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    MEA Smart Cities Market

    ID: MRFR/SEM/20188-HCR
    128 Pages
    Aarti Dhapte
    September 2025

    Middle East & Africa Smart Cities Market Research Report Information By Solutions (Smart Citizen Services, Smart Utilities, and Smart Transportation), By Component (Software, Hardware, and Services), By Technology (IoT, AI, Cloud Computing, and Machine Learning) – MEA Market Forecast Till 2034

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    Middle East & Africa Smart Cities Market Research Report —Forecast till 2034 Infographic
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    Table of Contents

    MEA Smart Cities Market Summary

    The Global Middle East and Africa Smart Cities Market is projected to grow from 45.67 USD Billion in 2024 to 120.34 USD Billion by 2035.

    Key Market Trends & Highlights

    Middle East & Africa Smart Cities Key Trends and Highlights

    • The market is expected to witness a compound annual growth rate (CAGR) of 9.21 percent from 2025 to 2035.
    • By 2035, the market valuation is anticipated to reach 120.34 USD Billion, indicating robust growth potential.
    • In 2024, the market is valued at 45.67 USD Billion, reflecting the increasing investment in smart city initiatives.
    • Growing adoption of smart technologies due to urbanization is a major market driver.

    Market Size & Forecast

    2024 Market Size 45.67 (USD Billion)
    2035 Market Size 120.34 (USD Billion)
    CAGR (2025 - 2035) 9.21%

    Major Players

    Apple Inc (US), Microsoft Corp (US), Amazon.com Inc (US), Alphabet Inc (US), Berkshire Hathaway Inc (US), Tesla Inc (US), Meta Platforms Inc (US), Johnson & Johnson (US), Visa Inc (US), Procter & Gamble Co (US)

    MEA Smart Cities Market Trends

      • The adoption of IoT and AI technologies is driving the market growth

    AI systems leverage this data to automate procedures, forecast trends, and enhance decision-making in various industries, including healthcare, transportation, security, and utilities. Integrating IoT and AI drives innovation in urban development, with initiatives concentrating on smart infrastructure, digital governance, and citizen participation. This trend reflects an ongoing attempt to solve urbanization concerns while focusing on growing technology opportunities, influencing the landscape of smart cities across the Middle East and Africa.

    The ongoing development of smart cities in the Middle East and Africa reflects a commitment to sustainable urbanization and technological innovation, fostering enhanced quality of life and economic growth.

    United Nations Economic and Social Commission for Western Asia (ESCWA)

    MEA Smart Cities Market Drivers

    Urbanization Trends

    The rapid urbanization across the Middle East and Africa is a primary driver for the Global Middle East & Africa Smart Cities Market Industry. As cities expand, the demand for efficient infrastructure and services increases. By 2024, the market is projected to reach 45.67 USD Billion, reflecting the urgent need for smart solutions to manage urban growth. Governments are investing in smart technologies to enhance public services, reduce congestion, and improve quality of life. For instance, initiatives in cities like Dubai and Nairobi focus on integrating smart transportation systems and energy-efficient buildings, which are essential for sustainable urban development.

    Market Growth Projections

    The Global Middle East & Africa Smart Cities Market Industry is poised for substantial growth, with projections indicating a market size of 45.67 USD Billion in 2024 and an anticipated rise to 120.34 USD Billion by 2035. This growth reflects the increasing adoption of smart technologies and solutions across urban centers in the region. The compound annual growth rate of 9.21% from 2025 to 2035 underscores the potential for innovation and investment in smart city initiatives. As cities continue to evolve, the integration of advanced technologies will be crucial for enhancing urban living and addressing the challenges of rapid urbanization.

    Technological Advancements

    Technological advancements are transforming urban landscapes, driving the Global Middle East & Africa Smart Cities Market Industry forward. Innovations in IoT, AI, and big data analytics are enabling cities to optimize resource management and improve public services. For instance, smart traffic management systems are being deployed in cities like Johannesburg to reduce congestion and enhance mobility. The integration of these technologies is expected to contribute to a compound annual growth rate of 9.21% from 2025 to 2035, as cities increasingly adopt smart solutions to address urban challenges and improve citizen engagement.

