Global Smart City ICT Infrastructure Market Insights Forecasts to 2033

• The Global Smart City ICT Infrastructure Market Size was Valued at USD 1312.48 Billion in 2023
• The Market Size is Growing at a CAGR of 17.30% from 2023 to 2033
• The Worldwide Smart City ICT Infrastructure Market Size is Expected to Reach USD 6474.89 Billion by 2033
• Asia Pacific is Expected to Grow the fastest during the forecast period.

The Smart City ICT Infrastructure Market Size is Anticipated to Exceed USD 6474.89 Billion by 2033, Growing at a CAGR of 17.30% from 2023 to 2033.

Market Overview

A smart city is a municipality that uses ICT, or information and communication technology, to improve operational efficiency, communicate data with the public, and improve the quality of government services and citizens' welfare. The phrase 'Smart City' has been commonly used since 2009, following the great financial catastrophe. Urban practitioners characterized smart cities as new silicon valleys developed with strong integration of a network of airports, highways, and other modes of communication, a so-called intellectual metropolis with advanced ICT. Smart cities are those that were built with innovative technology and smart, intelligent solutions. Adopting smart criteria such as smart energy, smart buildings, smart transportation, smart healthcare, smart governance, smart education, and involving smart residents all contribute to smart city’s success. The rising demand for the smart city ICT infrastructure is evident all over the world are embracing the revolutionary power of technology-driven solutions. Governments and city planners acknowledge the importance of creating urban landscapes that are sustainable, linked, and focused on citizens. As a result, the market for smart city ICT infrastructure is rapidly expanding. For instance, The Government of India announced the Smart Cities Mission on June 25, 2015.

The goal of smart city ICT infrastructure market is to promote sustainable and inclusive cities that provide basic infrastructure, an acceptable standard of life for their residents, a clean and sustainable environment, and the use of 'Smart' solutions. The emphasis is on sustainable and equitable development, and the plan is to look at compact regions as a repeatable model that will serve as a beacon to other ambitious communities. The Smart Cities Mission is to set examples that can be replicated both within and outside of the Smart City, sparking the formation of similar Smart Cities in other regions and regions across the country. Adequate water supply ensures electricity supply, and sanitation including solid waste management, efficient urban mobility, public transportation, and affordable housing. Additionally, there is sustainable environment safety, and security of citizens especially women, children, and the elderly in addition to health and education are some of the basic components of a smart city.

Key player analysis of the smart city ICT infrastructure market Cisco Systems IBM, Huawei Technologies, Siemens AG, Verizon Communications, Vodafone, Accenture, Alcatel-Lucent, Ericsson, Microsoft Corp., Nokia Corp.

Report Coverage

This research report categorizes the market for the smart city ICT infrastructure 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 city ICT infrastructure market. Recent market developments and competitive strategies such as expansion, product launch, and 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 city ICT infrastructure market.

Driving Factors

Smart city programs are actively supported by governments around the world to increase sustainability, livability, and economic development. This includes investing in ICT infrastructure to support a wide range of smart city applications such as e-governance, intelligent transportation systems, and smart grids. Furthermore, positive possibilities for the smart city IT infrastructure market are emerging as a result of significant government financing and initiatives. Governments are involved in the development of smart infrastructure to achieve economic growth and sustainability. This financial backing and strategic focus contribute to the market's positive expansion prospects.

Restraining Factors

The proliferation of networked gadgets and sensors in smart city environments raises concerns about data privacy and security. These challenges include cybersecurity, data privacy, and the potential misuse of personal data. To overcome these challenges, rigorous data protection policies, adherence to legislation such as GDPR, and investments in cybersecurity solutions are required, increasing the complexity and cost of smart city programs.

Market Segmentation

The smart city ICT infrastructure market share is classified into type and application.

• The smart grid segment dominated the market with the largest revenue share over the forecast period.

