smart city

The global smart cities market is expected to increase revenue generation by 18.4% between 2018 and 2023, according to a new study by Markets and Markets.

The research firm forecasts revenue generation to increase from $308 billion to $717.2 billion during the forecast period.

Factors driving the increase in revenue include:

  1. The need for public safety and communications infrastructure
  2. Increasing number of government initiatives and Ppp models for smart cities
  3. Growing adoption of connected and smart technologies
  4. Optimising the use of energy during peak hours
  5. Citizen empowerment and engagement

The study has found that to date there are over 1,000 cities, with populations above 500,000, with the potential to invest in becoming smart.

Over 55% of these cities are in the APAC region, followed by North America and Europe and have the potential to invest between $20 triliion and $40 trillion in smart infrastructure over the next 10 years.

The report states that opportunities for vendors lie in cities:

  1. Increasing environmental concerns and demand for green initiatives
  2. In increasing developing economies and booming IT sectors
  3. Rising demand for system integrators to offer end-to-end solutions
  4. Growing demand for IoT
  5. Emerging 5G technology

Over the past five years, smart city projects have evolved from being vendor-driven, technology-centric to citizen-centric models.

However, a number of factors continue to retsrain the market and these include:

  1. Privacy and security concerns
  2. Lack of standardised and uniform technology
  3. Poor operational efficiency and lack of technology advancement in developing economies
  4. Unclear strategic goals and lack of structural KPIs
  5. Huge initial investments associated with smart city development

For more information about the report, click here…