Market Summary
Global Smart City Market Overview
Global Smart City Market Size was valued at USD 2.00 billion in 2023. The Smart City Market industry is projected to grow from USD 2.37 billion in 2024 to USD 9.1 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 18.30% during the forecast period (2024 - 2032). Increasing government initiatives for Smart City Market projects, rapid urbanization around the globe are the primary reasons driving the growth of the Smart City Market.
Government initiatives play a pivotal role in driving the growth of the Smart City Market. As urbanization accelerates and cities face unprecedented challenges, the concept of smart cities has gained prominence as a solution to enhance the quality of life, efficiency, and sustainability of urban areas. Increasingly, governments around the world are launching ambitious initiatives to transform their cities into technologically advanced ecosystems. These initiatives serve as a catalyst for the expansion of the Smart City Market.
Smart City Market initiatives typically involve the deployment of Internet of Things (IoT) devices, sensors, data analytics, and artificial intelligence to gather and process data in real time. This data-driven approach enables better decision-making, efficient resource allocation, and improved urban planning. For instance, smart transportation systems can optimize traffic flow, reduce travel time, and decrease emissions. Smart energy grids enhance energy distribution and consumption patterns, promoting sustainability. Healthcare services become more accessible and effective through telemedicine and digital health platforms.
GLOBAL Smart City Market SIZE (USD BILLION) (2018-2032)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Smart City Market Trends
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Development of IoT Technologies & Devices to Foster Growth of Smart City Market Concepts
The development of IoT (Internet of Things) technologies and devices stands as a compelling opportunity to catalyze the growth of Smart City Market concepts within the Smart City Market. As urban areas grapple with the complexities of rapid urbanization, resource constraints, environmental sustainability, and the overall well-being of citizens, IoT emerges as a transformative force that can empower cities to evolve into connected, efficient, and responsive urban ecosystems.
IoT involves interconnecting everyday devices and objects via the internet, enabling them to gather and share data. In the context of smart cities, IoT's potential is vast, offering multifaceted opportunities. Infrastructure optimization becomes achievable through real-time monitoring and predictive maintenance of vital structures, minimizing downtime and enhancing operational efficiency. Resource management and sustainability are bolstered as IoT devices facilitate the real-time monitoring of resource consumption and environmental conditions, aiding in optimal allocation and waste reduction. Ultimately, the development of IoT technologies and devices in the context of smart cities opens avenues for enhanced efficiency, sustainability, citizen engagement, and economic prosperity, paving the way for urban landscapes that are interconnected, technologically advanced, and people-centric
Smart City Market Segment Insights:
Smart City Component Insights
The Smart City Market segmentation, based on component, includes hardware, software, services. Among them, hardware segment is the held a largest market share of 43.2% in 2022.
The hardware segment forms the tangible foundation of Smart City Market implementations. It encompasses a diverse range of physical components, from sensors and devices to communication infrastructure and advanced equipment. These elements play a pivotal role in capturing real-time data from the urban environment, enabling the seamless flow of information required for informed decision-making.
Global Smart City Market SIZE (USD BILLION) component 2022 VS 2032
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Smart City Application Insights
According to sales channel, the segment is divided into OEM, and aftermarket. Further, Utility segmented held a largest market share of 27.2% among overall market in 2022. Utility segment further includes smart meter management, smart lighting management, smart energy management, smart waste management, others.
Smart Energy Management optimizes the distribution and consumption of energy resources within cities. It integrates renewable energy sources, energy storage systems, and sophisticated demand-response mechanisms. These technologies enable efficient energy utilization, load balancing, and grid stability, leading to reduced carbon footprints and increased resilience against power outages.
Smart Lighting Management transforms urban lighting infrastructure into intelligent networks. By utilizing motion sensors, ambient light sensors, and connected systems, cities can dynamically adjust lighting levels based on environmental conditions and human presence.
Global Smart City Market Size (USD BILLION) application 2022 VS 2032
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Smart City Market Regional Insights
By Region, the study segments the market into North America, Europe, Asia-Pacific, Middle East & Africa, and South and Central America.
