Smart City Platform Market - Forecast(2025 - 2031)

Smart City Platform Market Overview

Smart City Platform Market is forecast to reach $300 billion by 2030, after growing at a CAGR of 10.2% during 2024-2030. The smart city platform market is driven by a confluence of factors, including the need for sustainable urban planning, government initiatives and policies, technological advancements, environmental concerns, and public safety. As cities grapple with challenges like urbanization, traffic congestion, and pollution, smart city solutions offer a promising approach to address these issues. The rapid advancements in IoT, AI, big data analytics, and cloud computing are enabling innovative solutions that can optimize city operations, improve resource management, and enhance the overall quality of life for citizens
A major trend in the smart city platform market is focus on sustainability. Smart cities are increasingly prioritizing sustainability goals, such as reducing energy consumption, improving air quality, and promoting green transportation. According to the World Economic Forum, Cape Town is actively working to improve its citizens' quality of life by leveraging technology. The city has implemented initiatives such as providing free Wi-Fi on public buses and utilizing real-time data to enhance emergency response and surveillance services. These efforts demonstrate Cape Town's commitment to digital innovation and citizen-centric services. This change went a long way in contributing to clearing of the air as well as reduction on emissions. Another trend is using data-driven decision making. The ability to collect, analyze, and support vast amounts of data is becoming essential for effective urban planning and management. The data generated by IoT devices is not just collected but analyzed in real time. This data is processed using machine learning algorithms and advanced analytics to uncover trends, find anomalies, and extract insightful information. This analysis is critical for predicting and mitigating issues before they become major problems.

Market Snapshot: 

Smart City Platform Market - Report Coverage:

The “Smart City Platform Market Report - Forecast (2024-2030)” by IndustryARC, covers an in-depth analysis of the following segments in the Smart City Platform Market.
 

COVID-19 / Ukraine Crisis - Impact Analysis:

  
•    The COVID-19 pandemic significantly accelerated the adoption of smart city technologies. As cities grappled with the challenges of social distancing, remote work, and increased demand for essential services.
•    The Russia-Ukraine war has had a significant impact on the global smart city platform market.  The war has led to global supply chain disruptions, affecting the availability of critical components and materials necessary for smart city infrastructure. This can potentially delay project timelines and increase costs.

IoT Platforms are the Largest Segment

IoT platforms connect and manage a huge network of Internet of Things (IoT) devices, sensors, and actuators, acting as the backbone of smart cities. According to the latest Ericsson Mobility Report, Broadband IoT is rapidly gaining traction, accounting for over 50% of all cellular IoT connections. By the end of 2024, the total number of cellular IoT connections is projected to reach approximately 4 billion. In contrast, 2G and 3G IoT devices are on a decline, with a predicted annual growth rate of -20% until 2029. Most IoT devices get their data from a streaming platform, which is filtered to remove noise and prepared for analytics. To gain insights, identify patterns, and make data-driven decisions, an IoT data management and analytics software oversees processing, storing, and analyzing datasets that originate from numerous internet-connected devices. IoT analytics services typically make use of advanced data analytics tools like artificial intelligence, machine learning and deep learning to examine and extract valuable information from data to gain valuable insights and helps taking calculated risk.

Smart Mobility is the Largest Application

With over 50% the world's population residing in urban areas, cities face increasing challenges like pollution, congestion, and inefficient resource use. Smart mobility offers a solution by leveraging technology to revolutionize urban transportation. By integrating various modes of transport, such as electric vehicles, public transit, and shared mobility services, cities can reduce emissions, alleviate traffic congestion, and enhance accessibility for all. Intelligent Transportation Systems (ITS) can further optimize traffic flow, improve road safety, and reduce accidents. Moreover, smart mobility solutions can cater to the needs of people with disabilities by incorporating features like accessible public transportation, tactile pavements, and curb cuts. Therefore, cities worldwide strive for sustainable and efficient urban mobility, smart mobility solutions will remain a critical component of smart city platforms. By integrating advanced technologies and innovative strategies, cities can address challenges like traffic congestion, air pollution, and accessibility, creating more livable and sustainable urban environments. 

