A study conducted by Persistence Market Research has estimated that the global market for smart city technology will reach 3.48 trillion US dollars with a growth rate of over 18 percent over the next 10 years to 2026.
Robust urbanization and supportive government policies are expected to promote the concept of smart cities across the globe. Growing concerns over energy wastage and reducing carbon emission may encourage the development and adoption of smart city infrastructure.
However, a lack of network infrastructure and poor funding will continue to slow the adoption rate in developing countries.
Integration of advanced technologies into existing facilities and rapid digitization are also expected to boost the overall growth of the market.The study also suggests that further growth will be funded using crowdfunding, public-private partnerships and other options.
In 2015, smart energy technology had an 18 percent share of the market in terms of value due to the installation of a large number of smart grid systems. However, the report suggests that this market share will decrease in coming years as the popularity of other types of smart technology including smart education and smart healthcare increase.
Smart security is expected to grow over the next ten years. In 2015, it accounted for 15 percent of the market. The report predicts that its value could increase as high as 780 billion dollars by 2026. Smart hardware will retain its dominant position in the market with more than 35 percent value share. However, this area is anticipated to lose ground post-2021 with the smart services expected to rise in value.
The report’s other findings include:
• The market in North America will reach 750 billion dollars with at 14.5 percent compound annual growth rate (CAGR) between 2016 and 2026. However, the region may experience a slump during the end of this period.
• Asia Pacific excluding Japan (APEJ) will also have a robust CAGR of 22 percent with a market value of 1 trillion dollars by 2026. The report predicts that this market will be outgrow the market for smart cities in the US over the next ten years.
• In Europe, cities in the UK, France and Germany are predicted to be the main adopters of smart technology.
• Mexico and Brazil are predicted to be the driving forces behind the overall growth of the Latin America smart cities market.
• Governments in various countries are coordinating with smart city technology and service providers in order to deploy smart city infrastructure.
• Demand for smart lighting is an emerging trend which is expected to influence market growth over the next couple of years.
• Several clean and green technology firms are gearing up to launch a wide range of products and services including smart apps, to tap into market opportunities expected to develop in the near future. Demand for more environmentally friendly alternatives may be a strong influence on market trends.
Key players operating in the global market for smart cities include Philips Lighting, SAP SE, Cisco Systems, Inc., IBM Global Business Services, Ericsson, Hitachi Data Systems Corporation, Microsoft, AT&T, GE and Huawei Technologies Co., Ltd.
Persistence Market Research is a third-platform research firm whose research model combines data analytics and market research methodology to help businesses.
More information about the report is available at http://www.persistencemarketresearch.com/market-research/smart-cities-market.asp