The global spending on smart cities initiatives will reach $189.5 billion in 2023, according to a new study issued by International Data Corporation.
The research firm’s Worldwide Semiannual Smart Cities Spending Guide states that resilient energy and infrastructure projects followed by data-driven public safety and smart transportation will be top priorities for spenders.
The three sectors will account for more 50% of all the spending to be directed towards smart cities.
Technologies to lead investment priorities will include smart grid, fixed visual surveillance, advanced public transportation, smart outdoor lighting, and intelligent traffic management.
However, spending on the five technologies is expected to decline somewhat by 2023.
Vehicle-to-everything connectivity, digital twin, and officer wearables will record the fastest spending growth over the five-year period.
On a regional level, the US, western Europe and China will account for 70% of all smart cities spending whilst Japan and the Middle East will record 21% annual growths.
Singapore will remain the top investor in smart cities initiatives, driven by the Virtual Singapore project whilst New York City will have the second largest spending total this year, followed by Tokyo and London. Beijing and Shanghai were essentially tied for the number 5 position and spending in all these cities is expected to surpass the $1 billion mark in 2020.
Serena Da Rold, programme manager of customer insights and analysis at IDC, said: "In the latest release of IDC's Worldwide Smart Cities Spending Guide, we expanded the scope of our research to include smart ecosystems, added detail for digital evidence management and smart grids for electricity and gas, and expanded our cities dataset to include over 180 named cities.
"Although smart grid and smart meter investments still represent a large share of spending within smart cities, we see much stronger growth in other areas, related to intelligent transportation and data-driven public safety, as well as platform-related use cases and digital twin, which are increasingly implemented at the core of smart cities projects globally."
Ruthbea Yesner, vice president of IDC Government Insights and Smart Cities programmes, added: "As our research shows, there is steady growth across the globe in the 34 use cases we have sized and forecast."