Smart Cities Market Size - Industry Report on Share, Growth Trends & Forecasts Analysis (2025 - 2030)

The Smart City Market Report is Segmented by Solution (Smart Mobility Management, Smart Public Safety, Smart Healthcare, Smart Building, Smart Utilities, Smart Security, Smart Education) and by Geography (North America, Europe, Asia-Pacific, Latin America, Middle East and Africa). The Market Sizes and Forecasts are Provided in Terms of Value (USD) for all the Above Segments.

Smart Cities Market Size - Industry Report on Share, Growth Trends & Forecasts Analysis (2025 - 2030)

Smart Cities Market Size

Smart Cities Market Summary
Study Period 2019 - 2030
Market Size (2025) USD 1.68 Trillion
Market Size (2030) USD 4.76 Trillion
CAGR (2025 - 2030) 23.21 %
Fastest Growing Market Asia-Pacific
Largest Market Europe
Market Concentration Medium

Major Players

Smart Cities Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Smart Cities Market Analysis

The Smart Cities Market size is estimated at USD 1.68 trillion in 2025, and is expected to reach USD 4.76 trillion by 2030, at a CAGR of 23.21% during the forecast period (2025-2030).

The smart cities landscape is experiencing rapid transformation driven by increasing urbanization and the need for sustainable urban development. According to United Nations projections, approximately 90% of the world's population will reside in megacities by 2050, necessitating sophisticated urban management solutions. This demographic shift has catalyzed investments in the growth of smart cities infrastructure, with cities worldwide implementing integrated systems for resource management, public services, and urban planning. The convergence of digital technologies and urban infrastructure has become increasingly critical as municipalities seek to optimize operations and enhance citizen services through data-driven decision-making.


Strategic partnerships and investments are reshaping the smart city market ecosystem, with significant developments occurring across global markets. In February 2023, several Singapore-based smart city companies, including Daily Life Renewable Energy and Graymatics, initiated collaborations with UAE firms to develop smart city pilot projects in Abu Dhabi, focusing on sustainable urban development and energy efficiency. Similarly, Siemens AG announced a substantial investment of EUR 5 billion in India to support the country's rapid urbanization and energy transformation, demonstrating the growing private sector commitment to the growth of smart cities.


Security considerations have emerged as a crucial factor in trends in smart city technology implementation, with organizations facing increasing cybersecurity challenges. According to EfficientIP's DNS Threat Report, nearly 87% of organizations experienced DNS attacks, highlighting the critical need for robust security frameworks in smart city infrastructure. This has led to the development of comprehensive security solutions and the integration of advanced encryption technologies to protect sensitive urban data and critical infrastructure systems.


The industry is witnessing a significant shift toward integrated urban solutions, with cities adopting holistic approaches to urban management. By 2025, it is projected that there will be more than 26 smart cities primarily concentrated in North America and Europe, showcasing the global momentum in the growth of smart cities. This trend is exemplified by initiatives such as Nokia's strategic partnership with Nedaa, Dubai's government security network provider, to explore innovative 5G network slicing for public safety and smart city applications. These developments underscore the growing emphasis on creating interconnected urban ecosystems that leverage advanced technologies to enhance city operations and citizen services.

Segment Analysis: By Solution

Smart Education Segment in Smart Cities Market

Smart Education has emerged as the dominant segment in the smart city market segmentation, commanding approximately 18% market share in 2024. The segment's leadership position is driven by the increasing adoption of digital learning platforms, smart classrooms, and integrated educational technologies across urban educational institutions. The implementation of AI-powered learning systems, interactive digital content, and real-time student performance analytics has revolutionized the traditional education landscape. Cities worldwide are investing heavily in educational infrastructure modernization, including the deployment of smart boards, digital libraries, and collaborative learning platforms. The integration of IoT devices and cloud-based learning management systems has enabled personalized learning experiences and improved educational outcomes.

Market Analysis of Smart Cities Market: Chart for By Solution

Smart Building Segment in Smart Cities Market

The Smart Building segment is experiencing remarkable growth in the smart city solution market, with a projected growth rate of approximately 27% from 2024 to 2029. This exceptional growth is fueled by the increasing demand for energy-efficient buildings, automated facility management systems, and intelligent space utilization solutions. The integration of advanced sensors, IoT devices, and AI-powered building management systems is enabling real-time monitoring and optimization of building operations. Smart buildings are incorporating cutting-edge technologies for climate control, lighting automation, security systems, and occupancy management, contributing to enhanced sustainability and operational efficiency. The segment's growth is further accelerated by the rising focus on green building initiatives and the implementation of smart workplace solutions.

