IoT in the Global Smart City Market Trends and Forecast
Lucintel finds that the future of IoT in the global smart city market looks promising with opportunities in the smart governance, smart building and infrastructure, smart utilities, smart health, public safety, and smart transportation applications. IoT in the global smart city market is expected to reach an estimated $716 billion by 2030 with a CAGR of 19% from 2023 to 2030. The major drivers for this market are increasing development of smart cities, growing urbanization with increasing adoption of connected and smart technology, and demand for public safety.
IoT (Internet of Things) is a crucial component in the development of smart cities worldwide, transforming urban environments by integrating a network of interconnected devices and sensors. These devices, embedded in various elements of city infrastructure and everyday objects, collect and transmit data to centralized systems for analysis and decision-making. At the heart of IoT in smart cities are sensors and devices that monitor and gather data on different aspects of urban life. These include smart sensors deployed in buildings, streetlights, transportation systems, and environmental monitoring stations. These sensors capture real-time data on air quality, temperature, traffic flow, energy consumption, and more. Connectivity is another critical component, facilitated by communication technologies such as 5G, LoRaWAN, and Wi-Fi, which ensure seamless data transmission from sensors to centralized platforms.
• Lucintel forecasts that short range IoT technology for smart city will remain the largest segment due increasing demand for wireless network for the development of smart infrastructure and building automation system.
• Smart governance will remain the largest application and smart health is expected to witness the highest growth during the forecast period due to increasing penetration of connected devices in healthcare and rising investment in healthcare IoT solutions.
• Asia Pacific will remain the largest region, and it is also expected to witness the highest growth over the forecast period, supported by growing urbanization, increasing demand for efficient infrastructure, and growing public safety concerns.
Country wise Outlook for IoT in the Global Smart City Market
The IoT in the global smart city market is witnessing substantial growth globally, driven by increased demand from various applications such as smart governance, smart building and infrastructure, smart utilities, smart health, public safety, and smart transportation. Major players in the market are expanding their operations and forming strategic partnerships to strengthen their positions. Below image highlights recent developments by major IoT in the global smart city producers in key regions: the USA, Germany, China, India, Japan, and Australia.
Emerging Trends of IoT in the Global Smart City Market
The IoT in the global smart city market's size has been expanding rapidly, driven by the increasing adoption of IoT in various applications of smart cities. The market size is influenced by factors such as integration with AI (Artificial Intelligence) and machine learning algorithms in IoT, rollout of 5G networks by accelerating IoT adoption in smart cities, and development of smart mobility by IoT. The market size is estimated to continue its upward trajectory as industries across the globe seek to improve performance, efficiency, and sustainability.
Emerging trends in IoT in the global smart city market are shaping its future applications and market dynamics:
1. Edge Computing Integration: Edge computing is gaining prominence in smart cities, enabling real-time data processing and analysis closer to where data is generated (at the edge). This reduces latency, enhances response times for critical applications like autonomous vehicles and public safety, and reduces the burden on centralized cloud infrastructure.
2. 5G Connectivity: The rollout of 5G networks is accelerating IoT adoption in smart cities by providing high-speed, low-latency connectivity. 5G enables a higher density of connected devices and supports bandwidth-intensive applications such as high-definition video surveillance, augmented reality (AR), and virtual reality (VR) experiences.
3. AI and Machine Learning: AI (Artificial Intelligence) and machine learning algorithms are increasingly integrated with IoT platforms in smart cities. These technologies analyze vast amounts of IoT-generated data to derive actionable insights, optimize resource allocation, predict maintenance needs, and improve decision-making processes across various city services.
4. Sustainable Solutions: IoT is pivotal in promoting sustainability in smart cities. IoT-enabled sensors monitor and manage energy consumption, optimize waste management processes, and facilitate efficient water usage. These technologies help cities achieve environmental goals, reduce carbon footprints, and enhance overall resource efficiency.
5. Smart Mobility: IoT plays a crucial role in transforming urban mobility. Connected vehicles, smart parking solutions, and real-time traffic management systems use IoT data to improve traffic flow, reduce congestion, and enhance transportation efficiency. Integration with public transit systems and ride-sharing platforms further enhances mobility options for residents.
A total of 86 figures / charts and 75 tables are provided in this 160-page report to help in your business decisions. A sample figure with insights is shown below.
Recent Developments in IoT in the Global Smart City Market
Recent developments in IoT in the global smart city market which highlights ongoing innovations and advancements across different sectors:
• 5G Deployment and Connectivity: The deployment of 5G networks in smart cities is a total game changer for IoT capabilities through providing higher speeds, lower latency and better connected device capacity. Cities globally are using 5G to drive IoT applications in transportation, public safety, healthcare and environmental monitoring with improved reliabilities as well as responsiveness.
• Edge Computing Adoption: Edge computing is increasingly becoming an integral part of smart city’s Internet of Things (IoT) architecture. When data is processed closer to its source; at the edge of the network, edge computing greatly reduces latency and bandwidth utilization while improving real-time decision making for critical applications such as autonomous vehicles or smart grid management.
