by Smart cities encompass solutions that leverage connectivity and automation to deliver a higher quality of living and increased operational efficiencies. Smart cities integrate information and communication technologies with physical infrastructure to efficiently manage urban assets. This includes street lighting, parking availability, waste management, air quality monitoring, and public transportation through the use of sensors, networking, and data analytics. Smart cities offer advantages like reduced traffic congestions, lower carbon emissions, improved citizen services, and optimized resource utilization.
The global Smart Cities Market is estimated to be valued at US$ 638.52 Bn in 2023 and is expected to exhibit a CAGR of 5.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends driving the growth of smart cities market is the rising adoption of Internet of Things (IoT). IoT enables connection of physical devices embedded with electronics, software, sensors, and network connectivity that allows these devices to exchange and collect data. IoT solutions are playing a significant role in smart city projects across domains such as transportation, energy management, utilities, and public safety. For instance, smart parking solutions rely on IoT-enabled sensors to detect parking space availability and guide drivers to available spots through smartphone apps or displays. Similarly, IoT-based waste management solutions utilize sensors to monitor trash levels in containers and optimize collection routes. The ever-growing IoT ecosystem is expected to further fuel the implementation of smart city initiatives globally in the forecast period.
Porter’s Analysis
Threat of new entrants: The threat is low as establishing new smart cities require huge capital investments. However, government initiatives are encouraging new projects.
Bargaining power of buyers: The bargaining power of buyers is moderate due to the presence of multiple solution providers. However, customized solutions reduce buyer options.
Bargaining power of suppliers: Major IT companies and component manufacturers have significant influence. However, the diversity of requirements limits the supplier power.
Threat of new substitutes: There are no close substitutes yet for smart city solutions. However, advances in intersecting technologies can enable substitutes.
Competitive rivalry: Competition is intense as leading smart city solution providers aggressively expand their offerings worldwide. However, integrated solutions differentiate companies.
Key Takeaways
The Global Smart Cities Market Size is expected to witness high growth. Asia Pacific region is expected to be the fastest growing market owing to strong government initiatives and increasing investments in smart infrastructure projects across major countries.
Regional analysis comprises: Key Asian countries including China, India are the major regional markets. China has emerged as the global leader in terms of number of smart city projects. Major Indian cities are also witnessing large investments in water, waste, and other smart utility projects.
Key players operating in the smart cities market are Lenny & Larry’s LLC, Quest Nutrition, Munk Pack, Justine€TMs Limited, NuGo Nutrition, No Cow LLC, Buff Bake, MuscleTech, Xterra Nutrition, and The Hershey Company. These players are focusing on partnerships with governments to strengthen their smart solutions offerings and geographical footprints.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
