The global smart cities market size reached US$ 1,233.7 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 4,633.9 Billion by 2032, exhibiting a growth rate (CAGR) of 15.4% during 2024-2032. The growing emergence of advanced information and communication technology (ICT), rising urbanization and population growth around the world, and favorable initiatives and funding support for infrastructure development are some of the major factors propelling the market.
|Market Size in 2023
|US$ 1,233.7 Billion
|Market Forecast in 2032
|US$ 4,633.9 Billion
|Market Growth Rate 2024-2032
Smart cities are urban areas that utilize information and communication technology (ICT) to enhance the quality of life for their residents and optimize the efficiency of various services. They comprise the Internet of Things (IoT) devices, sensors, and data analytics to gather and process real-time information and enable intelligent decision-making by local authorities. They focus on energy management, transportation, healthcare, waste management, and public safety. Moreover, they assist in reducing resource consumption, minimizing traffic congestion, enhancing sustainability, and improving overall urban infrastructure.
At present, the rising demand for sustainable and efficient urban planning solutions is supporting the growth of the market. Besides this, the increasing focus on modern infrastructure development is strengthening the growth of the market. In line with this, the growing adoption of smart and eco-friendly technologies due to the increasing environmental concern to reduce carbon emissions across the globe is positively influencing the market. Apart from this, rising advancements in artificial intelligence (AI) and machine learning (ML) that enable data-driven decision-making and predictive analytics are offering lucrative growth opportunities to industry investors. Furthermore, the increasing availability of high-speed internet connectivity around the world is bolstering the growth of the market. Moreover, the growing demand for improved public safety and security is offering a positive market outlook.
Smart Cities Market Trends/Drivers:
Rising urbanization and population growth
There is a rise in the demand for smart cities due to the increasing urbanization across the globe. As a result, people are facing unprecedented challenges related to transportation, housing, energy consumption, and resource management. In addition, the growing adoption of smart city solutions to address these issues is offering a favorable market outlook. Smart cities offer efficient urban planning strategies and innovative technologies to optimize resource allocation, manage traffic flow, and provide better services to a growing population. Apart from this, cities can make informed decisions on infrastructure development and allocation of resources by leveraging data-driven insights and IoT devices, which ultimately enhance the overall quality of life for residents.
Favorable government initiatives
Governing agencies of various countries are encouraging the adoption of smart cities by offering several initiatives to support infrastructure development, which is offering a positive market outlook. In addition, various national and local authorities are allocating significant funding to enable the implementation of smart city projects. These initiatives generally include public-private partnerships and collaboration between government entities, technology providers, and other stakeholders. Apart from this, smart city development assists in reducing greenhouse gas (GHG) emissions in the environment and promoting sustainability. Additionally, governing authorities are introducing policy frameworks and stringent regulations to curb environmental pollution and encourage smart city projects.
Growing emergence of advanced information and communication technology (ICT)
The increasing emergence of advanced information and communication technology (ICT) is bolstering the growth of the market. The integration of IoT devices and sensors enables the collection of real-time data from various sources, ranging from traffic patterns to energy consumption. In line with this, this data is then processed and analyzed through enhanced data analytics tools to generate actionable insights. The integration of these technologies allows cities to create interconnected systems that efficiently manage services, such as smart grids, for energy distribution, intelligent transportation systems, and automated waste management. Apart from this, the seamless integration of ICT solutions assists in the development of smarter and more responsive urban environments.
Smart Cities Industry Segmentation:
IMARC Group provides an analysis of the key trends in each segment of the global smart cities market report, along with forecasts at the global and regional levels from 2024-2032. Our report has categorized the market based on smart citizen services, focus area, smart transportation, smart buildings and smart utilities.
Breakup by Focus Area:
- Smart Transportation
- Smart Buildings
- Smart Utilities
- Smart Citizen Services
Smart Transportation represents the largest market segment
The report has provided a detailed breakup and analysis of the market based on the focus area. This includes smart transportation, smart buildings, smart utilities, and smart citizen services. According to the report, smart transportation represented the largest segment.
