The concept of smart cities has evolved immensely over the years with cities increasingly relying on connected and integrated infrastructure and technologies to enhance citizen experience and operational efficiencies. The core elements of smart cities include smart transportation, sustainable infrastructure, integrated water supply, waste management, energy management, public safety and more. Advanced technologies such as IoT, cloud computing, big data analytics play a vital role in enabling seamless connectivity between physical infrastructure and digital systems to efficiently deliver services to citizens and businesses. With increasing urbanization levels worldwide, there is a growing need for sustainable infrastructure development and management of urban resources. This has propelled heavy investments towards developing smart street lighting systems, traffic management systems, water distribution systems integrated with sensors and control units.
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 gaining traction in the smart cities market is the rise of 5G networks. 5G is seen as a gamechanger for smart cities as it will facilitate higher broadband speeds and lower latency which is critical for handling the enormous data traffic from a multitude of connected devices. 5G is expected to enable a wide range of smart city applications ranging from connected vehicles, smart infrastructure management to augmented reality and autonomous vehicles. Leading telecom players are heavily investing in upgrading their network infrastructure to support 5G which is expected to significantly boost the smart cities market over the coming years.
Threat of new entrants: The threat of new entrants is moderate due to the huge capital requirements needed to build smart infrastructure.
Bargaining power of buyers: The bargaining power of buyers is moderate as there are many solution providers in the market and buyers have options to choose from.
Bargaining power of suppliers: The bargaining power of suppliers is low due to the fragmented nature of the supply market with presence of large number of component suppliers.
Threat of new substitutes: The threat of new substitutes is low as there are limited substitutes available for smart cities solutions.
Competitive rivalry: The competitive rivalry is high due intense competition between existing players.
The global Smart Cities Market Demand is expected to witness high growth. The market size for 2023 is expected to be US$ 718.42 Bn, growing at a CAGR of 5.9% during the forecast period of 2023 to 2030.
Regional analysis: North America region is expected to dominate the global smart cities market during the forecast period. This is attributed to high focus of governments in developed countries like US and Canada on development of smart infrastructure and solutions. Asia Pacific region is anticipated to grow at the fastest pace owing to increasing investment by governments in countries like China and India to develop new smart cities.
Key players: 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 new product launches and partnerships with technology providers and governments to strengthen their position in the market.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it