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Smart Cities Market - By Technology (Internet of Things, Big Data Analytics, Cloud Computing, Artificial Intelligence), By Smart Mobility, By Smart Healthcare, By Smart Building, By Smart Utilities, By Smart Governance & Forecast 2024 – 2032

  • Report ID: GMI8595
  • Published Date: Mar 2024
  • Report Format: PDF

Smart Cities Market Size

Smart Cities Market was valued at over USD 550 billion in 2023 and is estimated to register a CAGR of over 16% between 2023 & 2032. The increasing global population and urbanizing world have resulted in the explosion of smart cities globally.

Smart Cities Market

Urbanization in cities exposes inhabitants to infrastructure, resource management and service delivery challenges. As a result, technology-driven solutions for cities are successful tools that direct change towards the right path by improving efficiency, sustainability and quality of life in urban areas. For example, intelligent garbage disposal systems, e-governance systems, environment friendly structures as well as intelligent transportation networks. Resource Usage Optimization by urban areas Using Data Analytics, IoT devices & connectivity infrastructure reduces environmental impacts and improves urban mobility.

Smart cities employ renewable energy and energy-efficient infrastructure to enhance sustainability. Top priorities on urban agendas across the world include cutting carbon emissions, conserving resources, and encouraging green practices. Smart cities have smart grids as well as advanced transportations systems that allow them to manage energy and traffic better. For instance, in November 2023, Mendoza, a city in Argentina is the latest city to implement the Urban

Mobility Scorecard tool by Global New Mobility Collation (GNMC). This tool identifies gaps in mobility initiatives by cities and analyzes progress in key areas such as safety, emission reduction, and innovations. By doing this, it helps to identify mobility gaps by cities while assessing their respective progress in crucial areas including safety, emission reductions and innovations. Furthermore, it is important also for smart cities to take up clean air initiatives; reduce heat island effect through promotion of sustainable ways such as eco-construction projects or urban green spaces which will strengthen urban resilience.

Concerns related to cybersecurity risks associated with the interconnectivity of IoT devices, sensors & digital infrastructure in smart cities can hinder market growth. A lot of information can be lost if these networks get hacked, and criminals might try to take advantage of the sensitive data shared in smart cities to get access to networks or data. Such attacks can create a huge breakdown in various industries, thereby hindering market growth.

Smart Cities Market Trends

The smart cities industry is changing with the adoption of cloud computing, big data analytics, Artificial Intelligence (AI), and the Internet of Things (IoT). This integration is altering urban infrastructure and service delivery. They trigger intelligent solutions that optimize resource use, enhance productivity, and improve the quality of life in cities. Real-time monitoring and management of key infrastructures, particularly transport systems utilities & public amenities through IoT sensors and connected devices, is also possible.

Governments worldwide are promoting smart city initiatives with an aim of modernizing urban infrastructure, improving public services, and enhancing citizens’ quality of life. Governments and businesses through Public-private partnerships combine resources, expertise, and innovative potential of both parties to ensure the sustainability of developing smart cities, also sharing risks and responsibilities for improved project delivery. Private sector partners get benefits of expertise in operations, investment funds & technical skills, whereas governments offer public infrastructure and regulatory frameworks. For instance, in January 2024, a smart waste management system was launched in Sao Paulo, Brazil through a Public-Private Partnership. It enables waste bins with sensors to collect real-time data and optimize collection routes to improve efficiency as well as minimize environmental impacts.

Smart Cities Market Analysis

Smart Cities Market Size, By Smart Governance, 2022-2032, (USD Billion)

Based on smart governance, the market is segmented into city surveillance, smart infrastructure, e-governance, and smart lighting. The smart infrastructure segment held the largest market share of over 35% in 2023. Some of the smart infrastructures comprise energy networks, water systems, waste management solutions, smart buildings and intelligent transport systems. Those parts are based on advanced technologies such as internet of things (IoT) sensors, data analytics and connectivity solutions that ensure efficient utilization of resources in addition to making operations more effective & increasing urban sustainability in general. Furthermore, it leads to other smart city solutions being formulated for different sectors because congestion, pollution and scarcity of resources are also addressed.

