The smart city platforms market analysis report by Future Market Insights reveals that global sales of the smart city platforms market in 2022 were held at USD 157.6 billion. The projected market growth from 2023 to 2033 is expected to be 11%.
Platforms offering is expected to be the high revenue-generating segment, projected to expand at a CAGR of over 9.5% from 2023 to 2033.
| Attributes | Details |
|---|---|
| Global Smart City Platforms Market Size (2023) | USD 175 billion |
| Global Smart City Platforms Market Size (2033) | USD 496.9 billion |
| Global Smart City Platforms Market CAGR (2023 to 2033) | 11% |
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As per the smart city platforms market research by Future Market Insights - a market research and competitive intelligence provider, historically, from 2018 to 2022, the market value of the smart city platforms market increased at around 12% CAGR.
Platforms segment is predicted to expand at a CAGR of 9.5% through 2033. The fast pace of urbanization is reinforcing the notion of smart cities, offering promising development potential for the smart city platforms industry. Also, smart city platforms are crucial for improving urban infrastructure, operations, and applications, as well as other city-specific activities.
IoT connects businesses and governments to all smart opportunities, such as smart transportation, smart cities, and smart utilities, allowing them to obtain real-time location-based data. Further, IoT creates massive volumes of data in real time from multiple sources.
Deploying IoT solutions in smart city initiatives necessitates collaboration among several stakeholders, including telecom carriers, service providers, infrastructure providers, manufacturers, and the government sector. Moreover, the public-private partnership (PPP) model is most often used by governments throughout the world to encourage smart city initiatives. Also, technological breakthroughs, such as cloud, IoT, mobility, AI, and data communications, contribute to the infrastructure of smart cities.
The advancement of 5G and NB-IoT innovations, in particular, is likely to propel the smart city platforms industry forward. These technologies are utilized not only to improve residents' lives, but also in areas such as privacy, security, and environmental sustainability.
Another key reason impeding the growth of the smart city platforms market is security concerns around the introduction of smart devices in cities. Further, smart city systems, like any other linked technology, rely on networking for data transfer and are thus subject to compromise. Factors that are driving the market growth further include:
During the projected period, North America held a notable share in the global smart city platforms market with a market size of USD 145 billion. The regional market is anticipated to expand at a CAGR of 9.6%.
Region's network operators continuously invest in upgrading and expanding their telecom networks, as well as transitioning to 5G infrastructure by maximizing innovations such as cloud-edge computation technology and network slicing, thereby accelerating the acceptance of smart city systems and platforms for low-cost and tactical urban management.
The entrepreneurial environment in North America is expanding fast compared to other countries. Rapid digitization across several verticals, rising usage of smart connected devices, and growing technical breakthroughs have all contributed to the development of the smart city platforms industry in the region.
The United States is expected to hold a notable market share of USD 130 billion by the end of 2033 with an expected CAGR of 9.6% by the end of 2033.
Factors such as the widespread use of smart city services and solutions, significant ICT investment by government organizations, and rising demand for linked solutions are driving the market growth in the country.
Governments in several locations in the United States are preparing to invest considerably to improve their infrastructure and fully capitalize on the benefits of IoT. Moreover, the presence of leading industry competitors including Microsoft, IBM, Cisco Systems, and GE Current in the area is expected to open new development opportunities for the regional marketplaces.
Additionally, increased internet penetration helps to complement the notion of smart city platforms by allowing IoT connections, which contribute significantly to smart city platforms. KT's innovative technology, Giga Wire, has been utilized in the United States.
Las Vegas has implemented Digital Twin technology, following the footsteps of New York City, intending to achieve zero carbon emissions. Following that, Las Vegas is planning to leverage the power of advanced IoT, 5G networking, and other technologies to improve air quality, noise pollution, mobility, water management, and pollutants from key structures.
The platforms segment is forecasted to expand at a high CAGR of around 9.5% from 2023 to 2033. Analytics, performance management, remote asset monitoring, decision support, and presentation components are all performed by smart city platforms.
Most technologically savvy cities utilize the Internet of Things system to analyze municipal infrastructure, regulate everything including water and air quality, traffic flows, and parking, and use the resultant smart data to address longer-term environmental planning issues.
The smart city platforms provide a framework enabling urban infrastructure, technologies, and operations, as well as a variety of city-specific tasks. Also, due to the sheer flexibility and incorporation of other smart solutions, one of the important reasons projected to fuel the rising demand in cities is giving precedence to platform providers over standalone smart solutions.
The Hybrid segment is forecasted to expand at a significant CAGR of around 9% between 2023 and 2033. The solution is deployed at the customer's location under the hybrid delivery model, which is comparable to the offshore approach.
Maintenance and upgrades are performed at the customer's location, while other aspects of the services are managed remotely from the vendor's location. Due to the connection management and security platforms, the hybrid delivery model is widely used.
The advantages of both on-site and offshore delivery approaches may be used in this delivery strategy. Furthermore, hybrid solutions provide a broad array of functions and essential characteristics, fueling total hybrid solution adoption during the projected period. Additionally, this delivery approach combines the advantages of onshore and offshore delivery. For instance,
The research discusses key trends in the smart city platform industry as well as inorganic and organic growth methods. Moreover, various firms are focusing on organic growth strategies such as product approvals, and new product releases.
The strategy noted in the sector included mergers and acquisitions, partnerships, and collaborations. These measures have paved the way for market players to grow their businesses and strengthen their distribution networks.
Recent Developments in the Smart City Platform Market
| Report Attributes | Details |
|---|---|
| Growth Rate | CAGR of 11% from 2023 to 2033 |
| Base Year for Estimation | 2023 |
| Historical Data | 2018 to 2022 |
| Forecast Period | 2023 to 2033 |
| Global Smart City Platforms Market Size (2023) | USD 175 billion |
| Global Smart City Platforms Market Size (2033) | USD 496.9 billion |
| Quantitative Units | Revenue in USD million and CAGR from 2023 to 2033 |
| Report Coverage | Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends, and Pricing Analysis |
| Segments Covered | Offering, Delivery Model, Application, Region |
| Regions Covered | North America; Latin America; Western Europe; Eastern Europe; Asia Pacific excluding Japan; Japan; The Middle East and Africa |
| Key Countries Profiled | The United States, Canada, Brazil, Mexico, Germany, The United Kingdom, France, Spain, Italy, Poland, Russia, Czech Republic, India, Bangladesh, Australia, New Zealand, China, Japan, South Korea, GCC Countries, South Africa, Israel |
| Customization | Available Upon Request |
The market is estimated to reach USD 496.9 billion by 2033.
Siemens, Hitachi, and Datumate are the key market players.
The market is estimated to secure a valuation of USD 175 billion in 2023.
The growth potential of the market is 11% through 2033.
Increasing government investments in smart city projects drives sales.
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Smart City Platforms Market
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