Global Smart Cities Market Size, Growth Analysis - Forecast Trends and Outlook (2024-2032)

Global Smart Cities Market Size

The global smart cities market size reached approximately USD 1.14 trillion in 2023. The market is assessed to grow at a CAGR of 15.3% between 2024 and 2032 to attain a value of around USD 4.14 trillion by 2032.

Key Trends in the Market

Smart cities, variously known as intelligent cities, are urban regions that deploy information and communication technologies to optimise various functions and improve the efficiency and quality of life of residents. The aim of smart cities is to reduce waste and inconvenience, improve socio-economic growth and policy efficiency, and instantaneously solve various issues impacting the quality of life of city dwellers.

• The smart cities market expansion is being aided by the exploding urban population and growing concerns regarding urban management. In addition to this, governments are introducing various initiatives to reduce greenhouse gas emissions in cities, improve economic development, and reduce costs of services like transportation and waste management. Such factors are bolstering the adoption of smart city solutions to make the urban environment clean, safe, and comfortable.

• Advancements in 5G infrastructure and the development of sophisticated and advanced IoT devices are positively influencing the smart cities market growth. Such technologies can efficiently collect data, automate various systems like waste management, traffic, and energy uses, and reduce overall operational costs while offering valuable insights into asset management and services.

• Moreover, the increasing deployment of technologies like artificial intelligence (AI) and machine learning (ML), among others, to optimise, track, and analyse energy utilisation, enhance automation of various operations, and improve waste management is anticipated to propel the smart cities market demand in the forecast period.

• Smart cities can enhance the inclusivity of urban areas while improving infrastructure, creating attractive job opportunities, and surging the efficiency of urban operations and services. Moreover, the implementation of solutions and eco-friendly projects like smart grids and smart water management is anticipated to reduce carbon footprints, drive energy efficiency, improve air quality, and combat ecological and economic challenges. Hence, the growing emphasis on sustainability and social equity in urban development is one of the major smart cities market trends.

Market Analysis

Based on component, the market is segmented into services, hardware, and software. On the basis of solution, the smart cities market segmentation includes smart transportation, smart building, smart utilities, smart public safety, smart healthcare, smart security, and smart education, among others. The major regional markets for smart cities include North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa.

The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the following key players in the global smart cities market, covering their competitive landscape and latest developments like mergers, acquisitions, investments and expansion plans.

• Cisco Systems, Inc.

• ABB Limited

• Siemens AG

• Honeywell International Inc.

• Huawei Technologies Co. Ltd.

• Microsoft Corporation

• IBM Corporation

• Oracle Corporation

• Schneider Electric SE

• Hitachi Ltd.

• Intel Corporation

• AT&T Communications, LLC

• Nokia Corporation

• Koninklijke Philips NV

• Verizon Communications Inc.

• Others

Market Share by Solution

Smart transportation accounts for a significant smart cities market share, attributed to increasing investments in intelligent streets and the development of advanced smart mobility solutions like autonomous vehicles and digital railways. The rising trend of digitisation of payments and the growing popularity of e-tickets are also likely to aid the segment’s growth. With governments globally investing in intelligent, safe, and user-friendly smart mobility, the segment is anticipated to expand in the forecast period.

Market Share by Region

As per the smart cities market analysis, Europe has pioneered the smart city movement due to the increased focus on clean energy transition, socioeconomic equity, and sustainability. Cities like Barcelona, London, Berlin, and Amsterdam have extensively deployed ICT technologies to achieve carbon neutrality, support the rising ageing population, and create attractive job opportunities. Besides, improving transit infrastructure, renovation of ageing infrastructure, and the growing implementation of smart solutions like smart meters in cities are likely to further aid the market in the coming years.

Competitive Landscape of Smart Cities Industry

Schneider Electric SE, founded in 1836, is a leading energy and process technology company that is headquartered in Rueil Malmaison, France. Through its innovative technologies, software, services, and solutions, the company aims to drive digitisation and electrification while creating a sustainable and smarter world.

Hitachi Ltd., headquartered in Tokyo, Japan, is a prominent company centred around sectors like energy, mobility, smart life, IT, and industrial. Since its foundation in 1910, the company has introduced various solutions, technologies, and products to improve the quality of life of people. It also offers various solutions to build resilient smart city infrastructure.

Koninklijke Philips NV is a leading technology, electronics, and health company that was founded in 1891. It is based in Amsterdam, the Netherlands, and creates innovative products that can improve the well-being and health of people. The company also offers various smart city solutions like smart parking monitoring services and intelligent lighting systems, among others.

Other smart cities market players include Cisco Systems, Inc., ABB Limited, Siemens AG, Honeywell International Inc., Huawei Technologies Co. Ltd., Microsoft Corporation, IBM Corporation, Oracle Corporation, Intel Corporation, AT&T Communications, LLC, Nokia Corporation, and Verizon Communications Inc., among others.

Key Highlights of the Report

Smart Cities Market Report Snapshots

Smart Cities Market Size

Smart Cities Market Analysis

Smart Cities Market Share

Smart Cities Companies