Delhi, NCR, Dec. 20, 2021 (GLOBE NEWSWIRE) — The global smart cities market is thriving due to several factors such as the increasing adoption of advanced technologies, increasing public-private partnerships, the rise of virtual power plants, growing sales of electric & fuel cell vehicles, and so on….
A recent study conducted by the strategic consulting and market research firm, BlueWeave Consulting, revealed that the global smart cities market was worth USD 404.2 billion in 2020. According to the study, the market is estimated to grow at a CAGR of 13.8%, earning revenue of around USD 992.0 billion by the end of 2027. The concept of smart cities is gaining popularity due to rapid urbanization and favorable government initiatives worldwide. Additionally, the growing demand for improved energy infrastructure, digitiation, and strong IT connectivity also favors the growth of the global smart cities market.
Growing adoption of advanced technologies driving the global smart cities market
Smart cities are being built using advanced technologies such as artificial intelligence, machine learning, big data, and blockchain. Due to the increasing penetration of these technologies across various sectors, smart cities around the world are adopting them increasingly. Furthermore, the increasing investment in sustainable and green technologies has further contributed to the adoption of these technologies by smart cities around the world. Additionally, the growing sales of fuel cell and electric vehicles have also created a growing demand for the development of advanced charging infrastructure in cities around the world.
Increasing energy demand has also sparked the adoption of virtual power plants, which operate on AI, machine learning, and the Internet of Things to ensure high security and efficiency. According to estimates released by the International Energy Agency, renewable energy sources are expected to reach new record levels by the end of 2021, with over 219 GW expected to be operational in power generation, representing a 10% increase over the 2020 estimates. With virtual power plants, the entire process is managed remotely and carbon emissions are reduced.
Furthermore, advanced technologies facilitate enhanced security, efficient resource management, and timely intervention during emergencies, thus driving the growth of the global smart cities market over the forecast period.
High implementation cost is expected to hamper the growth of the global smart cities market
Cost is one of the determining factors for the growth of a market, and high implementation costs can impede that growth. The implementation of smart technologies requires high investment. Smart cities require infrastructure for the implementation of advanced technologies such as smart parking systems, smart homes, virtual power plants, smart offices, and smart factories. Building the infrastructure of these technologies tends to be quite expensive.
For example Saudi Arabia announced an investment of USD 500 billion in the creation and development of Neom, an upcoming city. Such high investment requirements could hamper the growth of the global smart cities market during the forecast period.
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Global Smart Cities Market – By Smart Transportation
Based on smart transportations, the global smart cities market is segmented into smart ticketing, traffic management, passenger information, connected logistics, and other solutions, services, and types. Among these, the traffic management segment accounts for the largest market share owing to the growing number of road accidents around the world. The traffic management segment also helps with the parking of cars, which often leads to traffic congestion in large cities. An IBM study in 2018 revealed that about 30% of traffic in a city is caused by drivers looking for a parking spot. With the number of vehicles constantly increasing, traffic jams on roads are a growing concern, creating a need for more efficient traffic management.
Global Smart Cities Market – Regional Insights
The report by BlueWeave Consulting analyzes the global smart cities market for five regions: North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa. Among these regions, Europe dominated the market in 2020 and held the largest market share owing to the presence of several smart cities in the region and the growing adoption of advanced technologies, such as IoT, machine learning, and AI. For instance, the city of Genk in Belgium is using Nokia’s Scene Analytics technology to tackle noise pollution levels on a commercial street. The investment from the government in smart cities has also supported the dominant share of the region in the global smart cities market.
Impact of COVID-19 on Global Smart Cities Market
The effect of COVID-19 and the subsequent lockdown was felt across all the industries and the global smart city market was no different. The lockdown affected the supply chain in all steps as companies were forced to close their offices and other activities. The lockdown also affected the investment in smart cities as it created a cash-flow issue for the companies. The focus of the entire world turned to control the raging pandemic and amidst all this, the global smart city market was affected negatively.
The market seemed to recover towards the end of the year with vaccination drives starting and markets & trades resuming; however, the severe second wave of the pandemic halted the recovery of the market. Currently, the ongoing semiconductor shortage and energy crisis coupled with the emergence of Omicron-variant of the coronavirus has affected the recovery of the market and the global smart city market may take some time before being back to the pre-pandemic levels.
Global Smart Cities Market – Competitive Landscape
The leading players in the global smart cities market are IBM Corporation, The ADT Corporation, Cisco Systems Inc, AT&T Inc, SAP SE, Intel Corporation, Oracle Corporation, Schneider Electric SE, General Electric, Xerox Corporation, Automation Anywhere Inc., Koninklijke Philips NV, Nokia Corporation, Hitachi Ltd, Honeywell International Inc., Huawei Technologies Co. Ltd, Ericsson Inc., ABB Ltd, Microsoft, and other prominent players.
Players in the market compete with each-others in terms of products launches, integration of new technology, mergers & acquisitions, and collaboration with other players and organizations. Furthermore, companies operating in the smart cities market are looking to commercialize the technology as soon as possible to capture more market share.
In December 2021, Dassault Systèmes and NTT Communications announced that they have signed a memorandum of understanding (MoU) to offer a scalable smart city platform. The smart city platform will be used to address urban challenges in Japan. The companies will be using virtual twin technology and big data to explore solutions for smart cities in Japan.
In December 2021, Indosat Ooredoo launched its 5G services in the East Kalimantan port city of Balikpapan, Indonesia, to provide infrastructure for the development and smart cities. The CEO of the company also said that the launch of 5G services in the province would also support the proposed site of new capital city, around 70km from Balikpapan, in North Penajam Paser.
Scope of the Report
|Years Considered||Historical data – 2017-2020
Base Year – 2020
Forecast – 2021 – 2027
|Facts Covered||Revenue in USD Billion|
|Market Coverage||U.S, Canada, Germany, UK, France, Italy, Spain, Brazil, Mexico, Japan, South Korea, China, India, UAE, South Africa, Saudi Arabia|
|Product Service/Segmentation||By Smart Transportation, By Smart Buildings, By Smart Utilities, By Smart Citizen Services, By Region|
|Key Players||IBM Corporation, The ADT Corporation, Cisco Systems Inc, AT&T Inc, SAP SE, Intel Corporation, Oracle Corporation, Schneider Electric SE, General Electric, Xerox Corporation, Automation Anywhere Inc., Koninklijke Philips NV, Nokia Corporation, Hitachi Ltd, Honeywell International Inc., Huawei Technologies Co. Ltd, Ericsson Inc., ABB Ltd, Microsoft, and other prominent players.|
The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of the global smart cities market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends of the global smart cities market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyses the growth drivers, challenges, and competitive dynamics of the market.
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