Remaining Segments in Smart Cities Market

The smart city segmentation encompasses several other crucial segments including Smart Healthcare, Smart Utilities, Smart Security, Smart Public Safety, Smart Mobility Management, and Other Solutions. Smart Healthcare is transforming urban healthcare delivery through telemedicine and connected medical devices. Smart Utilities focus on efficient resource management and distribution networks. Smart Security and Public Safety segments are enhancing urban safety through surveillance systems and emergency response solutions. Smart Mobility Management is revolutionizing urban transportation through intelligent traffic management and public transit solutions. These segments collectively contribute to creating comprehensive smart city ecosystems that improve urban living standards and operational efficiency. The role of smart cities vendors and smart city platform market solutions is pivotal in driving these advancements.

Smart Cities Market Geography Segment Analysis

Smart Cities Market in North America

North America represents one of the most technologically advanced regions for smart cities market implementation, driven by extensive ICT investments among government organizations and widespread adoption of integrated solutions. The United States and Canada are leading the charge in developing comprehensive smart city frameworks, with initiatives spanning transportation, energy, public safety, and urban planning. The region's strong vendor base, rapid digitalization across industry verticals, and increasing adoption of smart connected devices have created a robust ecosystem for smart cities growth.

Market Analysis of Smart Cities Market: Forecasted Growth Rate by Region

Smart Cities Market in United States

The United States has emerged as the dominant force in the North American smart cities market landscape, leveraging its affluent economy, well-developed infrastructure, and innovation-friendly market environment. With approximately 86% market share in North America by 2024, the country continues to lead through multiple smart city initiatives, finding growth opportunities across various cities. Cities like New York have implemented smart monitoring technologies to manage resources more effectively, while Pittsburgh has deployed smart traffic systems to reduce congestion. The country's strong focus on technological innovation, coupled with substantial investments in IoT and connected devices, has created a fertile ground for smart city market size development.

Smart Cities Market in Canada

Canada is witnessing remarkable growth in its smart city initiatives, with a projected growth rate of approximately 23% from 2024 to 2029. The country's smart city development is characterized by its focus on sustainable urban development and innovative technological solutions. Canadian municipalities are actively adopting smart city technologies to lower operating costs, improve public services, and enhance quality of life. The country's emphasis on green electricity, with nearly two-thirds of its electricity coming from hydroelectric sources, positions it uniquely for sustainable smart city development. Network operators in the region consistently invest in expanding and upgrading their telecom networks and transitioning towards 5G infrastructure.

Smart Cities Market in Europe

Europe stands at the forefront of Europe smart cities market development, with a comprehensive approach to urban digitalization and sustainability. The region's smart city initiatives span the United Kingdom, Germany, France, and Sweden, focusing on areas such as sustainable district development, urban mobility, integrated infrastructure, and improved public services. European cities are progressively adopting smart city solutions and finding innovative ways to apply them to their specific conditions, supported by strong government initiatives and public-private partnerships.

Smart Cities Market in United Kingdom

The United Kingdom has established itself as Europe's largest smart city market, commanding approximately 29% of the regional market share by 2024. The country has been regarded as one of the smart city pioneers, with cities like London leading major smart city initiatives. The UK's approach encompasses congestion charging, low-carbon transportation programs, ambitious climate plans, and energy programs that emphasize local resources. The country's commitment to open data and its exploitation for improving services has created a robust foundation for smart city development.

Smart Cities Market in France

France is emerging as Europe's fastest-growing smart city market, with a focus on novel solutions and technological innovation. The country is experiencing rapid growth in smart city adoption, particularly in areas such as mobility, public safety, and urban services. French cities are implementing innovative solutions such as smart parking areas with integrated sensors and real-time information systems. The country's vision encompasses having every service in the city, including public transportation, traffic lights, police, utilities, and emergency response, connected with a digitalized central nervous system.

