Smart City ICT Infrastructure Market Size, Share, Growth, And Industry Analysis by Type (Smart Grid, Smart Building, Smart Water Network, Smart Healthcare, Smart Education, Smart Security, Smart Transport) by Application (Communications, Transportation, Express, Government, Education & Others) Regional Forecast By 2031

Updated On: 08 April 2024

Smart City ICT Infrastructure Market Report Overview

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The global smart city ICT infrastructure market size was USD 965890 million in 2021, as per our research, the market is expected to reach USD 5530580 million in 2031, exhibiting a CAGR of 19.2 % during the forecast period. 

The global COVID-19 pandemic has been unprecedented and staggering, with smart city ICT infrastructure market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels once the pandemic is over. 

Smart cities are ones that were constructed using innovative technology and smart, intelligent solutions. Adopting smart criteria like smart energy, smart buildings, smart transportation, smart healthcare, smart governance, smart education, and involving smart residents all help smart cities accomplish their objectives. Additionally, the smart city ICT infrastructure market size is expanding significantly on a worldwide scale as a result of considerable investments made by public and private entities, including the governments of several nations throughout the world. Solutions for smart cities can also be categorised as a mix of hardware and software elements. Sensors, processors, and actuators make up the majority of the hardware components, while a variety of smart applications including infrastructure management and utility management make up the software component.

The creation of smart cities is receiving increased government funding due to a number of issues, including the growing demand for infrastructure management and asset management. The Consumer Technology Association estimates that in 2020, the world will spend US$34.35 billion on the construction of smart cities. The use of internet of things technology in smart cities to control traffic flows, monitor municipal infrastructure, and monitor air and water quality is a result of technological breakthroughs. During the anticipated period, the smart city ICT infrastructure market size is anticipated to develop as a result of the increased need for efficient resource use, public safety assurance, energy consumption efficiency, and a healthy environment.

COVID-19 Impact: Due To The Suspension Of Manufacturing Operations, The Pandemic Hindered Market Expansion

Due to the COVID-19 outbreak, many governments and local authorities implemented strict lockdowns, movement restrictions, and the closure of neighborhood brick and mortar stores in order to stop the virus' spread. This resulted in a shortage of workers, which affected the government's and other stakeholders' ability to meet the requirements of intelligent city planning and initiatives. Additionally, the COVID-19 pandemic had a serious effect on the global manufacturing and healthcare industries. However, several organisations have tried integrating cutting-edge technology like AI and IoT in order to address the issues caused by the pandemic. acceptance of e-government and e-health services, as well as trends like remote work and online learning, and integration of contemporary technology into the routines of the average citizen  are anticipated to aid in the adoption of smart city ICT infrastructure market in the coming years. 

Latest Trends

"Rising Adoption Of Artificial Intelligence (AI) And The Internet Of Things (Iot) To Be A Trendsetter"

The infrastructure that enables smart cities is a crucial element of this change, which is taking place at a rapid pace. The market for smart city ICT infrastructure is anticipated to expand quickly over the following years, with a predicted CAGR of 19.2% from 2022 to 2031. The market's two major trends are the growing use of artificial intelligence (AI) and the Internet of Things (IoT). Applications of AI in smart cities include intelligent parking, intelligent transit systems, and intelligent waste management. AI can help cities become more cost- and productivity-effective while also enhancing efficiency.  IoT is another technology that smart cities are relying on more and more. IoT may be used to gather and analyse data to help cities better understand their environments by integrating things like sensors and gadgets. By forecasting traffic patterns or increasing energy efficiency, for example, this data may subsequently be utilised to enhance operations and services. In the smart city infrastructure industry, AI and IoT are two major trends that are anticipated to drive smart city ICT infrastructure market growth and development in the near future.

Smart City ICT Infrastructure Market Segmentation

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• By type

Depending on smart city ICT infrastructure given are types: Smart Grid, Smart Building, Smart Water Network, Smart Healthcare, Smart Education, Smart Security, Smart Transport. The Smart Grid type will capture the maximum market share through 2031.

• By Application

The market is divided in Communications, Transportation, Express, Government, Education & Others based on application. The global smart city ICT infrastructure market  players in cover segment like Communications will dominate the market share during 2022-2031.

