Smart Cities - Global Strategic Business Report

The global market for Smart Cities was valued at US$1.0 Trillion in 2024 and is projected to reach US$3.1 Trillion by 2030, growing at a CAGR of 20.1% from 2024 to 2030. This comprehensive report provides an in-depth analysis of market trends, drivers, and forecasts, helping you make informed business decisions. The report includes the most recent global tariff developments and how they impact the Smart Cities market.

GLOBAL SMART CITIES MARKET - KEY TRENDS & DRIVERS SUMMARIZED

How Are Next-Gen Urban Infrastructures Rewriting the Future of City Living?

Rapid urbanization, rising environmental consciousness, and increasing digital penetration are collectively reshaping the concept of modern cities. Smart Cities, underpinned by intelligent technologies, are being designed to enhance urban efficiency, resource optimization, and quality of life. Governments worldwide are aggressively deploying smart infrastructure to address mounting urban challenges such as pollution, congestion, waste management, and energy inefficiencies. This transformation is being facilitated by large-scale integration of ICT (Information and Communication Technologies), IoT networks, AI-driven analytics, and geospatial technologies to enable real-time data-driven governance. Additionally, 5G rollouts are acting as a catalyst, enabling seamless connectivity for millions of smart devices embedded across utilities, mobility, and civic services. Citizen-centric services, such as automated traffic systems, responsive public transport, digital ID management, and smart grids, are becoming common across pilot cities in Asia-Pacific, North America, and Europe. From Seoul’s advanced digital twin platforms to Amsterdam’s collaborative energy transition projects, cities are embracing open-data ecosystems for participative governance. Moreover, cyber-physical systems and edge computing are paving the way for real-time responsiveness in emergency services, public safety, and citywide surveillance systems. Municipalities are also increasingly forming cross-sector partnerships with tech giants and startups to scale urban innovation and sustainability goals. Smart water and waste systems, predictive maintenance of infrastructure, and sensor-driven utilities are no longer experimental, but foundational. The focus is clearly shifting from isolated smart projects to integrated, citywide digital strategies that are interoperable and scalable.

Is Mobility Becoming the Cornerstone of Smart City Transformation?

The evolution of smart mobility is emerging as a defining pillar of Smart City planning, with multimodal transport ecosystems gaining momentum. Electrification of urban fleets, intelligent traffic management, and micro-mobility services are responding to the demands of carbon-neutral urban transportation. Real-time mobility-as-a-service (MaaS) platforms are enabling commuters to plan, pay for, and navigate multiple transport modes seamlessly through a single digital interface. Integrated ticketing systems, AI-powered route optimization, and adaptive traffic lights are helping cities minimize congestion, reduce emissions, and enhance commuter experience. Cities like Singapore and Helsinki are leading with connected mobility platforms that combine ride-sharing, bike rentals, and public transit. Autonomous vehicles and connected public transport fleets are undergoing trials across smart corridors in the U.S., Germany, and China. Advanced traffic analytics, powered by video surveillance and AI, are not only enhancing traffic flow but also enabling predictive policing in high-density areas. Drone-based delivery trials and low-altitude air mobility frameworks are being explored to ease last-mile congestion. Moreover, smart parking technologies, dynamic toll pricing, and congestion charging mechanisms are helping cities manage vehicular loads more intelligently. The rise in e-scooters, smart bike-sharing systems, and electric bus fleets reflect the transition to cleaner, digitized transportation alternatives. Edge AI and V2X (vehicle-to-everything) communication technologies are expected to revolutionize road safety and transport logistics. Collectively, these smart mobility innovations are strengthening the foundation for sustainable and resilient urban transit systems.

Are Smart Utilities and Infrastructure Redefining the Urban Efficiency Paradigm?

Smart utilities form the backbone of intelligent city frameworks, enabling efficient management of energy, water, and waste resources. Cities are deploying advanced metering infrastructure (AMI) and sensor-based monitoring systems to reduce resource losses, detect anomalies, and ensure transparent billing. Renewable energy integration into urban grids is accelerating, with solar rooftops, battery storage, and smart inverters becoming city standards. Decentralized energy generation models and virtual power plants are gaining traction, especially in regions with aggressive net-zero goals. Digital twins and building management systems are enabling proactive maintenance, energy conservation, and space optimization in commercial and residential buildings. Smart lighting systems that adjust based on real-time occupancy and environmental data are significantly reducing public lighting costs. Cities like Copenhagen and San Diego have adopted predictive analytics in water distribution networks to detect leakages and optimize consumption. Waste-to-energy plants, automated waste sorting, and AI-powered recycling management are helping cities meet circular economy objectives. Underground smart bin sensors, route-optimized waste collection vehicles, and RFID-tagged waste streams are creating unprecedented transparency in waste operations. Utility providers are investing in cybersecurity and data encryption to secure critical urban infrastructure from digital threats. AI-based demand forecasting tools are ensuring more accurate energy provisioning and grid balancing. Moreover, public-private partnerships in smart infrastructure projects are accelerating infrastructure deployment timelines and ensuring fiscal viability.