Smart Cities Market in Asia-Pacific

The Asia-Pacific smart cities market represents a dynamic and rapidly evolving market for smart cities, characterized by diverse initiatives across China, Japan, India, Australia, and South Korea. The region's smart city development is driven by rapid urbanization, increasing government initiatives, and strong technological capabilities. Countries in this region are actively implementing various smart city solutions, from transportation and energy management to public safety and environmental monitoring.

Smart Cities Market in China

China has established itself as the dominant force in the Asia-Pacific smart city landscape, leading the region's digital transformation through significant investments and comprehensive urban development strategies. The country has effectively mobilized its industries and resources to support its national aim of constructing smart cities through public-private partnerships and focused technical innovation. Major cities like Hangzhou, Suzhou, Shenzhen, Shanghai, and Beijing have become testbeds for advanced smart city technologies, with companies like Alibaba, Baidu, and Huawei playing pivotal roles in their development.

Smart Cities Market in India

India is emerging as the fastest-growing market for smart cities in the Asia-Pacific region, driven by ambitious government initiatives and rapid urbanization. The country's Smart Cities Mission, launched by Prime Minister Narendra Modi, has become a cornerstone of urban rehabilitation and retrofitting programs. The initiative encompasses various aspects of urban development, including sustainable infrastructure, digital governance, and improved quality of life. Cities across India are implementing innovative solutions in areas such as transportation, waste management, energy efficiency, and public safety.

Smart Cities Market in Latin America

Latin America represents an emerging market for smart city development, with Brazil, Mexico, and Argentina leading the regional transformation. The region has the highest rate of urbanization globally, creating both challenges and opportunities for smart city implementation. Brazil has emerged as the largest market in the region, driven by its digital transformation initiatives and growing adoption of IoT solutions. Meanwhile, Mexico is showing the fastest growth, particularly in areas such as real-time monitoring of traffic and crime, and interactive urban applications for better governance. The region's focus on combining smart technology with poverty alleviation efforts creates a unique approach to smart city development.

Smart Cities Market in Middle East & Africa

The Middle East & Africa region is witnessing significant growth in smart city initiatives, with Saudi Arabia, United Arab Emirates, and South Africa leading the transformation. Saudi Arabia has emerged as the largest market in the region, with ambitious projects like NEOM city showcasing the country's commitment to smart city development. The United Arab Emirates demonstrates the fastest growth rate, with Dubai and Abu Dhabi ranking among the world's top 50 smart cities. The region's focus on technological innovation, sustainability, and improved quality of life is driving the adoption of smart city solutions across various sectors, from transportation and energy to public safety and urban planning.

Smart Cities Industry Overview

Top Companies in Smart Cities Market

The smart cities companies market features prominent technology leaders and industrial conglomerates, including ABB, Cisco, IBM, Siemens, Huawei, Honeywell, and Schneider Electric. These smart cities vendors are driving innovation through advanced IoT platforms, cloud solutions, and integrated digital infrastructure offerings. Product development focuses heavily on connected devices, automation systems, and data analytics capabilities to enable seamless city operations. Companies are pursuing strategic partnerships with local governments and utilities while expanding their geographic presence through both organic growth and acquisitions. Operational agility is demonstrated through modular, scalable solutions that can be customized for different city requirements. The competitive landscape is characterized by significant investments in R&D to develop next-generation smart city technologies, particularly around 5G, artificial intelligence, and sustainable infrastructure solutions.

Consolidated Market Led By Global Players

The smart cities market structure reveals a moderately consolidated landscape dominated by large multinational technology corporations and industrial conglomerates with comprehensive solution portfolios. These established smart city market leaders leverage their extensive R&D capabilities, global presence, and deep domain expertise across multiple smart city components, including energy, transportation, buildings, and security. The market witnesses regular merger and acquisition activities as major players seek to enhance their technological capabilities and expand their geographic footprint. Smaller specialized players focus on specific smart city segments like lighting, waste management, or traffic systems, often becoming acquisition targets for larger companies looking to strengthen their offerings.


Regional and local players maintain a significant presence in their respective markets through strong relationships with municipal bodies and a better understanding of local requirements. The competitive dynamics are shaped by increasing collaboration between technology providers, system integrators, and infrastructure developers to deliver end-to-end smart city solutions. Market consolidation continues as larger players acquire innovative startups and specialist providers to accelerate their technological capabilities and expand their solution portfolios. The emphasis on interoperability and integrated platforms is driving partnerships and ecosystem development among various stakeholders.

