, /PRNewswire/ -- Report on how AI is driving market transformation - The global smart city market size is estimated to grow by USD 332.5 billion from 2025-2029, according to Technavio. The market is estimated to grow at a CAGR of  21.5%  during the forecast period. Increase in IT consolidation and modernization is driving market growth, with a trend towards proliferation of smart city projects in emerging economies. However, high cost of upgrading smart grids  poses a challenge. Key market players include ABB Ltd, Accenture PLC, Aeris Communications Inc., Alphabet Inc., Cisco Systems Inc., General Electric Co., Hewlett Packard Enterprise Co., Hitachi Ltd., Honeywell International Inc., Huawei Technologies Co. Ltd., International Business Machines Corp., Itron Inc., LG Corp., Microsoft Corp., Oracle Corp., SAP SE, Schneider Electric SE, Semtech Corp., Siemens AG, and Signify NV.

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Market Driver

Developed economies in North America and Europe have led the way in creating smart cities for over a decade, implementing numerous projects. The Asia-Pacific region is currently the fastest-growing market for smart city technologies. Urbanization, driven by mass migration to cities, is increasing population growth in Asia, necessitating infrastructure development, particularly in emerging countries. India and China are in the planning stages and have initiated pilot smart city projects, such as the Indian government's plan to implement these projects in 100 cities nationwide. 

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Market Challenges

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Segment Overview 

This smart city market report extensively covers market segmentation by  

1.1 Smart infrastructure-  Smart infrastructure refers to the digitalization of energy systems, buildings, and industries to enhance efficiency and sustainability. This includes advanced installations and technology systems in buildings for automating processes like heating, ventilation, lighting, security, and more. Smart infrastructure is built on four principles: data collection, analytics, feedback, and adaptability. Factors such as industrial development, commercialization, and energy optimization are driving the adoption of smart infrastructure. Technology innovation, including IoT, analytics, and cloud computing, is also playing a significant role. Governments worldwide are promoting smart city projects to improve living standards and economic growth. For instance, Japan's plan for an autonomous, self-sorting cargo highway showcases this trend. These factors will positively impact the growth of the global smart city market.

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Research Analysis

Smart Cities are urban areas that leverage technology to enhance environmental sustainability and resource management. These cities integrate smart city technologies such as environmental monitoring, traffic safety, and public safety solutions to create a livable, efficient, and secure environment for citizens. Environmental monitoring includes the use of sensors for air quality, water management, and waste disposal. Facial recognition and video cameras are used for public safety and surveillance, while gunshot detection sensors enhance crime-fighting capabilities. Data-driven policing and emergency response protocols ensure rapid response times, and AI access enables rapid video analytics. Integration complexities and cost-effective systems are key considerations for large-scale investments in smart city solutions. Cities like Amsterdam and Chengdu have made significant strides in implementing smart city technologies with government backing. Existing infrastructure and urban sources provide opportunities for cost-effective systems, while drones offer new possibilities for urban surveillance and emergency response.

Market Research Overview

In the digital era, Smart City Market is revolutionizing urban living by integrating environmental sustainability into smart city technologies. Resource management and environmental monitoring are major functions, with facial recognition and public safety solutions ensuring a congestion-free and safe environment. Surveillance, traffic safety, data-driven policing, and emergency response protocols are essential crime-fighting capabilities. First responders, call centers, and field operations leverage real-time data and AI access for rapid response. Smart city initiatives in Amsterdam and Chengdu demonstrate government backing, with video camera and gunshot detection sensors, drones, and intelligent surveillance systems. Rapid video analytics and AI enable swift decision-making for city managers, building owners, and facility managers, leading to cost savings and operational efficiency. Existing infrastructure and large-scale investments require networking and software integration, with cost-effective systems offering long-term cost savings. Urban sources, such as vehicle traffic, electrical grids, and commute times, are optimized for smart grid efficiency, reducing energy consumption and operational costs. The transformative potential of smart city solutions extends to healthcare, with smart healthcare solutions enhancing patient care delivery, caregiving, and decision-making through extensive data analysis. Cybersecurity and data stewardship are crucial considerations in this digital age, ensuring data ownership, interoperability, and cross-border portability. Business leaders and innovative business models drive digitalization and connectivity, shaping the modern healthcare landscape with advanced metering solutions and novel technologies. Network operators and telecommunications infrastructure providers enable cloud edge computing and network slicing for urban management. Ultimately, smart city initiatives aim to improve citizens' lives, ensuring a sustainable urban development that balances environmental sustainability, public safety, and cost savings.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Europe
• North America
• APAC
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio