Rapid urbanization has congested landscapes and created problems such as high energy consumption, climate change, water capacity issues, and other socioeconomic challenges. According to the United Nations (UN), the global urban population was 54% in 2015, and this figure is expected to rise to 66% by 2050. This rapid rate of urbanization will deplete available resources. As a result, developed and emerging economies focus on smart city projects to implement new technologies that ensure optimal resource utilization. As a result, these factors are expected to fuel market growth in the near future.
According to Data Bridge Market Research the Smart Cities Market accounted for USD 390.13 billion in 2021, and expected to reach USD 1874.83 billion by 2029. The market is expected to grow with a CAGR of 21.68% in the forecast period of 2022 to 2029.
“Increasing Investment in Smart City Designs Facilitate Market Growth”
Increased investment in smart city designs is one of the encouraging factors driving smart city market growth. Certain plans are leading the way in developing countries, where governments are investing billions of dollars in smart city designs because everything will be combined in these smart cities, and garbage collection will benefit certain regions with the use of smart cities. Furthermore, lowering the cost of internet of things (IoT) sensors is a key driver of growth in the smart cities syndicate. Consumption administration companies are taking this very seriously, as sensors will be installed in data visualization programmes and screening support, allowing for more comfortable garbage collection.
What restraints the growth of Smart Cities Market?
“Integration of new technologies within existing infrastructure is expected to restrain growth of the global smart cities market”
The incorporation of new technologies within existing infrastructure may pose significant challenges to market growth. Because existing infrastructure may not support new technologies, old infrastructure must be replaced with new and advanced infrastructure, increasing investment. Furthermore, innovations and technologies include high-risk investments and unsecured ROI, limiting the global smart cities market's growth.
“Growing susceptibility to cybercrimes and privacy violations”
Cybercrime is a major threat posed by interconnected devices. They will all be linked via IoT. In such cases, a simple software bug can cause significant damage and jeopardise the security of numerous systems because all components of smart city infrastructure use IoT and smart applications, security devices, and transit systems. Furthermore, increased digitization has resulted in data storage on the cloud. This data may include a person's record of daily activities such as payments, geographical location, and health records, which are accessible at any time. Digital systems can be hacked, resulting in the loss of private information, whereas data analytics can combine data sets to gather information about an individual's lifestyle and habits or behaviors. As a result, these elements are expected to hinder the market growth.
Segmentation: Smart Cities Market
The smart cities market is segmented on the basis of component, and application.
- On the basis of component, the smart cities market is segmented into hardware, services, software.
- On the basis of application, the smart cities market is segmented into smart transportation, smart utilities, smart education, smart healthcare, smart public safety, smart governance, smart lighting solutions, smart buildings.
Regional Insights: North America is expected to dominate the Smart Cities Market
The North America region is expected to dominate the market due to the ongoing digital transformation of various industry verticals, including government, telecommunications, and banking, among others. The region has a well-developed Information and Communication Technology (ICT) infrastructure, federal and local government collaboration with ICT vendors, and the presence of prominent technology vendors.
- In addition, Asia-Pacific region is experiencing rapid technological growth in all areas. Smart city adoption is currently low in this region, but it has a high potential for market growth in the coming years. Rapid population growth, increasing economic development, and technological advancement for resource management and sustainable development are driving this region's rapid growth in the global smart cities market.
To know more about the study visit, https://www.databridgemarketresearch.com/ru/reports/global-smart-cities-market
Recent Developments in Smart Cities Market
- In 2021, Siemens acquired Wattsense, a French provider of plug-and-play IoT management systems. As a result of this acquisition, Siemens' building automation offering for small and medium-sized buildings has grown.
- In 2021, Hitachi collaborated with Bao Viet Insurance to drive innovation in the insurance industry through the use of AI and big medical data. Bao Viet Insurance intends to improve health by predicting the likelihood of developing a disease in the future using Hitachi's technology.
- In 2020, Microsoft and Honeywell collaborated to improve enterprise workplace performance and energy efficiency. Honeywell would combine the Microsoft Azure cloud platform and connect Microsoft Dynamics 365 with Honeywell Forge to gain access to operational data.
The Prominent Key Players Operating in the Smart Cities Market Include:
- IBM (U.S.)
- SAP SE (Germany)
- Sensoneo (Finland)
- Big belly solar, LLC (U.S.)
- Inogen Environmental Alliance, Inc. (U.S.)
- Ecube Labs (South Korea)
- Covanta Holding Corporation (U.S.)
- Pepperl+Fuchs (Germany)
- OnePlus Systems Inc. (U.S.)
- Urbiotica (Spain)
Above are the key players covered in the report, to know about more and exhaustive list of smart cities market companies contact, https://www.databridgemarketresearch.com/ru/contact
Research Methodology: Global Smart Cities Market
Data collection and base year analysis are done using data collection modules with large sample sizes. The market data is analyzed and estimated using market statistical and coherent models. In addition, market share analysis and key trend analysis are the major success factors in the market report. The key research methodology used by DBMR research team is data triangulation which involves data mining, analysis of the impact of data variables on the market, and primary (industry expert) validation. Apart from this, data models include Vendor Positioning Grid, Market Time Line Analysis, Market Overview and Guide, Company Positioning Grid, Company Market Share Analysis, Standards of Measurement, global vs Regional and Vendor Share Analysis. Please request analyst call in case of further inquiry.
