The key factors driving the growth of the Smart City market are increased government initiatives for smart city projects, expanding urbanization around the world, and growing acceptance of Artificial Intelligence (AI) in the transportation industry

Market Research Future (MRFR) has published on the “Global Smart City Market”.

Smart City Market Highlights

The increasing integration of Artificial Intelligence (AI) within the transportation sector stands as a significant catalyst propelling the growth of the smart city market. As urban populations expand, the demand for efficient and sustainable transportation solutions becomes paramount. AI, with its capabilities to analyze vast amounts of data, optimize processes, and enable autonomous systems, is revolutionizing urban mobility and contributing to the realization of smart city goals.

AI-driven technologies are enhancing transportation systems by enabling predictive maintenance for vehicles, optimizing traffic flow, and improving public transit operations. Intelligent traffic management systems leverage AI to analyze real-time data from various sources, enabling dynamic adjustments to traffic signals and congestion management.

Global Smart City Market is projected to grow at a CAGR of 18.30% during the forecast period: MRFR

The Smart City Market is predicted to reach USD 9.1 billion by 2032, registering a 18.30% CAGR during the forecast period, 2024–2032. In this report, Market Research Future (MRFR) includes the segmentation and dynamics of the market to offer a better glimpse of the market in the next few years.

A smart city is one in which a network of sensors (usually hundreds or thousands) collects electronic data from and about people and infrastructure in order to improve efficiency and quality of life. Residents and city employees, in turn, may be given applications that allow them to access local services, receive and report outages, accidents, and crimes, and pay taxes and fees, among other things. Energy efficiency and sustainability are prioritized in smart cities.

The success of a smart city is dependent on the collaboration of the public and private sectors, as much of the effort required to build and sustain a data-driven environment lies outside the scope of local governments. Smart surveillance cameras, for example, may demand input and technology from numerous companies.  

Segmental Analysis

The scope of the global Smart City market has been segmented based on by component and application.

Based on component, the Global Smart City Market is segmented into hardware, software, services. The software segment is expected to register a high CAGR during the forecast period.

Based on application, the Global Smart City Market is segmented into smart meter management, smart lighting management, smart energy management, smart waste management, others. Further, the smart healthcare segment is expected to grow at a significant rate of CAGR during the forecast period.

Browse In-depth Details [Table of Content, List of Figures, List of Tables] of Smart City Market Research Report

Regional Analysis

Geographically, the global Smart City market has been segmented into North America, Europe, Asia-Pacific, Middle East & Africa and South America.

North America accounted for the largest share of revenue in 2022. A combination of corporate sector investment, governmental initiatives, and the need for sustainable urban growth is driving the region's rapid adoption of smart city technologies. As a result, the North American smart city market is expanding rapidly and establishing itself as a global leader. In the US, federal, state, and local governments have initiated various funding programs and incentives to bolster smart city development. These initiatives encourage cities to embrace innovative technologies and undertake smart city projects.

Asia Pacific region is expected maintain its dominance in terms of CAGR over the forecasted period. Governments across the APAC region are actively exploring and investing in smart city initiatives to harness the power of technology and innovation for urban development and sustainability. Across the APAC region, partnerships between technology companies, telecom operators, and governmental bodies are driving the smart city ecosystem. For instance, collaborations similar to Qualcomm and Reliance Jio in the 5G domain are fostering the deployment of advanced networks that form the backbone of smart cities.

Key Players

The key players in the global Smart City market are Honeywell Corporation, Huawei Technologies, Siemens AG, CISCO Systems, Schneider Electric SE, IBM Corporation, AT&T Inc., Oracle, Microsoft, ABB, SAP SE, Hitachi Vantara, Telefonaktiebolaget LM Ericsson, Itron Inc., and TietoEVRY.