PUBLISHER: The Business Research Company | PRODUCT CODE: 2040073
PUBLISHER: The Business Research Company | PRODUCT CODE: 2040073
Smart City ICT (Information and Communication Technology) infrastructure refers to the integrated digital backbone that enables cities to collect, transmit, process, and analyze data to manage urban services intelligently. It includes components such as broadband networks (fiber and 5G), IoT sensors, data platforms, cloud computing, edge devices, cybersecurity systems, and city command-and-control centers that connect and coordinate smart city applications. The primary purpose of Smart City ICT infrastructure is to enable efficient, data-driven urban management and improved quality of life for citizens.
The smart city ICT infrastructure market consists of sales by entities (organizations, sole traders and partnerships) of smart city ICT infrastructure that is used by municipal governments, public agencies, utility providers, transport authorities, healthcare systems, educational institutions and private enterprises that operate or support city services. These technologies are deployed continually, forming the backbone for operations such as traffic control, energy distribution, waste management, public safety, healthcare delivery and education access.
The global smart city ICT infrastructure market was valued at $877.8 billion in 2020 which grew till 2025 at a compound annual growth rate (CAGR) of more than 18.00%.
Rise In Deployment Of 5G Networks
The rise in deployment of 5G networks drove the growth of the smart city ICT infrastructure market during the historic period. This network capability removed a major technical bottleneck for city-scale Internet of Things deployments and allowed municipalities and utilities to shift from pilot projects to full-scale smart infrastructure rollouts. As a result, demand increased for associated ICT components such as edge computing nodes, data centers, cloud platforms and network management software. The availability of 5G also encouraged cities to invest in advanced digital services, including predictive maintenance systems, real-time urban monitoring and AI-driven analytics platforms, all of which depend on robust wireless backhaul. For instance, in December 2024, according to the State Council of the People's Republic of China, a China-based national authority, China's 5G mobile phone subscriptions reached 1.002 billion by the end of November 2024, representing 56 percent of all mobile phone subscriptions and an increase of 9.4 percentage points from 2023, with about 4.2 million 5G base stations deployed, accounting for more than 60 percent of the global total and providing 29 5G stations per 10,000 people, highlighting the country's leading position in 5G deployment worldwide. Therefore, the rise in deployment of 5G networks supported the growth of smart city ICT infrastructure industry.
Strategic Partnerships Advancing AI-Driven Urban Intelligence Platforms
Major companies in the smart city ICT infrastructures market are focusing on partnerships to deploy artificial intelligence (AI) (artificial intelligence)-driven urban intelligence platforms that support more autonomous, data-led planning and operations across city systems. These initiatives integrate AI analytics with real-time geospatial and infrastructure data to improve decision-making speed, operational efficiency and sustainability outcomes for smart city services. For instance, in October 2025, Space42, an Abu Dhabi-based AI-powered SpaceTech company, signed a Memorandum of Understanding (MoU) with Abu Dhabi's Department of Municipalities and Transport (DMT) to co-develop geospatial and AI solutions, including digital twins of Abu Dhabi that simulate road networks, transport, green spaces and energy use to identify efficiencies and enable smarter city management.
The global smart city ICT infrastructure market is highly fragmented, with large number of small players operating in the market. The top 10 competitors in the market made up 3.15% of the total market in 2024.
Smart City ICT Infrastructure Global Market Opportunities And Strategies To 2035 from The Business Research Company provides the strategists; marketers and senior management with the critical information they need to assess the global smart city ICT infrastructure market as it emerges from the COVID-19 shut down.
Where is the largest and fastest-growing market for smart city ICT infrastructure? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The smart city ICT infrastructure 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 city ICT infrastructure market; and compares it with other markets.