Smart Cities Market by Component (Services, Solutions), Deployment Area (Commercial, Industrial, Residential) - Global Forecast 2024-2030

Smart Cities Market by Component (Services, Solutions), Deployment Area (Commercial, Industrial, Residential) - Global Forecast 2024-2030

The Smart Cities Market size was estimated at USD 594.36 billion in 2023 and expected to reach USD 677.51 billion in 2024, at a CAGR 14.40% to reach USD 1,524.27 billion by 2030.

Smart cities embody the convergence of technology, government, and society, aiming to enhance the quality of urban living. Smart cities aspire to optimize city operations, improve governmental services, and foster sustainability using Internet of Things (IoT) devices, big data analytics, AI, and other digital technologies. Smart cities aim to create a responsive, adaptive, and connected city environment that empowers its residents and stakeholders, ensuring a higher quality of life, efficiency in public services, and sustainable urban development. The increasing urban population primarily drives the smart cities market, the rising adoption of green technology, and governments' focus on digitalization and sustainable development. The advancements in AI, IoT, and big data analytics, coupled with increasing awareness about environmental issues, also fuel the growth of smart cities globally. However, high initial investments and privacy and security concerns pose significant challenges to the growth of the smart cities market. moreover, increasing emphasis on sustainable urban development and government initiatives worldwide present substantial opportunities for expanding the smart cities market.

Regional Insights

In the Americas, the smart cities market is significantly growing in the United States and Canada, strongly focusing on integrating Internet of Things (IoT) technologies to enhance public services and urban infrastructure. The key investment areas include smart grid technologies, intelligent transportation systems, and sustainable urban development projects. Latin American countries also embrace smart city solutions, primarily aimed at improving safety and transportation, with Brazil and Mexico leading in adoption. The Asia-Pacific region is witnessing explosive growth in smart city projects, driven by massive urbanization rates and technological innovation. Countries such as China, Japan, South Korea, and Singapore lead the charge, implementing innovative solutions in smart transportation, energy management, and digital governance. The smart cities market in the Asia-Pacific region is characterized by significant government investment and collaboration between public and private sectors. Europe strongly emphasizes sustainability, citizen participation, and innovation in the EMEA region. The European Union's support for smart city development is evident through numerous funding programs and research initiatives. The Middle East, particularly the Gulf Cooperation Council (GCC) countries, is focusing on building smart cities from the ground up, leveraging wealth from oil and gas to invest in futuristic urban environments. The participation of the African region in the smart cities trend is emerging, with South Africa, Kenya, and Nigeria leading in urban technology implementations despite facing challenges such as limited infrastructure and investment.

Market Insights

Market Dynamics

The market dynamics represent an ever-changing landscape of the Smart Cities Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.

Market Drivers

• Increasing demand to manage the rising urban population
• Investments to develop energy-efficient and sustainable construction projects

Market Restraints

• High costs of solution implementation associated with smart cities

Market Opportunities

• Increasing emphasis on sustainable urban development
• Rising government initiatives and investments for smart cities worldwide

Market Challenges

• Safeguarding the privacy and protection of personal data

Market Segmentation Analysis

• Component: Surge in Integrated ICT Infrastructure Adoption in Smart Cities
• Deployment Area: Government support for Industry 4.0 initiatives necessitating the usage of smart city technologies in the industrial sector

Market Disruption Analysis

• Porter’s Five Forces Analysis
• Value Chain & Critical Path Analysis
• Pricing Analysis
• Technology Analysis
• Patent Analysis
• Trade Analysis
• Regulatory Framework Analysis

FPNV Positioning Matrix

The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the Smart Cities Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis

The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the Smart Cities Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Recent Developments

International Recognition for Inclusive Innovation in Smart Cities through Georgia Tech-led Initiatives

Georgia Tech's recent initiatives in smart cities have garnered international acclaim for their groundbreaking work in fostering inclusive innovation. Partnering with various organizations, these projects aim to integrate advanced technologies into urban environments while ensuring accessibility and equity for all residents. The collaboration highlights the importance of inclusivity in technological advancements, promoting a balanced approach to urban development that benefits diverse communities.