North America accounted for the largest share of revenue in 2022. North America, consisting of the US, Canada, and Mexico, stands at the forefront of technological innovation and urban development. The region's rapid adoption of Smart City Market solutions is driven by a combination of private sector investment and rapid development. Smart City Market technologies are poised to revolutionize various sectors, with a particular focus on enhancing efficiency, sustainability, and citizen well-being. The integration of broadband-enabled infrastructure and advanced information technology is a cornerstone of this transformation. The emergence of advanced wireless standards, such as 5G and Wi-Fi 6E, propels Smart City Market growth in North America.
Asia Pacific is expected to dominate the market in terms of CAGR in upcoming period. The Smart City Market in the Asia-Pacific region is witnessing significant growth and development, with key countries such as China, Japan, South Korea, India, and the rest of APAC at the forefront of this transformation. China, Japan, South Korea, and India are all actively engaged in developing smart cities with innovative technologies. In China, cities like Shanghai and Shenzhen are implementing IoT sensors, AI analytics, and smart grids to enhance urban living and establish global technological leadership. Japan focuses on energy efficiency and disaster management, integrating renewable energy, smart grids, and real-time monitoring for resilient cities.
Further, the countries considered in the scope of the Smart City Market are the US, Canada, Mexico, Germany, UK, France, Spain, China, India, Japan, South Korea.
Global Smart City Market SIZE (USD BILLION) REGION 2022 VS 2032
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Smart City Market Key Players & Competitive Insights
Several industry players are focusing on enhancing their products with the integration of improved technologies. Moreover, these companies are prominent providers of Smart City Market and compete in the Smart City Market to increase their geographic presence and expand their customer base through strategic presence.
Major market players are spending a lot of money on R&D to increase their product lines, which will help the Smart City Market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, including new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Smart City Market industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.
Key Companies in the Smart City Market include
- Huawei Technologies
- Siemens AG
- CISCO Systems
- Schneider Electric SE
- IBM Corporation
- AT&T Inc.
- Oracle
- Microsoft
- ABB
- SAP SE
- Hitachi Vantara
- Telefonaktiebolaget LM Ericsson
- Itron Inc.
- TietoEVRY
Smart City Industry Developments
March 2024: Connected Urban is an innovative design to improve our streets’ connectivity, given the need for densification in 4G networks following the 5G rollout. It enables both macro cells and small cells to be within one compact footprint, thereby accommodating multi-faceted services such as antennas, CCTV systems, or even public address systems, including smart lighting, among others. This range is composed of sleek modular scalable smart poles that do more than just meet modern cities’ connectivity requirements since they are designed to support multiple services at once.
February 2024: NEC Corp India announced the launch of new smart city tech products for “organizations and authorities to manage operations efficiently”. The solutions include NEC Mi-Command (integrated command and control center), NEC Mi-City (citizen engagement portal), NEC Mi-Eye (intelligent video analytics), and NEC Mi-WareSync (warehouse management system). These solutions will ensure seamless operations among organizations and authorities by providing transparency and visibility for efficient management and decision-making, as well as offering enhanced experiences for citizens, businesses, communities, etc., according to a statement released by NEC Corp India.
February 2024: BT launched its new NB-IoT network, which is set to cover 97%* of the UK population, thus paving the way for more smart cities and industries. The network is supported by an award-winning EE mobile network. With low-power wide-area technology, NB-IoT BT now provides an opportunity for utility construction in the public sector, among other fields where devices can be securely connected to automate processes still done manually or requiring direct involvement at the present moment; this will not only realize long battery life, but it can also save money because efficiency may increase significantly, especially when leaks are detected automatically from water infrastructure.
March 2023: AT&T has chosen Fortress Solutions as a partner to provide facilities management services for fiber optics, edge data centers, and 5G infrastructure as part of its ambition to build "the US' first 5G Smart City Market at scale" in Washington, DC.
October 2022: Honeywell and Accelerator for America unveiled the Honeywell Smart City Market Accelerator Program, which assists communities in strategically planning their futures and building capacity to support transformational initiatives. Honeywell is working with five cities including Kansas City, Louisville, San Diego, Cleveland, and Waterloo, among others in the United States to give in-kind assistance in order to speed the development of their Smart City Market strategy planning.