Smart transportation involves the integration of advanced technologies and data-driven solutions to optimize the movement of people and goods within a city. This includes intelligent traffic management systems, real-time public transportation updates, smart parking solutions, and the implementation of connected and autonomous vehicles. It addresses transportation challenges in a sustainable and efficient manner. It also enables cities to better understand traffic patterns, reduce congestion, and improve overall transportation efficiency. This not only enhances the commuting experience for citizens but also reduces the environmental impact.
Breakup by Smart Transportation:
- Smart Ticketing
- Traffic Management System
- Passenger Information Management System
- Freight Information System
- Connected Vehicles
Traffic management system accounts for the majority of the market share
The report has provided a detailed breakup and analysis of the market based on the smart transportation. This includes smart ticketing, traffic management system, passenger information management system, freight information system, connected vehicles, and others. According to the report, traffic management system represented the largest segment.
A traffic management system involves the integration of advanced technologies and real-time data to monitor and control traffic conditions. This includes the deployment of sensors, cameras, and communication networks to gather information on traffic volume, speed, and incidents. The collected data is then analyzed to generate insights and facilitate informed decision-making. The traffic management system aims to optimize traffic flow, enhance safety, and reduce congestion in urban areas. Additionally, it can adjust traffic signals, reroute vehicles, and implement variable speed limits to optimize traffic flow.
Breakup by Smart Buildings:
- Building Energy Optimization
- Emergency Management System
- Parking Management System
Emergency management system holds the biggest market share
The report has provided a detailed breakup and analysis of the market based on the smart buildings. This includes building energy optimization, emergency management system, parking management system, and others. According to the report, emergency management system represented the largest segment.
Emergency management systems comprise a range of interconnected devices and sensors that monitor various parameters, such as fire, smoke, gas leaks, and structural integrity. These systems continuously collect and analyze data to detect potential emergencies swiftly. They are equipped with automated alert systems that notify building occupants and emergency responders quickly. Moreover, these alerts can be transmitted through various channels, such as alarms, text messages, and mobile applications, to ensure everyone is aware of the situation and can take appropriate action.
Breakup by Smart Utilities:
- Advanced Metering Infrastructure
- Distribution Management System
- Substation Automation
The report has provided a detailed breakup and analysis of the market based on the smart utilities. This includes advanced metering infrastructure, distribution management system, substation automation, and others.
Advanced metering infrastructure enables two-way communication between utility providers and consumers. It involves the installation of smart meters that provide real-time data on energy consumption, water usage, and other utilities. It facilitates accurate billing and allows consumers to monitor their usage patterns and helps utilities in optimizing energy distribution.
The distribution management system focuses on managing and optimizing the distribution of electricity across the grid. It utilizes advanced technologies, such as sensors and automation, to monitor grid conditions, detect faults, and enable quick responses to disruptions. It helps utilities to reduce downtime, enhance grid stability, and improve overall reliability.
Substation automation involves the deployment of intelligent devices and control systems in electrical substations. It enables remote monitoring, control, and automation of substation operations. It also enhances grid efficiency, reduces maintenance costs, and facilitates faster fault detection and resolution.
Breakup by Smart Citizen Services:
- Smart Education
- Smart Healthcare
- Smart Public Safety
- Smart Street Lighting
The report has provided a detailed breakup and analysis of the market based on the smart citizen services. This includes smart education, smart healthcare, smart public safety, smart street lighting, and others.
Smart education involves the integration of advanced technologies into the education system to enhance learning experiences and improve educational outcomes. This includes the usage of digital tools, interactive learning platforms, virtual classrooms, and personalized learning solutions.
Smart healthcare focuses on leveraging technology to improve healthcare services and patient outcomes. This includes the utilization of telemedicine, remote patient monitoring, electronic health records, and healthcare analytics. Smart healthcare solutions aim to enhance healthcare accessibility, reduce healthcare costs, and promote proactive and personalized care.
Smart public safety involves the employment of technology to enhance law enforcement, emergency response, and overall public safety measures. This also comprises the deployment of surveillance cameras, real-time data analytics, predictive policing, and emergency communication systems.
Breakup by Region:
- North America
- Asia Pacific
- Middle East and Africa
- Latin America
North America exhibits a clear dominance, accounting for the largest smart cities market share
The report has also provided a comprehensive analysis of all the major regional markets, which include Europe, North America, Asia Pacific, the Middle East and Africa, and Latin America. According to the report, North America accounted for the largest market share.