Based on the type, the smart city ICT infrastructure market is categorized into smart grid, smart home and building, smart water network, smart healthcare, smart education, smart security, and smart transport. Among these, the smart grid segment dominated the market with the largest revenue share over the forecast period. Smart grids are critical for the development of smart cities because they permit more efficient use of energy resources, the integration of renewable energy sources, lower energy prices, the prevention of power outages, and increased reliability. They use cutting-edge technology to monitor and control electricity in real-time, optimizing energy generation, distribution, and consumption.

• The communications industry segment is projected to hold a significant market share through the forecast period.

Based on the application, the smart city ICT infrastructure market is categorized into communications industry, transportation industry, express industry, government, education, and others. Among these, the communications industry segment is projected to hold a significant market share through the forecast period. The communication industry includes telecommunications providers, network infrastructure providers, and other associated service providers. This market has expanded significantly in response to rising demand for advanced connectivity solutions such as 5G networks, fiber-optic internet, and wireless technologies. Smart cities rely largely on reliable communication networks to ensure rapid data transfer, real-time monitoring, and efficient operations.

Regional Segment Analysis of the Smart City ICT Infrastructure 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 city ICT infrastructure market over the predicted timeframe.

North America is projected to hold the largest share of the smart city ICT infrastructure market over the predicted timeframe. The market for smart cities in North America is growing as a result of technological discoveries and digital revolutions in a variety of industries, including telecommunications, information technology, retail, and finance. North America's information and communication technology (ICT) infrastructure is well-established, and the region's market for smart cities has grown significantly in recent years as a result of strong partnerships between local and federal governments and ICT startups and vendors. The market for smart cities will grow as municipal connectivity infrastructure expands more broadly. For instance, The United States government has pledged a $1 trillion investment in infrastructure, which includes smart city solutions.

Asia Pacific is expected to grow at the fastest CAGR growth in the smart city ICT infrastructure market during the predicted timeframe. The government's rising emphasis on digital infrastructure and digital transformation is driving growth in the Asia Pacific smart city ICT infrastructure industry. The Asia Pacific smart cities market is expected to rise due to growing urbanization, rising population, sustained economic growth, and increased globalization over the forecast period. The primary development drivers in the near future are expected to be increased government spending to improve a variety of industries, including public security, transportation, and energy. The rise of China's smart infrastructure sector is being driven by supportive government initiatives for smart cities and growing concerns about building energy use. Furthermore, the region's industries prioritize automation to improve corporate processes and save overhead expenses.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the smart city ICT infrastructure market along with a comparative evaluation primarily based on their product 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 product 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

• Cisco Systems
• IBM
• Huawei Technologies
• Siemens AG
• Verizon Communications
• Vodafone
• Accenture
• Alcatel-Lucent
• Ericsson
• HP
• Microsoft Corp.
• Nokia Corp.
• Oracle Corp.
• Schneider Electric
• Others

Key Target Audience

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

Recent Developments

• In March 2024, Delta, a global leader in power management and a provider of IoT-based smart green solutions announced that it could make Hannover Messe 2024 to showcase its latest developments in Intelligent Industry Solutions, Smart EV Charging Infrastructure, and Data Center and Telecom Infrastructure. These developments represent crucial European market trends such as factory automation, sustainable mobility and energy solutions, digital transformation, and effective data management. Delta's technologically advanced and energy-efficient offerings are well aligned with Europe's push for a brighter, more sustainable future.

• In February 2024, Huawei legally announced ten industrial digital and intelligent transformation solutions, along with a new line of flagship products, to address the needs of customers at various phases of industrial transformation. Huawei focuses on ICT services and technology, creating an open ecosystem to bring together partners and developers to create cutting-edge digital and intelligent infrastructure.

Market Segment

This study forecasts revenue at global, regional, and country levels from 2020 to 2033. Spherical Insights has segmented the smart city ICT infrastructure market based on the below-mentioned segments:

Global Smart City ICT Infrastructure Market, By Type

• Smart Grid
• Smart Home and Building
• Smart Water Network
• Smart Healthcare
• Smart Education
• Smart Security
• Smart Transport

Global Smart City ICT Infrastructure Market, By Application

• Communications Industry
• Transportation Industry
• Express Industry
• Government
• Education
• Others

Global Smart City ICT Infrastructure 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