Cities built on ‘Smart’ and ‘Intelligent’ solutions and technologies, also known as Smart Cities, are featuring a promising gateway for governments across the globe to address the challenges when facing rampant urbanisation. In fact, the world is expecting to witness over 600 Smart Cities emerging across the continents in the future. The rapid development of Smart Cities Market is estimated to reach more than US $2.1 trillion by 2025 with major markets in Asia Pacific, Europe and North America.
Smart Cities Market in Asia will witness the fastest growth in smart energy and smart grid segment compared to other continents across the globe. Not only that, smart building market in Asia is also estimated to undergo in the near future as countries such as Singapore, India and China lead as major contributors to this segment.
- Singapore aims to emerge as the first Smart City-State of the world and called for technology tenders of over US $2.8 billion a few years back.
- India is also looking to invest up to US $2 billion in developing infrastructure as the country aims to build 100 smart cities by 2025.
- China plans to allocate around US $80 billion towards Smart Cities initiatives from 2016 to 2020, according to the country’s 13th
Cities in Europe are pioneering in smart cities solutions and the EU governments are investing heavily in Smart Cities in order to cope with aging infrastructure and challenges in urbanisation. As a result, the smart building market in Western Europe is estimated to rise at around 30% CAGR annually in short-term. With largest number of smart city project investments in the world, Europe will have 10 Smart Cities by 2025.
Similarly to Europe’s Smart Cities market, the market in North America is also significantly driven by aging infrastructure and rapid urbanisation. The US will lead the smart grid market as it is predicted to grow at around 35% CAGR for next few years. Consequently, North America will witness eight Smart Cities in next seven years.
The market size for Smart Cities is expected to increase significantly with the rise in developing economies from Asia, Africa and Latin America. Of more than 80 market players, over 10 key players will occupy major proportion of global market share of Smart City—ABB, Accenture, Cisco, Ericsson, GE, Hitachi, IBM, Microsoft, Schneider Electric, Siemens and Huawei.
To learn more on the development of Smart Cities, download Frost & Sullivan’s complimentary white paper on Smart City: A Trillion Dollars Industry on Rise here.
Subarna Poudel is a researcher with Frost & Sullivan. He can be reached at firstname.lastname@example.org