A recent report published by
Infinium Global Research on smart city market provides in-depth analysis of
segments and sub-segments in the global as well as a regional smart city market.
The study also highlights the impact of drivers, restraints, and macro
indicators on the global and regional smart city market over the short term as
well as long term. The report is a comprehensive presentation of trends,
forecast and dollar values of global smart city market. According to the
report, the global smart city market is projected to grow at a CAGR of 16.1%
over the forecast period of 2020-2026.
A smart city uses information and
communication technologies (ICT) to improve operational efficiency, share
information with the public, and improve both the quality of government
services and citizen welfare. The major purpose of a smart city is to optimize
city functions and boost economic growth while improving the quality of life
for the citizens using smart technology and data analysis. Smart cities use
technologies such as the internet of things (IoT), analytical software
solutions, user interfaces (UI), and communication networks. The smart cities
majorly rely first and foremost on the IoT. The IoT is a network of connected
devices including vehicles, sensors, or home appliances, that share and
exchange data. Data collected and transmitted by the IoT devices is stored
either in the cloud or servers. The connection between these devices and the
use of data analytics (DA) helps in the transformation of the physical and
digital city elements. This, in turn, improves the efficiency of both the
public and private sectors, resulting in increased economic benefits and
improved lives of its citizens.
The current concerns over the
spread of coronavirus are creating a huge impact on the smart city market.
COVID-19 pandemic affected the global smart city market by hindering production
and demand, by disrupting supply chain and electronics market disruption, and
by its impact on firms and the financial industry. The gap in the demand-supply
chain will hinder the functioning of the flourishing smart city industry. On
the other hand, the sale of most of the market players has decreased due to the
minimal sale in coronavirus outbreak. However, over the long term, growth is
likely to remain stable, as many of the countries are given permission for
reopening manufacturing plants and have cut down travel restrictions. Moreover,
the sale is expected to come back to a regular pace with a moderate drop in the
prices. As the pandemic conditions get under control, the economic
uncertainties are expected to diminish.
The growing adoption of wirelessly
connected devices and the Internet of Things (IoT) is driving the growth of the
smart city market. The Internet of Things (IoT) helps to connect people and
devices to each other via the Internet. Furthermore, the need for
energy-efficient houses is influencing the growth of the smart city market. The
rising concern about the high consumption of electricity and the look-out for energy-efficient
alternatives will drive the growth of the smart city market. Smart cities are
becoming more autonomous and manage their energy footprint more efficiently.
Additionally, the increasing development in the field of smart grids is another
major growth driver for the global smart city market. The government bodies are
motivating manufacturers to develop and consumers to adopt domestic appliances
that use smart grids. However, the security concerns associated with connected
devices are a major restraining factor that will likely affect the growth of
the market. These devices often don’t get the updates, which make them prone to
hackers and other security issues. Nevertheless, rapid technological
advancement is provided significant growth opportunities for the market.
In terms of geography, North
America generated the largest revenue for the smart city market. The growing
adoption of smart healthcare, smart security, and smart homes in the region has
increased the penetration of the smart city market. Moreover, high
implementation of the internet of things, development in high-end
infrastructure, an emphasis on energy saving, and accessibility of effectual
network connectivity are driving the market growth in North America. On the
other hand, Asia-Pacific is expected to be the fastest-growing region in the
global smart city market. The factors such as rapid growth in population,
increasing economic development, and technological advancement for resource
management and sustainable development are supporting the fastest growth of
this region in the global smart cities market.
The report on global smart city
market covers segments such as application. On the basis of application, the
sub-markets include smart buildings, smart healthcare, smart homes, smart
industrial automation, smart energy management, smart transportation, and
The report provides profiles of
the companies in the market such as Oracle Corporation, Cisco Systems, Inc.,
IBM Corporation, Hitachi, Ltd., General Electric Company, Honeywell
International Inc., ABB Ltd, Alcatel Alcatel-Lucent SA, and Alstom SA.
The report provides deep insights
into the demand forecasts, market trends, and micro and macro indicators. In
addition, this report provides insights into the factors that are driving and
restraining the growth in this market. Moreover, The IGR-Growth Matrix analysis
given in the report brings an insight into the investment areas that existing
or new market players can consider. The report provides insights into the
market using analytical tools such as Porter's five forces analysis and DRO
analysis of smart city market. Moreover, the study highlights current market
trends and provides forecast from 2020-2026. We also have highlighted future
trends in the market that will affect the demand during the forecast period.
Moreover, the competitive analysis given in each regional market brings an
insight into the market share of the leading players.