The Smart Cities Market Growth, Trends, Forecast - 2025

Post On: 2020-01-26

The global market for cities is expected to grow rapidly in the coming years, estimation state that it would reach USD 237.6 billion by 2025, and 18.9% hike in the CGAR from 2019 to 2025. This means more improvements in public safety, infrastructure, government initiatives, education, healthcare and much more. 

The industry is also moving with rapid urbanization, aging infrastructure and the adoption of new technology coupled with an improvement in the quality of life. As the demand keeps on increasing in more urban population, smart cities would mainly focus on building smart transportation solutions, smart utilities, buildings, and smart citizen services. 

The major regions that are moving towards smart cities are North Americ, Europe, APAC, Latin America, and MEA. Due to the significant adoption of smart cities solutions driven by high ICT spending by government organizations and high demand for connected solutions across the world, North America governed dominated the overall smart cities market in terms of revenue in 2017. Even so, the highest growth rate is expected in Asia-Pacific in the forecasting period due to the increase in IT expenditures that government initiatives in emerging economies like China, Singapore, India, and South Korea will support, among other factors. 

Here are a few of the benefits of developing a smart city: 

1. Enhanced citizen and government engagement:

Citizens demand robust digital services in their cities today. The standard in many aspects of life have become tools for collaboration, modern and intuitive websites, mobile applications, portals for self-service use and convenient online accounts, and citizens no less expect their city to do so. 

2. Safer communities:

A smart city is a safer place. The use of advances in technology and private/public collaborations help to reduce crime. Many cities have already started to invest in intelligent infrastructure to promote a safer society. 

3. Reduced environmental footprint:

With greenhouse gases, ocean pollution and waste on our highways, smart cities are struggling to reduce adverse environmental effects. Cities have new tools for raising their ecological impact with energy-efficient buildings, air quality monitoring and renewable energy sources. 

4. Improved transportation:

In the next five years, according to SmartCity.Press, smart transport investments over cities are anticipated to rise by more than 25 percent annually. Connected transport systems have some of the greatest potentials for significantly improving productivity in a region. 

5. Efficient public utilities:

Smart technologies offer the cities the tools to effectively conserve and reduce the inadvertent waste of water and electricity by means of a limited supply of natural resources to meet human requirements. 

6. Improved infrastructure:

Smart sensors will pass on data indicating adverse structural changes, detect tilts, and send messages to workers notifying them of the need to inspect or repair buildings and bridges. This offers cities a huge opportunity to save tax dollars–and lives–in order to prevent infrastructure failures. 

With advances in technology, It's hard to ignore the many benefits connected cities offer. However, like any major urban technology initiative, implementation requires vision, investment, and careful planning to ensure its adoption and success.