Smart City Market Key Findings by 2031
The smart city market is expected to grow from US$ 1094.23 billion in 2022 to US$ 3110.58 billion by 2031; it is estimated to grow at a CAGR of 19.0% from 2022 to 2031.
Smart cities are a concept where various aspects of a city or a province are based upon advanced technologies. These cities use digital technology and the internet to enhance the performance of services and quality of life by optimizing energy and improving security for the citizens. The smart city concept aims to develop robust connectivity and infrastructure to enable real-time information access for building a management system that efficiently connects citizens, service providers, and administrators. Furthermore, the government ensures that inhabitants actively participate in improving the overall sustainability and productivity of services by furnishing the cities with elemental infrastructure.
Smart infrastructure technology has significantly changed over time, and various disciplines, such as building automation for facility and emergency response management, building energy optimization, parking management, and in-building communication systems, are now being widely adopted. Furthermore, Green building initiatives have taken center stage across many countries, especially across Europe, North America, and APAC regions. Focus on reduction in energy consumption and concerns over the proliferation of environmental wastes are the major driving factors for the development of smart cities. Transportation is expected to be another major focus area during the smart city market forecast period.
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Smart City Market: Strategic Insights
Market Size Value in US$ 3110.58 billion by 2028 Market Size Value by US$ 1094.23 billion in 2022 Growth rate CAGR of 19.0% from 2022 to 2028 Forecast Period 2022-2028 Base Year 2022
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Smart City Market: Strategic Insights
| Market Size Value in | US$ 3110.58 billion by 2028 |
| Market Size Value by | US$ 1094.23 billion in 2022 |
| Growth rate | CAGR of 19.0% from 2022 to 2028 |
| Forecast Period | 2022-2028 |
| Base Year | 2022 |
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Depletion of energy sources and inefficient resource management are gradually becoming major concerns across the globe. This is driving the demand for smart energy solutions across the globe. Smart energy management systems use sensors, advanced meters, renewable energy sources, digital controls, and analytic tools to automate, monitor, and optimize energy distribution and usage. Such systems optimize grid operation and usage by balancing the needs of the different stakeholders involved (consumers, producers, and providers). There are several innovations in smart energy infrastructure, such as distributed renewable generation, microgrids, smart grid technologies, energy storage, automated demand response, virtual power plants, and demand-side innovations such as electric vehicles and smart appliances. Such innovations provide an extended network of intelligent energy devices across a city, with a detailed view of energy consumption patterns, enabling community-based energy monitoring programs and improving the energy efficiency of buildings.
Regional Analysis of Smart City Market
From the regional perspective, North America held the largest share of the global smart city market in 2021. The high adoption of technologically advanced solutions across all industrial sectors of the region is contributing to the growth of the North America smart city market. The increasing government support for technology adoption through the announcement of subsidies, tax credits, and funding to industries for technological development is further catalyzing the market, thereby offering lucrative business opportunities to the smart city market players operating across the region. For instance, in November 2021, the US federal government announced funding of US$ 500 million under the Infrastructure Investment and Jobs Act to overcome the challenges of smart cities. Additionally, the presence of several smart city market players across the region, engaged in constant innovation and product development, is further driving the North America smart city market.
Market Insights – Smart City Market
Industry Vertical-Based Insights
Based on industry vertical, the smart city market size is segmented into smart infrastructure, smart energy, smart governance, smart transportation, smart healthcare, and smart education. The smart transportation segment is expected to grow at the highest CAGR over the forecast period. Smart transportation is an innovative traffic and mobility infrastructure built on new technologies and designed to save resources for maximum efficiency. Deployment of key technologies such as cloud computing, 4G, machine-to-machine learning, and operations in novel projects is expected to become more commonly applied to smart transport systems such as railways, providing efficient passenger and freight services across the globe, resulting in the generation of a pool of opportunities for numerous industry players in the ecosystem of smart cities. This would also attract various capitalists and investors, leading to tremendous growth in the smart transportation market.
