Global Smart Cities Market Size, Share, and COVID-19 Impact Analysis, By Application (Smart Governance, Smart Building, Environmental Solution, and Smart Utilities), By Smart Governance (City Surveillance, C.C.S., E-governance, Smart Lighting, and Smart Infrastructure), By Smart Utilities (Energy Management, Water Management, Waste Management, and Meter Data Management), By Smart Transportation (Intelligent Transportation System, Parking Management, Smart Ticketing & Travel Assistance, and Traffic Management), and By Region (North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa), Analysis and Forecast 2023 - 2033.

Global Smart Cities Market Insights Forecasts to 2033

• The Global Smart Cities Market Size Was Estimated at USD 738.75 Billion in 2023
• The Market Size is Expected to Grow at a CAGR of around 26.03% from 2023 to 2033
• The Worldwide Smart Cities Market Size is Expected to Reach USD 7467.87 Billion By 2033
• Asia Pacific is expected to grow the fastest during the forecast period.

The Global Smart Cities Market Size was worth around USD 738.75 Billion in 2023 and is predicted to Grow to around USD 7467.87 Billion By 2033 with a compound annual Growth rate (CAGR) of 26.03% between 2023 and 2033. The main reasons propelling the market's expansion are growing urbanization, the need for effective resource management, public safety concerns, and the growing desire for an environment with efficient energy use.

Market Overview

The global industry dedicated to creating and deploying smart city technology is known as the global smart cities market. This market consists of products and services that use digital technologies like cloud computing, artificial intelligence (AI), big data, and the internet of things (IoT) to optimize municipal operations, improve sustainability, and improve urban infrastructure. Urbanization and population growth have made sustainable structures essential for market expansion. By implementing smart city efforts in various categories like mobility, utilities, safety, and management, several regional governments are attempting to address these issues. Additionally, the local governments have been leading the charge to promote institutional and organizational reforms, facilitate consistent investments, and establish a consortium to unite disparate companies. Furthermore, Government funding programs and initiatives have a big impact on the worldwide smart cities market.  For example, with an expenditure of USD 17.2 billion, India's Smart Cities Mission, which was started in 2015, has completed 91% of its projects.  This program blends area-based development and pan-city projects to improve urban infrastructure, governance, and sustainability.

Report Coverage

This research report categorizes the smart cities market based on various segments and regions forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the smart cities market. Recent market developments and competitive strategies such as expansion, type launch, development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the smart cities market.  

Driving Factors

The main factors propelling the growth of the smart cities market are the increasing urbanization and population of cities. Cities face challenging conditions such as traffic congestion, pollution, aid control, and infrastructure difficulties when more people move into metropolitan regions. Smart city technologies are crucial for managing expanding urban populations because they offer solutions to these issues by enhancing public offerings, enhancing strength performance, and optimizing visitor flow. Governments around the world are spending more money on smart city initiatives in an attempt to encourage sustainable urban growth and raise the standard of living for citizens.

Restraining Factors

The high initial cost of implementing smart technology and infrastructure is a significant barrier to the smart town's economy.  Large amounts of money are needed to integrate IoT devices, sensors, and communication networks, which might be prohibitive for towns with tight budgets.  Managing several stakeholders and ensuring interoperability across distinct systems can also be difficult.

Market Segmentation

The smart cities market share is classified into application, smart governance, smart utilities, and smart transportation.

• The smart utilities segment accounted for the highest share in 2023 and is projected to grow at a substantial CAGR during the forecast period.

Based on the application, the smart cities market is divided into smart governance, smart building, environmental solution, and smart utilities. Among these, the smart utilities segment accounted for the highest share in 2023 and is projected to grow at a substantial CAGR during the forecast period. The smart utility segment, which encompasses a number of areas like energy distribution, water treatment, integrated data management, and civil distribution infrastructure management, is a crucial component of the city's infrastructure. Another important element propelling the use of smart utilities is the introduction of smart grids. The combination of cloud computing and sophisticated data analytics is also anticipated to propel market expansion.

• The smart infrastructure segment accounted for the majority share in 2023 and is anticipated to grow at a remarkable CAGR during the forecast period.