    Public-Private Partnerships

    Public-private partnerships (PPPs) are emerging as a vital mechanism for advancing the Global Middle East & Africa Smart Cities Market Industry. These collaborations enable governments to leverage private sector expertise and investment in smart city projects. For instance, partnerships in cities like Cairo are facilitating the development of smart infrastructure and services, enhancing efficiency and innovation. By pooling resources and knowledge, PPPs are expected to accelerate the implementation of smart technologies, thereby contributing to the market's growth trajectory. This collaborative approach is essential for addressing the complex challenges faced by urban areas in the region.

    Government Initiatives and Policies

    Government initiatives play a crucial role in shaping the Global Middle East & Africa Smart Cities Market Industry. Various countries are implementing policies aimed at fostering innovation and sustainability in urban environments. For example, the UAE Vision 2021 emphasizes the development of smart cities, which has led to substantial investments in technology and infrastructure. These initiatives not only enhance the livability of cities but also attract foreign investments. As a result, the market is expected to grow significantly, with projections indicating a rise to 120.34 USD Billion by 2035, driven by supportive regulatory frameworks and funding opportunities.

    Sustainability and Environmental Concerns

    Sustainability is becoming a central theme in urban development, significantly influencing the Global Middle East & Africa Smart Cities Market Industry. As environmental concerns rise, cities are prioritizing green technologies and sustainable practices. Initiatives such as renewable energy projects and waste management systems are being implemented to reduce carbon footprints. For example, the city of Kigali is focusing on sustainable urban planning to enhance environmental resilience. This shift towards sustainability is likely to drive market growth, as cities seek to align with global sustainability goals and improve the quality of urban life.

    Market Segment Insights

    Smart Cities Solutions Insights

    The Middle East & Africa smart cities market segmentation, based on solutions, includes smart citizen services, smart utilities, and smart transportation. The smart utilities segment dominated the market by holding a share of 40%. Smart utilities enable better monitoring, management, and optimization of essential services like electricity, water, and waste, contributing significantly to the overall smart city ecosystem. 

    Governments can improve resource management, increase efficiency, and minimize harmful environmental effects by incorporating sophisticated technologies like the IoT and AI into utilities. This focus on smart utilities demonstrates the region's dedication to sustainable urban development and effective resource use.

    Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

    Smart Cities Component Insights

    The Middle East & Africa smart cities market segmentation, based on component, includes software, hardware, and services. The services category generated the most income. These services include consulting, system integration, managed services, and customer support. Consulting services help with strategy creation and project planning, while system integration enables the ideal integration of various technologies. Managed services provide continuing support and maintenance, assuring the continual functioning and efficiency of smart city infrastructures and encouraging the growth and success of smart city programs throughout the region.

    Smart Cities Technology Insights

    The Middle East & Africa Smart Cities market segmentation, based on technology, includes IoT, AI, cloud computing, and machine learning. The cloud computing category generated the most income. Cloud computing infrastructure enables cities to store, manage, and analyze huge amounts of data received through IoT devices and sensors. This enables real-time decision-making, increases scalability, and lowers infrastructure costs. Cloud computing solutions also facilitate the integration of AI and machine learning algorithms, enabling cities in the Middle East & Africa region to implement sophisticated analytics and predictive capabilities to optimize urban services and improve citizen experiences.

    Smart Cities Country Insights

    The Middle East and Africa smart cities market is experiencing significant growth, with GCC countries leading the region's smart city initiatives. As urban populations rise, there is a greater demand for effective resource management, infrastructure development, and long-term solutions in GCC countries. Governments throughout the Middle East & Africa region are investing in smart city programs that use IoT, AI, and cloud computing to transform urban environments. These programs seek to increase human well-being, public services, and economic progress. Additionally, partnership between the public and commercial sectors promotes innovation and collaboration in smart city initiatives.

    With continuing investments and technological developments, the Middle East & Africa Smart Cities Market is positioned for significant growth, enabling participants to address the problems and possibilities given by regional urbanization.

    Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

    Get more detailed insights about Middle East & Africa Smart Cities Market Research Report —Forecast till 2034

    Regional Insights

    Key Players and Competitive Insights

    Leading market players are investing heavily in research and development to expand their product lines, which will help the smart cities market grow even more. Market participants are also undertaking various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The smart cities industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.