• AI and Machine Learning Integration: In smart cities, Artificial Intelligence (AI) and machine learning algorithms have been combined with IOT platforms to examine massive amounts of information generated by sensors and devices. These technologies enable predictive analytics, anomaly detection and optimization of city services such as traffic management, energy efficiency or waste management.
• Smart Mobility Solutions: Urban mobility is being transformed by IoT through things like connected vehicles, smart parking systems or real-time traffic management. Through IoT-enabled solutions cities are aiming to optimize traffic flow, reduce congestion or improve public transportation effectiveness thereby enhancing overall mobility experience for residents as well as visitors.
• Sustainability Initiatives: Sustainability within urban areas highly relies on IOT. Environmental sensors monitor air quality levels, noise levels plus water usage thus enabling them to undertake precise initiatives aimed at reducing pollution while conserving resources. Smart energy grids ensure optimal electricity distribution besides promoting integration into renewable sources resulting in reduced carbon emissions as well as improved environmental stewardship.
• Digital Twins and Urban Planning: In planning plus managing smart cities digital twins which are virtual replicas of physical assets including processes are emerging. By feeding IoT data into digital twins this allows for simulation & visualization of urban infrastructure meant for predictive maintenance purposes or scenario testing plus optimized urban development strategies.
Strategic Growth Opportunities for IoT in the Global Smart City Market
Strategic growth opportunities for IoT (Internet of Things) in the global smart city market are abundant, driven by technological advancements, increasing urbanization, and the need for sustainable and efficient urban management. Given below are some key strategic growth opportunities for IoT in the global smart city market:
• 5G Expansion and Connectivity: The rollout of 5G networks provides high-speed, low-latency connectivity crucial for supporting a dense network of IoT devices in smart cities. Opportunities include leveraging 5G for real-time data analytics, enhanced mobility solutions, and reliable communication infrastructure across urban areas.
• Edge Computing Integration: Edge computing complements IoT by processing data closer to the source, reducing latency and bandwidth usage. Strategic opportunities lie in deploying edge computing for critical applications like autonomous vehicles, smart grids, and real-time surveillance, enhancing efficiency and responsiveness in smart city operations.
• AI and Data Analytics: Integrating AI (Artificial Intelligence) and advanced analytics with IoT enables predictive insights and decision-making capabilities in smart cities. Opportunities include leveraging AI for predictive maintenance, anomaly detection, and optimizing resource allocation across urban infrastructure such as transportation, energy, and waste management.
• Smart Energy Management: IoT enables smart energy grids and efficient energy management systems in smart cities. Opportunities include deploying IoT sensors for real-time monitoring of energy consumption, optimizing grid operations, promoting renewable energy integration, and reducing carbon footprint through data-driven insights.
• Enhanced Urban Mobility: IoT-driven solutions improve urban mobility through connected vehicles, smart parking systems, and real-time traffic management. Opportunities include optimizing traffic flow, reducing congestion, improving public transportation efficiency, and enhancing the overall mobility experience for residents and visitors.
• Sustainability Initiatives: IoT supports sustainability goals in smart cities by monitoring environmental parameters such as air quality, water quality, and noise levels. Opportunities include implementing IoT-enabled solutions for pollution control, resource conservation, and promoting eco-friendly practices in urban development and operations.
IoT in the Global Smart City Market Driver and Challenges
IoT in the global smart city has a very important role in many applications including smart governance, smart building and infrastructure, smart utilities, smart health, public safety, and smart transportation. The changing market dynamics are being driven by the features like efficiency and sustainability of IoT, enhanced urban mobility, and improved public safety. However, challenges like data security risk and privacy concern to sustain growth and innovation in the IoT in the global smart city sector.
• Efficiency and Sustainability: In Internet of Things enabled cities, resource use is optimized real time monitoring data and operational cost reduction leading to improved energy efficiency.
• Enhanced Urban Mobility: IoT solutions are behind smart transportation systems, live traffic handling and connected cars that promote better mobility performance and traffic flow minimization.
• Improved Public Safety: By use of IoT-enabled surveillance systems, emergency response mechanisms, and predictive analytics public safety measures as well as crisis management in smart cities are upgraded.
• Citizen Engagement: The internet of things fosters citizen participation by means of digital platforms which allow for real-time information access, feedback mechanisms such as mobile phone apps, enhancing transparency in governance.
• Economic Growth: Investments are attracted by smart city initiatives; these stimulate innovation through the technology sector while creating new job opportunities around the development and deployment of IoT technologies.
Challenges facing IoT in the Global Smart City market are:
• Cybersecurity Risks: There are increased risks on cyber security due to more connectivity and data sharing in Internet of Things (IoT), therefore this will call for strong actions towards protection of sensitive information from hacking or other forms attack on infrastructure.
• Data Privacy Concerns: Privacy issues arise when it comes to collection or management of huge personal data sets that may comprise confidential information obtained from devices related to IoT thus conformance with strict legislations about data protection is necessary.
