The Global Market for Smart City Technologies is Projected to Reach US$1.34 Trillion by 2024

Need to Sustainably Accommodate the Growing Urban Population & Increased Application of Artificial Intelligence in Smart City Projects to Spur Growth of Smart City Technologies, 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 City Technologies is projected to reach US$1.34 trillion by 2024, driven by the growing world population, unscrupulous exploitation of natural resources, the ensuing search for sustainable ways to accommodate the 7+ billion people on the planet and continuous innovation in artificial intelligence and its growing role in catalyzing smart city development. 

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. Against this backdrop, countries, governments, and communities are scrambling to support this increase in population with 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. A key trend in the market is the growing integration of artificial intelligence (AI) in smart cities. Smart cities are beginning to use AI to provide actionable insights for policy makers to improve operational efficiencies, reduce resource consumption, monitor security risks and contain costs. Practical applications of AI in smart cities enhance city services with the potential to manifest in energy grid optimization, smart water storage and distribution, better traffic regulation, disaster preparedness, mitigating cyber security threats, and improving transportation options. AI applications are currently more prevalent in healthcare, connected public transportation, public safety, advanced manufacturing and online retail. As smart cities become the norm, application of AI technologies in smart grids enable improved real-time grid management and better integration of alternative energy sources. AI and predictive analytics in smart building controls facilitate predictive energy optimization, preventive maintenance and fault detection. 

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 29.2% 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., AGT International, Cisco Systems, Inc., Current, Engie, Ericsson, Hitachi, Ltd., Honeywell International, Inc., Huawei Technologies Co., Ltd., IBM Corporation, Intel Corporation, Itron, Inc. , Johnson Controls International plc, Libelium Comunicaciones Distribuidas S.L, Microsoft Corporation, Nokia Corporation, Oracle Corporation, Panasonic Corporation, Schneider Electric SA, Siemens AG, Spatial Labs, Inc., Telensa Limited, Urbiotica, 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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