Smart Cities Market

Global Market Study on Smart Cities: Massive Potential Resides in Asia Pacific

Smart Cities Market Segmented By Hardware, Software, Services Components in Smart Security, Smart Building, Smart Transportation, Smart Governance, Smart Energy, Smart Healthcare, Smart Water Network System, Smart Education, smart metering for water and utilities, smart mobility, smart solid waste management, smart street lighting, smart farming, and integrated traffic management systems.

Report ID: PMRREP12667

Number of Pages: 265

Format: PPT*, PDF, EXCEL

Industry: IT and Telecommunication

Published Date: February-2023

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Smart Cities Market Outlook (2024-2033)

As of 2023, market demand for the smart cities is estimated at US$ 476.7 Bn and is anticipated to have a revenue of US$ 1274.5 Bn by the end of 2033. The market is estimated to reach US$ 525.8 Bn by 2024, with at a CAGR of 10.3% from 2024-33.

A smart city is a modern concept for urban areas that leverages advanced technology and data analysis to enhance the quality of life for citizens, increase sustainability, and streamline urban services and decision-making. This typically involves using digital solutions to manage a city's assets and infrastructure more efficiently, reduce waste and costs, improve communication between citizens and city authorities, and provide better public services.

The integrating technology into various urban services, smart cities aim to improve living standards and offer citizens a better quality of life. Smart cities use data and digital technology to optimize the use of resources and provide efficient services, reducing costs and waste.

Smart city projects aim to create a sustainable and environmentally friendly urban environment, reducing the carbon footprint and preserving natural resources.

North America held a high market share of 18.4% in 2022 and is expected to dominate the forecast period and demand for the smart cities market value share of 16.7% in Europe held the global market in 2022.

Market Size (2023)

US$ 476.7 Bn

Smart Cities Estimated Market Size (2024)

US$ 525.8 Bn

Projected Market Value (2033)

US$ 1274.5 Bn

Global Market Growth Rate (2024-2033)


Hardware Component Market Share (2023)


US Market Share (2023)


Smart Security Application Market Share (2023)


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What are the Major Factors Driving the Smart Cities Market?

“Economic Development and Urbanization.”

Smart cities can attract businesses, increase economic growth, and create job opportunities through the use of technology and data-driven decision-making. As more people move into cities, there is a growing need for efficient and sustainable urban infrastructure and services.

Smart city technologies improve quality of life by providing better health services, efficient transportation, and improved public safety.

  • In January 2023, Oracle, a US technology company, anticipates investing $1.5 billion in Saudi Arabia to expand the Arab world's largest economy's cloud computing capacity.
  • In January 2023, BitSight and Schneider Electric collaborated to quantify operational risk, the new collaboration aims to give organizations higher clarity and risk detection competence for operations and maintenance of network infrastructures and critical infrastructure.
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Which Factor is Driving the Opportunity in the U.S. for Smart Cities Market?

“Government Support and Technological Advancements Driving Demand for Smart Cities in US Market”

Government support and technological advancements are driving demand for smart cities in the US. The US government has made significant investments in technology and infrastructure to modernize cities and improve the quality of life for citizens. These investments have created opportunities for private companies to develop and implement innovative solutions in areas such as transportation, energy, and waste management.

Technological advancements in fields such as IoT, big data, and artificial intelligence have made it possible to collect and analyse vast amounts of data, providing valuable insights that can inform decision-making in cities. This has led to a growing interest in smart city solutions that can improve efficiency, sustainability, and quality of life.

Due to these reasons, in 2022, the U.S. smart cities market companies helped the country to account for a dominant share of 22.9% in the global marketplace.

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Which Countries in Asia Have the High Global CAGR For the Smart Cities Market?

“India has high CAGR”

India has a rapidly growing urban population, which creates a need for better infrastructure, efficient transportation, and improved quality of life. The Indian government has launched several initiatives and programs, such as the Smart Cities Mission, aimed at promoting the development of smart cities in India.

There has been a rapid increase in the adoption of technology in India, including the internet of things (IoT), big data, and cloud computing, which are key components of smart cities.

Increasing urbanization, government support, and growing adoption of technology in India are the reasons for the high CAGR in smart cities market.

The CAGR for India's adoption of markets is predicted to be around 14.6%.

Which Countries in Europe have the high global Markets share?

“U.K Holds a High Global Market Share in Europe Region”

The smart cities market in the UK held a high market share in Europe. The government is investing in the development of smart cities and promoting the adoption of smart technologies, such as the Internet of Things (IoT), artificial intelligence (AI), and 5G.

