Smart Cities Market Size, Share, Growth & Forecast 2031

Report Description

The global smart cities market is anticipated to expand at a substantial CAGR during the forecast period, between 2021 and 2028. The smart cities concept has gained traction as a result of the growing awareness of ’smart everything’, which is largely due to all intermediary technologies. A smart city is well-connected and uses various information and communication technologies to share information and improve the quality of government services and citizen welfare. This technology has been widely adopted in the recent years to improve public safety, which can range from monitoring high-crime areas to improving emergency preparedness using sensors, among other things.

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Market Trends, Drivers, Restraints, and Opportunities

• Use of techniques for energy consumption reduction and rising concern about the proliferation of environmental wastes are major factors boosting the market.
• Increasing demand for sustainable infrastructure as a result of population growth and rising trend of urbanization in developing nations is a key driver of the market.
• Proactive government policies for smart cities initiatives, rising demand for better infrastructure facilities, and rising desire for high quality of life present key aspects of the market expansion.
• High initial cost for infrastructure development and high maintenance cost are major challenges that can impede the market expansion in the coming years.
• Technological leveraging such as integration of Artificial Intelligence (AI) using Internet of Things (IoT) is likely to open up new opportunities for various developments in terms of autonomous vehicles, adaptive energy systems, and smart healthcare.

Scope of the report:

The report on the global smart cities market includes an assessment of the market, size, share, trends, segments, and regional markets. Overview and dynamics have been included in the report.

Smart Cities Market Segment Insights

Components segment to register a high CAGR

Based on smart transportations, the market is bifurcated into components and types. The components segment is further bifurcated into solutions and services. Furthermore, the solutions segment is sub-classified as smart ticketing, traffic management, parking management, traffic surveillance, passenger information, connected logistics, and other solutions. The services segment is further categorized as consulting, deployment & integration, and infrastructure monitoring & management. Meanwhile, the types segment is sub-divided into roadways, railways, and airways. The components segment is expected to register a high CAGR during the forecast period owing to wide adoption of the transportation type for several smart services. The major applications of smart transportation include industry design, engineer, and develop customized products based on user needs. Moreover, the segment growth is further accelerated due to wide integration service to assist end-users in integrating smart infrastructure solutions with their existing infrastructure and saving money by reducing solution deployment time.

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Strong safety performance drives the component segment

In terms of smart buildings, the global smart cities market is divided into components and types. The components segment is further bifurcated into solutions and services. The solutions segment is further classified as building infrastructure management, Safety & Security management, energy management, network management, and integrated workplace management system. The building infrastructure management segment is sub-categorized as parking management system, smart water management system, and elevators and escalators management system. The safety & security management segment is segmented into access control system, video surveillance system, and safety system. Furthermore, the energy management segment is further bifurcated into HVAC system and lighting system while the services segment consists of consulting, deployment & integration, and infrastructure monitoring & management. Meanwhile, the types segment is sub-categorized as residential, commercial, and industrial.

The components segment is projected to dominate the market during the forecast period owing to major factors such as strong safety performance, high cost savings, reducing accidents, increased business efficiency, and improved public image. Additionally, the segment growth is further driven by easier access to finance, increased regulatory compliance, increased confidence, and increased corporate and social responsibility.

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Types segment is expected to grow at a rapid pace

On the basis of smart utilities, the market is segmented into components and types. The components segment is further bifurcated into solutions and services. The solutions segment is further categorized as advanced metering infrastructure, distributed management system, substation automation, and other solutions. Furthermore, the advance metering infrastructure segment is fragmented into meter data management, meter data analytics, smart meters, and others. The services segment is further classified as consulting, deployment & integration, and infrastructure monitoring & management. Additionally, the types segment is segmented into energy, gas, water, and other types.

The types segment is expected to grow at a rapid pace during the forecast period due to wide consumption of energy and other resources for the development of smart cities. However, the components segment is expected to constitute a key market share owing to availability of various services including infrastructure monitoring & management and others. These services enable utility companies to provide critical services to thousands of customers in a secure and reliable manner, regardless of their location. Using the mobile workforce and surveillance systems, a utility company can keep an eye on all of its assets and protect them from theft or damage. The service provides real-time, high-precision information on the entire infrastructure, regardless of environmental conditions.

E-governance segment is projected to hold significant market share

On the basis smart citizen services, the global smart cities market is segregated into smart healthcare, smart education, smart public safety, smart street lighting, and e-governance. The smart healthcare segment is further classified as medical devices, system and software, and services. All these segments including smart education, smart public safety, smart street lighting, and e-governance are bifurcated into solutions and services.

The e-governance segment is anticipated to hold significant market share during the projected period owing to wide implementation of smart infrastructure for monitoring and managing public assets, transportation systems, citizens, civil bodies, and other community services. These are critical components of developing a smart city mission. Growing concerns about public safety & security are encouraging the use of video management systems and IP cameras all over the world, fueling the growth of the city surveillance segment in the e-governance segment.

Asia Pacific market is expected to exhibit a robust growth rate

In terms of regions, the market is classified as North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The market in Asia Pacific is expected to exhibit a robust growth rate in the coming years owing to massive government initiatives to promote digital infrastructure and increasing the adoption of smart city solutions. The regional market growth is further attributed to rapid economic development, globalization, digitalization, and increase in proliferation of smartphones. Additionally, rising investment by major vendors in the telecom infrastructure, 5G deployments, and initiatives undertaken by major players to address and expand telecom communication play key roles for the market growth in the region.