July 2021: Microsoft had planned to buy AT&T's network cloud technologies and intellectual property. In exchange, AT&T will relocate its 5G mobile network to Azure. The companies will begin with AT&T's 5G core and work their way up. The collaboration expands on an existing USD 2 billion agreement in which AT&T relocated its back-end office to Microsoft Azure.
Intended Audience
- Smart City Market Hardware Manufacturers
- Smart City Market Software Companies
- Technology Investors
- Regulatory Industries
- Government Bodies
- Manufacturing Industry
- Environment Regulators
- Smart City Market Operators
- Others
Smart City Market Segmentation:
Smart City Component Outlook
- Hardware
- Software
- Service
- Consulting Services
- Deployment & Integration Services
- Infrastructure Monitoring and Management Services
Smart City Sales Channel Outlook
- OEM
- Aftermarket
Smart City Application Outlook
- Utility
- Smart Meter Management
- Smart Lighting Management
- Smart Energy Management
- Smart Waste Management
- Others
- Transport
- Smart Parking Management
- Smart Ticketing
- Intelligent Transportation System
- Connected Car System
- Others
- Government
- Smart Governance
- Smart Environmental Solutions
- Others
- Residential
- Smart Homes
- Smart Building
- Smart Education
- Smart Healthcare
- Others
Smart City Regional Outlook
- North America
- US
- Canada
- Mexico
- Europe
- Germany
- UK
- France
- Spain
- Rest of Europe
- Asia-Pacific
- China
- India
- Japan
- South Korea
- Rest of Asia-Pacific
- Middle East & Africa
- South America
Market Size & Forecast
| Attribute/Metric | Details |
| Market Size 2023 | USD 2.00 billion |
| Market Size 2024 | USD 2.37 billion |
| Market Size 2032 | USD 9.1 billion |
| Compound Annual Growth Rate (CAGR) | 18.30% (2024-2032) |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Data | 2018-2022 |
| Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | By component, application |
| Geographies Covered | North America, Europe, Asia Pacific, Middle East & Africa, and South America |
| Countries Covered | The US, Canada, Mexico, Germany, UK, France, Spain, China, India, Japan, South Korea. |
| Key Companies Profiled | Honeywell Corporation, Huawei Technologies, Siemens AG, CISCO Systems, Schneider Electric SE, IBM Corporation, AT&T Inc., Oracle, Microsoft, ABB, SAP SE, Hitachi Vantara, Telefonaktiebolaget LM Ericsson, Itron Inc., and TietoEVRY. |
| Key Market Opportunities | · Increasing demand for AI solutions in transportation · Development of IoT technologies & devices to foster growth of smart city concepts |
| Key Market Dynamics | · Increasing government initiatives for smart city projects · Rapid urbanization around the globe |
Major Players
Smart City Market Segmentation
Smart City Component Outlook (USD Billion, 2018-2032)
Hardware
Software
Service
Consulting Services
Deployment & Integration Services
Infrastructure Monitoring and Management Services
Smart City Sales Channel Outlook (USD Billion, 2018-2032)
OEM
Aftermarket
Smart City Application Outlook (USD Billion, 2018-2032)
Utility
Smart Meter Management
Smart Lighting Management
Smart Energy Management
Smart Waste Management
Others
Transport
Smart Parking Management
Smart Ticketing
Intelligent Transportation System
Connected Car System
Others
Government
Smart Governance
Smart Environmental Solutions
Others
Residential
Smart Homes
Smart Building
Smart Education
Smart Healthcare
Others
Automotive Retread Tires Regional Outlook (USD Billion, 2018-2032)
North America Outlook (USD Billion, 2018-2032)
North America Smart City by Product Outlook
Hardware
Software
Service
Consulting Services
Deployment & Integration Services
Infrastructure Monitoring and Management Services
North America Smart City by Sales Channel Outlook
OEM
Aftermarket
North America Smart City by Application Outlook
Utility
Smart Meter Management
Smart Lighting Management
Smart Energy Management
Smart Waste Management
Others
Transport
Smart Parking Management
