DUBLIN, Aug. 31, 2021 /PRNewswire/ -- The "Global Smart Cities Engineering and Construction (E&C) Services Market, By Project (Buildings, Others), By Application (IoT, Housing, Others), By City Topography (Developed, Emerging), By Service Type, By Solution, Estimation & Forecast, 2017 - 2030" report has been added to ResearchAndMarkets.com's offering.
The global smart cities engineering and construction (E&C) services market held a market value of USD 106.64 Billion in 2020 and is forecasted to reach USD 453.07 Billion by the year 2030. The market is anticipated to grow at a CAGR of 16.5% during the projected period.
Smart cities engineering and construction (E&C) services are used for the development and building of smart cities. The market is majorly driven by the increasing adoption of connected and smart technologies in smart cities, favorable government initiatives promoting smart cities, and increasing digitization in public safety and transportation.
However, security concerns associated with smart cities are expected to negatively hamper market growth. Furthermore, high costs associated with these services are also anticipated to hamper market growth.
Increasing digitization in public safety and transportation
The increasing use of digitization tools in transportation, as well as public safety services, is estimated to boost the market growth. Smart sensors are used for improving the traffic flow as well as to improve transport efficiency. By using smart cities' E&C services, there can be improved efficiency as well as sustainable gains from digital innovations. These innovations can offer new ways for delivering public services and also optimize the use of idle or surplus resources.
Furthermore, the tourism sector in these cities can benefit from improved dissemination management, such as seamless transport. Also, smart grids can be connected to the transport system and home devices for managing energy supply and demand more efficiently. Therefore, increasing digitization in public safety and transportation is expected to boost market growth.
Rising number of government initiatives promoting smart cities
Various government initiatives along with public-private partnerships are boosting market growth. For instance, China has various smart city initiatives which are combining metering devices, embedded sensors, and other such monitoring technologies with artificial intelligence analysis and big data processing for assisting in managing the public spaces as well as the cities.
As of 2020, the country has about 800 smart cities pilot programs in planning or processes. This is about half of the total smart cities across the globe. Such initiatives are anticipated to boost the market growth over the forecast period.
The ICT consulting segment accounted for the largest share as well as is expected to grow at the fastest CAGR of 18% owing to the rising demand for ICT consulting services in the smart cities market. Furthermore, the end-to-end services segment is anticipated to hold the second-largest market share.
The infrastructure segment accounted for the largest share owing to the rapidly growing construction industry globally. The software segment is estimated to foresee the highest growth rate during the forecast period.
The urban development segment is expected to lead the market with over 44% of the share owing to the rising development of smart city projects in the urban areas. The buildings segment is expected to grow at the fastest rate during the forecast period.
The smart grid segment accounted for the largest market share owing to the rising demand for smart cities' E&C services for this application. The IoT segment is estimated to grow at the fastest rate over the projected period.
The developed economies segment accounted for the largest market share owing to the favorable government initiatives in these economies. The emerging economies segment is likely to witness the fastest CAGR of 18%.
The Asia Pacific region holds the largest market share of more than 34% as well as is expected to grow at the fastest growth rate owing to rising focus on the development of digital infrastructure and presence of fast-developing economies, such as India and China, where their governments are investing heavily to develop smart cities, which is also fuelling the engineering and construction (E&C) services.
The North American region accounted for the second-largest market share owing to the well-developed ICT infrastructure and the presence of prominent technology vendors. The presence of various international councils in the region is also anticipated to drive market growth.
The approximate market share of the top nine major players is near about 52%. These market players are engaged in partnerships, new product launches, mergers & acquisitions to strengthen their market presence.
For instance, in March 2021, Aecom signed a USD 2 billion contract with the U.S. Air Force Civil Engineer Center for delivering planning, design, and construction management services to the center.
- Bleak & Veatch Singapore
- Buro Happold
- Daxue consulting - China
- Gaia Smart Cities Solutions Pvt. Ltd
- incheon smart city corporation - Korea
- Meinhardt Group
- Mott MacDonald
- Surbana Jurong Private Limited - Singapore
- Tata Consulting Engineers
- WSP Global Inc
- Honeywell International, Inc.
For more information about this report visit https://www.researchandmarkets.com/r/csdh1v
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SOURCE Research and Markets