Middle East & Africa Smart Cities Market Size was valued at USD 5.5 Billion in 2022. The smart cities market industry is projected to grow from USD 6.89 Billion in 2023 to USD 41.57 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 25.20% during the forecast period (2024 - 2032). Investments in infrastructure, including transportation, energy, and utilities, are some of the major market drivers driving the smart cities market in the Middle East & Africa. Governments and investors fund modern infrastructure, integrating advanced technologies for smart city development in the Middle East & Africa region.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The Middle East & African smart cities market CAGR is expanding due to the adoption of Internet of Things (IoT) and Artificial Intelligence (AI) technologies. As cities grow fast, governments and municipalities invest more in modern technology to improve efficiency, sustainability, and quality of life. The IoT enables the interaction of numerous devices and sensors, allowing for data collection and analysis to improve resource management, transportation systems, consumption of energy, and public service delivery.
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.
Furthermore, the growth of the smart cities market is influenced by rapid urbanization in the Middle East & Africa. As individuals concentrate in cities at an unprecedented pace, there is a critical demand for innovative approaches to meet the associated difficulties of infrastructure, resource management, and sustainability.
Smart cities take an integrated approach to urban development, including new technology such as the Internet of Things (IoT), Artificial Intelligence (AI), and data analytics in all government operations and services areas. Municipalities can improve public safety, public transit, resource allocation, and the delivery of effective public services due to this integration. Governments and municipalities around the Middle East & Africa region are boosting their investments in smart city programs to transform urban landscapes, enhance quality of life, and promote economic growth. Thus, driving the Middle East & Africa smart cities market revenue.
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
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.
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.
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
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.).
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.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 5.5 Billion |
| Market Size 2023 | USD 6.89 Billion |
| Market Size 2032 | USD 41.57 Billion |
| Compound Annual Growth Rate (CAGR) | 25.20% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2018-2022 |
| 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 |
Frequently Asked Questions (FAQ) :
The Middle East & Africa smart cities market size was valued at USD 5.5 Billion in 2022.
The market is projected to grow at a CAGR of 25.20% during the forecast period, 2024-2032.
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.).
The cloud computing category dominated the market in 2022.
The services category had the largest share of the market.
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
© 2024 Market Research Future ® (Part of WantStats Reasearch And Media Pvt. Ltd.)