Driving Factors

"Growing Urbanization To Foster The Market Growth"

The need for smart city infrastructure, such as cutting-edge technology for transportation, waste management, electricity, and water, is rising as a result of growing urbanisation. Smart cities are those that use cutting-edge technology, such as sensors, networks, and data analytics to monitor, analyse, and manage their resources, to be more effective and sustainable. Infrastructure for smart cities is required to satisfy the demands of an expanding population, cut down on energy use, and enhance air quality. Infrastructure for smart cities can assist cities in improved resource management and citizen services. For instance, intelligent street lighting may save energy while improving pedestrian visibility. By optimising garbage diversion and recycling, smart waste management systems may assist communities in lowering their carbon footprint. Smart water networks can lower water loss and enhance the quality of the water. As cities continue to invest in smart infrastructure, the smart city ICT infrastructure market growth is anticipated to expand rapidly over the next years.

"The Expansion Of The Smart City ICT Infrastructure Industry Is Being Driven By An Increase In Investment In Smart Cities"

The global market for smart city ICT infrastructure is expanding as a result of the rising investment in smart cities. One of the most significant areas of technological innovation is rising, and smart cities are gaining popularity on a global scale. Governments, corporations, and other organisations are making significant investments in the creation of smart cities because of the many advantages they provide, including enhanced quality of life, accelerated economic growth, and more effective public service delivery. The ICT infrastructure for smart cities consists of the hardware, software, and communication networks that provide the blending of information and services from many sources. The growth of smart city applications and services, such as smart transportation, smart energy, smart buildings, and smart healthcare, depends on this infrastructure. The ICT infrastructure for smart cities must also be able to manage the expanding volume of data produced by the increasing number of connected devices. As a consequence, it is anticipated that demand for smart city ICT infrastructure will keep rising, fueling the worldwide smart city ICT infrastructure market growth.

Restraining Factors

"Surge In Rural-To-Urban Migration To Raise Concerns About  Smart Cities Infrastructure Market"

Numerous issues have arisen for the smart city ICT infrastructure market growth as a result of the increasing migration from rural to urban regions. The need for effective and trustworthy public services is higher than ever as cities becoming more and more crowded. Existing infrastructure has been strained as a result, raising the cost of providing services. The rise in population has also resulted in a housing crisis, worsening traffic congestion, and pollution. The infrastructure industry for smart cities is impacted by all of these problems since it has to offer solutions to deal with them. In order to fulfil the requirements of the expanding population, the market must find methods to construct new infrastructure, improve current infrastructure, and offer services and facilities.

Smart City ICT Infrastructure Market Regional Insights

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"North America To Dominate The Global Market For Smart Cities Accounting For The Largest Market Share"

North America held a highest smart city ICT infrastructure market share, dominating the worldwide market for smart cities. The market for smart cities in North America is expanding as a result of the escalating technical breakthroughs and digital transformations occurring across several business verticals, including telecommunications, IT, retail, and finance. The information and communication technology (ICT) infrastructure in North America is well-established, and over the past few years, the market for smart cities in the region has grown significantly as a result of the local and federal governments' strong partnerships with startups and vendors in the ICT sector. The market for smart cities will expand as a result of the increasing deployment of the infrastructure for municipal connection. 

Asia Pacific is anticipated to see the second-highest CAGR. The government's growing emphasis on digital infrastructure and digital transformation is fueling the expansion of the Asia Pacific smart city ICT infrastructure market share. During the projected period, rapid urbanisation, rising population, robust economic growth, and increased globalisation are the main factors anticipated to fuel the growth of the Asia Pacific smart cities market. The main development drivers in the near future are projected to be the expanding government investments to spruce up numerous industries, such as public security, transportation, and energy.

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

• Cisco (U.S)
• IBM (U.S)
• Oracle (U.S)
• Huawei (China)
• AT&T (U.S)
• China Mobile (China)
• NTT Communications (Japan)
• Verizon Communications (U.S)
• Vodafone (U.K)
• ABB (Switzerland)
• Hitachi (Japan)
• Honeywell (U.S)
• Siemens (Germany)
• Nokia(Alcatel-Lucent) (France)
• Deutsche Telekom (Germany)
• Ericsson (Sweden)
• HP (U.S)
• Microsoft (U.S)
• Schneider Electric (France)
• Telefonica (Spain)

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.