“Technological advancements in Information and Communication Technology (ICT) and growing demographics & hyper-urbanization are the major driving factors for the smart cities market”
The smart cities market size is estimated to grow from USD 312.03 billion in 2015 to USD 757.74 billion by 2020, at an estimated CAGR of 19.4%. The driving factors for the growth of smart cities market are technological advancements in the field of IoT, cloud, sensors, & mobility; growing demographics & hyper-urbanization; government initiatives; growing energy consumption & requirement for optimization of energy usage during peak hours; increasing share of renewable energy and limitations in capacity expansion; and decrease in operational cost of smart building infrastructures in capacity expansion.
“Building segment in smart cities focus areas to gain maximum traction during the forecast period”
The building segment in smart cities focus areas is expected to grow with the highest CAGR during the forecast period. Among smart building solutions, facility management and energy optimization solution is expected to have the largest contribution during the forecast period. The increasing need for a centralized system for controlling and monitoring of various devices, such as lightning; Heating, Ventilation, and Air-Conditioning (HVAC); surveillance, and emergency response to reduce energy usages, and enhance security in the building premises is driving the market for smart cities. Another focus area, transportation, is also expected to provide good opportunities for growth as governments across the globe are showing high interests to improve their transport infrastructure in order to minimize traffic jams, reduce energy consumptions by vehicles, and decrease in count of deaths in road accidents. Among smart transportation solutions, traffic management and automated driver guidance system is expected to grow with the highest CAGR contribute maximum in the overall market size than any other solution. Europe is expected to be largest revenue generating region followed by Asia-Pacific (APAC) and North-America whereas Latin America and the Middle East and Africa (MEA) are expected to be the emerging potential markets for smart city solutions and services.
Smart solutions for citizen services are expected to have the highest market share from 2015 to 2020.
Governments from all over the world are digitalizing their processes to provide services for citizens in a better manner. Huge demand for improved education, healthcare, and security for citizens makes this area the highest contributor in the overall market size of smart cities market. Among various citizen services, security & threat management is expected to have the highest market share whereas education sector is expected to witness the highest growth rate during the forecast period
In the process of determining and verifying the market size for several segments and sub-segments gathered through secondary research, extensive primary interviews were conducted with key people.
- By Company Type - Tier 1 – 15%, Tier 2 – 26%, and Tier 3 – 59%
- By Designation – C-level – 35%, Director-level – 40%, and other – 25%
- By Region –North America – 26%, Europe– 35%, Asia-Pacific - 32%, and ROW – 7%
Various key smart city solution and service providers profiled in the report are as follows:
- IBM Corporation
- Cisco Systems, Inc.
- Microsoft Corporation
- Schneider Electric SE
- Siemens AG
- Oracle Corporation
- Huawei Investment & Holding Co. Ltd.
- Toshiba Corporation
- Hitachi, Ltd.
The report will help the market leaders/new entrants in this market in the following ways:
- This report segments the smart cities market comprehensively and provides the closest approximations of the revenue numbers for the overall market and the subsegments across the different focus areas and regions.
- The report helps stakeholders to understand the pulse of the market and provides them information on key market drivers, restraints, challenges, and opportunities.
- This report will help stakeholders to better understand the competitor and gain more insights to improve their position in the business. The competitive landscape section includes competitor ecosystem, new product launches, partnerships, and acquisitions.