In 2025, the scale of the smart city market will reach US$820.7 billion
According to a new market research report released by Marketsand Markets, the scale of the smart city market is expected to grow from USD 410.8 billion in 2020 to USD 820.7 billion in 2025, with a compound annual growth rate of 14.8% during the forecast period. Due to the increasing demand for public safety and communication infrastructure, the empowerment and participation of citizens, and the increase in the urban population, the adoption rate of smart city solutions is expected to increase.
The smart city market mainly includes smart transportation, smart buildings, smart utilities such as public safety, smart medical care, smart education, smart street lights and other fields. Among these key areas, the intelligent transportation field will grow at the highest compound annual growth rate during the forecast period.
Transportation is a key and indispensable part of any smart city project because it is the main pillar of rapid and sustainable economic growth. It enables people to quickly travel from one destination to another, while enabling goods and services Effective delivery. Taking into account multiple factors, such as the rapid growth of urban population and concern for the environment, intelligent transportation solutions provide an important impetus for existing and new transportation infrastructure projects.
Intelligent transportation system is designed and implemented for smart cities, combining the most advanced technology to provide a platform to provide real-time online information about traffic flow and passengers and commuters. These solutions can also effectively monitor public transportation and freight to and from the city, thereby reducing delays or lag, and reducing management costs such as maintenance. They can also better manage peak traffic conditions and make predictions and preparations for busy and sparse traffic hours.
Among the key areas of smart buildings, the service area is expected to grow rapidly during the forecast period.
Smart building services enable building administrators to plan and implement smart building solutions with minimal effort. Smart building solutions implemented with the help of professional service providers can be very effective. The benefits of adopting smart building services include the need to implement the best solutions to improve building performance, reduce energy consumption and reduce operating expenses (OPEX). The complexity of various smart technologies deployed across cities and the demand for customized solutions for implementing smart city solutions in different cities have driven the demand for consulting, deployment and integration services.
In terms of regions, the Asia-Pacific region is expected to occupy the largest market size during the forecast period.
The Asia-Pacific region is expected to become the main source of revenue growth for the smart city market. The growth in the region is expected to be driven by the growing demand for smart city solutions such as connected vehicles, building energy optimization and power distribution management systems. In addition, a large number of small businesses are catering to the smart city market in the Asia-Pacific region, making it one of the fastest growing regions. The deployment of smart city solutions in different fields, such as smart transportation, smart buildings, smart utilities, and smart citizen services, has emerged in the Asia-Pacific region.