Smart Cities

Global Smart Cities Market to Reach US$3.1 Trillion by 2030

The global market for Smart Cities estimated at US$1.0 Trillion in the year 2024, is expected to reach US$3.1 Trillion by 2030, growing at a CAGR of 20.1% over the analysis period 2024-2030. Smart Cities Hardware, one of the segments analyzed in the report, is expected to record a 16.8% CAGR and reach US$1.2 Trillion by the end of the analysis period. Growth in the Smart Cities Software segment is estimated at 21.9% CAGR over the analysis period.

The U.S. Market is Estimated at US$304.8 Billion While China is Forecast to Grow at 23.8% CAGR

The Smart Cities market in the U.S. is estimated at US$304.8 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$509.8 Billion by the year 2030 trailing a CAGR of 23.8% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 16.3% and 17.2% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 20.8% CAGR.

GLOBAL SMART CITIES MARKET – KEY TRENDS & DRIVERS SUMMARIZED

How Are Next-Gen Urban Infrastructures Rewriting the Future of City Living?
Rapid urbanization, rising environmental consciousness, and increasing digital penetration are collectively reshaping the concept of modern cities. Smart Cities, underpinned by intelligent technologies, are being designed to enhance urban efficiency, resource optimization, and quality of life. Governments worldwide are aggressively deploying smart infrastructure to address mounting urban challenges such as pollution, congestion, waste management, and energy inefficiencies. This transformation is being facilitated by large-scale integration of ICT (Information and Communication Technologies), IoT networks, AI-driven analytics, and geospatial technologies to enable real-time data-driven governance. Additionally, 5G rollouts are acting as a catalyst, enabling seamless connectivity for millions of smart devices embedded across utilities, mobility, and civic services. Citizen-centric services, such as automated traffic systems, responsive public transport, digital ID management, and smart grids, are becoming common across pilot cities in Asia-Pacific, North America, and Europe. From Seoul’s advanced digital twin platforms to Amsterdam’s collaborative energy transition projects, cities are embracing open-data ecosystems for participative governance. Moreover, cyber-physical systems and edge computing are paving the way for real-time responsiveness in emergency services, public safety, and citywide surveillance systems. Municipalities are also increasingly forming cross-sector partnerships with tech giants and startups to scale urban innovation and sustainability goals. Smart water and waste systems, predictive maintenance of infrastructure, and sensor-driven utilities are no longer experimental, but foundational. The focus is clearly shifting from isolated smart projects to integrated, citywide digital strategies that are interoperable and scalable.

Is Mobility Becoming the Cornerstone of Smart City Transformation?

The evolution of smart mobility is emerging as a defining pillar of Smart City planning, with multimodal transport ecosystems gaining momentum. Electrification of urban fleets, intelligent traffic management, and micro-mobility services are responding to the demands of carbon-neutral urban transportation. Real-time mobility-as-a-service (MaaS) platforms are enabling commuters to plan, pay for, and navigate multiple transport modes seamlessly through a single digital interface. Integrated ticketing systems, AI-powered route optimization, and adaptive traffic lights are helping cities minimize congestion, reduce emissions, and enhance commuter experience. Cities like Singapore and Helsinki are leading with connected mobility platforms that combine ride-sharing, bike rentals, and public transit. Autonomous vehicles and connected public transport fleets are undergoing trials across smart corridors in the U.S., Germany, and China. Advanced traffic analytics, powered by video surveillance and AI, are not only enhancing traffic flow but also enabling predictive policing in high-density areas. Drone-based delivery trials and low-altitude air mobility frameworks are being explored to ease last-mile congestion. Moreover, smart parking technologies, dynamic toll pricing, and congestion charging mechanisms are helping cities manage vehicular loads more intelligently. The rise in e-scooters, smart bike-sharing systems, and electric bus fleets reflect the transition to cleaner, digitized transportation alternatives. Edge AI and V2X (vehicle-to-everything) communication technologies are expected to revolutionize road safety and transport logistics. Collectively, these smart mobility innovations are strengthening the foundation for sustainable and resilient urban transit systems.

