Global Smart Cities Market: Snapshot
A general and continued migration of populations from rural centers to urban areas, stimulated by the availability of better economic and social prospects, is a key trend leading to the evolution of the market. A marked focus of governments in several emerging economies to offer sustainable environment for growth to their citizens has propelled the demand for smart cities. The recent efforts by governments in various nations to improve the quality of life for their citizens and provide them with easy access to essential services have positively impacted the overall market. The major proponents of smart cities development broadly entail the presence of robust infrastructure, sustainable real estate, advanced communications, intelligent transportation, citizen safety, and improved market viability.
A number of cities are rapidly adopting advanced information and communication technologies (ICT) such as big data analytics, Internet-of-Technology (IoT), and autonomous systems. These have been key enablers of seamless connectivity and digitization across businesses, laying the foundation of smart cities. Driven by a variety of lucrative trends, the smart cities market is projected to rise at an impressive CAGR of 14.0% from 2014 to 2019 and the market valuation is anticipated to reach US$1,265.85 bn by the end of the forecast period.
Substantial Demand for Developing Transportation Systems with Low-Carbon Footprint
The major applications of smart cities are in smart security, smart homes, smart buildings, smart industrial automation, smart energy management, smart transportation, smart education, smart water management, and smart healthcare. Of these, the smart security segment is projected to rise at a significant CAGR of 15.0% from 2013 to 2019. The spectacular demand for smart security technologies is driven by the pressing need for ensuring the privacy of citizen’s data from unauthorized use of these data by the third parties to serve their business objectives.
Meanwhile, smart transportation was one of the prominent segments in 2016 and is anticipated to grow at an impressive pace over the forecast period. The growing demand for optimizing fuel consumption, reducing travel displays, and improving traffic flow across inter-urban road networks has boosted the development of smart transportation technologies and services. The rising concerns to reduce carbon footprint is expected to open prospects for alternative and advanced modes of transportation.
Growing Popularity of e-Governance in Several Nations to Boost North American Market
Based on geography, the market is segmented into North America, Europe, Asia Pacific, and Rest of the World. Of these, North America is the major regional market for smart cities and is anticipated to lead throughout the forecast period. This regional market is expected to attain a valuation of US$392.41 bn by the end of 2019. The growth of the regional market is driven by the rising focus of governments in developed nations to reduce the emission of greenhouses gases. The governments in several nations of North America are actively boosting the adoption of renewable power for meeting the burgeoning needs of the populations.
The growing popularity of smart industrial automation in a variety of manufacturing industries is expected to fuel the market. In addition, the rising prominence of cloud-based services and the advent of inexpensive sensors are the crucial factors boosting the regional market. Furthermore, the rise in spending on research and development (R&D) of innovative technologies has offered an impetus to good governance.
Smart cities are developed urban areas designed with a perspective of creating high quality of life and sustainable economic development by through advancement in several key sectors including technology, economy, environment, mobility, people, and government. The concept of smart cities is aimed to offer a set of infrastructure and new generation services with the support of Information and Communication Technologies (ICT). Globally, there has been rapid growth in urbanization; however, unplanned urbanization is leading to several constraints to sustainable growth. This is leading to demand for planned urbanization. The growth in urban areas is increasing due to better infrastructure, healthcare, the quality of knowledge communication and social infrastructure. The global smart cities market has observed significant growth in the past few years and is expected to continue growing at a significant rate. Some of the factors supporting the growth of smart cities include increasing rural to urban migration, energy consciousness, need for green infrastructure, and time savings among others.
The primary focus of smart city projects is on improving energy efficiency and reducing the dependence on non-renewable resources for fuel. Smart cities offer enhanced public safety and security by detecting problems early on. Between 2015 and 2050, the number of people living in cities is expected to grow from around 3.6 billion to around 6.3 billion. A majority of this growth is expected to be in developing countries including India, China, Korea, and others. Many of the world’s major cities including New York, Seoul, Tokyo, Cairo, Shanghai, Amsterdam, Singapore, Dubai, and others have embarked on the smart city projects. Continuous rise in the number of people migrating to urban areas is resulting in overpopulation in modern cities, thus, causing social, political, environmental and energy instability.
This has created the need to incorporate a smart city concept to address all the arising challenges, by implementing modern infrastructure, enabling smart and intelligent solutions and technologies. As a result, the demand for smarter cities is expected to remain high in the coming years. The prospective growth of smart cities is attracting vendors throughout the value chain to invest in this sector. The problems and challenges faced by the countries globally include increasing congestion, rising pollution levels, migration of people from rural to urban areas, scarcity of resources, and increasing incidence of accidents among others in the metropolitan areas.
The report provides thorough analysis of the global smart cities market with respect to market size and forecast for the period 2013 – 2019. The study covers regional and technological trends that are affecting the dynamics of this market. In-depth analysis of the major segments of smart cities and forecast for each segment is explained in detail. The global smart cities market is segmented by end-user applications and major geographies. The segment analysis identifies key opportunities for each application in global as well as regional markets. Porter’s five forces analysis helps industry players understand the degree of competition and formulate their respective strategies.
The report profiles key industry players in the global smart cities market and highlights the key strategies adopted by them. In addition, this study covers recent developments in the smart cities market. This helps both new entrants and established players to develop their short- and long-term strategies. The report is expected to help suppliers, manufacturers, system integrators, policy-makers and the other key players to identify key opportunities in this industry.
The report assists in better understanding of the market with the help of various highlights on the competitive situation across different levels of the Porter’s five forces analysis. Overall, the report provides detailed analysis of the global smart cities market, along with the forecast in terms of revenue (USD billion) for all the segments from 2013 to 2019.
The global smart cities market is segmented into end user application segments and geographical markets as:
Smart Cities Market, by End User Application Type
- Smart homes
- Smart buildings
- Smart energy management
- Smart industrial automation
- Smart healthcare
- Smart transportation
- Smart security
- Others (smart education, smart water management, so on)
Smart Cities Market, by Geography
- North America
- Asia Pacific
- Rest of the World