Report Research Methodology
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Verified Market Research uses the latest researching tools to offer accurate data insights. Our experts deliver the best research reports that have revenue generating recommendations. Analysts carry out extensive research using both top-down and bottom up methods. This helps in exploring the market from different dimensions.
This additionally supports the market researchers in segmenting different segments of the market for analysing them individually.
We appoint data triangulation strategies to explore different areas of the market. This way, we ensure that all our clients get reliable insights associated with the market. Different elements of research methodology appointed by our experts include:
Exploratory data mining
Market is filled with data. All the data is collected in raw format that undergoes a strict filtering system to ensure that only the required data is left behind. The leftover data is properly validated and its authenticity (of source) is checked before using it further. We also collect and mix the data from our previous market research reports.
All the previous reports are stored in our large in-house data repository. Also, the experts gather reliable information from the paid databases.
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For understanding the entire market landscape, we need to get details about the past and ongoing trends also. To achieve this, we collect data from different members of the market (distributors and suppliers) along with government websites.
Last piece of the ‘market research’ puzzle is done by going through the data collected from questionnaires, journals and surveys. VMR analysts also give emphasis to different industry dynamics such as market drivers, restraints and monetary trends. As a result, the final set of collected data is a combination of different forms of raw statistics. All of this data is carved into usable information by putting it through authentication procedures and by using best in-class cross-validation techniques.
Data Collection Matrix
Perspective | Primary Research | Secondary Research |
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Demand side |
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Econometrics and data visualization model
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Our analysts offer market evaluations and forecasts using the industry-first simulation models. They utilize the BI-enabled dashboard to deliver real-time market statistics. With the help of embedded analytics, the clients can get details associated with brand analysis. They can also use the online reporting software to understand the different key performance indicators.
All the research models are customized to the prerequisites shared by the global clients.
The collected data includes market dynamics, technology landscape, application development and pricing trends. All of this is fed to the research model which then churns out the relevant data for market study.
Our market research experts offer both short-term (econometric models) and long-term analysis (technology market model) of the market in the same report. This way, the clients can achieve all their goals along with jumping on the emerging opportunities. Technological advancements, new product launches and money flow of the market is compared in different cases to showcase their impacts over the forecasted period.
Analysts use correlation, regression and time series analysis to deliver reliable business insights. Our experienced team of professionals diffuse the technology landscape, regulatory frameworks, economic outlook and business principles to share the details of external factors on the market under investigation.
Different demographics are analyzed individually to give appropriate details about the market. After this, all the region-wise data is joined together to serve the clients with glo-cal perspective. We ensure that all the data is accurate and all the actionable recommendations can be achieved in record time. We work with our clients in every step of the work, from exploring the market to implementing business plans. We largely focus on the following parameters for forecasting about the market under lens:
- Market drivers and restraints, along with their current and expected impact
- Raw material scenario and supply v/s price trends
- Regulatory scenario and expected developments
- Current capacity and expected capacity additions up to 2027
We assign different weights to the above parameters. This way, we are empowered to quantify their impact on the market’s momentum. Further, it helps us in delivering the evidence related to market growth rates.
Primary validation
The last step of the report making revolves around forecasting of the market. Exhaustive interviews of the industry experts and decision makers of the esteemed organizations are taken to validate the findings of our experts.
The assumptions that are made to obtain the statistics and data elements are cross-checked by interviewing managers over F2F discussions as well as over phone calls.
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Different members of the market’s value chain such as suppliers, distributors, vendors and end consumers are also approached to deliver an unbiased market picture. All the interviews are conducted across the globe. There is no language barrier due to our experienced and multi-lingual team of professionals. Interviews have the capability to offer critical insights about the market. Current business scenarios and future market expectations escalate the quality of our five-star rated market research reports. Our highly trained team use the primary research with Key Industry Participants (KIPs) for validating the market forecasts:
- Established market players
- Raw data suppliers
- Network participants such as distributors
- End consumers
The aims of doing primary research are:
- Verifying the collected data in terms of accuracy and reliability.
- To understand the ongoing market trends and to foresee the future market growth patterns.
Industry Analysis Matrix
Qualitative analysis | Quantitative analysis |
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