Global smart cities market value predicted to surge by 2030

A report has been released detailing the rapid growth of the global smart cities market, which will reach $6,965.02 billion by 2030, a CAGR of 24.2%.

The concept of smart cities is gaining popularity due to rapid urbanisation and favourable government initiatives worldwide. Therefore, with growing urbanisation, the need to manage infrastructure and assets is prompting countries across the world to invest in smart city projects.

Furthermore, the increasing investment in sustainable and green technologies has further contributed to the adoption of these technologies by smart cities around the world.

Additionally, the growing adoption of electric vehicles (EVs) has also created a demand for the development of advanced charging infrastructure in cities worldwide. Integrating EVs in smart cities may create such benefits by providing energy storage and creating new revenue streams from EV batteries. Moreover, the growing adoption of electric vehicles is expected to pave the way to green mobility with zero carbon emissions.

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The market is currently witnessing high investment in smart security, smart metering for water and utilities, smart mobility, and integrated traffic management systems.

Most technologically advanced cities use internet of things (IoT) platforms to monitor city infrastructure, manage everything from traffic flows and parking to water and air quality, and use smart data to handle longer-term decision making.

The increase in traffic congestion and greenhouse gas emissions is driving the adoption of smart mobility and efficient energy management applications.

Investing in smart cities will lead to improving regional and global competitiveness to attract new residents and improve business. It will also allow government bodies to make informed decisions with the available technologies, which can lead to economic development.

CAGR forecasts

The smart utilities segment is expected to witness a considerable CAGR of 22.9% over the forecast period, owing to the increasing investments in smart grid systems around the world.

Governments around the world are pushing for the deployment of advanced metering infrastructure (AMI), to automate the existing operations and push technological growth. With smart grid systems offering high efficiency and helping in cost-saving, there is a positive impact on the growth of smart meters.

The smart infrastructure segment is anticipated to register a CAGR of 24.3%.

The rise in rigid industry standards and regulations as well as the growing focus on efficient energy consumption are the key factors driving the segment. This technological development will offer support to the latest communication systems, intelligent building systems, health and safety of tenants, and energy consumption reduction.

The smart ticketing and travel assistance segment is expected to witness a significant CAGR of 23.4%.

The growing adoption of new technologies in the smart ticketing market such as near field communication (NFC), radio frequency identification (RFID), quick response (QR) code and local wireless ticketing enables key players to offer smart solutions across several sectors, including transportation, BFSI and healthcare.

The Asia Pacific regional market is expected to register the fastest CAGR of 27.7%. This owes to rapid economic developments, globalisation, digitalisation and the increased proliferation of smartphones.

A large number of 5G deployments and initiatives taken by major Asian mobile operators to resolve the problem of high bandwidth requirements are anticipated to drive the growth

The report, Smart Cities Market Size, Share & Trends Analysis Report by Application (Smart Utilities, Smart Governance, Smart Building, Smart Transportation), by Region, and Segment Forecasts, 2022-2030 is available online.