India Smart City Market Size was estimated at 125 (USD Million) in 2023. The India Smart City Market Industry is expected to grow from 148.12 (USD Million) in 2024 to 925 (USD Million) by 2035. The India Smart City Market CAGR (growth rate) is expected to be around 18.119% during the forecast period (2025-2035).
Urbanization and the demand for sustainable urban infrastructure are the main factors driving the notable expansion of the India smart city market. The need for effective waste management, energy management, and transportation systems has grown as a result of the fast urban population rise. The Smart Cities Mission project of the Indian government is to build cities that guarantee sustainable growth and improve people's quality of life. In order to enhance urban living circumstances,
this project promotes investment in smart technologies, such as big data and the Internet of Things. A significant push towards digital infrastructure and apps to promote citizen involvement is seen in recent developments in the India smart city market. Smart technologies that improve efficiency and transparency, such as digital platforms for governance and real-time data analytics for traffic management, are being used by more cities.
Furthermore, including green technology that supports environmental sustainability—like solar energy and waste-to-energy initiatives—is becoming more and more important. Businesses and entrepreneurs have the chance to investigate smart mobility options that complement government initiatives to cut carbon emissions, such as electric cars and integrated public transportation networks. Additionally, the demand for improved telemedicine and health infrastructure—which was particularly evident during the pandemic—is driving an increasing emphasis on smart healthcare services.
By capturing these opportunities, stakeholders can contribute significantly to building smarter and more resilient cities across India, addressing both current challenges and future needs. Overall, the India Smart City Market reflects a dynamic landscape where technology and public policy convergently shape urban development.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The Indian government has been actively promoting the Smart City Mission to enhance urban development. Initiatives aimed at boosting smart city infrastructure include funding provisions and urban planning strategies that integrate technology into city management. The mission, launched in 2015, selected 100 cities for development and has allocated a significant budget of over 20,000 crore INR (approximately 2.7 billion USD) for the implementation of projects. This funding not only catalyzes the development of local economies but also fosters public-private partnerships, encouraging organizations like Cisco and Siemens to invest in smart technologies. With urbanization in India projected to increase from 31% to 40% by 2030, according to the Ministry of Urban Affairs data, these governmental efforts are projected to significantly drive the India Smart City Market Industry growth over the coming years.
Innovation in technology plays a crucial role in the growth of the India Smart City Market Industry. The advent of IoT, AI, and big data analytics is revolutionizing how cities operate. A report by the Electronics and Computer Software Export Promotion Council (ESC) highlights that India’s IT and electronics sector is expected to surpass 500 billion USD by 2025, driven by increased digitalization. This burgeoning sector provides a robust foundation for smart city projects by offering seamless connectivity and operational efficiency. Companies such as Wipro and Infosys are proactively developing smart city solutions, there by enhancing infrastructure and creating a conducive environment for further investment.
India's urban population is rapidly increasing, creating a pressing need for sustainable urban growth solutions. As per the United Nations, India's urban population is expected to grow by 600 million by 2031, which puts immense pressure on existing urban infrastructures. This boom drives the demand for smart solutions tailored to manage resources efficiently. Leading companies like Larsen Toubro are focusing on developing infrastructure that addresses these urban challenges. The emphasis on creating smart, livable cities not only fulfills the current needs but also prepares the cities to handle future growth, thereby fueling the India Smart City Market Industry.
