Spending on smart city technologies in the Asia Pacific region, excluding Japan, is expected to increase by 16.8% between 2018 and 2022.
Market analysts IDC forecasts APEJ smart city spending to reach $35 billion by 2022.
Singapore, Beijing, Shanghai and Seoul are expected to hit over $4 billion this year.
China is expected to lead other countries whilst the hardware segment, currently with the highest spending, will be overtaken by services.
The services segment is currently ranked the second in terms of spending and is predicted to have a five-year compound annual growth rate of nearly 18%.
Data-driven public safety, resilient energy and infrastructure, intelligent transportation, non-revenue water management and smart outdoor lighting is expected to bring in the largest part of spending in 2019.
“Asia Pacific is an epicentre of innovation, and governments are finally realising and focusing their energy and investments on smarter technological choices, so that cities across region can manage growth and ever-increasing market opportunities,” said Swati Chaturvedi, senior market analyst, IT spending team at IDC Asia/Pacific.
“Prior to 2018, cloud solutions dominated digital transformation imperatives for smart cities. As city governments shift from digitalising siloed cloud-first endeavours, to integrated and cross-agency hubs, interconnected ecosystems such as transport and public safety become increasingly demanded,” says Gerald Wang, head of public sector research at IDC Asia/Pacific.
“The intelligent edge will also be a new phase of development for maturing smart cities. As edge-based smart solutions gain stronger compute capabilities, cloud platforms can be leveraged as a grid computing architecture to fully coordinate and optimise the city’s disparate compute powers, thereby furthering automation within the city.
“Asia Pacific is an epicentre of innovation, and governments are finally realising and focusing their energy and investments on smarter technological choices”