IoT in Smart Cities Global Market Report 2024

The IoT in Smart Cities market has grown exponentially in recent years. It will grow from $191.76 billion in 2023 to $230.84 billion in 2024 at a compound annual growth rate (CAGR) of 20.4%. The expansion observed in the historical period can be attributed to factors such as infrastructure modernization, the pursuit of sustainability goals, concerns related to public safety, the need for efficient traffic management, the demand for energy efficiency, and increased citizen engagement in smart city initiatives.

The IoT in Smart Cities market is expected to see exponential growth in the next few years. It will grow to $490.01 billion in 2028 at a compound annual growth rate (CAGR) of 20.7%. The anticipated growth in the forecast period can be attributed to factors such as enhanced security measures, the implementation of robust data privacy regulations, circular economy initiatives, global connectivity, and interoperability, as well as the integration of health and wellness solutions in smart cities. Key trends expected in the forecast period encompass the integration with 5G networks, the adoption of advanced urban mobility solutions, the implementation of smart grids for efficient energy management, the application of AI and machine learning in various city functions, and the fostering of public-private partnerships to drive smart city initiatives.

The anticipated growth of the IoT in the smart cities market is set to be propelled by the increasing adoption of 5G technology. 5G, the fifth generation of cellular technology, is known for enhancing wireless services by providing faster, more seamless, and flexible connectivity. This technology is expected to play a pivotal role in advancing IoT within smart cities, creating a platform for connecting a vast array of sensors and actuators with a focus on energy efficiency and data transmission. The expanding implementation of 5G is evident from the data published by the Mobile Suppliers Association in March 2023, revealing a substantial increase in 5G subscribers from 619 million in December 2021 to 1.15 billion in December 2022, representing an 85.9% year-on-year growth. Consequently, the growing adoption of 5G technology is poised to drive the development of the IoT in the smart cities market.

The upward trajectory of infrastructure development is expected to significantly contribute to the growth of the IoT in the smart cities market. Infrastructure development involves the planning, design, construction, and improvement of physical and organizational structures essential for the functioning of regions, communities, or countries. This development often incorporates smart technologies to enhance efficiency, connectivity, and sustainability. IoT plays a crucial role in this context by enabling various physical devices and systems to connect and exchange data. In smart cities, elements such as traffic lights, waste management systems, energy grids, and water supply networks can be equipped with IoT sensors and devices to optimize functionality. As highlighted by Global X ETF in March 2023, the $1.2 trillion Infrastructure Investment and Jobs Act (IIJA) in the United States is a significant step towards improving infrastructure, with a $550 billion investment over the next decade. This investment aims to enhance roads, bridges, airports, railroads, access to clean drinking water, broadband internet, and environmental justice. Hence, the surge in infrastructure development is a key driver of the growth of IoT in the smart cities market.

Major players in the IoT in Smart Cities market are strategically developing new business platforms for digital transformation to gain a competitive advantage. Digital transformation involves leveraging digital technologies to fundamentally enhance various aspects of business operations, strategies, and customer experiences. Siemens AG, a Germany-based automation company, exemplifies this trend with the launch of Siemens Xcelerator in July 2022. This open digital business platform accelerates digital transformation across industries by offering a curated portfolio of IoT-enabled hardware, software, and digital services. Siemens Xcelerator includes a growing partner ecosystem and a marketplace to facilitate interactions and transactions. Among its applications, Building X, a smart building suite, creates a single source of truth for digitalization, supporting customers in achieving net-zero goals. This modular, cloud-based suite features AI-enabled applications, strong connectivity, and built-in cybersecurity. Siemens also plans to integrate its industrial IoT solutions under Industrial Operations X, offering solutions from sensor to edge to cloud, IoT as-a-service, and low-code development capabilities.

Major companies in the IoT in Smart Cities market are also focusing on the development of IoT-enabled actuators as a strategic move to enhance their competitive position. An actuator is a mechanical or electronic device responsible for moving or controlling a mechanism or system. Sauter AG, a Switzerland-based building automation company, introduced the Smart Actuator in July 2022. This IoT-capable actuator streamlines the planning, installation, and operation of HVAC systems in new or renovated buildings. Notable features include easy installation with a connector system, pre-assembled cables, and mechanical/color coding to prevent wiring errors. The actuator supports fast configuration through a smartphone app, eliminating the need for additional software. Connectivity options include integration with building automation systems through communication interfaces, as well as IoT and cloud connection for remote access and a solution library. The Smart Actuator also provides semi-autonomous or autonomous control for distributed intelligence, resulting in more robust, resource-efficient, and modular systems.

In January 2022, Marston Holdings Ltd., a UK-based integrated technology-enabled solutions provider, acquired Vortex IoT Limited. This acquisition positions Marston to offer complementary air quality and acoustic monitoring solutions, thereby raising awareness, identifying areas of excessive pollution, and improving public health. Vortex IoT Limited, based in the UK, specializes in Platform as a Service, air quality monitoring, air pollution, sensing as a service, and vehicle-to-infrastructure IoT solutions within smart city environments and networks.

Major companies operating in the IoT in Smart Cities market report are Cisco Systems Inc., Intel Corporation, The International Business Machines Corporation (IBM), Huawei Technologies Co. Ltd., Tech Mahindra Limited, Microsoft Corporation, Honeywell International Inc., Bosch Global Software Technologies Private Limited, Siemens Incorporation, PTC Inc., ARM Inc., Schneider Electric SE, Deutsche Telekom AG, Hitachi Ltd., SAP SE, Dell Technologies Inc., Samsung SDS Co. Ltd., Hewlett Packard Enterprise Company LP, Toshiba Corporation, Panasonic Corporation, Sony Corporation, LG Electronics Inc., Philips Lighting Holding B.V., Osram Licht AG, Cree Inc., Acuity Brands Inc., General Electric Company, Verizon Communications Inc., AT&T Inc., Johnson Controls International plc.

Asia-Pacific was the largest region in the IoT in Smart Cities market in 2023. The regions covered in the IoT in Smart Cities market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the IoT in Smart Cities market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary component types of IoT in Smart Cities are solutions and services. IoT solutions in smart cities involve the use of connected devices and sensors to gather and analyze data, aiming to enhance the efficiency, sustainability, and livability of urban environments. Various technologies, including Bluetooth, cellular networks, RFID, and others, are applied in areas such as smart building, smart healthcare, smart energy, smart transportation, public safety, smart infrastructure, and more.

The IoT in Smart Cities market research report provides IoT in Smart Cities market statistics, including IoT in Smart Cities industry global market size, regional shares, competitors with a IoT in Smart Cities market share, detailed IoT in Smart Cities market segments, market trends and opportunities, and any further data you may need to thrive in the IoT in Smart Cities industry. This IoT in Smart Cities market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The IoT in Smart Cities market consists of revenue earned by entities IoT services such as infrastructure management, transportation, energy management, and building automation. The market value includes the value of related goods sold by the service provider or included within the service offering. IoT in the smart cities market also includes the sale of sensors, lights, and meters to monitor and analyze data. The IoT in Smart Cities market also includes sales of processors, smart meters, streetlights and microcontrollers equipment which are used in providing IoT in Smart Cities services. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods. The IT market is segmented into IT services; computer hardware; telecom and software products.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.