    Major players in the Smart Cities market are attempting to increase market demand by investing in research and development operations, including Cisco Systems, Inc. (U.S.), Huawei Investment & Holding Co., Ltd. (China), IBM Corporation (U.S.), Siemens AG (Germany), Cognizant Technology Solutions Corporation (U.S.), Capgemini (France), Schneider Electric SE (France), Fujitsu Ltd. (Japan), Robert Bosch GmbH (Germany), Atos SE (France), LTIMindtree Limited (India), and General Electric Company (U.S.).

    Key Companies in the MEA Smart Cities Market market include

    Industry Developments

    September 2023: Rwanda aimed to modernize its infrastructure with smart-city deployments, unveiled at the Smart Cities Africa conference. The project aimed to create pan-African collaboration on smart-city initiatives and develop 100 smart cities by 2100, prompting new cybersecurity requirements, experts warned.

    October 2023: In the land of the Great Pyramids of Giza, Egypt underwent a new construction boom, transforming the historic country through a hyper-connected network of energy-efficient communities that provided quality jobs in sustainable living environments. The blueprint for change was based on dozens of new smart cities under construction.

    Future Outlook

    MEA Smart Cities Market Future Outlook

    The Middle East & Africa Smart Cities Market is projected to grow at 9.21% CAGR from 2024 to 2035, driven by urbanization, technological advancements, and sustainability initiatives.

    New opportunities lie in:

    • Invest in IoT solutions for smart infrastructure management.
    • Develop AI-driven analytics platforms for urban planning.
    • Create sustainable energy solutions tailored for smart city applications.

    By 2035, the market is poised to achieve substantial growth, reflecting its critical role in urban development.

    Market Segmentation

    MEA Smart Cities Regional Outlook

    • GCC Countries
    • Saudi Arabia
    • Iran
    • Rest of the Middle East & Africa

    MEA Smart Cities Solution Outlook

    • Smart Citizen Services
    • Smart Utilities
    • Smart Transportation

    MEA Smart Cities Component Outlook

    • Software
    • Hardware
    • Services

    MEA Smart Cities Technology Outlook

    • IoT
    • AI
    • Cloud Computing
    •  Machine Learning

    Report Scope

    Report Attribute/Metric Details
    Market Size 2024 USD 10.79 Billion
    Market Size 2025 USD 13.51 Billion
    Market Size 2034 USD 102.17 Billion
    Compound Annual Growth Rate (CAGR) 25.2% (2025-2034)
    Base Year 2024
    Market Forecast Period 2025-2034
    Historical Data 2020-2023
    Market Forecast Units Value (USD Billion)
    Report Coverage Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends
    Segments Covered Solutions, Component, Technology and Region
    Region Covered Middle East & Africa
    Countries Covered GCC Countries, Saudi Arabia, Iran, Rest of the Middle East & Africa
    Key Companies Profiled Cisco Systems, Inc. (U.S.), Huawei Investment & Holding Co., Ltd. (China), IBM Corporation (U.S.), Siemens AG (Germany), Cognizant Technology Solutions Corporation (U.S.), Capgemini (France), Schneider Electric SE (France), Fujitsu Ltd. (Japan), Robert Bosch GmbH (Germany), Atos SE (France), LTIMindtree Limited (India), and General Electric Company (U.S.)
    Key Market Opportunities Fostering innovation in urban planning, transportation
    Key Market Dynamics Adoption of IoT and AI technologies ·  Government initiatives for digital transformation

    Market Highlights

    Author
    Aarti Dhapte
    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.

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    FAQs

    How much is the smart cities market?

    The Middle East & Africa smart cities market size was valued at USD 10.79 Billion in 2024.

    What is the growth rate of the smart cities market?

    The market is projected to grow at a CAGR of 25.2% during the forecast period, 2025-2034.

    Who are the key players in the smart cities market?

    The key players in the market are Cisco Systems, Inc. (U.S.), Huawei Investment & Holding Co., Ltd. (China), IBM Corporation (U.S.), Siemens AG (Germany), Cognizant Technology Solutions Corporation (U.S.), Capgemini (France), Schneider Electric SE (France), Fujitsu Ltd. (Japan), Robert Bosch GmbH (Germany), Atos SE (France), LTIMindtree Limited (India), and General Electric Company (U.S.).

    Which technology led the smart cities market?

