The global smart cities market was valued at $900 billion in 2018 and is projected to expand at a whopping 18% between 2019 and 2029, according to a new study published by Persistence Market Research.
Data from the United Nations suggests that the proportion of people living in cities across the world will rise from approximately 50% in 2018 to 75% in 2050. This rise in urban population impacts overall infrastructure and resources as governments are trying to cope with the influx of new inhabitants and improve their living standards. They are thus looking forward to the development of smart cities, with a key focus on the digital transformation of the urban ecosystem to meet environmental, financial, and social outcomes.
- Providers of smart cities solutions are eyeing expansions in the Asia Pacific due to increasing adoption of digital technology and rising demand for smart solutions.
- Governments are focusing on integrating cloud, mobile, and Big Data technologies in new smart cities to streamline projects and generate new revenue streams.
- Continuous implementation of devices and technologies, such as sensors, cameras, robots, IoT, and artificial intelligence (AI), is resulting in a connected environment.
- Smart security application in smart cities is projected to increase at a CAGR of ~22% during the forecast period.
However, lack of infrastructure development in various countries of the Middle East & Africa and Latin America, coupled with high price points associated with the replacement of existing infrastructure with smart infrastructure, will remain the key factors limiting the growth of the smart cities market.
As the smart cities market is continuously becoming more competitive and diverse, continuous developments of the digital ecosystem in and around cities will create potential opportunities for businesses and governments to deploy new services and solutions.
Moreover, public-private partnerships and collaborations aiming at delivering infrastructure and services specific to smart cities will shape the market growth through specialised skills and high capital investments.
Companies leading in the market are focusing on product innovations through partnerships and collaborations with local and regional players to enhance their geographic footprints.