The Component segment of the India Smart City Market encompasses diverse elements such as Hardware, Software, and Services, playing a crucial role in the development and implementation of smart infrastructure across urban landscapes in India. With the increase in urbanization, which has seen cities striving to enhance the quality of life for their citizens, the significance of these components has escalated considerably. Hardware, including IoT devices, sensors, and smart grids, forms the backbone of smart city solutions, enabling a seamless connection between devices and facilitating real-time data collection. These physical devices support various applications, from traffic management to energy efficiency,
contributing to overall operational efficiency within smart cities. Software solutions, comprising city management systems, data analytics platforms, and user interfaces, are increasingly relied upon to process the vast amounts of data generated by hardware devices. It plays a pivotal role in decision-making and resource management, aligning with the broader goals of transparency and service delivery improvement in urban governance. Services, which may include consulting, integration, and maintenance, ensure that these solutions are effectively utilized and continually optimized to meet evolving urban challenges over time. In India, initiatives like the Smart Cities Mission launched by the government emphasize the integration of modern technologies
within urban landscapes, reinforcing the importance of this Component segment. The rapid growth of mobile connectivity and internet penetration boosts the relevance of smart solutions, elevating the demand for innovative services and robust software architectures. Moreover, the engagement of public-private partnerships aids in harnessing additional resources and expertise, driving advancements in these components. The expected market growth translates into a surge in investments aimed at developing resilient urban infrastructure, ultimately fostering sustainable economic growth and improved quality of life. With the aim of addressing challenges,
such as congestion, pollution, and lack of infrastructure, the components of hardware, software, and services are interlinked, working together to transform India’s cities into efficient and livable environments. As the demand for smart solutions continues to rise, opportunities abound for businesses that focus on these segments, ensuring their strategies align with the fundamental principles of smart city development, enhancing the overall efficacy and user experience within urban areas. The component segment is vital in driving the overarching goals of the India Smart City Market, enabling a collaborative framework where technology leads the charge toward smarter urban environments.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The Sales Channel segment of the India Smart City Market is integral to understanding how products and services are delivered in this rapidly evolving landscape. This market is propelled by increasing urbanization and government initiatives aimed at sustainable urban development. Within the Sales Channel structure, Original Equipment Manufacturers (OEM) play a critical role by producing advanced technologies and infrastructure solutions tailored for smart city initiatives. Their innovations significantly contribute to enhancing urban efficiency, connectivity, and sustainability. On the other hand, the Aftermarket segment is equally pivotal, focusing on maintenance,
upgrades, and enhancements of existing smart city systems. This segment underscores the importance of long-term serviceability and adaptability, which are crucial for the evolving needs of urban environments. As both segments cater to different facets of the India Smart City Market, they provide essential support in shaping the overall industry landscape and fostering growth and innovation. With the surge in investments and commitments from both the public and private sectors, the market experiences ongoing expansion opportunities, enabling improved infrastructure and services in urban areas across India.
The India Smart City Market encompasses a diverse range of applications aimed at improving urban infrastructure and enhancing the quality of life for its citizens. Utility applications play a crucial role in integrating and managing resources effectively, allowing for better supply chain administration and efficiency in energy distribution. The transport sector is vital as it addresses traffic congestion and promotes sustainable transportation methods through the incorporation of smart traffic management systems.
Government applications highlight transparency and efficiency in public service delivery, improving citizen engagement and participation. Significant emphasis is placed on residential smart technologies, driving energy efficiency and convenience within homes. Smart education initiatives focus on enhancing the learning experience through technology, ensuring students are equipped with the necessary skills in a rapidly evolving job market. Additionally, smart healthcare applications aim to streamline medical services,
enhance patient care, and enable better management of health data. Other applications contribute to various aspects of urban life, making use of technologies that promote safety, security, and environmental sustainability. These developments are underpinned by governmental support and initiatives aimed at transforming Indian cities into smart urban spaces, reflecting a commitment to drive growth and innovation in the sector.
The India Smart City Market has garnered significant attention in recent years due to the government’s initiatives aimed at urban development and sustainability. With rapid urbanization and the need for improved infrastructure, cities across India are increasingly adopting smart solutions. This market encompasses various stakeholders ranging from technology providers and infrastructure developers to urban planners and government bodies. Competitive dynamics are shaped by both large corporations and innovative startups that aim to leverage technology to create efficient and sustainable urban environments. Understanding the competitive landscape is crucial for stakeholders looking to make informed decisions and for businesses seeking opportunities in this burgeoning sector.
In the context of the India Smart City Market, Schneider Electric has established a robust presence, positioning itself as a leading provider of energy management and automation solutions. The company’s advanced technologies offer integrated solutions that enhance sustainability and efficiency in urban operations. Schneider Electric's strengths lie in its comprehensive portfolio that includes smart grid technology, building management systems, and renewable energy solutions. The company's commitment to innovation ensures that it remains at the forefront of developments in the smart city landscape, allowing urban planners and city operators to optimize resource use and improve the quality of life for residents.
