With the developing mindfulness about "smart everything", the smart cities concept has been gathering consideration, which is to a great extent the aftereffect of all delegate innovations. Moreover, expanding ventures by city governments, central governments, and devoted administering bodies have been principally driving the market development. Financing and subsidizing models, technology ecosystem, governance structures, and investment in infrastructures play an important role in smart city deployments and are expected to drive market growth over the forecast period. The global smart cities market size was valued at USD 98.15 billion in 2020 and is expected to grow at a CAGR of 29.3% from 2021 to 2028.
The recent COVID-19 pandemic and its exceptional spread overall carried various nations to a halt. Additionally, the social, financial, psychological disruption brought about by it across cities and communities stays a continuous issue across many countries. The dependence of the worldwide economy on urban areas and the oversight in keeping public healthcare a priority in smart city vision have been uncovered during the pandemic. As many countries and cities keep on attempting to recuperate from the result of the COVID-19 pandemic, some short-term smart city advancement plans might be curtailed. However, the long-term scenario stays favourable for smart city advancement worldwide to deal with any approaching pandemic circumstance more effectively. The pandemic is expected to act as the inflection point for the digitalization of services. This is expected to drive the market development over the gauge time frame.
Globally, the urban population is expected to reach 68.4% of the total population of 6.68 billion by 2030. It is found that by 2030, there will be 43 megacities in the world with developing regions like the Middle East, Asia, and Africa leading the table. With the growing urban population, government and private organizations across the globe are working tirelessly to innovate solutions for the systematic and sustainable growth of the cities. Smart communication technologies like ICT, IoT, AI, and Big Data are being applied to reduce the crime rate, facilitate seamless transportation, and healthcare management by providing real-time data on the situation and alert the concerned authorities accordingly.
The worldwide smart city communities market by district covers 5 significant geographic areas, to be specific North America, Asia Pacific (APAC), Europe, MEA, and Latin America. APAC is projected to observe the most elevated development rate. Enormous scope ventures for framework modernization and expanding reception of mechanization advances like Internet of Things (IoT) and Artificial Intelligence (AI).
In February 2020, Cisco and Connexin worked together with Quantela for the development of smart cities communities in the UK. Sheffield's parkway network took on the UK's most recent IoT-based savvy city innovation. This arrangement is based on the CityOS stage, uniting the best of breed abilities from Cisco Kinetic and Atlantis keen city arrangements from Quintela
The smart transportation segment dominated the market in 2020 and accounted for a revenue share of over 35%. The driving market growth in both the developing and developed countries globally are due to growing traffic congestion problems owing to rapid urbanization, coupled with the need to modernize public transportation infrastructure.