Global Smart Cities Market to Hit Valuation of USD 944.68 Billion By 2032 | Astute Analytica

Smart cities market fueled by data and tech, are rising globally. Asia Pacific leads, with China and India vying for dominance. Citizen needs, AI-powered solutions, and sustainability drive the market, but data privacy, digital equity, and funding pose challenges. Collaboration is key to building smarter, livable urban futures.

New Delhi, Feb. 16, 2024 (GLOBE NEWSWIRE) — Global smart cities market is projected to have a major leap forward in revenue from US$ 173.36 billion in 2023 to US$ 944.68 billion by 2032. The market is estimated to register a CAGR of 20.5% during the forecast period 2024-2032. 

By 2032, it is predicted that the global smart cities market will be worth US$ 944.68 billion. Thanks to how data utilization and technological advancement has blended so well with active citizen participation. We see this most prominently in China and India, where their unique strategies have pushed them to be at the forefront of smart cities in the Asia Pacific region. China’s government-led initiatives and technological innovation has led them to target building 100 smart cities with a market value of $583 billion. While on the other hand we can look to India’s 23.7% CAGR as a sign of their rise – separating themselves by putting cost-effective solutions before anything else.

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With knowledge exchange and joint research bringing them together, there is massive potential for collaboration between these nations which could lead to even more innovation that tackles climate change further. Currently dominating the global smart cities market, companies like Cisco, IBM, Microsoft, GE, and Huawei collectively hold a majority share – with Cisco leading at 14%. A stronghold they have thanks to things like making comprehensive network infrastructure a priority above all else along with unwavering commitment to security and privacy.

But when it comes down to it, all the advancements mean nothing if not done ethically or without careful planning for its implementation into cities. Meaning sustainability, inclusivity and cooperative efforts must always be kept first in mind when trying using technology such as this for good. The journey towards realizing the full potential needs individual empowerment every step of the way!

What Does Analysts at Astute Analytica Says About Smart Cities Market?

  • Sustainability will be paramount: Smart cities will increasingly prioritize solutions that address climate change and environmental challenges.
  • Focus on resilience: Building cities that can withstand natural disasters and other disruptions will be critical.
  • Human-centered design: Technology will be used to enhance, not replace, human interaction and community building.
  • Evolving partnerships: Public-private partnerships will continue to play a key role in funding and implementing smart city initiatives.

Key Findings in Global Smart Cities Market

Market Forecast (2032) US$ 944.68 Billion
CAGR 20.5%
By Technology IoT Devices (34.1%)
By Component Hardware (47.0%)
By Application Smart Citizen Services (20.9%)
By Deployment Cloud (67.0%)
Top Trends
  • Citizen-Centric Design: Focus on citizen needs, engagement, and co-creation.
  • Data-Driven Decisions: AI, analytics, and IoT insights power smarter solutions.
  • Sustainable Development: Green infrastructure, clean energy, and resource efficiency prioritized.
Top Drivers
  • Urbanization: Growing population density in cities fuels demand for smart solutions.
  • Government Initiatives: Investments and policies create enabling environments.
  • Technological Advancements: AI, IoT, and other innovations improve capabilities.
Top Challenges
  • Data Privacy & Security: Balancing innovation with citizen data protection.
  • Digital Divide: Ensuring equitable access to technology and benefits.
  • Funding & Investment: Sustaining long-term funding for smart city initiatives.

The Exponential Growth of Data Generated by Smart City Sensors to Creates a $1.7 trillion Market for Data Analytics by 2025

Data is growing at an extraordinary rate, all thanks to sensors placed throughout city infrastructures like buildings, traffic lights, and trash cans. This data accumulation is expected to make a market worth $1.7 trillion for data analysis in 2025. According to Astute Analytica this will help enhance urban efficiency and improve the lives of those who live in cities. World Economic Forum states that smart energy solutions could lower energy consumption by 20%, all because of data analytics. Siemens has similar aspirations; they say with the help of data-driven traffic systems there can be a 30% improvement in traffic flow. Our study on the smart cities market suggests that these numbers could contribute to $4 trillion in annual economic benefits for smart cities by 2025, which highlights how important data analytics are when developing an urban setting.

Cities like Chicago and Amsterdam are leading examples when it comes to utilizing the power of data,” Array of Things,” and optimized waste management systems respectively. With the use of these initiatives congestion can be reduced, costs on energy will go down, and there will be less emissions from waste transportation. Aside from energies and emissions, public safety is on the list along with infrastructure as well. Data analytics suggest that predictive maintenance based off collected information can lead up to a 30% reduction in infrastructure maintenance costs. The same source also finds that informed public safety solutions driven by collected information can achieve a 20% crime rate reduction. These advancements come at a good time too. Cybersecurity Ventures’ found that there would be an estimated $6 trillion cost if global cybercrime keeps increasing at its current rate. These numbers show how important it is for security measures to be put into place around the world.

