Smart City Market Size By Application(Smart Transportation, Smart Buildings, Smart Utilities, Smart Citizen Services, Smart Governance), Components ( Hardware, Software, Services), End-user ( Government, Citizens, Enterprises) & Region for 2024-2031
Report ID: 58790|No. of Pages: 202
Smart City Market Size By Application(Smart Transportation, Smart Buildings, Smart Utilities, Smart Citizen Services, Smart Governance), Components ( Hardware, Software, Services), End-user ( Government, Citizens, Enterprises) & Region for 2024-2031
Smart City Market Valuation – 2024-2031
Rapid advancement of digital technologies, including IoT, AI, and cloud computing, facilitating the transformation of urban areas into smart cities are major factors driving the market. Smart city market is estimated to reach a valuation of USD 1728.11 Billion over the forecast period 2031, by subjugating around USD 690.66 Billion valued in 2024.
The increasing investment from governments worldwide in smart city projects enabling the market to grow at a CAGR of 13.40% from 2024 to 2031.
Smart City Market: Definition/ Overview
A smart city is an urban area that integrates advanced technologies and data analysis to enhance the quality of life for its residents, improve sustainability, and streamline urban services. This concept involves utilizing information and communication technologies (ICT) and the Internet of Things (IoT) to manage city resources and infrastructure more efficiently, enabling real-time data collection and analysis.
By optimizing operations in areas such as transportation, energy management, waste disposal, and public safety, smart cities aim to reduce costs, minimize environmental impact, and foster better communication between citizens and local authorities. Ultimately, the goal of a smart city is to create a more livable, resilient, and economically viable environment for its inhabitants while addressing the challenges posed by rapid urbanization and population growth.
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How do Advancements in IoT and AI Technologies Contribute to the Growth of the Smart City Market?
Advancements in Internet of Things (IoT) and artificial intelligence (AI) technologies are significantly contributing to the growth of the smart city market by enhancing urban efficiency, sustainability, and quality of life. IoT devices, such as sensors and connected infrastructure, facilitate real-time data collection on various urban parameters, including traffic flow, energy consumption, and environmental conditions. AI processes this vast amount of data to optimize services and resource management, enabling cities to respond dynamically to changing conditions. For instance, AI algorithms can predict traffic congestion and adjust traffic signals accordingly, improving transportation efficiency.
According to a report, the global IoT in smart cities market is projected to grow from USD 130.6 Billion in 2021 to USD 312.2 Billion by 2026, reflecting a compound annual growth rate (CAGR) of 19.0% during this period. Additionally, as urban populations expected to reach two-thirds of the global population by 2050 so governments are increasingly investing in smart city initiatives to address challenges related to resource management and public service delivery. This integration of IoT and AI not only enhances operational efficiency but also promotes sustainability by reducing energy waste and improving public safety through advanced monitoring systems.
What are the Major Infrastructure Limitations in Developing Smart City Ecosystems?
The development of smart city ecosystems faces significant infrastructure limitations that hinder their growth and effectiveness. One major challenge is the need to upgrade aging infrastructure, as many cities rely on systems that are decades old, including outdated transportation networks and utilities. For example, a report highlighted that cities like Gurugram and Bengaluru struggle with severe water-logging issues due to insufficient infrastructure, indicating the urgent need for improvements to support smart technologies. Additionally, the complexity and cost of installing new technologies, such as IoT sensors and high-speed internet, can be prohibitive, funding for these projects is often limited, and approval processes can take years. According to government statistics, the Indian government has allocated ?1,000 crore each from both central and state budgets for smart city initiatives, but this funding is frequently insufficient to cover the comprehensive upgrades needed.
Furthermore, the lack of effective coordination among multiple service providers complicates infrastructure development, as seamless collaboration between various municipal bodies is essential for implementing integrated smart solutions. These limitations underscore the necessity for strategic planning and investment in robust infrastructure to enable the successful realization of smart city initiatives.
Category-Wise Acumens
What Role does Smart Transportation Play in Driving Overall Smart City Growth?
Smart transportation is a key driver of overall smart city growth, as it enables cities to optimize urban mobility and reduce the environmental impact of transportation. According to a report, the global smart transportation market is expected to grow from USD 33.38 Billion in 2024 to USD 46.36 Billion by 2029, at a CAGR of 6.79% during the forecast period. Smart transportation solutions, such as real-time traffic monitoring, intelligent traffic signals, and smart parking systems, help cities manage congestion more effectively. For example, in 2022, the average American motorist wasted 51 hours in traffic congestion, costing USD 869 in lost time. Smart transportation can reduce these losses by optimizing traffic flow and providing commuters with real-time information to make better travel choices.
Additionally, smart transportation supports the adoption of electric vehicles and promotes the use of public transit, walking, and cycling, leading to lower carbon emissions and improved air quality. As cities continue to invest in smart transportation technologies, they can expect to see significant improvements in urban efficiency, sustainability, and quality of life for their citizens.
How do Government Policies and Initiatives Drive the Growth of Smart Cities?
Government policies and initiatives play a crucial role in driving the growth of smart cities by providing the necessary framework, funding, and strategic direction for urban development. For instance, the Government of India launched the Smart Cities Mission in 2015, aiming to develop 100 smart cities across the country with an investment of approximately ?1,44,742 crore (about USD 18 Billion) proposed for various projects. This initiative focuses on enhancing infrastructure, improving public services, and fostering sustainable urban environments.
