Smart Cities Market

Fairfield Market Research provides a comprehensive growth analysis of the global Smart Cities Market. The report highlights the key growth drivers, leading regions, and key players operating in the market.

Market Analysis in Brief

Smart cities extensively leverage information and communication technologies, promoting optimal management of resources, economic development, and provision of superior quality of life for its dwellers. The sophisticated infrastructure promotes local businesses, the environment, governance, healthcare, transport & mobility, and lifestyle. A recent surge in urbanisation and acceptance of technologically advanced solutions is pushing forward the growth trajectory of the global smart cities market. The key growth drivers are the growing need to induce economic growth and improve the quality of life for its inhabitants empowering local area development and utilising technology that leads to smart results.

Key Report Findings

• The smart cities industry currently valuates more than US$500 Bn and awaits over a trillion-dollar revenue before 2030
• Artificial Intelligence, and machine learning are likely to make significant advancements in the smart cities market
• North America to stay at the vanguard of the global smart cities market, leveraging first movers’ advantage
• IBM Corporation, Cisco Systems, Inc., AT&T Intellectual Property, General Electric, and Ericsson are among the top five companies in the global smart cities market

Growth Drivers

Growing Prominence of AI, and ML

The recent past has witnessed breakthrough innovations in the field of smart city technologies, such as Artificial Intelligence (AI), and machine learning (ML). This has empowered individuals, systems, and organisations to develop self-sufficiency and becomes future-driven, playing a pivotal role in the advancement of smart cities. These technologies enable the collection and analysis of vast amounts of data, empowering systems, and components to make intelligent decisions with minimal human intervention.

AI and ML algorithms have become essential in various industries and are crucial in the development of smart cities. Through the deployment of AI-enabled intelligent machines, powered by ML, a cyber-physical space is created, incorporating sensors for traffic, medical monitoring, industrial control systems, video surveillance, environmental monitoring, and smart metres. The data derived from these machines facilitate predictive analysis and informed decision-making for effective smart city planning, in turn accelerating the progress of smart cities market.

Cutting-edge Technological Advancements

The smart cities market has witnessed significant advancements in emerging technologies including AI, ML, cloud computing, data analytics, IoT, and cybersecurity. These technologies have revolutionised connectivity within smart cities, leading to a complete transformation of the market ecosystem.

Through the integration of IoT devices, data can be collected from various sources and shared with a centralised control centre using cloud infrastructure. These advanced technologies not only enhance the quality of life for citizens but also play a crucial role in areas such as security, privacy, and environmental sustainability. The adoption of these technologies is driving the evolution of smart cities, enabling smarter and more efficient urban environments.

Growth Challenges

Privacy and Security Challenges in IoT Era

Privacy and security are significant concerns in the implementation of smart city projects. As the smart cities market heavily relies on IoT and central access points for data, the vulnerability of the entire ecosystem becomes a critical issue. Addressing privacy and security challenges in smart cities requires a holistic approach from stakeholders, including security professionals and city planners.

It is essential to develop comprehensive solutions that mitigate these challenges and prevent them from impacting the wider smart network. There is a growing need for technically robust solutions that can ensure the security and privacy of customers using various identification systems.

Challenges in Front of Legacy Telecom Infrastructure

The adoption of smart city solutions heavily relies on fast and reliable internet connectivity. However, the developing and underdeveloped nations often face limitations due to their reliance on outdated telecom infrastructure.

The inadequate capacity and high latency of legacy systems result in poor internet speeds, compromising the quality of services provided in smart cities. The lack of high-speed Internet poses a significant challenge to the implementation of smart city solutions, thereby restricting the growth of smart cities market here.

Unfortunately, governments in these countries often struggle with limited budgets, making it difficult to invest in the expensive infrastructure necessary to establish and sustain efficient smart city operations. Overcoming these connectivity challenges becomes crucial for enabling the full potential of smart city development in such regions.

Overview of Key Segments

IoT is Revolutionising Healthcare with Smart Solutions

The healthcare industry is experiencing a remarkable transformation driven by digitalisation, increased connectivity, and innovation. Within this evolving landscape, the Internet of Things (IoT) is playing a pivotal role, witnessing substantial growth in healthcare applications. This will influence the smart cities market space.

Smart healthcare solutions are addressing various challenges in caregiving and bridging the gap between patients and care providers. These solutions encompass a wide range of capabilities, including remote patient monitoring, remote medical assistance, simultaneous monitoring and reporting, automation of patient care workflows, notifications and alert management, real-time staff tracking, mobile health, smart hospitals, smart pills, and improved treatment for chronic diseases. Through the integration of IoT, healthcare organisations are revolutionising patient care and enhancing healthcare delivery.

Streamlining Utilities with Smart Metering and Meter Data Management Solutions

Enterprise applications play a crucial role in the efficient management of smart metering and metre data for utilities. These solutions centralise the collection, processing, storage, and analysis of metre and other utilities-related data. Meter data management (MDM) solutions especially capture large volumes of interval data generated by metering systems.

By simplifying the IT integration of meters and consolidating data from multiple collection systems, MDM enables the creation of a centralised repository. This processed data becomes accessible across utility organisations, serving various applications such as billing, revenue assurance, leak management and loss analysis, system capacity planning, and consumer engagement. Through the implementation of smart metering and MDM solutions, utilities can enhance their operational efficiency and deliver improved services to customers.

Regional Segment

North American Market Surges Ahead

During the period of assessment, North America is predicted to slate dominance, holding a major slice of market revenue. Technological advancements and digital transformation spearheaded across the spectrum of industries including IT, retail, and banking are driving the growth of the smart cities market in the region. Furthermore, the region is prospering at the helm of a well-established infrastructure for the information and communication technology industry.

Local and Federal governments are actively collaborating with various startups and vendors to uphold innovation and developments in the ICT sector. As the region is scaling its civic connectivity infrastructure deployment, there has been rampant development of smart cities. The US Department of Transportation, and the Smart Cities Council have joined hands to promote activism around the concept of smart cities through networking events.

Leading Industry Participants

Some of the most prominent players in the global smart cities market include IBM Corporation, Cisco Systems, Inc., AT&T Intellectual Property, General Electric, Ericsson, Huawei Technologies Co. Ltd., Hitachi, Ltd, Intel Corporation, Microsoft Corporation, and Schneider Electric.

Regional Classification of the Global Smart Cities Market is Described Below:

North America

• U.S.
• Canada

Europe

• Germany
• France
• Spain
• U.K.
• Italy
• Russia
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Southeast Asia
• Rest of Asia Pacific

Latin America

• Brazil
• Mexico
• Rest of Latin America

Middle East and Africa

• GCC
• South Africa
• Rest of Middle East and Africa