According to a new research report “Global Smart Cities Market Size, Share, Development, Growth and Demand Forecast to 2023 - Industry Insights by Component (Hardware and Software), by Application (Smart Governance, Smart Utility, Smart Infrastructure, Smart Healthcare, Smart Security & Threat, Smart Education, Smart Building, Smart Transportation, and Others)” published by P&S Market Research, the global smart cities market is projected to grow at a CAGR above 20% during 2017 - 2023.
Explore Report Description at: https://www.psmarketresearch.com/market-analysis/smart-cities-market
Global smart cities market to reach $2,578,063.5 million by 2023
Due to significant growth in automation technologies such as internet of things (IoT) and adoption of cloud based technologies, the global smart cities market is gaining huge traction. In addition, effective city asset management for public welfare, substantial operational cost savings, and automated public data generation applications contribute to the growth of global smart cities market.
Apart from this, the rapid growth in global smart cities market is owned by increase in demand for systems that help local and national bodies in designing various public interest policies, such as implementation of public safety measures, appropriate guidelines for pollution control, and public health parameters.
Insights on market segments
As per the findings of the research, hardware component generated larger revenue as compared to the software component, in the global smart cities market. Further, among applications, smart governance segment leads the global smart cities market. However, the market is expected to witness highest growth for smart building, during the forecast period. Traffic management category contributed largest revenue for smart transportation, however, the market is expected to grow fastest for transport data management, during the forecast period.
Hardware component has been the larger revenue contributor to the global smart cities market. The hardware components used in the global smart cities market includes physical devices such as sensors, actuators, and chips. With the deployment of a combination of such hardware devices with software applications, traditional networks which are present in the city infrastructure are made more flexible, efficient and sustainable. This is achieved by efficient use of information, digital and telecommunication technologies to improve the overall operation of the city, benefitting its inhabitants.
One of the key factors driving the demand for hardware component is the growing adoption of IoT enabled devices globally. Most of the IoT applications gather critical information pertaining to the physical world either through sensors or actuators to manipulate the physical world around it. With the emerging growth in the global smart cities market, the adoption of sophisticated hardware components is expected to increase.
Asia-Pacific market set for accelerated growth
Geographically, Europe has been the largest smart cities market, whereas Asia-Pacific is expected to witness the fastest growth among all regions, during the forecast period. The anticipated growth of the market in Asia-Pacific can be attributed to factors such as advancement in automation technologies, growing industry digitalization, rapid growth in advance software development industry, and increasing adoption of data analytics services by real estate builders, and improving IT infrastructure in the region. The various initiatives by the government of various countries across the region to invest in various smart city projects is also expected to drive the smart city market in Asia-Pacific region. For instance, Government of India (GoI) has also invested in smart city initiatives recently to enhance the city sustainability across the country.
Increase in demand for smart governance fosters market growth
Factors driving the growth of global smart cities market includes significant increase in demand for smart governance, surge in demand for smart utility such as smart meters, decreasing cost and availability of automation technology and services, and growing adoption of IoT enabled devices and related technology by public & private smart city developers, globally. Further, IoT technology as a major enabler toward smart governance helps in remote city monitoring, detection of explicit acts, and public day to day routine works.
Factors such as improvement in democratic processes, increasing transparency in governance, and citizen centric development is driving the need for smart governance in the global smart cities market. Further, with the increasing application of e-governance, smart governance has emerged as an evolution in context with modernization of city infrastructure, integration of information and communication technology (ICT) in public administration, and urban sustainability.
Demand for smart healthcare and smart utility are also the key factors driving the growth of global smart cities market. The advancement in mobile and digital technologies are escalating the demand for smart healthcare in smart cities market. Local authorities in several countries are also focusing towards enhancing the communication with its citizens to ensure public healthcare as a priority, through regular health checkups and analysis of past public health data for policy formation. Advancement and adoption in smart utilities such as smart grids, smart meters, and smart waste management system has gained huge interest from public policy makers to integrate next generation smart utility applications, right from the lowest level of smart city development.
Moderate competition among key players
The research states that the global smart cities market is moderately competitive, with players investing in research & development of new automated solutions.Some of the key players operating in the smart cities market are Cisco Systems Inc., Microsoft Corporation, IBM Corporation, Oracle Corporation, Google, Inc., General Electronics (GE), and ABB Group.
Most of the major vendors in the global smart cities market are actively focusing on enhancing their product offerings to meet the demand for smart cities solutions. The strategic developments by major players includes advance software developments, new hardware integrations, and advancement in automation technology areas.
GLOBAL SMART CITIES MARKET SEGMENTATION