North America held the biggest market share due to the increasing digital transformation. In line with this, the rising policy frameworks and favorable government initiatives are impelling the growth of the market in the region. Apart from this, the increasing integration of eco-friendly solutions is contributing to the growth of the market. In addition, the rising focus on technological innovations is propelling the growth of the market in the region.
Major players in the industry are introducing innovative technologies, such as the Internet of Things (IoT) devices, sensors, data analytics platforms, and communication networks. These technologies enable the collection and analysis of real-time data for informed decision-making. In line with this, companies are involved in deploying smart infrastructure, such as smart grids, smart transportation systems, smart lighting, and smart buildings. They are continuously working with municipalities and governing agencies of several countries to integrate these solutions into existing urban frameworks or during new city planning and development. Besides this, various companies are developing platforms and mobile applications to encourage citizen participation in smart city initiatives.
The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:
- ABB Group (NYSE: ABB)
- Cisco Systems, Inc.
- Alphabet Inc.
- International Business Machines (IBM) Corporation
- Microsoft Corporation
- Oracle Corporation
- Schneider Electric
- Hitachi, Ltd.
- Siemens AG
- Huawei Technologies Co., Ltd.
- Intel Corporation
- General Electric (GE) Company
- Telefonaktiebolaget L M Ericsson
- Toshiba Corporation
- Honeywell International Inc.
- AT&T Communications, LLC
- In 2021, Siemens Mobility acquired Sqills, a leading provider in the provision of cloud-based inventory management, reservation, and ticketing software to public transport operators around the world. This acquisition offers innovative, smart, and comprehensive mobility solutions.
- In 2021, ABB announced the global distribution agreement with BrainBox AI, a pioneer in predictive and self-adaptive commercial building technology. This focuses on making buildings smarter, safer, and secure while improving energy efficiency and reducing carbon emissions.
- In 2022, Hitachi Energy introduced the TRO610 cellular router that provides state-of-the-art communications and cybersecurity. It is built to support industrial internet of things (IIoT) applications for utilities, smart cities, oil and gas, manufacturing, and mining operations.
Smart Cities Market Report Scope:
|Base Year of the Analysis
|Scope of the Report
|Exploration of Historical and Forecast Trends, Industry Catalysts and Challenges, Segment-Wise Historical and Predictive Market Assessment:
- Focus Area
- Smart Transportation
- Smart Buildings
- Smart Utilities
- Smart Citizen Services
|Focus Areas Covered
|Smart Transportation, Smart Buildings, Smart Utilities, Smart Citizen Services
|Smart Transportations Covered
|Smart Ticketing, Traffic Management System, Passenger Information Management System, Freight Information System, Connected Vehicles, Others
|Smart Buildings Covered
|Building Energy Optimization, Emergency Management System, Parking Management System, Others
|Smart Utilities Covered
|Advanced Metering Infrastructure, Distribution Management System, Substation Automation, Others
|Smart Citizen Services Covered
|Smart Education, Smart Healthcare, Smart Public Safety, Smart Street Lighting, Others
|Europe, North America, Asia Pacific, Middle East and Africa, Latin America
|ABB Group (NYSE: ABB), Cisco Systems, Inc., Alphabet Inc., International Business Machines (IBM) Corporation, Microsoft Corporation, Oracle Corporation, Schneider Electric, Hitachi, Ltd., Siemens AG, Huawei Technologies Co., Ltd., Intel Corporation, General Electric (GE) Company, Telefonaktiebolaget L M Ericsson, Toshiba Corporation, Honeywell International Inc., AT&T Communications, LLC etc.
|10% Free Customization
|Report Price and Purchase Option
|Single User License: US$ 3899
Five User License: US$ 4899
Corporate License: US$ 5899
|Post-Sale Analyst Support
|PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request)
Key Benefits for Stakeholders:
- IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the smart cities market from 2018-2032.
- The research study provides the latest information on the market drivers, challenges, and opportunities in the global smart cities market.
- The study maps the leading, as well as the fastest-growing, regional markets.
- Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the smart cities industry and its attractiveness.
- Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.