Smart City ICT Infrastructure Market By Type (Smart Grid, Smart Building, Smart Water Network, Smart Healthcare, Smart Education, Smart Security, Smart Transport) , By Application (Communication, Transportation, Express Government, Education, Others) : Global Opportunity Analysis and Industry Forecast, 2024-2032
Smart City ICT Infrastructure Market
The smart city ICT infrastructure market was valued at $1.2 trillion in 2023 and is projected to reach $5.3 trillion by 2032, growing at a CAGR of 17.7% from 2024 to 2032.
Smart city ICT infrastructure is a system of interconnected devices, technologies, and data systems. This interconnected system utilizes AI, cloud technology, and the Internet of Things (IoT) to facilitate the operation of city services and efficient management of resources & information. The key components that comprise the smart city ICT infrastructure include connectivity network, data management system, smart services & applications, public safety system, citizen engagement platform, and cybersecurity resources. Establishment of reliable infrastructure is becoming critical for the improvement of quality of life for citizens.
Expansion of urbanization globally has boosted the demand for efficient city management systems, which drives the growth of the smart city ICT infrastructure market. In addition, upsurge in the capabilities of AI, IoT, and data analytics solutions is propelling the growth of the market significantly. Furthermore, rise in government initiatives to improve public services and promote economic growth augments the market development. The trend of assimilating smart technology with sustainability is gaining significant prominence in the smart city ICT infrastructure market. Approaches such as renewable energy sources incorporation, waste management solutions, and climate-inclined urban planning are being adopted considerably to reduce the carbon footprint of smart cities.
However, the infrastructure comprises of expensive technologies and equipment, requiring high capital investments for implementation. This capital-intensive nature of the infrastructure hampers the widespread expansion of the market. Moreover, lack of standardization in technologies poses interoperability challenges across different devices, restraining the market growth. On the contrary, as smart city connections continue to increase, the market is poised for various lucrative opportunities. German database company, Statista mentions that between 2022 and 2023, the connections increased by around 30%. The connections are further expected to accelerate in coming years, with approximately 500 million connections being added annually by 2028. This is poised to open new avenues for the smart city ICT infrastructure market.
Segment ReviewThe smart city ICT infrastructure market is segmented into type, application, and region. As per type, the market is divided into smart grid, smart building, smart water network, smart healthcare, smart education, smart security, and smart transport. Depending on application, it is classified into communication, transportation, express government, education, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, Latin America, and MEA.
Key FindingsAs per type, the smart grid segment held a high share of the market in 2023.
Depending on application, the communication segment acquired a high stake in the market in 2023.
Region wise, North America was the highest revenue generator in 2023.
Competition AnalysisThe leading players operating in the global smart city ICT infrastructure market include Microsoft Corporation, IBM Corporation, Oracle Corporation, Cisco Systems, Inc., NTT Communications, ABB, Hitachi, Siemens, Ericsson, and Verizon Communications. These major players have adopted various key development strategies such as business expansion, new product launches, and partnerships, to strengthen their foothold in the competitive market.
Key Market SegmentsBy TypeSmart Grid
Smart Building
Smart Water Network
Smart Healthcare
Smart Education
Smart Security
Smart Transport
By ApplicationCommunication
Transportation
Express Government
Education
Others
By RegionNorth America
U.S.
Canada
Europe
UK
Germany
France
Italy
Spain
Rest of Europe
Asia-Pacific
China
Japan
India
South Korea
Australia
Rest of Asia-Pacific
Latin America
Argentina
Colombia
Brazil
Rest of LAMEA
MEA
South Africa
Saudi Arabia
UAE
Rest of MEA
Key Market PlayersMicrosoft Corporation
IBM Corporation
Oracle Corporation
Cisco Systems, Inc.
NTT Communications
ABB
Hitachi
Siemens
Ericsson
Verizon Communications