MENA Smart City ICT Infrastructure Market: Current Analysis and Forecast (2023-2030)

A smart city is an urban area that integrates advanced technologies and ICT solutions to improve the quality of life, enhance sustainability, and optimize the efficiency of various services such as transportation, energy management, healthcare, public safety, and more. The ICT infrastructure serves as the backbone of these smart cities, enabling the integration and efficient functioning of various smart systems and applications.

The MENA Smart City ICT Infrastructure Market is expected to grow at a strong CAGR of 24.33% during the forecast period. The MENA region has been witnessing significant growth in the deployment of smart city initiatives, supported by government initiatives and increasing urbanization. The market for Smart City ICT Infrastructure in MENA encompasses a wide range of components, including:

1. Networking Technologies: This includes communication networks such as wired and wireless infrastructure, fiber-optic networks, and 5G/6G technologies to connect various smart devices and systems.

2. Data Storage and Management: Smart cities generate massive amounts of data, and advanced data storage and management solutions are necessary to store, process, and analyze this data efficiently. This includes cloud computing, data centers, and edge computing technologies.

On the basis of product type, the market is segmented into Smart Grid, Smart Healthcare, Smart Education, Smart Transport, Smart Security, and Others. Smart grid segment led smart city ICT infrastructure market in 2022. As part of the broader smart city ICT infrastructure, smart grids facilitate the integration of renewable energy sources, electric vehicles, energy storage systems, and demand-side management techniques. They create a foundation for a sustainable, decentralized, and reliable energy ecosystem within smart cities. The growth of the smart grid segment can be attributed to various factors. Governments and city authorities worldwide are increasingly emphasizing the importance of sustainable energy and reducing carbon emissions. Smart grids play a vital role in achieving these objectives by enabling the integration of renewable energy sources and facilitating efficient energy management.

On the basis of application, the market is segmented into Communication Industry, Transportation Industry, Government, Education, and Others. Communication industry segment led smart city ICT infrastructure market in 2022. The communication industry segment encompasses telecommunications providers, network infrastructure providers, and other related service providers. With the increasing demand for advanced connectivity solutions, such as 5G networks, fiber-optic broadband, and wireless technologies, this segment has experienced significant growth. Smart cities rely heavily on robust communication networks to enable seamless data transfer, real-time monitoring, and efficient operations. These networks support various applications like smart transportation, public safety systems, energy management, waste management, and healthcare services.

For a better understanding of the market adoption of the Smart City ICT Infrastructure industry, the MENA market is analyzed based on its worldwide presence in countries such as UAE, Saudi Arabia, Egypt, Iran, and the Rest of MENA. UAE led the market in 2022. In terms of ICT infrastructure, the UAE has made significant advancements. The country boasts high-speed internet connectivity and extensive broadband coverage, which acts as a strong foundation for smart city deployment. The UAE also emphasizes the development of data centers, cloud computing, and advanced networking technologies to support the ever-increasing data demands and enable seamless connectivity between various devices and systems. Further, in the UAE, the government has been actively promoting the development of smart cities as part of their Vision 2021 and Dubai Smart City initiatives. This has led to significant investments in ICT infrastructure projects across the country, attracting both local and international companies.

Some of the major players operating in the market include: Cisco Systems, Ericsson AB, Honeywell International Inc., Huawei Technologies Co., Ltd., IBM Corporation, Microsoft Corporation, Nokia Corporation, Oracle Corporation, Schneider Electric SE, and Siemens AG.