North America Leads the Market

North America dominates the smart city platform market with a market share of 35%. Countries like the United States and Canada have made significant investments in smart city infrastructure and technology. Compared to other nations, North America's being technological hub climate is growing quickly. The region's smart city platforms market has grown because of numerous factors, including expanding technological advancements, increased usage of smart linked devices and rapid digitalization across multiple verticals. According to THX news, The US Department of State has announced a significant investment in smart city innovation. Through its Smart Cities Business Innovation Fund 2.0, the department will allocate $3 million to support innovative urban sustainability projects in ASEAN member states.  As a result of these bold actions, the North American region continues to lead the technological race and is the market leader for smart city platforms.

Technological Advancements to Drive the Market

The fast growth of technology is a key driver of the smart city platform market. Innovations in areas like IoT, AI, and big data analytics are empowering cities to become more efficient, sustainable, and responsive to the needs of their citizens. These technologies enable real-time data collection, analysis, and seamless connectivity, transforming cities into more efficient and livable environments. For example, 5G technology is revolutionizing connectivity, offering significantly higher speeds and lower latency compared to 4G. With data transmission rates up to 20 Gigabits per second and a response time of just 1 millisecond, 5G enables faster data transfer and supports a massive number of IoT devices. Additionally, 5G is more energy-efficient, reducing energy consumption by 90% per bit compared to 4G. This technological advancement is poised to unlock the full potential of IoT and accelerate the development of smart cities. Additionally, smart apps can assist physicians in remotely monitoring long-term illnesses like diabetes in their patients and in sending out notifications when necessary. As these technologies continue to develop, they will unlock new possibilities for smart cities to address urban challenges and enhance the quality of life for their citizens.

Urbanization

Urbanization is one of the defining trends of this century and a key driver of development. By 2050, around 70% of the world’s population will be living in cities and towns.  The bulk of the urban growth rate will be accounted for by Asia and Africa combined. This development reflects the expansion of "megacities" and smaller urban settlements in both regions over the last three decades.Approximately 80% of the world's GDP is currently produced in cities, and this trend is probably going to continue.In addition, cities account for 70% of global carbon emissions and consume 75% of the world's energy.Both good and negative trends are rising in tandem with the rate and scope of urbanization: from better lives and livelihoods and more economic opportunities to the possibility of wider gaps between urban and rural areas, poorer quality of life, and violence.There is no denying that cities everywhere are vital to the advancement of sustainable development. By using data to attract companies, stimulate growth, and create jobs, communities can thrive. Analyzing economic data allows cities to identify emerging industries, assess market trends, and develop strategies for staying competitive and diverse.

Data Privacy and Security Concerns to Hamper the Growth
The potential benefits of smart cities, such as increased safety and efficiency, are significant. However, these benefits are accompanied by potential risks that require careful consideration as every coin has two sides. Global cyberattacks targeting operational technology systems are on the rise, and their growing integration with smart city infrastructure expands the potential vulnerabilities and amplifies the risks of a successful breach. According to Check Point Research, cyberattacks are on the rise globally, with a significant increase observed in Q2 2024. Compared to the same period in 2023, there was a 30% surge in weekly attacks on corporate networks. Furthermore, Q2 2024 witnessed a 25% increase in attacks compared to the preceding quarter. This relentless onslaught, averaging 1,636 attacks per organization per week, underscores the growing sophistication and persistence of threat actors. Cybercriminals and threat actors find smart cities a desirable target for their plans to take advantage of weak networks and steal private and vital infrastructure data, run ransomware campaigns, or initiate catastrophic cyberattacks. Cyberattacks against smart cities that are successful can result in a halt to infrastructure services, large financial losses, and exposure of private information of citizens, a decline in public confidence in smart systems, and tangible effects on the infrastructure that could result in death or serious injury.

Smart City Platform Market Key Players

Product/Service launches, approvals, patents and events, acquisitions, partnerships, and collaborations are key strategies adopted by players in the Smart City Platform Market. The top 10 players in the Smart City Platform market are: 

1.    Siemens AG
2.    Intel Corporation
3.    Cisco Systems          
4.    IBM Corporation
5.    Hitachi Ltd
6.    Oracle Corporation
7.    Microsoft Corporation
8.    NEC Corporation
9.    Schneider Electric
10.    Minnovation Technologies

Scope of the Report: 
 

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