Smart City Market Report Scope
Players operating in the smart city market are mainly focused on developing advanced and efficient products.
- In October 2021, Siemens AG announced the acquisition of Squills. This acquisition strengthened the company’s mobility solutions, such as reservation and ticketing software.
- In May 2021, Microsoft Corporation and Itron Inc entered into a strategic partnership to collaboratively offer highly advanced Mobile device management (MDM) services to their clients.
The smart city market size is segmented into five major regions—North America, Europe, Asia Pacific (APAC), Middle East & Africa, and South America. In 2022, North America led the market with a substantial revenue share, followed by Europe. Further, Asia Pacific is expected to register the highest CAGR in the smart city market from 2022 to 2031.
The key global smart city market players include ABB Ltd; Cisco Systems, Inc.; Oracle Corporation; Microsoft Corporation; and IBM Corporation. Apart from these, several other players were analyzed during the research study, including Accenture, General Electric Company, Schneider Electric SE, Siemens AG, and Ericsson AB.
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Industry Vertical
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
This text is related
to country scope.
Table of Contents
1 Table of Contents
1.1 List of Tables
1.2 List of Figures
2 Introduction
2.1 Scope of the Study
2.2 The Insight Partners Research Report Guidance
3 Key Takeaways
4 Smart City Market Landscape
4.1 Overview
4.2 Market Segmentation
4.2.1 Global Smart City Market – By Industry Verticals
4.2.2 Global Smart City Market – By Geography
4.1 PEST Analysis
4.1.1 North America PEST Analysis
4.1.2 Europe PEST Analysis
4.1.3 Asia Pacific PEST Analysis
4.1.4 Middle East and Africa PEST Analysis
4.1.5 South America PEST Analysis
5 Global Smart Cities Market – Key Industry Dynamics
5.1 Key Market Drivers
5.1.1 Gradual Shift in Urbanization
5.1.2 Thriving Demand for Reduced Energy Consumption
5.1.3 Rise in Technological Innovations
5.2 Key Market Restraints
5.2.1 Lack of Standardization
5.2.2 Lack of Critical Security Aspects
5.3 Key Market Opportunities
5.3.1 Integration of technology with present services
5.3.2 IoT: A Revolutionary Trend
5.4 Future Trends
5.4.1 Application of artificial intelligence to public security
5.4.2 Enhanced Services
5.5 Impact Analysis
6 Smart City Market to 2025 – Global
6.1 Global Smart City Market Overview
6.2 Global Smart City Market Forecast and Analysis
7 Global Smart Cities Market Analysis – By Industry Verticals
7.1 Overview
7.2 Smart Infrastructure
7.2.1 Overview
7.2.2 Global Smart Infrastructure Market Revenue and Forecasts to 2025 (US$ Bn)
7.3 Smart Governance
7.3.1 Overview
7.3.2 Global Smart Governance Market Revenue and Forecasts to 2025 (US$ Bn)
7.4 Smart Energy
7.4.1 Overview
7.4.2 Global Smart Energy Market Revenue and Forecasts to 2025 (US$ Bn)
7.5 Smart Healthcare
7.5.1 Overview
7.5.2 Global Smart Healthcare Market Revenue and Forecasts to 2025 (US$ Bn)
7.6 Smart Transportation
7.6.1 Overview
7.6.2 Global Smart Transportation Market Revenue and Forecasts to 2025 (US$ Bn)
