PUBLISHER: MarketsandMarkets | PRODUCT CODE: 1740256
PUBLISHER: MarketsandMarkets | PRODUCT CODE: 1740256
The smart cities market is estimated at USD 699.7 billion in 2025 and is projected to reach USD 1,445.6 billion by 2030 at a CAGR of 15.6%. The smart cities market is driven by the growth of urban populations, aging infrastructure, and the need for sustainability. Smart cities enhance efficiency in transportation, energy, and public services while also addressing environmental concerns. The urgency of adapting to climate change and government mandates for carbon neutrality are accelerating the deployment of intelligent infrastructure. Additionally, urban challenges such as traffic congestion, water scarcity, and waste management are prompting targeted investments, which contribute to the purposeful and sustained growth of the market.
Scope of the Report | |
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Years Considered for the Study | 2019-2030 |
Base Year | 2024 |
Forecast Period | 2025-2030 |
Units Considered | USD (Billion) |
Segments | By Focus Area, By Smart Transportation [Offering, Type], By Smart Building [Offering, Type], By Smart Utility [Offering, Type), By Smart Citizen Services (Smart Healthcare, Smart Education, Smart Public Safety, Smart Lighting, eGovernance) |
Regions covered | North America, Europe, Asia Pacific, Middle East & Africa, and Latin America |
"By smart utility solution, distribution management is expected to register a higher CAGR during the forecast period."
The integration of advanced demand response management (DRM) systems is significantly improving utility distribution within the smart cities market. These systems facilitate the effective implementation of demand response (DR) programs across the commercial, industrial, and residential sectors. The widespread adoption of smart grid technologies-which include advanced metering infrastructure, automated distribution systems, and renewable energy integration-has become a key driver of growth in the utilities sector. Furthermore, the emergence of automated DR solutions, along with cost-effective deployment models such as Software-as-a-Service (SaaS) and cloud-based platforms, presents significant growth potential. These innovations streamline utility operations, reduce costs, and enhance efficiency, all contributing to the expansion of the distribution management segment in smart city infrastructure.
"By smart building solution, security & emergency management is expected to account for the largest market share in the smart cities market during the forecast period."
In urban environments, unexpected events such as natural disasters, terrorist attacks, and criminal activities pose significant challenges to public safety. To address these threats, cities need to implement comprehensive emergency management systems that can execute swift and effective response protocols. Proper management of security infrastructure is crucial for overseeing facility operations during crises. Advanced computerized emergency management solutions provide real-time monitoring, incident logging, and smooth coordination among emergency services. These systems enable authorities to respond quickly and effectively, minimizing damage and ensuring public safety. Leading global companies like Schneider Electric and ABB are at the forefront of developing smart emergency management solutions tailored to the evolving needs of urban centers. By leveraging advanced technology and extensive industry expertise, these providers play a critical role in enhancing the security, resilience, and operational readiness of smart cities around the world.
"Asia Pacific will register the highest growth rate during the forecast period."
The Asia Pacific smart cities market is set for significant growth in the coming years, with countries such as India, China, Japan, Australia, and New Zealand expected to experience accelerated development. This growth is fueled by rapid technological advancements and major infrastructure investments throughout the region. China, in particular, is emerging as a leader in smart city adoption, driven by its growing population and strong digital transformation initiatives. Key advancements in smart technologies, including robotics, big data analytics, and IoT-based infrastructure, are transforming urban environments in the Asia Pacific region. Additionally, the region is promoting collaborative efforts focused on developing low-carbon, sustainable smart city models, which encourage cross-border innovation and knowledge exchange. This strong regional commitment to enhancing smart urban infrastructure presents lucrative opportunities for vendors seeking to enter and expand within this rapidly evolving market.
Breakdown of Primaries
The study contains insights from various industry experts, from solution vendors to Tier 1 companies. The break-up of the primaries is as follows.
Major players in the smart cities market include Cisco (US), IBM (US), Siemens (Germany), Microsoft (US), Hitachi (Japan), Schneider Electric (France), Huawei (China), NEC (Japan), ABB (Switzerland), Sutherland (US), Ericsson (Sweden), Oracle (US), Fujitsu (Japan), Honeywell (US), Accenture (Ireland), Vodafone (UK), AWS (US), Thales (France), Signify (Netherlands), Motorola (US), TCS (India), AT&T (US), Nokia (Finland), Samsung (South Korea), SAP (Germany), TomTom (Netherlands), AppyWay (UK), Ketos (US), Gaia (India), TaKaDu (Israel), Zencity (Israel), Itron (US), IXDen (Israel), Landis+Gyr (Switzeralnd), and INRIX (US). These players have adopted various growth strategies, such as partnerships, agreements, collaborations, new product launches, enhancements, and acquisitions, to expand their smart cities market footprint.
Research Coverage
The study examines the market size of smart cities across various segments. Its goal is to estimate the market size and growth potential in areas such as smart transportation, smart buildings, smart utilities, smart citizen services, and different regions. Additionally, the study provides a detailed competitive analysis of leading market players, including their company profiles, key insights regarding their products and business offerings, recent developments, and market strategies.
Key Benefits of Buying Report
The report is designed to assist both, market leaders and new entrants by providing valuable information about the global smart cities market, including revenue figures and subsegments. It aims to help stakeholders understand the competitive landscape, enabling them to better position their businesses and develop effective go-to-market strategies. Additionally, the report will offer insights into the market dynamics, including key drivers, restraints, challenges, and opportunities, helping stakeholders grasp the current trends and conditions in the market.