Additionally, the increasing adoption of Electric Vehicles (EVs) has created a demand for the development of charging infrastructure in cities globally. Due to this, it provides energy storage and creates new revenue streams from EV batteries. These benefits will further boost the smart cities market's growth during the forecast period.

Everything is getting smarter

The smart cities market is witnessing a high investment in smart security, smart metering for utilities, integrated traffic management systems, and smart mobility. Several technologically innovative cities use IoT platforms to monitor their infrastructure, manage traffic flows, water management, parking, and air quality, and use the generated smart data to handle longer-term decisions for environmental sustainability. Market players are establishing strategic partnerships with technology providers to improve their smart cities portfolio. For instance, in February 2022, an electric utility company, E.ON SE, partnered with telecom company Vodafone Group plc to develop smart water, gas, and electricity meters, accelerating the smart cities market growth.

Government driven

Various country governments, such as India, Germany, Canada, Japan, and Australia, are launching smart city-based projects to improve citizens' lifestyles and create safer communities, propelling smart cities market expansion. Government-authorised associations & organisations are collaborating with market players to develop smart city solutions to assist the government in planning smart city strategies. For instance, in October 2022, the non-profit organisation, Accelerator for America partnered with Honeywell International Inc. and launched the Smart City Accelerator Program to help smart city developers define priorities, align key stakeholders, and improve service delivery & operational efficiency of smart cities projects.

Interesting predictions and percentages

• 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 visualisation 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, digitalisation, globalisation, and the rising proliferation of smartphones