Smart Cities Market Size, Share, Growth Prospects and Key Opportunities by 2028
According to a research report “Smart Cities Market by Focus Area, Smart Transportation, Smart Buildings, Smart Utilities, Smart Citizen Services (Public Safety, Smart Healthcare, Smart Education, Smart Street Lighting, and E-Governance) and Region – Global Forecast to 2028″ published by MarketsandMarkets, the smart cities market is expected to reach USD 1,114.4 billion by 2028 from USD 549.1 billion in 2023, at a CAGR of 15.2 % during 2023–2028.
The adoption of smart cities has witnessed a remarkable surge in recent years, driven by advancements in technology, growing urbanization, and increasing recognition of the benefits of smart solutions. Governments, businesses, and citizens increasingly embrace smart city initiatives to address urban challenges, enhance quality of life, and promote sustainability. This surge in adoption reflects a global trend towards more connected, efficient, and resilient urban environments.
By smart building, commercial type is estimated to account for the largest market share in the smart cities market during the forecast period.
Within commercial settings, factors such as HVAC systems, smart lighting, and monitoring play crucial roles in enhancing employee comfort and productivity. HVAC control systems, for instance, offer precise temperature regulation and contribute to improved indoor air quality, fostering a conducive work environment. Moreover, the automation of building functions, including temperature control, security systems, and maintenance procedures, significantly boost operational efficiency within commercial properties. However, energy performance remains a pressing concern for the commercial sector, given these buildings’ substantial energy consumption and waste generation. Addressing this challenge requires customized solutions tailored to optimize energy efficiency without compromising comfort or security standards. Implementing appropriate measures to reduce energy consumption and minimize waste generation, such as through advanced building management systems and sustainable design practices, is essential for promoting sustainable development within the commercial real estate sector.
By smart transportation solutions, passenger information management is expected to register the fastest growth rate during the forecast period.
The passenger information system is a vital communication channel connecting passengers with transit service operators, ensuring timely and accurate updates for travelers. This system prioritizes real-time information delivery, including details such as the current whereabouts of buses, estimated arrival and departure times, and available seating capacities, ensuring passengers stay informed throughout their journey. It offers passengers dynamic visual and auditory updates as an electronic interface, delivering essential information seamlessly along the route. Whether automatically generated or manually programmed, this system aims to enhance the passenger experience by providing instant access to relevant travel information, facilitating smoother and more efficient transit experiences.
Based on region, Asia Pacific is projected to register the highest CAGR during the forecast period.
Asia Pacific, home to nearly 40% of the world’s population, is witnessing diverse implementations of smart city technologies. Leading the charge are powerhouse economies like China, Japan, and South Korea, renowned for their technological prowess and significant contributions to the smart city landscape in the region. Additionally, countries such as Singapore, Australia, and India, boasting burgeoning economies, play pivotal roles in shaping the smart city market dynamics in the Asia Pacific region. The Asia Pacific region stands at the forefront of global urbanization trends, with most member nations experiencing rapid urban expansion. This demographic shift underscores the urgent need for innovative urban solutions to address burgeoning infrastructure, resource management, and sustainable development challenges. Significant players in the telecommunications sector, including ZTE, Huawei, and NEC Corporation, have already made substantial investments in telecom infrastructure, laying the groundwork for further advancements in smart city technologies.
The report profiles key players such as Cisco (US), IBM (US), Siemens (Germany), Microsoft (US), Hitachi (Japan), Schneider Electric (France), Huawei (China), Intel (US), NEC (Japan), ABB (Switzerland), Ericsson (Sweden), Oracle (US), Fujitsu (Japan), Honeywell (US), Accenture (Ireland), Vodafone (UK), AWS (US), Thales (France), Signify (Netherlands), Kapsch (Austria), Motorola (US), GE (US), Google (US), TCS (India), AT&T (US), Nokia (Finland), Samsung (South Korea), SAP (Germany), TomTom (Netherlands), AppyWay (UK), Ketos (US), Gaia (India), TaKaDu (Israel), FlamencoTech (India), XENIUS (India), Bright Cities (Brazil), Maydtech (Mexico), Zencity (Israel), Itron (US), and IXDen (Israel).
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