Eurazeo Launches USD 449.5 Million Fund to Boost Smart City Innovations in Energy, Mobility, and Infrastructure

Eurazeo finalized its second Smart City investment fund, reaching a significant milestone with a closing fund size of USD 449.5 million. This dedicated fund is strategically positioned to channel investments into pivotal areas central to the advancement and development of smart cities worldwide. These sectors include renewable energy sources, innovative mobility solutions, efficient logistics systems, advanced manufacturing technologies, and improved built environment.

NEC Corporation India Introduces Advanced Solutions for Urban Management and Citizen Engagement

NEC Corporation India unveiled a suite of innovative products designed to advance urban management and operations. The newly launched product lineup consists of NEC Mi-Command, an integrated command and control center; NEC Mi-City, a portal dedicated to citizen engagement; NEC Mi-Eye, featuring intelligent video analytics; and NEC Mi-WareSync, a sophisticated warehouse management system. Through these comprehensive solutions, NEC Corporation India aims to facilitate smooth coordination among various organizations and authorities while also enhancing the quality of life for citizens, businesses, and the broader community.

Strategy Analysis & Recommendation

The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the Smart Cities Market. This critical assessment involves a thorough analysis of the organization’s resources, capabilities, and overall performance to identify its core strengths and areas for improvement.

Key Company Profiles

The report delves into recent significant developments in the Smart Cities Market, highlighting leading vendors and their innovative profiles. These include Accenture PLC, Akeptus LLC, bee smart city GmbH, Bosch GmbH, Cisco Systems, Inc., Cleverciti Systems GmbH, Confidex by Beontag, Dell Technologies Inc., Fujitsu Limited, Geeny by Telefónica, HCL Technologies Limited, Hitachi Ltd., Honeywell International Incorporated, Huawei Technologies Co., Ltd., Intel Corporation, International Business Machines Corporation, KaaIoT Technologies, LLC, Microsoft Corporation, NEC Corporation, Oracle Corporation, SAP SE, Schneider Electric SE, SICE TYS Group, Siemens AG, Sierra Wireless S.A. by Semtech Corporation, Smarter City Solutions, Telefonaktiebolaget LM Ericsson, Verizon Communications Inc, and Wipro Limited.

Market Segmentation & Coverage

This research report categorizes the Smart Cities Market to forecast the revenues and analyze trends in each of the following sub-markets:

Component

• Services
• Consulting
• Deployment & Integration
• Infrastructure Monitoring & Management
• Solutions
• Building
• Building Infrastructure Management
• Elevator & Escalators Management
• Smart Water Management
• Energy Management
• Network Management
• Safety & Security Management
• Access Control System
• Entrance Control System
• Video Surveillance System
• Citizen Services
• E-governance
• Smart Education
• Smart Healthcare
• Smart Public Safety
• Transportation
• Connected Logistics
• Passenger Information Management
• Smart Ticketing System
• Traffic & Parking Management System
• Traffic Surveillance
• Utilities
• Distribution Management System
• Smart Meter Infrastructure
• Substation Automation

Deployment Area

Commercial

Industrial

Residential

Region

• Americas
• Argentina
• Brazil
• Canada
• Mexico
• United States
• California
• Florida
• Illinois
• New York
• Ohio
• Pennsylvania
• Texas
• Asia-Pacific
• Australia
• China
• India
• Indonesia
• Japan
• Malaysia
• Philippines
• Singapore
• South Korea
• Taiwan
• Thailand
• Vietnam
• Europe, Middle East & Africa
• Denmark
• Egypt
• Finland
• France
• Germany
• Israel
• Italy
• Netherlands
• Nigeria
• Norway
• Poland
• Qatar
• Russia
• Saudi Arabia
• South Africa
• Spain
• Sweden
• Switzerland
• Turkey
• United Arab Emirates
• United Kingdom

Please Note: PDF & Excel + Online Access - 1 Year