Are Smart Utilities and Infrastructure Redefining the Urban Efficiency Paradigm?
Smart utilities form the backbone of intelligent city frameworks, enabling efficient management of energy, water, and waste resources. Cities are deploying advanced metering infrastructure (AMI) and sensor-based monitoring systems to reduce resource losses, detect anomalies, and ensure transparent billing. Renewable energy integration into urban grids is accelerating, with solar rooftops, battery storage, and smart inverters becoming city standards. Decentralized energy generation models and virtual power plants are gaining traction, especially in regions with aggressive net-zero goals. Digital twins and building management systems are enabling proactive maintenance, energy conservation, and space optimization in commercial and residential buildings. Smart lighting systems that adjust based on real-time occupancy and environmental data are significantly reducing public lighting costs. Cities like Copenhagen and San Diego have adopted predictive analytics in water distribution networks to detect leakages and optimize consumption. Waste-to-energy plants, automated waste sorting, and AI-powered recycling management are helping cities meet circular economy objectives. Underground smart bin sensors, route-optimized waste collection vehicles, and RFID-tagged waste streams are creating unprecedented transparency in waste operations. Utility providers are investing in cybersecurity and data encryption to secure critical urban infrastructure from digital threats. AI-based demand forecasting tools are ensuring more accurate energy provisioning and grid balancing. Moreover, public-private partnerships in smart infrastructure projects are accelerating infrastructure deployment timelines and ensuring fiscal viability.

The Growth In The Smart Cities Market Is Driven By Several Factors…
Surging demand for urban digital transformation, especially across emerging economies, is a key growth catalyst as governments prioritize tech-driven urban resilience and inclusivity. The proliferation of IoT-enabled devices and falling costs of sensors are enabling large-scale deployment of connected infrastructure in both greenfield and brownfield urban projects. Public sector investments in smart governance, digital public services, and city-level open data platforms are also gaining traction, driven by rising citizen demand for transparency, efficiency, and personalization. The shift toward sustainable urban development—fueled by global climate agreements and national decarbonization mandates—is prompting city planners to integrate renewable energy, electric mobility, and low-impact urban planning into smart city roadmaps. Additionally, increased funding allocations through national smart city missions, especially in India, China, and the Middle East, are unlocking opportunities for international vendors and consortia. Rising adoption of cloud platforms and edge computing is enabling localized decision-making, while demand for cybersecurity, data privacy, and interoperability frameworks is catalyzing the growth of compliance-centric solutions. Moreover, the need for pandemic-resilient infrastructure is driving investment in digital healthcare, AI-based population monitoring, and contactless public service interfaces. Growth is also influenced by the increasing role of citizen co-creation in planning processes, accelerating deployment of human-centric solutions. The enterprise sector’s interest in smart campuses and logistics optimization within city limits is further expanding commercial application areas. These interlocking drivers are setting the stage for rapid, scalable, and global expansion of the Smart Cities market.

SCOPE OF STUDY:

The report analyzes the Smart Cities market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Component (Smart Cities Hardware, Smart Cities Software, Smart Cities Services); Application (Smart Utilities Application, Smart Governance Application, Smart Transportation Application, Smart Healthcare Application, Smart Education Application, Smart Security Application, Smart Buildings Application, Other Applications)

Geographic Regions/Countries:
World; USA; Canada; Japan; China; Europe; France; Germany; Italy; UK; Rest of Europe; Asia-Pacific; Rest of World.

Select Competitors (Total 176 Featured) -

• AT&T, Inc.
• ABB Ltd.
• Accenture PLC
• Atos SE
• Advantech Co., Ltd.
• Acuity Brands Lighting Inc.
• Applied Information, Inc.
• Aeris Communications, Inc.
• Arm Ltd.
• ABM Industries, Inc.
• Alstom SA
• Aveva Group PLC
• Alibaba Cloud
• Amano Corporation
• Anagog Ltd.

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

We are diligently following expert opinions of leading Chief Economists (14,949), Think Tanks (62), Trade & Industry bodies (171) worldwide, as they assess impact and address new market realities for their ecosystems. Experts and economists from every major country are tracked for their opinions on tariffs and how they will impact their countries.

We expect this chaos to play out over the next 2-3 months and a new world order is established with more clarity. We are tracking these developments on a real time basis.

As we release this report, U.S. Trade Representatives are pushing their counterparts in 183 countries for an early closure to bilateral tariff negotiations. Most of the major trading partners also have initiated trade agreements with other key trading nations, outside of those in the works with the United States. We are tracking such secondary fallouts as supply chains shift.

To our valued clients, we say, we have your back. We will present a simplified market reassessment by incorporating these changes!

APRIL 2025: NEGOTIATION PHASE

Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.

JULY 2025 FINAL TARIFF RESET

Complimentary Update: Our clients will also receive a complimentary update in July after a final reset is announced between nations. The final updated version incorporates clearly defined Tariff Impact Analyses.

Reciprocal and Bilateral Trade & Tariff Impact Analyses:

USA
CHINA
MEXICO
CANADA
EU
JAPAN
INDIA
176 OTHER COUNTRIES.

Leading Economists - Our knowledge base tracks 14,949 economists including a select group of most influential Chief Economists of nations, think tanks, trade and industry bodies, big enterprises, and domain experts who are sharing views on the fallout of this unprecedented paradigm shift in the global econometric landscape. Most of our 16,491+ reports have incorporated this two-stage release schedule based on milestones.

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