Rising demand for smart mobility, energy-efficient buildings, and cyber security solutions is accelerating growth, while collaboration between tech firms, city governments, and federal initiatives is fostering continuous innovation. As cities focus on resilience, efficiency, and improved quality of life, the market is set for sustained development.

Smart transport dominates

Smart transportation segment will dominate in the US smart cities market as cities focus on efficiency, sustainability, and enhanced mobility solutions. Urban mobility is being redefined by the growth of EV infrastructure, autonomous transport, and microtransit that alleviates traffic congestion and lowers emissions. 5G, IoT, and AI technologies allow traffic flow to be optimized in real-time and augmented public transport, making it safer and more efficient. Advancements like autonomous trucks and geofenced e-scooters are continuing to hasten developments. While cities continue growing, there will be the growing demand for unified, nicely interconnected transportation networks pushing the rise of smart transport as the most influential urban development sector.

Enhancing safety and lowering costs

The residential segment in the US smart cities market is growing as more homeowners seek comfortable, efficient, and secure living spaces. Smart climate control, connected appliances, and automated lighting make daily life easier while helping to save energy. Advanced security features like smart cameras and access controls enhance safety, while smart grids and energy management systems help lower costs and reduce environmental impact. Developers are integrating these technologies into new homes, and homeowners are upgrading existing properties with automation. With urban expansion and a stronger focus on sustainability, the demand for smart, energy-efficient, and secure homes will only grow.

Energy efficiency and sustainability

The energy segment is growing the fastest in the US smart cities market as cities push for efficiency, sustainability, and modernised power infrastructure. Smart grids using AI and IoT are making energy distribution smarter by reducing outages and smoothly integrating renewables like solar and wind. Battery storage and demand-response systems help manage power usage more efficiently, easing the strain on the grid. Government incentives are fueling clean energy investments while rising electricity costs are driving cities and businesses toward smarter energy solutions. With the growing need for reliable and sustainable power, the smart energy sector is set to expand even further.

Major actors

Some of the key players in the US smart cities market and also mentioned in the report are Cisco, IBM, Intel, Oracle, Honeywell, AWS, Motorola, Google, GE, AT&T, Ketos and Itron.