The global smart cities market size was valued at USD 748.7 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 25.8% from 2023 to 2030.
The increasing urbanization, the need for efficient management of resource utilization, public safety concerns, and increasing demand for an environment with efficient energy utilization are the major driving factors for the market growth. Due to the COVID-19 pandemic, countries followed strict lockdowns and mobility constraints to avoid the spread of the virus. During the pandemic, the dependence of global economies on urban areas and the importance of public healthcare in smart city initiatives have been brought to light. However, organizations are trying to implement emerging technologies such as the Internet of Things (IoT) and Artificial Intelligence (A.I.) to overcome the challenges faced during the pandemic.
The need for sustainable structure due to the growing population and urbanization has become significant for market growth. Several regional governments are trying to handle these problems via smart city initiatives across serviceable segments, such as mobility, utility, safety, and management. The local governments have also been at the forefront of stimulating organizational and institutional changes, enabling steady investments, and creating a consortium for bringing diverse businesses together. The emergence of a new genre of public-private partnerships is also a particular development attributable to the smart city’s developments. Further, infrastructure development financing and funding models and governance systems are playing a major role in fueling the market.
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Smart Cities Market Report Highlights
• The environmental solution segment is expected to witness a considerable CAGR of 28.8% over the forecast period. Shifting various government focus towards reducing Greenhouse Gases (GHGs) and preservation and promotion of biodiversity is propelling the segment growth globally
• The smart lighting segment is anticipated to register a CAGR of 25.8% over the forecast period. The substantial demand for IoT-enabled lighting fixtures, increasing infrastructure developments, and end-user preference for energy-efficient lighting are propelling the adoption of smart lighting in residential, commercial, and industrial sectors
• The waste management segment is expected to witness a significant CAGR of 27.0% over the forecast period. Numerous waste management companies are installing sensors, data visualization platforms, and network infrastructure to generate actionable insights and make informed decisions. Adopting these smart technologies in waste management will supplement the segment's growth during the forecast period
• The intelligent transportation system segment is expected to witness a significant CAGR of 26.7% over the forecast period. The rising public and private investments in the transport sector, government initiatives to curb traffic congestion & enhance public safety, and advancements in video surveillance & analytics system is expected to accelerate the segment growth notably through 2030
• In Asia Pacific, the market is anticipated to register a significant CAGR of 29.2% during the forecast period. The regional growth can be attributed to rapid economic developments, digitalization, globalization, and the rising proliferation of smartphones
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• The global small drone market size was estimated at USD 12.03 billion in 2023 and is expected to grow at a CAGR of 14.5% from 2024 to 2030.
• The global service virtualization market size was valued at USD 786.0 Million in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 17.4% from 2024 to 2030.
Smart Cities Market Segmentation
Grand View Research has segmented the global smart cities market on the basis of on application, smart governance, smart utilities, smart transportation, smart healthcare, and region:
Smart Cities Application Outlook (Revenue, USD Billion, 2018 - 2030)
• Smart Governance
• Smart Building
• Environmental Solution
• Smart Utilities
• Smart Transportation
• Smart Healthcare
• Smart Public Safety
• Smart Security
• Smart Education
Smart Governance Outlook (Revenue, USD Billion, 2018 - 2030)
• City Surveillance
• C.C.S.
• E-governance
• Smart Lighting
• Smart Infrastructure
Smart Utilities Outlook (Revenue, USD Billion, 2018 - 2030)
• Energy Management
• Water Management
• Waste Management
• Meter Data Management
• Distribution Management System
• Substation Automation
• Other Smart Utilities Solutions
Smart Transportation Outlook (Revenue, USD Billion, 2018 - 2030)
• Intelligent Transportation System
• Parking Management
• Smart Ticketing & Travel Assistance
• Traffic Management
• Passenger Information
• Connected Logistics
• Other Smart Transportation Solutions
Smart Cities Smart Healthcare Outlook (Revenue, USD Billion, 2018 - 2030)
• Medical Devices
• Systems & Software
Smart Cities Regional Outlook (Revenue, USD Billion, 2018 - 2030)
• North America
o U.S.
o Canada
• Europe
o UK
o Germany
o France
o Italy
o Spain
o Russia
o Nordic Region
o Eastern Europe
• Asia Pacific
o China
o Japan
o India
o South Korea
o Australia
o ASEAN
• Latin America
o Brazil
o Mexico
• Middle East and Africa (MEA)
o UAE
o South Africa
o Saudi Arabia
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