Intelligent City (Smart City) Market Size, Share, Growth, And Industry Analysis By Type (Services and Solutions) By Application (Governance, Building, Environmental Solutions, Utilities, Transportation, Healthcare, and Other) Regional Forecast To 2031

Updated On: 08 April 2024

Intelligent City (Smart City) Market Report Overview

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The global intelligent city (smart city) market size was USD 1258.44 billion in 2022 and the market is expected to reach USD 8,197.65 billion in 2030, exhibiting a Compound annual growth rate (CAGR) of 20.37% during the forecast period. 

The sudden rise in CAGR was brought on by the market's expansion and the demand levelling down after the pandemic is over.

Information and communication technology (ICT) is used in smart cities to increase operational effectiveness, disseminate information to the general public, and improve the quality of public services and citizen welfare. By utilizing smart technologies and data analysis, an intelligent city (smart city) aims to improve citizen quality of life, optimize city operations, and foster economic growth. The value of technology lies in how it is used, not just how much of it is available. The following traits are used to assess a city's intelligence:

• a technologically centred infrastructure
• environmental program
• dependable and efficient public transit
• resolute and forward-thinking municipal plans
• for those who can use the riches of the city to live and work there.

To improve quality of life and foster economic development, smart cities employ a network of interconnected IoT devices and other technologies in four steps. The steps are as follows:

• Gathering: Smart sensors collect current data.
• Analysis: The data is analyzed to learn more about how city services and operations are run.
• Communication: Decision makers are informed of the data analysis findings.
• Action: Steps are taken to enhance operations, manage resources, and enhance residents' quality of life in the city.

The ICT framework combines real-time data from linked machines, assets, and objects to enhance decision-making. However, mobile devices, connected cars, and connected buildings are more ways that residents can engage with and interact with intelligent city (smart city) ecosystems. It is feasible to reduce expenses, increase sustainability, and optimize processes like energy distribution and waste collection, as well as provide reduced traffic congestion and improved air quality, by combining devices with data and the city's infrastructure.

COVID-19 Impact: Adoption of Digital Technologies Fueled the Market Growth

Modern digital transformation and the information society both depend on digital technologies to enhance and optimize processes in contemporary cities. More extensive and widespread adoption of digital technologies in the economy and society has been spurred by the COVID-19 pandemic. During the lockdown, digital technologies have evolved into a tool for adjusting individuals, enterprises, and the government to new living and working situations. In pandemic and post-pandemic eras, they are also seen as strategies for achieving macroeconomic sustainability and stability. On the other side, one of the things that contributed to cities' and communities' resilience to the COVID-19 pandemic's harmful effects was the degree and kind of digital technology adoption in those places. The Internet of Things, artificial intelligence, and big data are the three core categories of these digital technologies

Latest Trends

"The Utilization of Emerging Technologies Fueled the Market Expansion."

Smarter city initiatives also aim to monitor and address environmental problems like air pollution and climate change. Two examples of how smart technology can be used to improve waste management and sanitation include using internet-connected trash cans and IoT-enabled fleet management systems for waste collection and removal or using sensors to measure water parameters and ensure the quality of drinking water at the system's front end with proper wastewater removal and drainage at the system's back end. Intelligent city (smart city) technology is increasingly being used to improve disaster readiness by monitoring high-crime areas and utilizing sensors. For example, smart sensors can be crucial to the development of hurricane, landslide, flood, and drought early warning systems.

An intelligent city (smart city) project frequently includes smart buildings as well. To enable real-time space management, maintain public safety, and keep an eye on the structural health of buildings, sensors can be incorporated into new construction and retrofitted into existing infrastructure. Sensors may detect wear and tear and notify the proper authorities when repairs are needed. Using an intelligent city (smart city) application, citizens can alert authorities when repairs are required for buildings and other public infrastructure, such as potholes. To lower costs and increase worker productivity, sensors can also be used to find leaks in water mains and other pipe systems.

Intelligent City (Smart City) Market Segmentation

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• By Type Analysis

According to type, the intelligent city (smart city) market can be segmented into services and solutions. Among these, services are projected to experience rapid growth through 2030.

• By Application Analysis

Based on application, the market can be divided into governance, building, environmental solutions, utilities, transportation, healthcare, and others. Governance is expected to hold the largest intelligent city (smart city) market share in the upcoming years.

Driving Factors

"Adoption of Modern Technologies is Driving Market "

The adoption of smart cities is being fueled by new trends like automation, machine learning, and the IoT. Theoretically, a smart city effort might include any aspect of the city administration. The smart parking meter, which uses an app to assist cars in finding available parking spaces without needlessly circling busy city blocks, is a classic example. Digital payment is also supported by the smart meter, so there is no worry of running out of coins for the meter.