Smart Ticketing
Intelligent Transportation System
Connected Car System
Others
Government
Smart Governance
Smart Environmental Solutions
Others
Residential
Smart Homes
Smart Building
Smart Education
Smart Healthcare
Others
US Outlook (USD Billion, 2018-2032)
US Smart City by Product Outlook
Hardware
Software
Service
Consulting Services
Deployment & Integration Services
Infrastructure Monitoring and Management Services
US Smart City by Sales Channel Outlook
OEM
Aftermarket
US Smart City by Application Outlook
Utility
Smart Meter Management
Smart Lighting Management
Smart Energy Management
Smart Waste Management
Others
Transport
Smart Parking Management
Smart Ticketing
Intelligent Transportation System
Connected Car System
Others
Government
Smart Governance
Smart Environmental Solutions
Others
Residential
Smart Homes
Smart Building
Smart Education
Smart Healthcare
Others
Canada Outlook (USD Billion, 2018-2032)
Canada Smart City by Product Outlook
Hardware
Software
Service
Consulting Services
Deployment & Integration Services
Infrastructure Monitoring and Management Services
Canada Smart City by Sales Channel Outlook
OEM
Aftermarket
Canada Smart City by Application Outlook
Utility
Smart Meter Management
Smart Lighting Management
Smart Energy Management
Smart Waste Management
Others
Transport
Smart Parking Management
Smart Ticketing
Intelligent Transportation System
Connected Car System
Others
Government
Smart Governance
Smart Environmental Solutions
Others
Residential
Smart Homes
Smart Building
Smart Education
Smart Healthcare
Others
Mexico Outlook (USD Billion, 2018-2032)
Mexico Smart City by Product Outlook
Hardware
Software
Service
Consulting Services
Deployment & Integration Services
Infrastructure Monitoring and Management Services
Mexico Smart City by Sales Channel Outlook
OEM
Aftermarket
Mexico Smart City by Application Outlook
Utility
Smart Meter Management
Smart Lighting Management
Smart Energy Management
Smart Waste Management
Others
Transport
Smart Parking Management
Smart Ticketing
Intelligent Transportation System
Connected Car System
Others
Government
Smart Governance
Smart Environmental Solutions
Others
Residential
Smart Homes
Smart Building
Smart Education
Smart Healthcare
Others
Europe Outlook (USD Billion, 2018-2032)
Europe Smart City by Product Outlook
Hardware
Software
Service
Consulting Services
Deployment & Integration Services
Infrastructure Monitoring and Management Services
Europe Smart City by Sales Channel Outlook
OEM
Aftermarket
Europe Smart City by Application Outlook
Utility
Smart Meter Management
Smart Lighting Management
Smart Energy Management
Smart Waste Management
Others
Transport
Smart Parking Management
Smart Ticketing
Intelligent Transportation System
Connected Car System
Others
Government
Smart Governance
Smart Environmental Solutions
Others
Residential
Smart Homes
Smart Building
Smart Education
Smart Healthcare
Others
Germany Outlook (USD Billion, 2018-2032)
Germany Smart City by Product Outlook
Hardware
Software
Service
Consulting Services
Deployment & Integration Services
Infrastructure Monitoring and Management Services
Germany Smart City by Sales Channel Outlook
OEM
Aftermarket
Germany Smart City by Application Outlook
Utility
Smart Meter Management
Smart Lighting Management
Smart Energy Management
Smart Waste Management
Others
Transport
Smart Parking Management
Smart Ticketing
Intelligent Transportation System
Connected Car System
Others
Government
Smart Governance
Smart Environmental Solutions
Others
Residential
Smart Homes
Smart Building
Smart Education
Smart Healthcare
Others
UK Outlook (USD Billion, 2018-2032)
UK Smart City by Product Outlook
Hardware
Software
Service
Consulting Services
Deployment & Integration Services
Infrastructure Monitoring and Management Services
UK Smart City by Sales Channel Outlook
OEM
Aftermarket
UK Smart City by Application Outlook
Utility
Smart Meter Management
Smart Lighting Management
Smart Energy Management