The “PulsePoint” initiative from New York City and “Yarra Trak” from Melbourne show how quick action can be taken if sensor data is analyzed. Both of those initiatives help predict potential contamination outbreaks and respond to emergencies respectively. Last but not least, personalized citizen services also play a big part in utilizing collected information. When IDC interviewed citizens they found that 80% of them believe that improving quality of life should be a smart city priority. In response to this IDC predicts that 70% of cities will start using collected information for personalization purposes by 2025.Public-private partnerships have the potential to make $5.4 trillion says Astute Analytica by 2040.This adds even more pressure on the need for data-driven decision making. Smart city development in places like San Francisco and Barcelona showcases how data analytics can personalize public services, offer open data access for civic engagement, and provide commute recommendations.

Smart Citizen Services Captures More than 20% Revenue Share of Smart Cities Market

The smart cities market is taking a greater emphasis on smart citizen services, which capture more than 20% of its revenue share. These services are the leading edge in smart city technology and enhance life quality, security and efficiency for citizens. A report done by Astute Analytica shows that 93% of citizens believe that smart city facilities can improve their daily lives. This leads to a strong relationship between these technologies and happiness. Smart citizen services are shown to have an impact on various sectors such as public safety and transportation. The study shows that crime can be reduced by 20% with smart public safety solutions. Siemens reports that transportation systems can elevate traffic flow by 30%. For instance, Barcelona’s mobility app was able to drop travel time by 20%. Efficiency in travel doesn’t only save time but helps with a greener environment. Singapore and Dubai lead examples of citizen convenience through e-payments services and round-the-clock citizen support apps for better interaction with city services.

Engagement from the citizens also plays a large role in shaping smarter cities, so it’s important for them to feel connected. A study done showed that 63% of people believe that the main focus should be enhancing quality of life. UNIDO also noted a boost in citizenship satisfaction when there is engagement with the community (25%). By 2025, IDC says that over half (70%) of cities will be using online platforms for citizen participation. Initiatives like Madrid’s “Decide Madrid,” Seoul’s “U-report,” and Bangalore’s “Swachhata App” highlight how residents are playing bigger roles in the improvements/changes made throughout their cities.

Efficiency and transparency in governance benefits were also significant points brought up during this study. In fact, the sector is projected to bring $1 trillion in annual economic benefits by 2025 due to these benefits. Over the next 4 years, the adoption of smart energy and water management systems are expected to drop resource consumption by 30% and loss by 20% according to the World Economic Forum and UN-Habitat. Examples of efficiency can be seen through San Francisco’s parking system, Copenhagen’s waste management system, and Rio de Janeiro’s digital ID program.

Asia’s Powerhouse Duo: How India and China are Reshaping the Global Smart Cities Market

The global smart cities market is on an exciting trajectory, expected to reach $944.68 billion by 2032, with India and China leading the charge. Each country, with its unique strengths and challenges, has helped shape the smart cities landscape across the globe. China, known as the Tech Titan, is expected to make $583bn in its smart city market by 2024 predicts Astute Analytica. The government’s National New Urbanization Plan has set a goal to develop 100 smart cities by 2025. This drive for technological dominance is supported by homegrown tech giants like Huawei and Alibaba that are pushing boundaries in AI (Artificial Intelligence), IoT (Internet of Things) and big data. Cities like Shenzhen offer glimpses into China’s future showcasing innovations in transportation with self-driving buses and integrated traffic management systems. Hangzhou and Tianjin lead advancements in healthcare and waste management systems respectively.

India, on the other hand, is once again emerging as a formidable challenger. Government initiatives including Smart Cities Mission and Digital India have ensured efforts are made towards integrating technology into urban solutions that address specific problems seen locally such as water scarcity or sanitation needs rather than relying on cookie-cutter approaches seen globally where cost-effectiveness takes center stage sometimes reducing the quality of service provided in the smart cities market. Examples include Pune working through solutions such as renewable energy sources Delhi’s approach to water management while Bhopal focuses on waste management.

While competition often arises when these two countries are mentioned together there is a lot of room for collaboration rather than just being competitors they can take this opportunity to learn from each other through joint ventures in research tech exchange among others this would also help solve common issues faced such as climate change resource management among others ultimately helping push forward their goal of creating sustainable ethical data-driven environments for generations to come.