Smart Cities Market Share, By Technology, 2023 

Based on technology, the market is segmented into the Internet of Things (IoT), big data analytics, cloud computing, and Artificial Intelligence (AI). The IoT segment is anticipated to register a CAGR of over 15% from 2024 to 2032. Due to its pivotal role in enabling connectivity, data collection and automation across various urban infrastructures & services, the Internet of Things (IoT) is experiencing a significant growth. Real-time traffic patterns, air quality, energy consumption, and waste management are a few examples that sensors, actuators, and smart meters installed in cities collect. This data is then analyzed to allocate resources better, increase efficiency levels, and improve urban services in these locations. IoT also makes it possible to create intelligent energy grid systems among others such as smart transport systems, connected streetlighting, and even smart buildings leading to the general advancement of smart cities.

U.S. Smart Cities Market Size, 2022 -2032, (USD Billion)

North America held a significant share of over 30% in the global smart cities market in 2023. Urbanization, technological advances and government efforts to improve urban infrastructure and services have led to a thriving smart cities industry in North America. To reduce traffic congestion, increase energy efficiency, enhance public safety, manage waste, and optimize resources, smart technologies are being heavily invested in by North American cities. Another factor contributing to the rise in this market is the use of smart sensors and communication networks which enable monitoring in real time as well as decision making for various organizations involved in this field.

Smart Cities Market Share

ABB and Honeywell International Inc. held a significant share of over 21% the smart cities industry in 2023. ABB is a global leader in technology. By combining engineering skills with software tools, the company provides solutions that can optimize various operational aspects such as manufacturing activities.

Honeywell International Inc. is an important participant in the smart cities industry, which is characterized by high levels of urbanization. Honeywell offers integrated services and technologies across multiple areas of city infrastructure & citizen welfare. This includes building automation systems, energy management solutions, and fire safety & security systems for business buildings, homes, and industrial facilities to achieve increased efficiency, lower operating costs & enhanced comfort for their occupants.

Smart Cities Market Companies

Major players operating in the market are:

  • ABB
  • Honeywell International Inc.
  • IBM
  • Cisco Systems, Inc.
  • Ericsson
  • General Electric
  • AGT International

Smart Cities Industry News

  • In January 2024, Singapore launched a green financing platform to back smart city projects with sustainability. The platform aims to bring together investors and sustainable smart city projects to facilitate investment toward renewable energy, green buildings, and waste management.
  • In November 2023, the Alliance’s regional network improved Mexico City’s open data policy so that NGOs and private sector entrepreneurs can use datasets for innovation purposes such as reducing crime. This initiative caused a decrease of high impact crimes in Mexico City by 60%.

The smart cities market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments:

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Market, By Technology

  • Internet of Things (IoT)
  • Big data analytics
  • Cloud computing
  • Artificial Intelligence (AI)

Market, By Smart Mobility

  • Urban mobility solutions
  • Traffic surveillance & management
  • Parking management
  • Connected logistics
  • Others

Market, By Smart Healthcare

  • Telemedicine
  • Remote healthcare
  • Smart hospitals
  • Others

Market, By Smart Building

  • Building Energy Management Systems (BEMS)
  • Smart homes
  • Smart grid
  • Safety & security management
  • Others

Market, By Smart Utilities

  • Energy & water management
  • Waste management
  • Meter data management
  • Distribution management system
  • Others

Market, By Smart Governance

  • City surveillance
  • E-governance
  • Smart lighting
  • Smart infrastructure

The above information is provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Spain
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • ANZ
    • Rest of Asia Pacific 
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • MEA
    • UAE
    • Saudi Arabia
    • South Africa
    • Rest of MEA


Authors: Suraj Gujar , Sandeep Ugale

Frequently Asked Questions (FAQ) :

The market size for smart cities was valued at over USD 550 billion in 2023 and is estimated to register a CAGR of over 16% between 2024 & 2032, driven by the increasing global population and rapid urbanization.

Smart infrastructure segment held the largest share of over 35% in smart cities industry in 2023 and is set to generate revenue through 2032, as they ensure efficient utilization of resources in addition to making operations more effective & increasing urban sustainability in general.

North America industry held a significant revenue share of over 30% in 2023 and is set to record a strong CAGR through 2032, driven by urbanization, technological advances, and government efforts to improve urban infrastructure & services.

ABB, Honeywell International Inc., IBM, Cisco Systems, Inc., Ericsson, General Electric, AGT International are some of the major industry contenders.

Smart Cities Market Scope

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Premium Report Details

  • Base Year: 2023
  • Companies covered: 16
  • Tables & Figures: 362
  • Countries covered: 22
  • Pages: 230
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