The Smart Cities Market is Expected to Grow at a CAGR of 22.9% from 2019 to Reach $545.7 Billion by 2027
The global smart cities market is expected to witness significant growth in the upcoming years due to growing government initiatives for overpopulation and urbanization management and growing requirement of resource management for sustainable development. Moreover, the factors such as rise in adoption of IoT and its market application, 5G connectivity, and increasing adoption of connected vehicles & autonomous drones further support the growth of the smart cities market.
The overall smart cities market is primarily segmented by application (smart transportation, smart utilities, smart education, smart healthcare, smart public safety, governance, smart lighting solutions, and smart building), component (hardware, software, and services), and by geography.
Based on the component, the hardware segment commanded the largest share of the overall smart cities market. However, the services segment is anticipated to grow with the highest growth rate in the overall smart cities market during the forecast period. The high growth of smart city services is attributed to the consistent growth in the processes such as installation, maintenance, and up-keeping of smart city hardware and software in the coming years.
Based on the application, smart education market is slated to grow at the fastest CAGR during the forecast period. This is attributed to the proliferation of connected devices in education sector, adoption of e-learning solutions, growing use of artificial intelligence, and adoption of machine learning. Moreover, growing emphasis on e-learning and digital technologies such as learning management systems is also further expected to support the fastest growth of the smart education sector in the coming years.
An in-depth analysis of the geographic scenario of the market provides detailed qualitative and quantitative insights about the five regions including North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. In 2019, North America commanded the largest share of the global smart cities market, followed by Europe, Asia-Pacific, Latin America, and the Middle East & Africa.
The large share of this region is mainly attributed to the fast-developing advanced communication infrastructure, stringent measures for public safety and data privacy, growing focus on reducing carbon footprints using innovative ICT technologies, and prioritizing the development of smart cities by many local and national government authorities. Furthermore, the government initiatives for overpopulation and urbanization management have boosted the overall smart cities market in the region.
Government Initiatives for Managing Rising Urban Population
Growing Requirement of Resource Management for Sustainable Development
Need of Significant Initial Investment
Rising Cases of Data Theft
Emergence of Artificial Intelligence
Rise of IoT and its Market Application
Risk of Data Abuse by Large Corporations
Reluctance from Citizens to Adopt New Technologies