Smart cities refer to the urban environments that integrate advanced digital technologies, including the Internet of Things (IoT), artificial intelligence (AI), data analytics and connectivity platforms, to enhance the quality, performance and interactivity of urban services, reduce costs and resource consumption and engage more effectively with citizens. Users of smart-city solutions span government agencies, municipal planners, service providers, infrastructure operators, businesses and residents; they employ these systems continuously as urban systems, from traffic flows to energy grids are in constant use.
The global smart cities market was valued at $461,494.32 million in 2019 which grew till 2024 at a compound annual growth rate (CAGR) of more than 11.00%.
Increasing Traffic Congestion And Mobility Challenges
Increasing traffic congestion and mobility challenges fueled the growth of the smart cities market in the historic period. Increasing traffic congestion and mobility challenges drive the growth of the smart cities market because cities are looking for technology-driven solutions to manage transportation efficiently. Smart traffic management systems, real-time data analytics, IoT-enabled sensors and intelligent public transport reduce congestion, optimize traffic flow and improve mobility for citizens. For instance, in May 2024, according to the Department of Transport, a UK-based government department, traffic on 'A' roads (primary routes) increased by 2.5% from 2022 to 2023. During the same period, car traffic on motorways in Great Britain rose by 3.3%, reaching 48.5 billion vehicle miles. Van traffic also grew by 1.6%, totaling 13.0 billion vehicle miles. Overall, traffic levels across all road types saw an increase in 2023 compared to the previous year. Additionally, according to gov.UK, the official website of the UK government, between 2021 and 2022, the amount of motor vehicle traffic on British roadways rose by 8.8%, reaching 323.8 billion vehicle miles. Therefore, increasing traffic congestion and mobility challenges fueled the growth of the smart cities market.
Smart Cities Advancing With Real-Time Location Tracking
Major companies operating in the smart cities market are focusing on developing innovative services such as location tracking to enhance urban mobility, improve public safety and enable efficient management of city resources. These solutions help optimize traffic flow, support emergency response and provide citizens with real-time information for better connectivity and convenience. For instance, in August 2023, NEC Corporation, a Japan-based information technology and electronics company, secured a contract from the Uttar Pradesh State Road Transport Corporation (UPSRTC) for the Vehicle Location Tracking-Passenger Information System (VLT-PSIS) project, funded under the Government of India's Nirbhaya initiative. Leveraging advanced technologies and real-time bus tracking through an Integrated Command and Control Centre, the project aims to enhance passenger safety and significantly improve the overall travel experience.
The global smart cities market is fragmented, with a large number of small players operating in the market. The top 10 competitors in the market made up 9.48% of the total market in 2024.
Smart Cities Global Market Opportunities And Strategies To 2034 from The Business Research Company provides the strategists; marketers and senior management with the critical information they need to assess the global smart cities market as it emerges from the COVID-19 shut down.
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Where is the largest and fastest-growing market for smart cities? How does the market relate to the overall economy; demography and other similar markets? What forces will shape the market going forward? The generative smart cities market global report from The Business Research Company answers all these questions and many more.
The report covers market characteristics; size and growth; segmentation; regional and country breakdowns; competitive landscape; market shares; trends and strategies for this market. It traces the market's history and forecasts market growth by geography. It places the market within the context of the wider smart cities market; and compares it with other markets.
The report covers the following chapters
- Introduction And Market Characteristics - Brief introduction to the segmentations covered in the market, definitions and explanations about the segment by component and by application.
- Key Trends - Highlights the major trends shaping the global market. This section also highlights likely future developments in the market.
- Growth Analysis And Strategic Analysis Framework- Analysis on PESTEL, end use industries, market growth rate, global historic (2019-2024) and forecast (2024-2029, 2034F) market values and drivers and restraints that support and control the growth of the market in the historic and forecast periods, forecast growth contributors and total addressable market (TAM).
- Global Market Size And Growth - Global historic (2019-2024) and forecast (2024-2029, 2034F) market values and drivers and restraints that support and control the growth of the market in the historic and forecast periods.
- Regional And Country Analysis - Historic (2019-2024) and forecast (2024-2029, 2034F) market values and growth and market share comparison by region and country.
- Market Segmentation - Contains the market values (2019-2024) (2024-2029, 2034F) and analysis for each segment by component and by application in the market. Historic (2019-2024) and forecast (2024-2029) and (2029-2034) market values and growth and market share comparison by region market.
- Regional Market Size And Growth - Regional market size (2024), historic (2019-2024) and forecast (2024-2029, 2034F) market values and growth and market share comparison of countries within the region. This report includes information on all the regions Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa and major countries within each region.
- Competitive Landscape - Details on the competitive landscape of the market, estimated market shares and company profiles of the leading players.
- Other Major And Innovative Companies - Details on the company profiles of other major and innovative companies in the market.
- Competitive Benchmarking- Briefs on the financials comparison between major players in the market.
- Competitive Dashboard- Briefs on competitive dashboard of major players.
- Key Mergers And Acquisitions- Information on recent mergers and acquisitions in the market covered in the report. This section gives key financial details of mergers and acquisitions, which have shaped the market in recent years.
- Recent Developments- Information on recent developments in the market covered in the report.
- Market Opportunities And Strategies- Describes market opportunities and strategies based on findings of the research, with information on growth opportunities across countries, segments and strategies to be followed in those markets.
- Conclusions And Recommendations This section includes recommendations for smart cities providers in terms of product/service offerings geographic expansion, marketing strategies and target groups.
- Appendix- This section includes details on the NAICS codes covered, abbreviations and currencies codes used in this report.
Markets Covered:
- 1) By Component: Solutions; Services
- 2) By Application: Smart Governance; Smart Building; Smart Utilities; Smart Transportation; Smart Healthcare; Other Applications
- Companies Mentioned: Cisco Systems Inc; Siemens AG; Honeywell International Inc; Microsoft Corporation; Schneider Electric SE.
- Countries: China; Australia; India; Indonesia; Japan; South Korea; USA; Canada; Brazil; France; Germany; UK; Italy; Spain; Russia
- Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
- Time-series: Five years historic and ten years forecast.
- Data: Ratios of market size and growth to related markets; GDP proportions; expenditure per capita; smart cities indicators comparison.
- Data segmentations: country and regional historic and forecast data; market share of competitors; market segments.
- Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.