The demand for smart solutions in areas such as energy management, transportation, and security is increasing, which is driving the growth of the market in the UK. Additionally, the increasing population and urbanization are also contributing to the growth of the market.

However, privacy and security concerns related to the use of smart technologies may act as a hindrance to the growth of the market.

Due to this reason, the market for the UK in 2022 held a market share of 18.6% in the global market.

Category-wise Insights

Which Component Segment of the Smart Cities Market Holds the Largest Market Share?

“Hardware Segment of the Component Allows to Have the Larger Market Share”

Hardware components such as sensors, cameras, and networking equipment are critical components in smart cities and must be highly reliable to ensure the smooth functioning of the systems they support. Smart city systems often involve the integration of multiple different hardware components from different manufacturers, and it is important for these components to be able to communicate and work together seamlessly.

As smart cities grow and evolve, their infrastructure needs to be scalable to accommodate new devices, sensors, and applications. Hardware components that are flexible and can be easily upgraded or expanded are essential for achieving this scalability.

In 2022 the, hardware market share was anticipated to have a high market and account for 39.6% market value share.

Why the Smart Security Application Segment is holds a Large Market?

“As Smart Cities Become More Populate, there is an Increased Demand for Efficient and Effective Security Systems”

The development of advanced technologies such as artificial intelligence and the Internet of Things (IoT) has enabled smart security applications to offer more advanced and effective security solutions.

Smart security applications can be easily integrated with other smart city systems, such as traffic management and emergency response, providing a more comprehensive security solution. Smart security applications can provide real-time information and alerts to help prevent and respond to security threats, increasing the overall safety of the city.

Overall, smart security applications provide an efficient, effective, and integrated solution for securing smart cities, which is why they hold a high market share in this field. In 2022, it was estimated that the Smart Security application will account for 15.4% of the market share with a CAGR of more than 7.3% over the forecast period.

Competitive Landscape

The smart cities market is highly competitive and characterized by the presence of numerous large and small players. Some of the key players in the market compete based on factors such as product offerings, innovation, pricing, technology, and services. Mergers and acquisitions, partnerships, and collaborations are some of the common strategies adopted by players to expand their market presence and strengthen their position in the market.

  • In October 2022, Cisco and Microsoft Corp. had a new partnership at Microsoft's annual Ignite conference that will offer customers more options. Cisco and Microsoft had offered the ability to operate Microsoft Teams default on Cisco devices.
  • In January 2023, Microsoft has disabled several deceptive, authenticated Microsoft Partner Network accounts that were used to create suspicious OAuth applications that clearly violated organizations' cloud environments in order to steal emails.

Recent developments related to key players providing the market have been tracked by the analysts at Persistence Market Research, which will be accessible in the full report.

Smart Cities Market Report Scope



Forecast Period


Historical Data Available for


Market Analysis

US$ Mn for Value

Key Regions Covered

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Pacific
  • Middle East and Africa (MEA)

Key Countries Covered

  • United States
  • Canada
  • Brazil
  • Mexico
  • Germany
  • U.K.
  • France
  • Spain
  • Italy
  • China
  • Japan
  • South Korea
  • India
  • Indonesia
  • Malaysia
  • Singapore
  • Australia
  • New Zealand
  • Turkey
  • South Africa
  • GCC Countries

Key Market Segments Covered

  • Component
  • Application
  • Region

Key Companies Profiled


Available upon Request

Key Segments of Smart Cities Market Research

By Component:

  • Hardware
  • Software
  • Services

By Application:

  • Smart Security
  • Smart Building
  • Smart Transportation
  • Smart Governance
  • Smart Energy
  • Smart Healthcare
  • Smart Water Network System
  • Smart Education

By Region:

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Pacific
  • Middle East and Africa (MEA)

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Companies Covered in This Report

  • Cisco Systems, Inc.
  • Microsoft Corporation
  • IBM Corporation
  • General Electric
  • AT&T
  • Ericsson
  • Huawei Technologies Co., Ltd.
  • Oracle Corporation
  • Panasonic Corporation
  • SAP
  • Siemens AG
  • Schneider Electric
  • Signify
  • Hitachi Vantara

Frequently Asked Questions

In 2022, demand for the smart cities market amounted to US$ 4,38,566.7 Mn.

The global smart cities market is estimated to grow at a CAGR of 10.3% over the forecast period.

The market for Smart Cities Market is forecasted to have a market value of US$ 1,274,456.8 Mn by 2033.

Demand for the smart cities market in India is projected to rise at 14.6% CAGR over the forecast period.

In 2022, North America smart cities market held a dominant market share of 18.4%.

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