Smart Waste Management
Others
Transport
Smart Parking Management
Smart Ticketing
Intelligent Transportation System
Connected Car System
Others
Government
Smart Governance
Smart Environmental Solutions
Others
Residential
Smart Homes
Smart Building
Smart Education
Smart Healthcare
Others
France Outlook (USD Billion, 2018-2032)
France Smart City by Product Outlook
Hardware
Software
Service
Consulting Services
Deployment & Integration Services
Infrastructure Monitoring and Management Services
France Smart City by Sales Channel Outlook
OEM
Aftermarket
France Smart City by Application Outlook
Utility
Smart Meter Management
Smart Lighting Management
Smart Energy Management
Smart Waste Management
Others
Transport
Smart Parking Management
Smart Ticketing
Intelligent Transportation System
Connected Car System
Others
Government
Smart Governance
Smart Environmental Solutions
Others
Residential
Smart Homes
Smart Building
Smart Education
Smart Healthcare
Others
Spain Outlook (USD Billion, 2018-2032)
Spain Smart City by Product Outlook
Hardware
Software
Service
Consulting Services
Deployment & Integration Services
Infrastructure Monitoring and Management Services
Spain Smart City by Sales Channel Outlook
OEM
Aftermarket
Spain Smart City by Application Outlook
Utility
Smart Meter Management
Smart Lighting Management
Smart Energy Management
Smart Waste Management
Others
Transport
Smart Parking Management
Smart Ticketing
Intelligent Transportation System
Connected Car System
Others
Government
Smart Governance
Smart Environmental Solutions
Others
Residential
Smart Homes
Smart Building
Smart Education
Smart Healthcare
Others
Rest Of Europe Outlook (USD Billion, 2018-2032)
Rest of Europe Smart City by Product Outlook
Hardware
Software
Service
Consulting Services
Deployment & Integration Services
Infrastructure Monitoring and Management Services
Rest of Europe Smart City by Sales Channel Outlook
OEM
Aftermarket
Rest of Europe Smart City by Application Outlook
Utility
Smart Meter Management
Smart Lighting Management
Smart Energy Management
Smart Waste Management
Others
Transport
Smart Parking Management
Smart Ticketing
Intelligent Transportation System
Connected Car System
Others
Government
Smart Governance
Smart Environmental Solutions
Others
Residential
Smart Homes
Smart Building
Smart Education
Smart Healthcare
Others
Asia-Pacific Outlook (USD Billion, 2018-2032)
Asia Pacific Smart City by Product Outlook
Hardware
Software
Service
Consulting Services
Deployment & Integration Services
Infrastructure Monitoring and Management Services
Asia Pacific Smart City by Sales Channel Outlook
OEM
Aftermarket
Asia Pacific Smart City by Application Outlook
Utility
Smart Meter Management
Smart Lighting Management
Smart Energy Management
Smart Waste Management
Others
Transport
Smart Parking Management
Smart Ticketing
Intelligent Transportation System
Connected Car System
Others
Government
Smart Governance
Smart Environmental Solutions
Others
Residential
Smart Homes
Smart Building
Smart Education
Smart Healthcare
Others
China Outlook (USD Billion, 2018-2032)
China Smart City by Product Outlook
Hardware
Software
Service
Consulting Services
Deployment & Integration Services
Infrastructure Monitoring and Management Services
China Smart City by Sales Channel Outlook
OEM
Aftermarket
China Smart City by Application Outlook
Utility
Smart Meter Management
Smart Lighting Management
Smart Energy Management
Smart Waste Management
Others
Transport
Smart Parking Management
Smart Ticketing
Intelligent Transportation System
Connected Car System
Others
Government
Smart Governance
Smart Environmental Solutions
Others
Residential
Smart Homes
Smart Building
Smart Education
Smart Healthcare
Others
Japan Outlook (USD Billion, 2018-2032)
Japan Smart City by Product Outlook
Hardware
Software
Service
Consulting Services
Deployment & Integration Services
Infrastructure Monitoring and Management Services
Japan Smart City by Sales Channel Outlook
OEM
Aftermarket