Its collaborations with governmental and private entities further solidify its influence in shaping smart city initiatives across India. Larsen and Toubro has emerged as a formidable player in the India Smart City Market by leveraging its engineering expertise and project management capabilities. The company offers a wide range of services, including infrastructure development, smart logistics, and integrated urban solutions, significantly contributing to urban revitalization projects.
Larsen and Toubro’s strengths lie in its strong execution capability and deep understanding of local regulations, which facilitates effective project delivery. The firm has been involved in key projects that underscore its commitment to smart city development, including smart transport solutions and intelligent water management systems. Moreover, the company has pursued strategic partnerships and joint ventures that enable it to expand its service offerings and enhance its competitive position. With a reputation built on reliability and innovation, Larsen and Toubro play a crucial role in advancing India's smart urban infrastructure, making it a key player in shaping the future of Indian cities.
The India Smart City Market has been witnessing significant developments recently, with various companies making strides in digital transformation and infrastructure enhancement. Schneider Electric and Larsen and Toubro have been pivotal in advancing smart city projects by providing innovative energy management solutions and smart infrastructure. In August 2023, NTT Data partnered with Smart City Mission to enhance IT infrastructure across several cities. Reliance Industries has been investing heavily in digital networks, aligning with government initiatives for smart urban development. Furthermore, in September 2023, Honeywell announced new solutions tailored for urban sustainability in collaboration with local authorities.
Notably, Infosys and Wipro have seen growth in market valuation, with their smart city solutions contributing to increased operational efficiency for urban management. Adani Group is also expanding its footprint in the urban development space, leveraging its logistics and energy expertise. Cisco Systems recently joined hands with the government to deploy advanced networking technologies, and Bharti Airtel has rolled out its smart city communication solutions. With the Indian government focusing on 100 smart cities under its flagship mission, the collective efforts of these companies are shaping the future landscape of urban living in India.
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2023 | 125.0 (USD Million) |
| MARKET SIZE 2024 | 148.12 (USD Million) |
| MARKET SIZE 2035 | 925.0 (USD Million) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 18.119% (2025 - 2035) |
| REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR | 2024 |
| MARKET FORECAST PERIOD | 2025 - 2035 |
| HISTORICAL DATA | 2019 - 2024 |
| MARKET FORECAST UNITS | USD Million |
| KEY COMPANIES PROFILED | Schneider Electric, Larsen and Toubro, NTT Data, Reliance Industries, Honeywell, Hewlett Packard Enterprise, Infosys, Wipro, Adani Group, Mahindra Group, Tata Consultancy Services, Cisco Systems, Bharti Airtel, Siemens |
| SEGMENTS COVERED | Component, Sales Channel, Application |
| KEY MARKET OPPORTUNITIES | Integrated transportation solutions, Smart energy management systems, IoT-based infrastructure monitoring, Sustainable waste management technologies, Advanced public safety systems |
| KEY MARKET DYNAMICS | Government initiatives and funding, Rapid urbanization and population growth, Technological advancements in infrastructure, Sustainability and environmental concerns, Investment in smart solutions |
| COUNTRIES COVERED | India |
Frequently Asked Questions (FAQ) :
The India Smart City Market is projected to reach a value of 148.12 USD Million in 2024.
By 2035, the India Smart City Market is expected to be valued at 925.0 USD Million.
The market is anticipated to grow at a CAGR of 18.119 percent from 2025 to 2035.
Major players include Schneider Electric, Larsen and Toubro, NTT Data, and Reliance Industries among others.
The hardware segment of the India Smart City Market is valued at 45.12 USD Million in 2024.
The software segment is projected to reach a market value of 315.0 USD Million by 2035.
The service component is valued at 48.0 USD Million in the year 2024.
Key growth drivers include urbanization, technological advancements, and government initiatives.
Challenges include funding constraints, infrastructure issues, and regulatory hurdles.
The hardware segment's market value is forecasted to reach 280.0 USD Million by 2035.
Leading companies partner with us for data-driven Insights.
Kindly complete the form below to receive a free sample of this Report
Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
Get in Touch
© 2025 Market Research Future ® (Part of WantStats Reasearch And Media Pvt. Ltd.)