Innovation and Integration Drive Market Success

Success in the smart cities industry increasingly depends on the ability to deliver integrated, scalable solutions that address multiple urban challenges simultaneously. Incumbent smart city companies must focus on developing open platforms that enable seamless integration of various smart city components while ensuring cybersecurity and data privacy. Companies need to demonstrate clear value propositions through measurable improvements in city operations, sustainability metrics, and citizen services. Building strong relationships with municipal authorities, understanding local regulatory frameworks, and maintaining flexibility in business models are crucial for increasing market share. The ability to leverage data analytics for predictive insights and operational optimization will become a key differentiator.


For emerging players and contenders, success lies in identifying and exploiting specific market niches where they can develop specialized expertise. This includes focusing on innovative solutions for particular urban challenges or developing cutting-edge technologies that can be integrated into existing smart city frameworks. Companies must navigate complex regulatory environments, particularly around data protection and infrastructure standards, while building trust with city authorities and citizens. The market shows relatively high end-user concentration with municipal governments and urban development authorities being primary customers, necessitating long-term relationship building and proven track records. While substitution risk remains low due to the essential nature of smart city solutions, companies must continuously innovate to maintain competitive advantage and meet evolving urban needs.

Smart Cities Market Leaders

  1. ABB Ltd

  2. Cisco Systems Inc.

  3. Emerson Electric Co.

  4. IBM Corporation

  5. Ericsson Inc.

  6. *Disclaimer: Major Players sorted in no particular order
Smart Cities Market Concentration
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Smart Cities Market News

  • June 2023: TIM, a telecom operator, and Ericsson announced an increase in their investments in private networks and IoT projects in Brazil. TIM has announced various new projects, particularly in smart cities/public lighting. In the previous month, the company announced a smart lighting project in Porto Alegre, Rio Grande do Sul state, using 4G NB-IoT technology for IPSul, the concessionaire responsible for public lighting in the city.
  • November 2022: Emerson Electric Co. announced the completion of the USD 3-billion sale of its InSinkErator business to Whirlpool Corporation. InSinkErator was founded in 1938 and acquired by Emerson in 1968. It manufactured food waste disposers and instant hot water dispensers for home and commercial use. Whirlpool Corporation, a home appliance industry leader, is well-positioned to capitalize on InSinkErator's substantial legacy and performance to achieve long-term growth and success.

Smart Cities Market Report - Table of Contents

1. INTRODUCTION

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET INSIGHTS

  • 4.1 Market Overview
  • 4.2 Industry Value Chain Analysis
  • 4.3 Industry Attractiveness - Porter's Five Forces Analysis
    • 4.3.1 Bargaining Power of Suppliers
    • 4.3.2 Bargaining Power of Buyers
    • 4.3.3 Threat of New Entrants
    • 4.3.4 Threat of Substitutes
    • 4.3.5 Intensity of Competitive Rivalry

5. MARKET DYNAMICS

  • 5.1 Market Drivers
    • 5.1.1 Rising Adoption of AI and IoT
    • 5.1.2 Growth in the need for public safety and security
  • 5.2 Market Challenges
    • 5.2.1 Security Concerns Related to IoT and Smart Devices
  • 5.3 Impact of COVID-19 on the Smart Cities Market

6. MARKET SEGMENTATION

  • 6.1 By Solution
    • 6.1.1 Smart Mobility Management
    • 6.1.2 Smart Public Safety
    • 6.1.3 Smart Healthcare
    • 6.1.4 Smart Building
    • 6.1.5 Smart Utilities
    • 6.1.6 Smart Security
    • 6.1.7 Smart Education
    • 6.1.8 Other Solutions
  • 6.2 By Geography
    • 6.2.1 North America
    • 6.2.1.1 United States
    • 6.2.1.2 Canada
    • 6.2.2 Europe
    • 6.2.2.1 United Kingdom
    • 6.2.2.2 Germany
    • 6.2.2.3 France
    • 6.2.2.4 Sweden
    • 6.2.2.5 Rest of Europe
    • 6.2.3 Asia-Pacific
    • 6.2.3.1 China
    • 6.2.3.2 Japan
    • 6.2.3.3 India
    • 6.2.3.4 Australia
    • 6.2.3.5 South Korea
    • 6.2.3.6 Rest of Asia-Pacific
    • 6.2.4 Latin America
    • 6.2.4.1 Mexico
    • 6.2.4.2 Brazil
    • 6.2.4.3 Argentina
    • 6.2.4.4 Rest of Latin America
    • 6.2.5 Middle East and Africa
    • 6.2.5.1 Saudi Arabia
    • 6.2.5.2 United Arab Emirates
    • 6.2.5.3 South Africa
    • 6.2.5.4 Rest of Middle East and Africa

