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:
- The need for public safety and communications infrastructure
- Increasing number of government initiatives and Ppp models for smart cities
- Growing adoption of connected and smart technologies
- Optimising the use of energy during peak hours
- 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:
- Increasing environmental concerns and demand for green initiatives
- In increasing developing economies and booming IT sectors
- Rising demand for system integrators to offer end-to-end solutions
- Growing demand for IoT
- 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:
- Privacy and security concerns
- Lack of standardised and uniform technology
- Poor operational efficiency and lack of technology advancement in developing economies
- Unclear strategic goals and lack of structural KPIs
- Huge initial investments associated with smart city development
For more information about the report, click here…