A new report says smart city technology revenue will grow from $8.8 million worldwide this year to $27.5 billion in 2023 as more cities around the globe adopt smart city technology to meet sustainability goals, boost local economies and improve services.
Philadelphia is one city that is already undertaking a number of smart city initiatives.
Smart city technology is a booming industry, expected to triple over the next decade, according to a new report from Navigant Research.
The report says smart city technology revenue will grow from $8.8 billion worldwide this year to $27.5 billion in 2023 as more cities around the globe adopt smart city technologies to meet sustainability goals, boost local economies and improve services.
Developments in areas such as wireless communications, sensor networks, geospatial analysis, mobile computing, data analytics and cloud computing are helping to address issues such as energy management, water management, urban mobility, street lighting and public safety, according to the report.
“New infrastructure for rapidly expanding cities is being underpinned by information and communications technologies that are deeply embedded in the urban fabric and are profoundly changing the way cities operate and how people live and work in these environments,” said Eric Woods, research director with Navigant Research. “City leaders are embracing these innovations to meet sustainability goals, boost local economies and improve services.”
The largest market driver for smart cities is urban population growth, the report says. According to the United Nations, the number of people living in cities will increase from 3.6 billion to 6.3 billion between 2010 and 2050, bringing with it an increased need for these technologies to help cities keep the costs of services under control.
The Navigant Research report examines the evolution of the global smart city market, detailing the impacts on key technology markets, including smart grids, water management, transportation, building energy efficiency and government services.
The study compares different approaches to the smart city and provides comprehensive profiles of noteworthy smart city projects in each major world region. Global forecasts of the size and growth of the market for smart city technologies, segmented by smart city industry sector and region, extend through 2023.
The report also examines the significant market drivers and challenges related to smart cities, as well as the competitive landscape.
The largest regional market is expected to be Asia Pacific; the smart city technology market in that region is forecast to be worth $11.3 billion annually by 2023.
North American cities are expected to play a major role in climate mitigation and adaptation and also in the renewal of core infrastructure for the region.
Cities in Europe are expected to take a similar position in leading the charge to meet that region’s environmental, economic and social goals.
An executive summary of the report is available for free download on the Navigant Research website.