7. COMPETITIVE LANDSCAPE

  • 7.1 Company Profiles*
    • 7.1.1 ABB Ltd.
    • 7.1.2 Cisco Systems Inc.
    • 7.1.3 Emerson Electric Co.
    • 7.1.4 IBM Corporation
    • 7.1.5 Ericsson Inc.
    • 7.1.6 Schneider Electric SE
    • 7.1.7 General Electric Co.
    • 7.1.8 Siemens AG
    • 7.1.9 Huawei Technologies Co. Ltd.
    • 7.1.10 Honeywell International Inc.
    • 7.1.11 Hitachi Ltd.
    • 7.1.12 Nokia Corporation
    • 7.1.13 Koninklijke Philips NV

8. INVESTMENT ANALYSIS

9. FUTURE OF THE MARKET

**Subject to Availability
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Smart Cities Industry Segmentation

A smart city is an urban area that uses different types of electronic methods and sensors to collect data. Insights gained from that data are used to manage assets, resources, and services efficiently. This data is used to improve operations across the city.

The smart city market report is segmented by solution (smart mobility management, smart public safety, smart healthcare, smart building, smart utilities, smart security, smart education) and by geography (North America, Europe, Asia-Pacific, Latin America, Middle East and Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments. 

By Solution Smart Mobility Management
Smart Public Safety
Smart Healthcare
Smart Building
Smart Utilities
Smart Security
Smart Education
Other Solutions
By Geography North America United States
Canada
Europe United Kingdom
Germany
France
Sweden
Rest of Europe
Asia-Pacific China
Japan
India
Australia
South Korea
Rest of Asia-Pacific
Latin America Mexico
Brazil
Argentina
Rest of Latin America
Middle East and Africa Saudi Arabia
United Arab Emirates
South Africa
Rest of Middle East and Africa
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Smart Cities Market Research FAQs

How big is the Smart Cities Market?

The Smart Cities Market size is expected to reach USD 1.68 trillion in 2025 and grow at a CAGR of 23.21% to reach USD 4.76 trillion by 2030.

What is the current Smart Cities Market size?

In 2025, the Smart Cities Market size is expected to reach USD 1.68 trillion.

Who are the key players in Smart Cities Market?

ABB Ltd, Cisco Systems Inc., Emerson Electric Co., IBM Corporation and Ericsson Inc. are the major companies operating in the Smart Cities Market.

Which is the fastest growing region in Smart Cities Market?

Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).

Which region has the biggest share in Smart Cities Market?

In 2025, the Europe accounts for the largest market share in Smart Cities Market.

What years does this Smart Cities Market cover, and what was the market size in 2024?

In 2024, the Smart Cities Market size was estimated at USD 1.29 trillion. The report covers the Smart Cities Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Smart Cities Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.

Smart Cities Market Research

Mordor Intelligence provides a comprehensive analysis of the smart cities market. We leverage our extensive expertise in tracking smart city growth and emerging technologies. Our research covers the evolution of digital cities and connected cities. It includes detailed smart cities statistics and market analysis. The report offers in-depth coverage of smart infrastructure market developments, smart mobility market trends, and the implementation of ICT infrastructure across smart cities in the world.

Stakeholders gain valuable insights through our detailed examination of smart cities companies and key smart city vendors. This is supported by an extensive smart cities dataset. The report, available as an easy-to-download PDF, presents smart city technology trends and growth projections. This enables informed decision-making for industry participants. Our analysis covers the development of industrial smart cities, smart city platform market dynamics, and emerging public safety solutions for smart cities. It provides actionable intelligence for market participants looking to capitalize on the smart cities market size expansion and technological advancement opportunities.