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Cisco Systems, IBM Corporation, Microsoft Corporation, GE Company, and Huawei Technologies are Leader in Global Smart Cities Marker with Over 51% Revenue Contribution

Cisco Systems, IBM Corporation, Microsoft Corporation, GE Company and Huawei Technologies are the key players in the global smart cities market. Together they control over 51% of global market revenue. Cisco Systems has a 14% market share, making it one of the leading companies in smart cities in a range of markets such as, network infrastructure expertise crucial for 70% of smart city solutions as per Astute Analytica. Moreover, 90% of global internet traffic is managed through networks powered by Cisco.

When it comes to interoperable systems open and accessible to all is what sets Cisco apart from competitors. A survey published by IDC found that 80% of cities have “data silos” or problems with interoperability. To solve this problem, Cisco said it advocates for open standards and partnerships with other firms so that its products will integrate well with any type of technology out there. “Denver’s deployment of the ‘Smart Connected Communities’ solution uses an interoperable infrastructure that enables several smart city applications,” reads an excerpt from the report. The implementation increases cross-departmental visibility into data and processes.

Privacy will always be a concern when adopting any new technology in the smart cities market but especially when adopting them on a macro-scale like smart cities being built across countries around the world. CISCO says it embeds security and privacy by design into all its products so users can be confident no one else has access to their personal information (or data). Not only does the firm help protect citizen’s data but they also help protect against hackers who hope to do harm by embedding themselves within connected devices. Lastly, CISCO contributes billions each year towards research and development (R&D) efforts aimed at creating more advanced technology.

Top Players in Global Smart Cities Market

  • ABB Ltd.
  • Accenture Plc
  • Alphabet Inc.
  • AT&T
  • Cisco Systems Inc.
  • Ericsson
  • Foxconn Electronics Inc.
  • Fujitsu Ltd.
  • General Electric Company
  • Hitachi
  • Honeywell
  • Huawei Technologies
  • IBM Corporation
  • INTEL Corporation
  • LG Electronics Inc.
  • Microsoft Corp.
  • Oracle Corp.
  • Qualcomm Technologies Inc.
  • Schneider Electric SE
  • Siemens AG
  • Toshiba Corporation
  • Other Prominent Players

Astute Analytica has segmented the Global Smart Cities Market report based on Technology, Component, Application, Deployment and region:

By Technology:

  • Artificial Intelligence (AI)
    • Deep Machine Learning
    • Artificial Neural Network
    • Voice Recognition
    • Pattern Recognition
    • Natural Language Processing
    • Others
  • Big Data Analytics
  • Cellular Technology
    • 5G Technology
    • Others
  • Cloud Technology
  • Edge Computing
  • High-Performance Computing
  • Internet of Things (IoT)
    • Satellite Network
    • Cellular Network
    • Radio Frequency Identification
    • Near Field Communication
    • Wi-Fi
  • Quantum Computing
  • Others

By Component:

  • Hardware
    • Camera
    • Sensors/Detectors
    • Meters
    • Vehicles
    • Smart Robots
    • Others
  • Software
    • Cloud (IoT) Platform
      • Public
      • Private
    • Data Management & Analytics
    • Cyber Security
    • Remote Monitoring
  • Services
    • Consulting
    • System Integration and Deployment
    • Support and Maintenance
    • Managed Services

By Application:

  • Smart Transportation
    • Parking Management
    • Ticketing & Travel Management
    • Traffic Management
    • Passenger Information Management System
    • Freight Information System
    • Other Smart Transportation Systems
  • Smart Utilities
    • Energy management
    • Advanced Metering Infrastructure
    • Smart Grid
    • Water Management
    • Distribution Management
    • Other Smart Utilities
  • Smart Governance
    • E-Governance Solutions
    • Smart Public Safety
    • Law Enforcement
    • City Planning
    • Other Governance Services
  • Smart Home & Building
    • Building Automation System
    • Energy Management Systems
    • Parking Management System
    • Emergency Management System
    • Other Smart Building System
  • Smart Citizen Service
    • Smart Education
    • Smart Healthcare
    • Emergency Response System
    • Video Surveillance System
    • Assisted Living Solution
    • Other Citizen Services
  • Smart Mobility
    • Electric Vehicle Charging
    • Tunnel Management
    • Tolling Management
    • Other Mobility Solutions
  • Others

By Deployment:

  • Cloud
  • On-premise

By Region Outlook

  • North America (U.S., Canada, Mexico)
  • Europe (Western Europe [The UK, France, Germany, Italy, Spain Rest of Western Europe], Eastern Europe [Poland, Russia, Rest of Europe])
  • Asia Pacific (Japan, China, India, Australia & New Zealand, ASEAN, Rest of Asia pacific)
  • South America (Brazil, Argentina, Rest of South America)
  • Middle East (UAE, Saudi Arabia, Egypt, Rest of Middle East)
  • Africa (South Africa, Nigeria, Rest of Africa)

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