International Data Corporation forecasts the global smart cities market to generate $124 billion in revenue in 2020.
Revenue generation within the smart cities market in 2020 is expected to increase by 18.9% from 2019 level.
Top 100 cities represented 29% of global spending in smart cities initiatives.
One-third of all global spending on smart cities (not just the top 100 cities) goes to resilient energy and infrastructure in 2020.
Data-driven public safety and intelligent transportation represented around 18% and 14% of overall spending respectively.
In 2020, smart grids (electricity and gas combined) still attract the largest share of investments, although their relative importance will decrease over time as the market matures and other use cases become mainstream.
Fixed visual surveillance, advanced public transportation, intelligent traffic management, and connected back-office follow, and these five use cases together currently represent over half of the opportunity.
The use cases that will see the fastest spending growth over the five-year forecast are vehicle-to-everything (V2X) connectivity, digital twin, and officer wearables.
Singapore will remain the top investor in smart cities initiatives followed by Tokyo, New York City and London. These four cities will each see smart city spending of more than $1 billion in 2020.
On a regional basis, the United States, Western Europe, and China will account for more than 70% of global smart cities spending in 2020 whilst Latin America and Japan will experience the fastest growth in smart cities spending in 2020.
Serena Da Rold, programme manager in IDC's Customer Insights & Analysis group, said: "The Spending Guide also provides spending data for more than 200 cities and shows that fewer than 80 cities are investing over $100 million per year. At the same time, around 70% of the opportunity lies within cities that are spending $1 million or less per year. There is a great opportunity for providers of smart city solutions who are able to leverage the experience gained from larger projects to offer affordable smart initiatives for small and medium-sized cities."
Ruthbea Yesner, vice president of IDC Government Insights and Smart Cities and Communities, said: "Regional and municipal governments are working hard to keep pace with technology advances and take advantage of new opportunities in the context of risk management, public expectations, and funding needs to scale initiatives.
"Many are moving to incorporate Smart City use cases into budgets or financing efforts through more traditional means. This is helping to grow investments."