Smart traffic management is used in the transportation industry to track and analyze traffic flows to improve streetlights and keep roads from getting too crowded during peak hours. Another aspect of smart cities is smart public transportation. Real-time service coordination and customer happiness are made possible by smart transit firms, which increase productivity and satisfaction. In an intelligent city (smart city), bike- and ride-sharing are both prevalent services. Efficiency and energy conservation are highly valued in smart cities. When there are no cars or pedestrians on the roads, smart streetlights use smart sensors to dim the lights. Electricity on demand can be provided, energy outages can be tracked, and operations, maintenance, and planning can all be optimized using smart grid technology.

"Fostering Urbanization has boosted the Market Expansion"

Another important aspect of smart cities is sustainability. In the upcoming years, urbanization is predicted to rise even further. According to the United Nations, around 55% of the world's population currently lives in a city or metropolitan region, and over the next few decades, that percentage is expected to increase by 68%. In the coming years, smart technology will assist metropolitan regions in maintaining growth while enhancing efficiency for both citizen welfare and governmental effectiveness. While cities already have some environmental benefits, such as smaller ecological footprints that have less of an impact, they also have negative environmental effects due to emissions, such as the excessive use of fossil fuels. The network of technology for smart cities may be able to mitigate these negative impacts.

Switching to an electric public transportation system would reduce gasoline emissions while also having the benefit of collaborating closely with the city's electric power infrastructure to reduce the impact of battery charging during periods of high electric demand. Additionally, while not in use, electric vehicles might be utilized to control the frequency of the city's electric grid with the right coordination. As cities become more intelligent, it is also anticipated that fewer cars will be used in urban areas. Self-driving cars or autonomous vehicles have the potential to alter people's perceptions of how necessary it is to own a car. It is predicted that the use of autonomous vehicles will lead to a decrease in the number of vehicles owned by ordinary people, which will lead to a reduction in the number of cars on the road and the emission of harmful gases.

Restraining Factors

"Lack of Awareness and Participating By People May Impede the Market Growth "

Initiatives for smart cities must involve the people they seek to assist: locals, business owners, and tourists. City officials must encourage the usage of open, democratized data among their constituents as well as raise awareness of the advantages of the smart city technology being adopted. People are more willing to participate if they are aware of what they are doing and the potential advantages. The key to producing a smart citizen who will be engaged and empowered to positively contribute to the city and community is to foster collaboration between the public and private sectors and local citizens. Plans for making the data public and accessible to citizens, frequently through an open data portal or mobile app, should be included in smart city projects.

Residents can then interact with the data and learn how it is used. Residents may also be able to perform personal tasks using a smart city app, such as viewing their home's energy usage, paying bills, and locating effective public transportation. Opponents of smart cities believe that municipal officials won't prioritize data privacy and security, for fear that doing so exposes citizen data to the risk of hacking or misuse. Furthermore, the existence of sensors and cameras could be interpreted as a form of government surveillance or a breach of privacy. Data from smart cities should not contain personally identifiable information and should be anonymized to address this.

Intelligent City (Smart City) Market Regional Insights

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"U.S. to Dominate Market Owing to the Adoption of Modern Technologies"

Between 2022 and 2030, the party wear market will be dominated by the U.S. Factors driving the market growth in this region include the adoption of automation, machine learning, and the IoT.

Additionally, the market is anticipated to experience the fastest growth in European countries and Asia countries (India, China, Japan, and South East Asia). The expansion of regional markets is also being fueled by fostering urbanization.

Key Industry Players

"Key Players Focus on Partnerships to Gain a Competitive Advantage "

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead of the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolios.

List of Market Players Profiled

• Schneider Electric (France)
• Honeywell (U.S.)
• Huawei (China)
• Danaher (U.S.)
• Tridium (U.S.)
• IBM Corp. (U.S.)
• ABB Group (Switzerland)
• Siemens (Germany)
• Infosys (India)
• SST Inc. (U.S.)
• Daintree Networks (U.S.)
• General Electric (U.S.)
• Microsoft (U.S.)
• Intel (U.S.)
• Accenture (Ireland)
• TCS (India)
• CAP Gemini (France)
• JP Morgan Chase (U.S.)
• Cisco Systems (U.S.)

Report Coverage

This research profiles a report with extensive studies that take into description the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by inspecting the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, and restraints. This analysis is subject to alteration if the key players and probable analysis of market dynamics change.