    The cloud computing category dominated the market in 2022.

    Which component had the largest market share in the Smart Cities market?

    The services category had the largest share of the market.

    1. 'TABLE OF CONTENTS
    2. EXECUTIVE SUMMARY
    3. MARKET INTRODUCTION
    4. Definition
      1. Scope of the Study
        1. Research Objective
    5. Assumptions
      1. Limitations
    6. RESEARCH METHODOLOGY
      1. Overview
      2. Data Mining
      3. Secondary Research
      4. Primary Research
    7. Primary Interviews and Information Gathering Process
      1. Breakdown of Primary
    8. Respondents
      1. Forecasting Model
      2. Market Size Estimation
    9. Bottom-Up Approach
      1. Top-Down Approach
      2. Data Triangulation
      3. Validation
    10. MARKET DYNAMICS
      1. Overview
      2. Drivers
      3. Restraints
      4. Opportunities
    11. MARKET FACTOR ANALYSIS
    12. Value Chain Analysis
      1. Porter’s Five Forces Analysis
        1. Bargaining
    13. Power of Suppliers
      1. Bargaining Power of Buyers
        1. Threat of
    14. New Entrants
      1. Threat of Substitutes
        1. Intensity of Rivalry
      2. COVID-19 Impact Analysis
        1. Market Impact Analysis
        2. Regional
    15. Impact
      1. Opportunity and Threat Analysis
    16. MIDDLE EAST & AFRICA
    17. SMART CITIES MARKET, BY SOLUTIONS
      1. Overview
      2. Smart Citizen Services
      3. Smart Utilities
      4. Smart Transportation
    18. MIDDLE EAST &
    19. AFRICA SMART CITIES MARKET, BY COMPONENT
      1. Overview
      2. Software
      3. Hardware
      4. Services
    20. MIDDLE EAST & AFRICA SMART CITIES
    21. MARKET, BY TECHNOLOGY
      1. Overview
      2. IoT
      3. AI
      4. Cloud
    22. Computing
      1. Machine Learning
    23. MIDDLE EAST & AFRICA SMART CITIES
    24. MARKET, BY REGION
      1. Overview
      2. Middle East & Africa
    25. GCC Countries
      1. Saudi Arabia
        1. Iran
        2. Rest of the
    26. Middle East & Africa
    27. COMPETITIVE LANDSCAPE
      1. Overview
    28. Competitive Analysis
      1. Market Share Analysis
      2. Major Growth Strategy
    29. in the Middle East & Africa Smart Cities Market,
      1. Competitive Benchmarking
      2. Leading Players in Terms of Number of Developments in the Middle East &
    30. Africa Smart Cities Market,
      1. Key Developments and Growth Strategies
        1. New Product Launch/Service Deployment
        2. Merger & Acquisitions
        3. Joint Ventures
      2. Major Players Financial Matrix
    31. Sales & Operating Income, 2022
      1. Major Players R&D Expenditure.
    32. COMPANY PROFILES
      1. Cisco Systems, Inc. (U.S.)
    33. Company Overview
      1. Financial Overview
        1. Products Offered
        2. Key Developments
        3. SWOT Analysis
        4. Key Strategies
      2. Huawei Investment & Holding Co., Ltd. (China)
        1. Company Overview
        2. Financial Overview
        3. Products Offered
        4. Key Developments
        5. SWOT Analysis
        6. Key Strategies
      3. IBM Corporation (U.S.)
        1. Company Overview
        2. Financial Overview
        3. Products
    34. Offered
      1. Key Developments
        1. SWOT Analysis
        2. Key
    35. Strategies
      1. Siemens AG (Germany)
        1. Company Overview
    36. Financial Overview
      1. Products Offered
        1. Key Developments
        2. SWOT Analysis
        3. Key Strategies
      2. Cognizant Technology
    37. Solutions Corporation (U.S.)
      1. Company Overview
        1. Financial
    38. Overview
      1. Products Offered