7.7 Smart Education
7.7.1 Overview
7.7.2 Global Smart Education Market Revenue and Forecasts to 2025 (US$ Bn)
8 Global Smart City Market – Geographical Analysis
8.1 Overview
8.2 North America Smart City Market Revenue and Forecasts to 2025
8.2.1 Overview
8.2.2 North America Smart City Market Revenue and Forecasts to 2025 (US$ Bn)
8.2.3 North America Smart City Market Breakdown by Key Countries
8.2.3.1 U.S. Smart City Market Revenue and Forecasts to 2025 (US$ Bn)
8.2.3.2 Canada Smart City Market Revenue and Forecasts to 2025 (US$ Bn)
8.2.3.3 Mexico Smart City Market Revenue and Forecasts to 2025 (US$ Bn)
8.2.4 North America Smart City Market Breakdown by Industry Verticals
8.3 Europe Smart City Market Revenue and Forecasts to 2025
8.3.1 Overview
8.3.2 Europe Smart City Market Revenue and Forecasts to 2025 (US$ Bn)
8.3.3 Europe Smart City Market Breakdown by Countries
8.3.3.1 France Smart City Market Revenue and Forecasts to 2025 (US$ Bn)
8.3.3.2 Germany Smart City Market Revenue and Forecasts to 2025 (US$ Bn)
8.3.3.3 Italy Smart City Market Revenue and Forecasts to 2025 (US$ Bn)
8.3.3.4 Spain Smart City Market Revenue and Forecasts to 2025 (US$ Bn)
8.3.3.5 U.K Smart City Market Revenue and Forecasts to 2025 (US$ Bn)
8.3.4 Europe Smart City Market Breakdown by Industry Verticals
8.4 Asia Pacific (APAC) Smart City Market Revenue and Forecasts to 2025
8.4.1 Overview
8.4.2 Asia Pacific Smart City Market Revenue and Forecasts to 2025 (US$ Bn)
8.4.3 Asia Pacific Smart City Market Breakdown by Countries
8.4.3.1 Australia Smart City Market Revenue and Forecasts to 2025 (US$ Bn)
8.4.3.2 China Smart City Market Revenue and Forecasts to 2025 (US$ Bn)
8.4.3.3 India Smart City Market Revenue and Forecasts to 2025 (US$ Bn)
8.4.3.4 Japan Smart City Market Revenue and Forecasts to 2025 (US$ Bn)
8.4.4 Asia Pacific Smart City Market Breakdown by Industry Verticals
8.5 Middle East & Africa (MEA) Smart City Market Revenue and Forecasts to 2025
8.5.1 Overview
8.5.2 Middle East & Africa Smart City Market Revenue and Forecasts to 2025 (US$ Bn)
8.5.3 Middle East & Africa Smart City Market Breakdown by Countries
8.5.3.1 Saudi Arabia Smart City Market Revenue and Forecasts to 2025 (US$ Bn)
8.5.3.2 South Africa Smart City Market Revenue and Forecasts to 2025 (US$ Bn)
8.5.3.3 UAE Smart City Market Revenue and Forecasts to 2025 (US$ Bn)
8.5.4 Middle East & Africa Smart City Market Breakdown by Industry Verticals
8.6 South America (SAM) Smart City Market Revenue and Forecasts to 2025
8.6.1 Overview
8.6.2 South America Smart City Market Revenue and Forecasts to 2025 (US$ Bn)
8.6.3 South America Smart City Market Breakdown by Countries
8.6.3.1 Brazil Smart City Market Revenue and Forecasts to 2025 (US$ Bn)
8.6.4 South America Smart City Market Breakdown by Industry Verticals
9 Industry Landscape
9.1 Market Initiative
9.2 Merger and Acquisition
9.3 New Development
9.4 Investment Scenario
10 Competitive Landscape
10.1 Market Positioning
10.2 Product Mapping
11 Smart City Market, Key Company Profiles
11.1 ABB Ltd.
11.1.1 Key Facts
11.1.2 Business Description
11.1.3 Financial Overview
11.1.4 SWOT Analysis
