Smart Cities Market Analysis

Smart Cities Market Analysis

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.
 

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.
 

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.