Additionally, governments globally are increasingly recognizing the importance of integrating technology into urban planning to address challenges posed by rapid urbanization; for example, the U.S. government announced a USD 165 Million investment in smart city solutions in 2016. Such policies not only facilitate public-private partnerships but also encourage innovation and investment in smart technologies, ensuring that cities can leverage advancements in IoT, AI, and data analytics to improve efficiency and quality of life for their residents. Overall, government support is essential for creating a conducive environment for smart city initiatives to thrive and succeed.
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Country/Region-wise Acumens
How do Advanced Infrastructure and High-Tech Investments Contribute to North America’s Dominance in the Smart City Market?
Advanced infrastructure and high-tech investments are pivotal in reinforcing North America’s dominance in the smart city market. The region benefits from a well-established and resilient economy, which allows for substantial public and private investments in smart city technologies. For instance, the U.S. government is projected to invest approximately USD 41 Trillion over the next two decades to upgrade its infrastructure to leverage IoT benefits, significantly enhancing urban management capabilities. This includes transitioning to advanced telecommunications networks, such as 5G, which facilitates the implementation of smart solutions across various sectors like transportation, energy, and public safety.
Moreover, North America leads in the adoption of innovative technologies due to its robust information and communication technology (ICT) infrastructure, with cities like New York and San Francisco at the forefront of deploying smart city initiatives. According to a report, North America is expected to hold over 30% of the global smart cities market revenue by 2028, underscoring how strategic investments in advanced infrastructure are driving the region’s leadership in this rapidly evolving market.
What Key Factors Contribute to Europe’s Ongoing Growth in the Smart City Market?
Europe’s ongoing growth in the smart city market, making it a significant player in this sector as the increasing demand for sustainable urban infrastructure, as cities aim to address challenges related to urbanization and environmental sustainability. The European smart cities market was valued at approximately USD 190.72 Billion in 2022 and is projected to reach around USD 489.3 Billion by 2030, growing at a CAGR of 15.5% during the forecast period. Government initiatives and funding programs play a crucial role in this growth, with many European governments actively investing in smart city projects to enhance living standards and improve infrastructure. For example, Germany is expected to account for a substantial share of the European market due to its significant investments in smart city technologies aimed at reducing carbon emissions and improving quality of l
Additionally, the integration of advanced technologies such as IoT, AI, and big data analytics enables cities to optimize resource management and enhance urban services, further driving market expansion. Public-private partnerships are also fostering innovation and collaboration, ensuring that cities can leverage cutting-edge solutions to meet their evolving needs effectively.
Competitive Landscape
The competitive landscape of the smart city market is dynamic and expansive, featuring a variety of players from different sectors including technology providers, telecommunications companies, utility companies, and many others. These entities collaborate and compete to offer integrated solutions that make cities more efficient, sustainable, and livable. The smart city market is expected to continue growing as urbanization increases and technology advances. The competitive landscape is characterized by a race to provide integrated, efficient, and sustainable solutions that address the complex challenges faced by modern urban areas.
Some of the prominent players operating in the smart city market include:
- ABB Ltd.
- Cisco Systems, Inc.
- Emerson Electric Co.
- IBM Corporation
- Ericsson Inc.
- Schneider Electric
- Honeywell
- Johnson Controls
- Siemens
- Accenture
Latest Developments
- In February 2024, Cisco launched a smart city accelerator program in North America to support startups and entrepreneurs developing innovative solutions for urban challenges. The program provides funding, mentorship, and access to Cisco’s technology and partner ecosystem to help scale smart city solutions.
- In June 2023, Ericsson launched a suite of smart city solutions designed to integrate advanced connectivity with IoT applications.
Report Scope
| REPORT ATTRIBUTES | DETAILS |
|---|---|
| Study Period | 2021-2031 |
| Growth Rate | CAGR of 13.40% 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 | ABB Ltd., Cisco Systems, Inc., Emerson Electric Co., IBM Corporation, Ericsson, Inc., Schneider Electric, Honeywell, Johnson Controls, Siemens, Accenture |
| Customization | Report customization along with purchase available upon request |
Smart City Market, By Category
Application:
- Smart Transportation
- Smart Buildings
- Smart Utilities
- Smart Citizen Services
- Smart Governance
Component:
- Hardware
- Software
- Services
End-User:
- Government
- Citizens
- Enterprises
Region:
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and 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 the 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
• 6-month post-sales analyst support
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 City Market, By Solutions
• Smart Governance
• Smart Mobility
• Smart Energy Management
• Smart Healthcare
• Smart Infrastructure
• Smart Public Safety
• Others
5. Smart City Market, By Components
• Hardware
• Software
• Services
6. Smart City Market, By Verticals
• Government
• transit
• Energy
• Healthcare
• Education
• Utilities
• Others
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
• ABB Ltd.
• Cisco Systems Inc.
• Emerson Electric Co.
• IBM Corporation
• Ericsson Inc.
• Schneider Electric
• Honeywell
• Johnson Controls
• Siemens
• Accenture
11. Market Outlook and Opportunities
• Emerging Technologies
• Future Market Trends
• Investment Opportunities
12. Appendix
• List of Abbreviations
• Sources and References
Report Research Methodology
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.
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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Econometrics and data visualization model
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.
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
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