July 21, 2022
The global market for smart city technologies is on track to break through the $1 trillion barrier in 2022, and surpass annual revenues of $2 trillion by 2025. That’s according to a new report from BCC Research, which explores the influencers, drivers, challenges and opportunities as the smart city comes of age.
Smart cities can trace their origins back to 1974, and the Cluster Analysis of Los Angeles, which was developed as the first urban big data project. Fast forward 20 years, and the virtual digital city, De Digital Stad, was developed in Amsterdam, to create awareness of internet usage. Then, in 2014, Seoul officially became the world’s first smart city. And now, the market has gone into overdrive.
“From Hanoi to New York City, from Hiroshima to London, and Copenhagen to Zurich, smart city thinking is everywhere,” says Greg Johnson, Associate Director of Consulting, BCC Research. “Smart city technologies are helping to solve the societal challenges at the very heart of humanity. Global urbanization, urban migration trends, environmental degradation, climate change, and aging populations. These are all captured in the sights of the smart city.
“And quality of life is being enhanced for all smart citizens, through the deployment of automated, networked and intelligent technology systems that improve air quality, mobility, energy efficiency, education, employment, safety and security. The list goes on and on.”
Major trends pushing smart cities to the fore and growing the IT opportunity are many, and closely interlinked. Increasing demand for sustainable living conditions, due to growing urbanization and government initiatives, is driving the smart cities market. Then, factors such as increasing awareness of resources management, decarbonization and environmental sustainability are increasing the adoption of smart city technologies. From there, smart cities move into the realm of Artificial Intelligence of Things (AIoT), cloud computing and edge computing, as they emerge to meet the demands for smart city implementation.
Across the forecast period, out to 2027, BCC Research expects North America to account for the highest share of the global smart city market. In the U.S., the government promotes the use of smart sensors across industries, as well as promoting smart cities and communities. In October 2021, Internet Master Plan (New York) was launched, and $157 million was invested in promoting digital equality to ensure affordable internet to its residents and businesses.
Although the U.S. will account for the highest share, APAC will be the fastest growing region. Factors such as the adoption of AI, hybrid multi-cloud IT infrastructure, big data and the availability of low-cost IoT sensors, alongside growing urbanization, are driving growth there.
“It’s a smart city future,” says Johnson. “Research suggests that 50% of the world’s population already lives in cities, with trends indicating the proportion will rise beyond 60% by 2030. As increased greenhouse gas emissions force cities to develop green strategies for energy generation and distribution, transportation, water management, urban planning and eco-friendly buildings, the smart city will play a momentous role in carving out a sustainable future.”
Smart Cities: Growing New IT Markets( IFT115D )
Publish Date: Jun 2022
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