        1. Key Developments
    39. SWOT Analysis
      1. Key Strategies
      2. Capgemini (France)
    40. Company Overview
      1. Financial Overview
        1. Products Offered
        2. Key Developments
        3. SWOT Analysis
        4. Key Strategies
      2. Schneider Electric SE (France)
        1. Company Overview
    41. Financial Overview
      1. Products Offered
        1. Key Developments
        2. SWOT Analysis
        3. Key Strategies
      2. Fujitsu Ltd. (Japan)
        1. Company Overview
        2. Financial Overview
        3. Products
    42. Offered
      1. Key Developments
        1. SWOT Analysis
        2. Key
    43. Strategies
      1. Robert Bosch GmbH (Germany)
        1. Company Overview
        2. Financial Overview
        3. Products Offered
        4. Key Developments
        5. SWOT Analysis
        6. Key Strategies
      2. Atos SE (France)
        1. Company Overview
        2. Financial Overview
        3. Products
    44. Offered
      1. Key Developments
        1. SWOT Analysis
    45. Key Strategies
      1. LTIMindtree Limited (India)
        1. Company Overview
        2. Financial Overview
        3. Products Offered
        4. Key Developments
        5. SWOT Analysis
        6. Key Strategies
      2. General Electric
    46. Company (U.S.)
      1. Company Overview
        1. Financial Overview
        2. Products Offered
        3. Key Developments
        4. SWOT Analysis
        5. Key Strategies
    47. APPENDIX
      1. References
      2. Related
    48. Reports
    49. CITIES MARKET, SYNOPSIS, 2025-2034
    50. MARKET, ESTIMATES & FORECAST, 2025-2034 (USD BILLION)
    51. & AFRICA SMART CITIES MARKET, BY SOLUTIONS, 2025-2034 (USD BILLION)
    52. MIDDLE EAST & AFRICA SMART CITIES MARKET, BY COMPONENT, 2025-2034 (USD BILLION)
    53. (USD BILLION)
    54. (USD BILLION)
    55. (USD BILLION)
    56. (USD BILLION)
    57. (USD BILLION)
    58. (USD BILLION)
    59. (USD BILLION)
    60. BILLION)
    61. 2034 (USD BILLION)
    62. CITIES MARKET, BY COMPONENT, 2025-2034 (USD BILLION)
    63. EAST & AFRICA: SMART CITIES MARKET, BY TECHNOLOGY, 2025-2034 (USD BILLION)
    64. FOR THE MIDDLE EAST & AFRICA SMART CITIES MARKET
    65. FOR THE MIDDLE EAST & AFRICA SMART CITIES MARKET
    66. AFRICA SMART CITIES MARKET, SHARE (%), BY SOLUTIONS, 2021
    67. & AFRICA SMART CITIES MARKET, SHARE (%), BY COMPONENT, 2021
    68. EAST & AFRICA SMART CITIES MARKET, SHARE (%), BY TECHNOLOGY, 2021
    69. MIDDLE EAST & AFRICA SMART CITIES MARKET, SHARE (%), BY REGION, 2021
    70. MIDDLE EAST & AFRICA SMART CITIES MARKET: COMPANY SHARE ANALYSIS, 2021 (%)
    71. CISCO SYSTEMS, INC. (U.S.): SWOT ANALYSIS
    72. HOLDING CO., LTD. (CHINA): FINANCIAL OVERVIEW SNAPSHOT
    73. & HOLDING CO., LTD. (CHINA): SWOT ANALYSIS
    74. FINANCIAL OVERVIEW SNAPSHOT
    75. AG (GERMANY): SWOT ANALYSIS
    76. (U.S.): FINANCIAL OVERVIEW SNAPSHOT
    77. CORPORATION (U.S.): SWOT ANALYSIS
    78. SNAPSHOT
    79. ELECTRIC SE (FRANCE): FINANCIAL OVERVIEW SNAPSHOT
    80. SE (FRANCE): SWOT ANALYSIS
    81. SNAPSHOT
    82. BOSCH GMBH (GERMANY): FINANCIAL OVERVIEW SNAPSHOT
    83. (GERMANY): SWOT ANALYSIS
    84. FINANCIAL OVERVIEW SNAPSHOT
    85. GENERAL ELECTRIC COMPANY (U.S.): SWOT ANALYSIS'

    Middle East & Africa Smart Cities Market Segmentation

    Market Segmentation Overview

    • Detailed segmentation data will be available in the full report
    • Comprehensive analysis by multiple parameters
    • Regional and country-level breakdowns
    • Market size forecasts by segment
    Report Infographic
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