11.1.5 Key Developments
11.2 Accenture PLC
11.2.1 Key Facts
11.2.2 Business Description
11.2.3 Financial Overview
11.2.4 SWOT Analysis
11.2.5 Key Developments
11.3 Cisco Systems, Inc.
11.3.1 Key Facts
11.3.2 Business Description
11.3.3 Financial Overview
11.3.4 SWOT Analysis
11.3.5 Key Developments
11.4 General Electric Company
11.4.1 Key Facts
11.4.2 Business Description
11.4.3 Financial Overview
11.4.4 SWOT Analysis
11.4.5 Key Developments
11.5 IBM Corporation
11.5.1 Key Facts
11.5.2 Business Description
11.5.3 Financial Overview
11.5.4 SWOT Analysis
11.5.5 Key Developments
11.6 Microsoft Corporation
11.6.1 Key Facts
11.6.2 Business Description
11.6.3 Financial Overview
11.6.4 SWOT Analysis
11.6.5 Key Developments
11.7 Oracle Corporation
11.7.1 Key Facts
11.7.2 Business Description
11.7.3 Financial Overview
11.7.4 SWOT Analysis
11.7.5 Key Developments
11.8 Schneider Electric SE
11.8.1 Key Facts
11.8.2 Business Description
11.8.3 Financial Overview
11.8.4 SWOT Analysis
11.8.5 Key Developments
11.9 Siemens AG
11.9.1 Key Facts
11.9.2 Business Description
11.9.3 Financial Overview
11.9.4 SWOT Analysis
11.9.5 Key Developments
11.1 Ericsson ab
11.10.1 Key Facts
11.10.2 Business Description
11.10.3 Financial Overview
11.10.4 SWOT Analysis
11.10.5 Key Developments
12 Appendix
12.1 About The Insight Partners
12.2 Glossary of Terms
12.3 Methodology
12.3.1 Coverage
12.3.2 Secondary Research
12.3.3 Primary Research
12.4 Contact Us
12.5 Disclaimer
List of Tables
Table 1: Global Smart City Market Revenue and Forecasts to 2025 (US$ Bn)
Table 2: North America Smart City Market Revenue and Forecasts to 2025 – By Industry Verticals (US$ Bn)
Table 3: Europe Smart City Market Revenue and Forecasts to 2025 – By Industry Verticals (US$ Bn)
Table 4: Asia Pacific Smart City Market Revenue and Forecasts to 2025 – By Industry Verticals (US$ Bn)
Table 5: Middle East & Africa Smart City Market Revenue and Forecasts to 2025 – By Industry Verticals (US$ Bn)
Table 6: South America Smart City Market Revenue and Forecasts to 2025 – By Industry Verticals (US$ Bn)
Table 7: Glossary of Terms, Smart City Market
List of Figures
Figure 1: Smart Transportation Market, Global Revenue and Forecasts to 2025 (US$ Bn)
Figure 2: Smart Cities Market, Global Revenue (US$ Bn), 2016 & 2025
Figure 3: Asia Pacific Smart City Market, Global Revenue (US$ Bn), 2016 & 2025
Figure 4: Smart City Market Segmentation – By Industry Verticals
Figure 5: Smart City Market Segmentation – By Geography
Figure 6: North America PEST Analysis
Figure 7: Europe PEST Analysis
Figure 8: Asia Pacific (APAC) PEST Analysis
Figure 9: Middle East and Africa (MEA) PEST Analysis
Figure 10: South America (SAM) PEST Analysis
Figure 11: Smart Cities Market Impact Analysis of Driver and Restraints
Figure 12: Global Smart City Market Revenue and Forecasts to 2025 (US$ Bn) 38
Figure 13: Global Smart Cities Market Breakdown by Industry Verticals, 2016 & 2025(%)
Figure 14: Global Smart Infrastructure Market Revenue and Forecasts to 2025 (US$ Bn)
Figure 15: Global Smart Governance Market Revenue and Forecasts to 2025 (US$ Bn)
Figure 16: Global Smart Energy Market Revenue and Forecasts to 2025 (US$ Bn)
