Smart Cities Market
The Smart Cities market was valued at 442.89 billion in 2017 and is expected to reach a value of USD 1,226.68 billion by 2023 at a CAGR of 18.22% over the forecast period (2018 - 2023).
The concept of smart city encompasses optimization of the efficiency of city operations and services, and connected citizens. Smart city technology enables city officials to interact directly with both communities and city infrastructure, and monitor what is happening in the city and how the city is evolving. Smart city initiatives are applicable to urban developed cities, for the efficient management of assets and resources, such as traffic and transportation systems, power plants, water supply networks, waste management, information systems, schools, libraries, hospitals, and other community services. Thus, with the world moving towards urbanization, there is an increasing number of smart city initiatives and projects, in the pipeline. Therefore, with growing urbanization, the need to manage infrastructure and assets is prompting countries across the world to invest in smart city projects. According to the Consumer Technology Association, the worldwide spending on smart city developments is expected to reach USD 34.35 billion, by 2020. However, security concerns related to IoT and smart devices and higher costs of refurbishment of old buildings are hampering the growth of the market.
Rapidly Growing Urbanisation Drive the Smart Cities Market Growth
According to the United Nations Population Fund, in 2014, 54% of the world’s population lived in urban areas, which is approximately 3.3 billion people. By 2030, roughly 67% of the total population is expected to live in the urban areas. And, cities already generate over 70% of an average country’s GDP, more than 70% of energy consumption, and over 50% of global greenhouse gas emissions. Hence, urbanization demands smart technology initiatives driving the market growth. With rapid urbanization primarily taking place in developing countries, the growth of cities and economic development are inextricably linked. For example, the rise of China’s middle class, a distinctly urban phenomenon has lifted 500 million people out of poverty in less than 30 years and is a testament to the power cities uniquely possess to elevate living standards. The explosive population growth and dynamic shift in urban sprawl, coupled with the economic growth of megacities in the emerging economies, would pose a variety of opportunities for companies operating in different sectors. The megacities from the emerging economies are expected to become the largest markets for existing premium products and technologies, while their developed counterparts are expected to witness a trend of sustainable measures.
Asia-Pacific is Expected to Witness Fastest Growth in Smart Cities Market
The Asia Pacific segment is expected to witness highest growth rate over the forecast period where China and India are the prominent country. China has approximately 500 smart city pilot projects, the highest in the world, covering big and small cities. In 2013, MOHURD, China (Ministry of Housing and Urban-Rural Development) announced the first list of national pilot Smart Cities. By 2015, the country had a total of 326 smart city projects. There are a total of 731 smart city projects in India, worth INR 46,366 crore, which have been approved. Implementation has been initiated in 49 (6.7%) projects, with only a meagre completion of 24 (3.3%) projects. The Smart Cities Mission of the Government of India is based on a sustainable and inclusive development approach. The aim of the mission is to create a model that can be replicated, catalyzing the creation of similar Smart Cities in various other parts of the country. These investments by the government are aimed at sprucing up various departments, such as transportation, energy, and public security, to build smart cities in India.
Key Developments in the Smart Cities Market
- Jul 2018 - Cisco and government of Portugal have announced that the digitization of the country’s systems has to be accelerated. Both the entities will be in collaboration for the next two years.
- Mar 2018 - The Schneider Electric Opens first large-scale Innovation Hub in Asia New East Asia and Japan Headquarters in Singapore, bringing together multiple operations across the region to one location to better serve customers and industry partners
Smart Cities Market Major Players:
- ABB Ltd
- Cisco Systems Inc.
- Emerson Electric Co.
- IBM Corporation
- Ericsson Inc.
- Schneider Electric SE
- General Electric Co.
- Siemens AG
- Huawei Technologies Co. Ltd
- Honeywell International Inc.
- Hitachi Ltd
- Nokia Corporation
- Koninklijke Philips NV
Global Smart Cities Market Report Summary
Global Smart Cities Market
Market Size in 2017
USD 442.89 billion
Market Size in 2023
USD 1226.68 billion
Smart Cities Market offers latest trends, growth prospects, industry competitiveness, major players, value/supply chain, regional market share and forecast to 2023.
Reasons to Purchase Smart Cities Market Report
- Current and future smart cities market outlook in the developed and emerging markets
- Analyzing various perspectives of the market with the help of Porter’s five forces analysis
- The segment that is expected to dominate the market
- Regions that are expected to witness the fastest growth during the forecast period
- Identify the latest developments, market shares and strategies employed by the major market players.
- 3 months analyst support along with the Market Estimate sheet (in excel).
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1.1 Scope of Study
1.2 Executive Summary
2. Research Approach and Methodology
2.1 Study Deliverables
2.2 Study Assumptions
2.3 Analysis Methodology
2.4 Research Phases
3. Market Insights
3.1 Market Overview
3.2 Industry Attractiveness - Porter's Five Forces Analysis
3.2.1 Bargaining Power of Suppliers
3.2.2 Bargaining Power of Consumers
3.2.3 Threat of New Entrants
3.2.4 Threat of Substitute Products and Services
3.2.5 Intensity of Competitive Rivalry
3.3 Industry Value Chain Analysis
4. Market Dynamics
4.1 Introduction to Market Dynamics
4.2 Market Drivers
4.2.1 Rapidly Growing Urban Population
4.2.2 Inclination Towards Adopting Green Technology
4.2.3 Rising Adoption of Artificial Intelligence (AI) and Internet of Things (IoT)
4.3 Market Restraints
4.3.1 Security Concerns Related to IoT and Smart Devices
4.3.2 Higher Cost of Refurbishment of Old Buildings
5. Segmentation by Solution
5.1 Smart Mobility
5.2 Smart Public Safety
5.3 Smart Healthcare
5.4 Smart Buildings
5.5 Smart Utilities
5.6 Smart Security
5.7 Smart Education
5.8 Other Solutions
6. Segmentation by Region
6.1 North America
6.1.1 United States
6.2.1 United Kingdom
6.2.5 Rest of Europe
6.3 Asia Pacific
6.3.4 South Korea
6.3.6 Rest of Asia-Pacific (APAC)
6.4 Latin America
6.4.4 Rest of Latin America
6.5 Middle East and Africa
6.5.1 Saudi Arabia
6.5.2 United Arab Emirate
6.5.3 South Africa
6.5.2 Rest of Middle East & Africa
7. Competitive Intelligence - Key Vendor Profiles
7.1 ABB Ltd
7.2 Cisco Systems Inc.
7.3 Emerson Electric Co.
7.4 IBM Corporation
7.5 Ericsson Inc.
7.6 Schneider Electric SE
7.7 General Electric Co.
7.8 Siemens AG
7.9 Huawei Technologies Co. Ltd
7.10 Honeywell International Inc.
7.11 Hitachi Ltd
7.12 Nokia Corporation
7.13 Koninklijke Philips NV
8. Investment Analysis
9. Future of the Market