Japan Smart City by Application Outlook
Utility
Smart Meter Management
Smart Lighting Management
Smart Energy Management
Smart Waste Management
Others
Transport
Smart Parking Management
Smart Ticketing
Intelligent Transportation System
Connected Car System
Others
Government
Smart Governance
Smart Environmental Solutions
Others
Residential
Smart Homes
Smart Building
Smart Education
Smart Healthcare
Others
India Outlook (USD Billion, 2018-2032)
India Smart City by Product Outlook
Hardware
Software
Service
Consulting Services
Deployment & Integration Services
Infrastructure Monitoring and Management Services
India Smart City by Sales Channel Outlook
OEM
Aftermarket
India Smart City by Application Outlook
Utility
Smart Meter Management
Smart Lighting Management
Smart Energy Management
Smart Waste Management
Others
Transport
Smart Parking Management
Smart Ticketing
Intelligent Transportation System
Connected Car System
Others
Government
Smart Governance
Smart Environmental Solutions
Others
Residential
Smart Homes
Smart Building
Smart Education
Smart Healthcare
Others
South Korea Outlook (USD Billion, 2018-2032)
South Korea Smart City by Product Outlook
Hardware
Software
Service
Consulting Services
Deployment & Integration Services
Infrastructure Monitoring and Management Services
South Korea Smart City by Sales Channel Outlook
OEM
Aftermarket
South Korea Smart City by Application Outlook
Utility
Smart Meter Management
Smart Lighting Management
Smart Energy Management
Smart Waste Management
Others
Transport
Smart Parking Management
Smart Ticketing
Intelligent Transportation System
Connected Car System
Others
Government
Smart Governance
Smart Environmental Solutions
Others
Residential
Smart Homes
Smart Building
Smart Education
Smart Healthcare
Others
Rest of Asia-Pacific Outlook (USD Billion, 2018-2032)
Rest of Asia Pacific Smart City by Product Outlook
Hardware
Software
Service
Consulting Services
Deployment & Integration Services
Infrastructure Monitoring and Management Services
Rest of Asia Pacific Smart City by Sales Channel Outlook
OEM
Aftermarket
Rest of Asia Pacific Smart City by Application Outlook
Utility
Smart Meter Management
Smart Lighting Management
Smart Energy Management
Smart Waste Management
Others
Transport
Smart Parking Management
Smart Ticketing
Intelligent Transportation System
Connected Car System
Others
Government
Smart Governance
Smart Environmental Solutions
Others
Residential
Smart Homes
Smart Building
Smart Education
Smart Healthcare
Others
Middle East & Africa Outlook (USD Billion, 2018-2032)
Middle East & Africa Smart City by Product Outlook
Hardware
Software
Service
Consulting Services
Deployment & Integration Services
Infrastructure Monitoring and Management Services
Middle East & Africa Smart City by Sales Channel Outlook
OEM
Aftermarket
Middle East & Africa Smart City by Application Outlook
Utility
Smart Meter Management
Smart Lighting Management
Smart Energy Management
Smart Waste Management
Others
Transport
Smart Parking Management
Smart Ticketing
Intelligent Transportation System
Connected Car System
Others
Government
Smart Governance
Smart Environmental Solutions
Others
Residential
Smart Homes
Smart Building
Smart Education
Smart Healthcare
Others
South America Outlook (USD Billion, 2018-2032)
South America Smart City by Product Outlook
Hardware
Software
Service
Consulting Services
Deployment & Integration Services
Infrastructure Monitoring and Management Services
South America Smart City by Sales Channel Outlook
OEM
Aftermarket
South America City by Application Outlook
Utility
Smart Meter Management
Smart Lighting Management
Smart Energy Management
Smart Waste Management
Others
Transport
Smart Parking Management
Smart Ticketing
Intelligent Transportation System
Connected Car System
Others
Government
Smart Governance
Smart Environmental Solutions
Others
Residential
Smart Homes
Smart Building
Smart Education
Smart Healthcare
Others
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