The United Nations data suggests that the proportion of people living in cities across the world will rise from approximately 50% in 2018 to 75% in 2050. This rise in urban population impacts overall infrastructure and resources as governments are trying to cope up with the influx of new inhabitants and improve their living standards. They are thus looking forward to development of smart cities, with key focus on digital transformation of urban ecosystem to meet environmental, financial, and social outcomes. In line with this, the global smart cities market was valued at ~US$ 900 Bn in 2018, and is projected to expand at a whopping 18% CAGR during the forecast period (2019-2029).
However, lack of infrastructure development in various countries of the Middle East & Africa and Latin America, coupled with high price point associated with replacement of existing infrastructure with smart infrastructure, will remain thee key factors limiting the growth of smart cities market.
Key Takeaways - Smart Cities Market Study
- Providers of smart cities solution are eyeing expansions in Asia Pacific due to increasing adoption of digital technology and rising demand for smart solutions.
- Governments are focusing on integrating cloud, mobile, and Big Data technologies in new smart cities to streamline projects and generate new revenue streams.
- Continuous implementation of devices and technologies, such as sensors, cameras, robots, IoT, and artificial intelligence (AI), is resulting in a connected environment.
- Smart security application in smart cities is projected to increase at a CAGR of ~22% during the forecast period.
As the smart cities market is continuously becoming more competitive and diverse, continuous developments of the digital ecosystem in and around cities will create potential opportunities for businesses and governments to deploy new services and solutions. Moreover, public private partnerships and collaborations aiming at delivering infrastructure and services specific to smart cities will shape the market growth through specialized skills and high capital investments.
Focus of Key Players on Product Innovation
Key players in the smart cities market are Cisco Systems, AT&T, Microsoft Corporation, IBM Corporation, Ericsson, Siemens AG, Schneider Electric, Huawei Technologies, General Electric, and Signify. They captured around 45-50% of the total market share in terms of value in 2018. These companies are focusing on product innovations through partnerships and collaborations with local and regional players to enhance their geographic footprints. In January 2019, Cisco Systems formed a partnership with Iteris to deploy an edge-processing IoT solution in the city of Las Vegas, improve traffic flow, and reduce congestion.
More About the Smart Cities Market
PMR, in its new offering, offers an unbiased analysis of the global smart cities market, analyzing historical demand from 2014-2018 and forecast statistics of 2019-2029. The study unravels growth projections of the smart cities market on the basis of component (hardware, software, and service), and application (smart security, smart building, smart transportation, smart governance, smart energy, smart healthcare, smart water network system, and smart education), across seven major regions.
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