• Interoperability and Standards: Standardized protocols need to be established leading to inter-operable solutions especially when integrating different IoT devices across various vendors over multiple industries.
• Infrastructure Limitations: However some areas suffer from legacy infrastructures as well as limited connectivity hence inhibiting full deployment or scalability associated with IoT solutions forcing substantial investments on digitalscape.
• Cost and ROI: Initial deployment costs vs long-term Return on Investments (ROI) will be a financial challenge for cities and stakeholders that require careful planning including prioritization before embarking onto any IOT projects.
• Skills & Expertise: A shortage of experts in fields such as cyber-security, IoT development and data analysis hampers the smooth implementation and management of sophisticated smart city IoT eco-systems.
Addressing these challenges while harnessing the drivers of IoT in smart cities will be crucial for realizing the full potential of IoT technologies in enhancing urban livability, sustainability, and resilience globally.
IoT in the Global Smart City Suppliers and their Market Shares
In this globally competitive market, several key players such as IBM, Intel, Cisco, Huawei, Microsoft etc. dominate the market and contribute to industry’s growth and innovation. These players capture maximum market share. To know the current market share of each of major players, contact us by email at helpdesk@lucintel.com.
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. With these strategies IoT in the global smart city companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the IoT in the global smart city companies profiled in this report includes.
• IBM
• Intel
• Cisco
• Huawei
• Microsoft
These companies have established themselves as leaders in IoT in the global smart city industry, with extensive product portfolios, global presence, and strong research and development capabilities. They continually strive to enhance their market positions through strategic partnerships, mergers and acquisitions, and product innovations.
The market share dynamics within IoT in the global smart city market are evolving, with the entry of new players and the emergence of connector technologies. Additionally, collaborations between component suppliers, manufacturers, and end-users are fostering technological advancements and expanding market opportunities.
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IoT in the Global Smart City Market by Segment
Major segments of IoT in the global smart city experiencing growth include smart governance, smart building and infrastructure, smart utilities, smart health, public safety, and smart transportation applications. This IoT in the global smart city market report provides a comprehensive analysis of the market's current trends, growth drivers, challenges, and future prospects in all major segments like above. It covers various segments, including application, technology, and component. The report offers insights into regional dynamics, highlighting the major markets for IoT in the global smart city and their growth potentials. The study includes trends and forecast for the IoT in the global smart city market by application, technology, component, and region as follows:
IoT in the Global Smart City Market by Application [$B Analysis for 2018 -2030]:
• Smart Governance
• Smart Building and Infrastructure
• Smart Utilities
• Smart Health
• Public Safety
• Smart Transportation
IoT in the Global Smart City Market by Technology [$B Analysis for 2018-2030]:
• Short Range
• LPWA
• Cellular
• Others
• Short Range
• LPWA
• Cellular
• Others
IoT in the Global Smart City Market by Component [$B Analysis for 2018 -2030]:
• Solution
• Service
IoT in the Global Smart City Market by Region [$B Analysis for 2018- 2030]:
• North America
• Europe
• Asia Pacific
• The Rest of the World
Features of IoT in the Global Smart City Market
• Market Size Estimates: IoT in smart city market size estimation in terms of value ($B).
• Trend And Forecast Analysis: Market trends (2018-2023) and forecast (2024-2030) by various segments and regions.
• Segmentation Analysis: IoT in smart city market size by various segments, such as application, technology, and component, in terms of value.
• Regional Analysis: IoT in smart city market breakdown by North America, Europe, Asia Pacific, and the Rest of the World.
• Growth Opportunities: Analysis on growth opportunities in different application, technology, component, and regions for IoT in smart city market.
• Strategic Analysis: This includes M&A, new product development, and competitive landscape for the IoT in smart city market .
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
This report answers following 11 key questions
Q.1 What are some of the most promising potential, high-growth opportunities for the IoT in the global smart city market by application (smart governance, smart building and infrastructure, smart utilities, smart health, public safety, and smart transportation), technology (short range, LPWA, cellular, and others), component (solution and service), and region (North America, Europe, Asia Pacific, and the Rest of the World)?
Q.2 Which segments will grow at a faster pace and why?
Q.3 Which regions will grow at a faster pace and why?
Q.4 What are the key factors affecting market dynamics? What are the drivers and challenges for IoT in the smart city market?
Q.5 What are the business risks and threats to the IoT in smart city market ?
Q.6 What are emerging trends in the IoT in smart city market and the reasons behind them?
Q.7 What are some changing demands of customers in the IoT in smart city market ?
Q.8 What are the new developments in the IoT in smart city market ? Which companies are leading these developments?
Q.9 Who are the major players of IoT in the smart city market? What strategic initiatives are being implemented by key players for business growth?
Q.10 What are some of the competitive products and processes in the IoT in smart city market , and how big of a threat do they pose for loss of market share via material or product substitution?
Q.11 What M&A activities did take place in the last five years in IoT in the smart city market ?