The Growth In The Smart Cities Market Is Driven By Several Factors…

Surging demand for urban digital transformation, especially across emerging economies, is a key growth catalyst as governments prioritize tech-driven urban resilience and inclusivity. The proliferation of IoT-enabled devices and falling costs of sensors are enabling large-scale deployment of connected infrastructure in both greenfield and brownfield urban projects. Public sector investments in smart governance, digital public services, and city-level open data platforms are also gaining traction, driven by rising citizen demand for transparency, efficiency, and personalization. The shift toward sustainable urban development - fueled by global climate agreements and national decarbonization mandates - is prompting city planners to integrate renewable energy, electric mobility, and low-impact urban planning into smart city roadmaps. Additionally, increased funding allocations through national smart city missions, especially in India, China, and the Middle East, are unlocking opportunities for international vendors and consortia. Rising adoption of cloud platforms and edge computing is enabling localized decision-making, while demand for cybersecurity, data privacy, and interoperability frameworks is catalyzing the growth of compliance-centric solutions. Moreover, the need for pandemic-resilient infrastructure is driving investment in digital healthcare, AI-based population monitoring, and contactless public service interfaces. Growth is also influenced by the increasing role of citizen co-creation in planning processes, accelerating deployment of human-centric solutions. The enterprise sector’s interest in smart campuses and logistics optimization within city limits is further expanding commercial application areas. These interlocking drivers are setting the stage for rapid, scalable, and global expansion of the Smart Cities market.

Report Scope

The report analyzes the Smart Cities market, presented in terms of units. The analysis covers the key segments and geographic regions outlined below.

Segments: Component (Smart Cities Hardware, Smart Cities Software, Smart Cities Services); Application (Smart Utilities Application, Smart Governance Application, Smart Transportation Application, Smart Healthcare Application, Smart Education Application, Smart Security Application, Smart Buildings Application, Other Applications).

Geographic Regions/Countries: World; USA; Canada; Japan; China; Europe; France; Germany; Italy; UK; Rest of Europe; Asia-Pacific; Rest of World.

Key Insights:

• Market Growth: Understand the significant growth trajectory of the Smart Cities Hardware segment, which is expected to reach US$1.2 Trillion by 2030 with a CAGR of a 16.8%. The Smart Cities Software segment is also set to grow at 21.9% CAGR over the analysis period.
• Regional Analysis: Gain insights into the U.S. market, valued at $304.8 Billion in 2024, and China, forecasted to grow at an impressive 23.8% CAGR to reach $509.8 Billion by 2030. Discover growth trends in other key regions, including Japan, Canada, Germany, and the Asia-Pacific.

Why You Should Buy This Report:

• Detailed Market Analysis: Access a thorough analysis of the Global Smart Cities Market, covering all major geographic regions and market segments.
• Competitive Insights: Get an overview of the competitive landscape, including the market presence of major players across different geographies.
• Future Trends and Drivers: Understand the key trends and drivers shaping the future of the Global Smart Cities Market.
• Actionable Insights: Benefit from actionable insights that can help you identify new revenue opportunities and make strategic business decisions.

Key Questions Answered:

• How is the Global Smart Cities Market expected to evolve by 2030?
• What are the main drivers and restraints affecting the market?
• Which market segments will grow the most over the forecast period?
• How will market shares for different regions and segments change by 2030?
• Who are the leading players in the market, and what are their prospects?

Report Features:

• Comprehensive Market Data: Independent analysis of annual sales and market forecasts in US$ Million from 2024 to 2030.
• In-Depth Regional Analysis: Detailed insights into key markets, including the U.S., China, Japan, Canada, Europe, Asia-Pacific, Latin America, Middle East, and Africa.
• Company Profiles: Coverage of players such as AT&T, Inc., ABB Ltd., Accenture PLC, Atos SE, Advantech Co., Ltd. and more.
• Complimentary Updates: Receive free report updates for one year to keep you informed of the latest market developments.

Some of the 176 companies featured in this Smart Cities market report include:

• AT&T, Inc.
• ABB Ltd.
• Accenture PLC
• Atos SE
• Advantech Co., Ltd.
• Acuity Brands Lighting Inc.
• Applied Information, Inc.
• Aeris Communications, Inc.
• Arm Ltd.
• ABM Industries, Inc.
• Alstom SA
• Aveva Group PLC
• Alibaba Cloud
• Amano Corporation
• Anagog Ltd.

Tariff Impact Analysis: Key Insights for 2025

Global tariff negotiations across 180+ countries are reshaping supply chains, costs, and competitiveness. This report reflects the latest developments as of April 2025 and incorporates forward-looking insights into the market outlook.

The analysts continuously track trade developments worldwide, drawing insights from leading global economists and over 200 industry and policy institutions, including think tanks, trade organizations, and national economic advisory bodies. This intelligence is integrated into forecasting models to provide timely, data-driven analysis of emerging risks and opportunities.

What’s Included in This Edition:

• Tariff-adjusted market forecasts by region and segment
• Analysis of cost and supply chain implications by sourcing and trade exposure
• Strategic insights into geographic shifts

Buyers receive a free July 2025 update with:

• Finalized tariff impacts and new trade agreement effects
• Updated projections reflecting global sourcing and cost shifts
• Expanded country-specific coverage across the industry