Smart Cities market predicted to top $1,100 billion by 2028

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The adoption of smart cities has witnessed a remarkable surge in recent years, driven by advancements in technology, growing urbanisation, and increasing recognition of the benefits of smart solutions. 

This market is, according to the latest research from Marketsandmarkets, 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. 

This suggests a healthy growth, but still a marked difference between the predictions from Grand View Research who also released new information on the subject recently (click here to see our coverage last week)  predicting a growth to USD 4,000 billion by 2030 from 2023, at a CAGR of almost 26% over their forecast period.  Both agree, however, that geographically, Asia leads the charge.

Marketsandmarkets researchers found that governments, businesses, and citizens are increasingly embracing the smart city concept and initiatives to address urban challenges, enhance quality of life, and promote sustainability. They suggest this surge in adoption reflects a global trend towards more connected, efficient, and resilient urban environments.

Commercial sector strong driven by energy efficiency

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 customised solutions tailored to optimise 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.

Travel information an important segment

The passenger information system is a vital communication channel connecting passengers with transit service operators, ensuring timely and accurate updates for travellers. This system prioritises 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.

Asia leads the charge

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 urbanisation 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.

Other key players

The report profiles other key players, in addition to those already mentioned above, such as Cisco, Siemens, Microsoft, Hitachi, Schneider, Intel, ABB, Ericsson, Oracle, Fujitsu, Honeywell, Accenture, Vodafone, AWS, Thales Signify, Kapsch, Motorola, GE, Google, TCS, AT&T, Nokia, Samsung, SAP, Tom Tom, and others.  


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