The global smart cities market size is expected to reach USD 676.01 billion by 2028, registering a CAGR of 29.3% over the forecast period, according to a study conducted by Grand View Research, Inc. The demand for smart cities is anticipated to increase primarily due to factors such as rising urban population, growing necessity to efficiently manage limited natural resources, and environmental sustainability. Smart cities include a large number of domains and application areas augmented with technological advancements and their efficient use to provide services to citizens of a city. The aging infrastructure, rapid urbanization, and adoption of the latest technology, coupled with the demand for improved quality of life, are driving the market growth.
The growing number of inhabitants and the rapid rate of urbanization has subjected the existing infrastructure to high stress. There is a growing necessity for efficient and sustainable infrastructure management. As such, city governments and municipalities are tackling these problems through smart city initiatives across mobility, utility management, and safety domains. Furthermore, the increase in traffic congestion and greenhouse gas emissions is driving the adoption of smart mobility and efficient energy management applications. This is driving the demand for smart cities globally.
The market for smart cities covers various sectors such as transport, water, healthcare, assisted living, energy, and security. Smart city implementation differs from city to city primarily due to the disparity in technological penetration, awareness, and investments. The high volume of initial financial investments needed to establish different sectors and departments for efficient smart city implementation and the lack of a systemic process for the same may hinder the market growth. However, the market is expected to grow significantly over the forecast period owing to the increasing availability of technology, renewed interest in smart cities via initiatives and investments, and all-inclusive involvement of industry stakeholders in the same.
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The smart utilities segment is anticipated to register a CAGR of 24.0% over the forecast period. The advent of smart grids is a significant factor driving the adoption of smart utilities. The integration of advanced data analytics and cloud technologies into smart utilities is also expected to drive the segment growth
The smart infrastructure segment is anticipated to register the highest CAGR of 17.0% over the forecast period. The demand for smart infrastructure is driven by the need for a smart and sustainable city that uses ICTs primarily to improve the quality of life and efficiency of urban operations
The smart ticketing and travel assistance segment is expected to record a CAGR of 37.6% over the forecast period. The growing adoption of mobile ticketing at venues such as cricket stadiums and amusement parks, coupled with the launch of NFC-enabled smartphones and contactless smart cards, is expected to create opportunities for the smart ticketing segment growth over the forecast period
The private segment is expected to register a CAGR of 28.9% over the forecast period. Players in the private sector, including service providers, collaborators, and financiers, collaborate and aid in the planning and designing of projects with technical insights and best practices to implement and deliver technology solutions
The waste management segment is estimated to attain a significant size in terms of revenue by 2028, registering a CAGR of 26.3% over the forecast period. Several governments are approaching system integrators, OEMs, and distributors to install smart trash bins across various cities and municipalities, which is driving the segment growth
Asia Pacific is anticipated to register the highest CAGR of 39.4% over the forecast period. The region is demonstrating a myriad of smart city initiatives, mostly influenced by national agendas and the growing need to upgrade aging infrastructure
Some of the prominent players operating in the market include ABB Limited; AGT International; AVEVA Group plc; and Cisco Systems, Inc.
Grand View Research has segmented the global smart cities market based on application, governance model, and region:
Smart Cities Application Outlook (Revenue, USD Million, 2016 - 2028)
Smart Cities Smart Governance Outlook (Revenue, USD Million, 2016 - 2028)
Smart Cities Smart Utilities Outlook (Revenue, USD Million, 2016 - 2028)
Smart Cities Smart Transportation Outlook (Revenue, USD Million, 2016 - 2028)
Intelligent Transportation System
Smart Ticketing & Travel Assistance
Smart Cities Governance Model Outlook (Revenue, USD Million, 2016 - 2028)
Smart Cities Regional Outlook (Revenue, USD Million, 2016 - 2028)
Middle East & Africa
List of Key Players in the Smart Cities Market
AVEVA Group plc.
Cisco Systems, Inc.
Honeywell International Inc.
International Business Machines Corporation
Huawei Technologies Co., Ltd.
Schneider Electric SE
Vodafone Group plc
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