Figure 17: Global Smart Healthcare Market Revenue and Forecasts to 2025 (US$ Bn)
Figure 18: Global Smart Transportation Market Revenue and Forecasts to 2025 (US$ Bn)
Figure 19: Global Smart Education & Smart Governance Market Revenue and Forecasts to 2025 (US$ Bn)
Figure 20: Smart City Market, Global Breakdown by Regions, 2016 & 2025 (%)
Figure 21: North America Smart City Market Revenue and Forecasts to 2025 (US$ Bn)
Figure 22: North America Smart City Market Breakdown by Key Countries, 2016 & 2025(%)
Figure 23: U.S. Smart City Market Revenue and Forecasts to 2025 (US$ Bn)
Figure 24: Canada Smart City Market Revenue and Forecasts to 2025 (US$ Bn)
Figure 25: Mexico Smart City Market Revenue and Forecasts to 2025 (US$ Bn)
Figure 26: North America Smart City Market Breakdown by Industry Verticals, 2016 & 2025 (%)
Figure 27: Europe Smart City Market Revenue and Forecasts to 2025 (US$ Bn)
Figure 28: Europe Smart City Market Breakdown By Key Countries, 2016 & 2025 (%)
Figure 29: France Smart City Market Revenue and Forecasts to 2025 (US$ Bn)
Figure 30: Germany Smart City Market Revenue and Forecasts to 2025 (US$ Bn)
Figure 31: Italy Smart City Market Revenue and Forecasts to 2025 (US$ Bn)
Figure 32: Spain Smart City Market Revenue and Forecasts to 2025 (US$ Bn)
Figure 33: UK Smart City Market Revenue and Forecasts to 2025 (US$ Bn)
Figure 34: Europe Smart City Market Breakdown by Industry Verticals, 2016 & 2025 (%)
Figure 35: Asia Pacific Smart City Market Revenue and Forecasts to 2025 (US$ Bn)
Figure 36: Asia Pacific Smart City Market Breakdown by Key Countries, 2016 & 2025 (%)
Figure 37: Australia Smart City Market Revenue and Forecasts to 2025 (US$ Bn)
Figure 38: China Smart City Market Revenue and Forecasts to 2025 (US$ Bn)
Figure 39: India Smart City Market Revenue and Forecasts to 2025 (US$ Bn)
Figure 40: Japan Smart City Market Revenue and Forecasts to 2025 (US$ Bn)
Figure 41: Asia Pacific Smart City Market Breakdown by Industry Verticals, 2016 & 2025 (%)
Figure 42: MEA Smart City Market Revenue and Forecasts to 2025 (US$ Bn)
Figure 43: Middle East & Africa Smart City Market Breakdown by Key Countries, 2016 & 2025 (%)
Figure 44: Saudi Arabia Smart City Market Revenue and Forecasts to 2025 (US$ Bn)
Figure 45: South Africa Smart City Market Revenue and Forecasts to 2025 (US$ Bn)
Figure 46: UAE Smart City Market Revenue and Forecasts to 2025 (US$ Bn)
Figure 47: Middle East & Africa Smart City Market Breakdown by Industry Verticals, 2016 & 2025 (%)
Figure 48: South America Smart City Market Revenue and Forecasts to 2025 (US$ Bn)
Figure 49: South America Smart City Market Breakdown by Key Countries, 2016 & 2025 (%)
Figure 50: Brazil Smart City Market Revenue and Forecasts to 2025 (US$ Bn)
Figure 51: South America Smart City Market Breakdown by Industry Verticals, 2016 & 2025 (%)
Figure 52: Smart Cities Market, Top 5 Companies
The List of Companies - Smart Cities Market
- ABB Ltd.
- Accenture
- Cisco
- Ericsson
- Schneider Electric
- GE
- Microsoft
- IBM Corporation
- Oracle
- Siemens
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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