A new report issued by Navigant Research forecasts the global market for smart city solutions and services to generate $97.6 billion by 2026.The market intelligence firm predicts the 250 smart city projects currently under deployment in 178 cities to generate $40.1 billion in revenue by the end of 2017.
According to the report, global cities and governments are increasing their investments in smart city technologies due to an increase in awareness on the benefits smart city solutions can provide in terms of economic opportunity, sustainability and quality of life.
The majority of the projects which are currently under deployment are aiming to improve the operations of energy utilities and government departments followed by smart city projects in the transportation, buildings and water sectors.
Commenting on the findings of the new report, Christina Jung, research analyst with Navigant Research, said: “Leading cities are looking at how they can build on their initial investment in open data and the data feeds being provided by Internet of Things applications.
“Cities are moving beyond the publication of government open data policies to the exploitation of a wide range of data sources and the establishment of city platforms for information sharing and use of analytics.”
In addition to efforts to harvest the benefits of smart city solutions, governments and cities are expected to increase their smart city projects portfolios due to the decrease in costs and the emergence of new innovative IoT solutions.
According to the findings of Navigant Research, the global smart city market is witnessing increases in investments in open data platforms, smart grid technologies, networked LED street lights, urban mobility, energy efficient buildings, water management, and government service applications for smart cities.
Smart city solutions and energy efficiency
In a separate report issued in early March by Navigant Research, the market intelligence firm forecasts government and utility spending on energy efficiency programmes to reach $56 billion by 2026 globally.
Government and utility spending on energy efficiency initiatives are expected to increase globally under efforts to reduce energy consumption levels and costs to help utility firms to improve the reliability of their grid networks and customer services.
In a press statement, Navigant Research notes that government and utility spending on energy efficiency will increase in a bid to reduce carbon emissions in light of fossil fuel utilisation in energy generation.
Carbon emission reduction targets set at national and international levels will drive the increase in energy efficiency spending. [San Diego sets aside $30 million for smart city project].
In 2017, governments and utilities are expected to invest up to $25.6 billion in energy efficiency programmes.
Image credit: Smart Cities Council.