The Global Market for Smart Cities is Projected to Reach US$1.2 Trillion by 2020

Human Overpopulation & the Dire Need for Sustainable Living Solutions Throw the Spotlight on Smart Cities, According to a New Report by Global Industry Analysts, Inc.

GIA launches comprehensive analysis of industry segments, trends, growth drivers, market share, size and demand forecasts on the global Smart Cities market. The global market for Smart Cities is projected to reach US$1.2 trillion by 2020, driven by the growing world population, unscrupulous exploitation of natural resources, and the ensuing search for sustainable ways to accommodate the 7+ billion people on the planet.

World population will continue to grow from the current massive size of 7.3 billion to over 9.1 billion by 2040. The mind-bending spurt in population from 2.5 billion 1950 to over 7 billion is triggering fears that the world is heading for a population crisis. The continued growth in population is already wielding a profound impact both on the environment and quality of human life. Lavish lifestyles in the developed Western economies are resulting in these economies consuming more than their fair share of Earth’s resources, while haphazard urbanization, ill planned cities and overcrowding in developing countries are resulting in enormous wastages of precious natural resources. Unchecked urban sprawl is driving modern cities to their limits. Public infrastructure and resources ranging from food, energy, water, security, digital communication to transportation are being stretched to the breaking point. Inequitable distribution of resources is resulting in high cost of living, rising levels of pollution, cultural clashes, increased crime rates, and shortages in housing accommodations, among others. Restriction on personal freedom represents another key fallout of population explosion i.e. limits on water consumption, limits on driving, and limits on travel. Impact on the ecosystem includes species extinction, habitat destruction, and habitat fragmentation.

As countries, governments, and communities scramble to support this increase in population, coming to fore is the concept of “Smart Cities” enabled by intelligent information and communication technologies (ICT) technologies. Defined as an umbrella term that includes smart homes, smart governance, smart buildings, smart living, smart transportation/mobility, smart energy, smart communications, and smart networks, smart cities are the future of sustainable living. One of the primary tenets of smart cities is the efficient distribution and use of resources in a manner that reduces the city’s costs and consumption of resources. Interconnected, flexible and agile supply systems help cities to respond to changing demand patterns. For instance, use of sensors aids in wireless management of streetlights, traffic lights, water and gas supply etc. thus resulting in lower energy costs. Smart infrastructure such as smart grids and water networks helps in reducing wastages and in turn generates surpluses. Smart security and surveillance systems help curb crime even in tightly-packed urban areas. Smart traffic management helps in disciplining traffic even in the densest of cities. Implementation of open Wi-Fi networks will provide the foundation for connected living and strong and agile community engagement. Some of the technologies playing vital roles as key enablers of the smart city concept include intelligent lighting, smart building controls, demand response, LED lighting, solar panels, fuel cells, wireless charging for automobiles, NFC, facial recognition, transportation sensors, wind turbines, and low power semiconductors, among others.

As stated by the new market research report on Smart Cities, the United States represents the largest market worldwide. Asia-Pacific ranks as the fastest growing market with a CAGR of 21.2% over the analysis period, driven by the growing pressure to improve life in emerging markets. Other factors spurring growth in the region include developing smart city technologies, increased focus on “Smart Cities” in political agendas for the technology’s ability to provide fair human outcomes, and efforts of local governments to achieve international recognition for smart digitalization and economic development.    

Major players in the market include ABB Ltd., Accenture plc, AGT International, Atos SE, Cisco Systems Inc., Ericsson, General Electric Company, Hitachi Ltd., Honeywell International Inc., Huawei Technologies Co. Ltd, IBM Corporation, Intel Corporation, Itron Inc., Microsoft Corporation, Nokia Corporation, Oracle Corporation, Schneider Electric SA, Siemens AG, Silver Spring Networks, Toshiba Corporation, Verizon Communications Inc., and Worldsensing SL, among others.

The research report titled “Smart Cities: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, issues, drivers, mergers, acquisitions and other strategic industry activities of global companies. The report provides market estimates and projections for all major geographic markets such as the US, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia and Rest of Europe), Asia-Pacific (China, India and Rest of Asia-Pacific), Middle East & Africa, and Latin America. The market is analyzed by the following End-Use Segments - Industry Automation, Power Supply, Security, Education, Buildings & Homes and Others.

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