Based on the smart governance, the smart cities market is divided into city surveillance, C.C.S., E-governance, smart lighting, and smart infrastructure. Among these, the smart infrastructure segment accounted for the majority share in 2023 and is anticipated to grow at a remarkable CAGR during the forecast period. The need for smart infrastructure solutions is expected to increase across a number of industries, including BFSI, healthcare, retail, manufacturing, and food and beverage, as a result of different governments increased emphasis on digitizing their corporate operations. For economic digitization, most governments including those in the United States, Canada, the United Arab Emirates, Australia, India, and the United Kingdom are investing in smart infrastructure solutions.

• The energy management segment dominated the market in 2023 and is anticipated to grow at a significant CAGR during the forecast period.

Based on the smart utilities, the smart cities market is divided into energy management, water management, waste management, and meter data management. Among these, the energy management segment dominated the market in 2023 and is anticipated to grow at a significant CAGR during the forecast period. The growth can be attributed increasing need for energy has led to the use of virtual power plants, which use AI, machine learning, and the Internet of Things to provide efficiency and security.  Leading industry participants are concentrating on building a robust R&D infrastructure to propel the creation and supervision of cutting-edge energy management systems and develop analytics solutions to incorporate cutting-edge technologies like blockchain.

• The intelligent transportation system segment led the highest share in 2023 and is expected to grow at a notable CAGR during forecast period.

Based on the smart transportation, the smart cities market is divided into intelligent transportation system, parking management, smart ticketing & travel assistance, and traffic management. Among these, the intelligent transportation system segment dominated the market in 2023 and is anticipated to grow at a significant CAGR during the forecast period. Using innovative traffic management systems is crucial because of the growing number of vehicles on the road and the need to lessen traffic congestion.  These systems ensure effective traffic management by cutting down on travel time, minimize delays and air pollution, and allow law enforcement and public safety organizations to react quickly and effectively to crises and accidents.

Regional Segment Analysis of the Global Smart Cities Market

• North America (U.S., Canada, Mexico) 
• Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America) 
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

North America is anticipated to hold the largest share of the smart cities market over the predicted timeframe.

North America is anticipated to hold the largest share of the smart cities market over the predicted timeframe.  Growth in the regional market can be attributed to the ongoing digital transformation of a number of business verticals, including banking, telecom, and government.  The area is home to top technology vendors, a well-established information and communication technology (I.C.T.) infrastructure, and partnerships between municipal and federal governments and I.C.T. companies.  The municipal connectivity infrastructure has been extensively implemented by these service providers and other local authorities, which will result in the planning of the region's smart city development.

Asia Pacific is expected to grow at a rapid CAGR in the fondant market during the forecast period. The market for smart cities in the Asia-Pacific region is vibrant and changing quickly, with a variety of efforts in China, Japan, India, Australia, and South Korea. The growth of smart cities in the region is fueled by strong technology capabilities, growing government efforts, and fast urbanization.  This region's nations are aggressively putting several smart city solutions into practice, ranging from energy and transportation management to environmental monitoring and public safety.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the smart cities market along with a comparative evaluation primarily based on their type of offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes type development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• SAP SE
• Schneider Electric SE
• Siemens AG
• Telensa
• Honeywell International Inc.
• International Business Machines Corporation
• Itron Inc.
• KAPSCH Group
• Huawei Technologies Co., Ltd.
• Microsoft Corporation
• AVEVA Group plc.
• Other.

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Development

• In December 2023, A Memorandum of Understanding (MoU) was signed by Microsoft Corporation, a software products developer, and Msheireb Properties (MP), a property developer based in Qatar, to create a "Smart Experience" project for tourists, shoppers, residents, and business clients in MP's Msheireb Downtown Doha (MDD) development. By implementing innovative ideas to enhance the lives of MDD members, the Smart Experience initiative is transforming how people engage with the urban environment.

Market Segment

This study forecasts revenue at global, regional, and country levels from 2023 to 2033. Spherical Insights has segmented the smart cities market based on the below-mentioned segments: 

Global Smart Cities Market, By Application

• Smart Governance
• Smart Building
• Environmental Solution
• Smart Utilities

Global Smart Cities Market, By Smart Governance

• City Surveillance
• C.C.S.
• E-governance
• Smart Lighting
• Smart Infrastructure

Global Smart Cities Market, By Smart Utilities

• Energy Management
• Water Management
• Waste Management
• Meter Data Management

Global Smart Cities Market, By Smart Transportation

• Intelligent Transportation System
• Parking Management
• Smart Ticketing & Travel Assistance
• Traffic Management

Global Smart Cities Market, By Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa