MarketsandMarkets, the world’s second largest market research organization, recently released a report saying that the global smart city market will be $308 billion in 2018. It is expected to grow to $717.2 billion by 2023, and the year in the forecast period (2018-2023). The compound growth rate was 18.4%.
The report points out that public security needs, urban populations, and increasing government initiatives are the main drivers of growth in smart city cities around the world.
Smart transportation sector is estimated to account for the largest market size in 2018
According to the report, the global smart city market is divided into four major segments: intelligent transportation, intelligent buildings, smart utilities and smart citizen services.
The intelligent transportation sector can be further divided into intelligent ticketing, traffic management systems, passenger information management system freight information systems, and other sub-sections such as connected vehicles;
The intelligent building sector can also be divided into three sub-sections: building energy optimization, emergency management system and parking management system;
Intelligent utilities can be divided into three areas: advanced metering infrastructure, distribution management system and substation automation.
It should be pointed out that in the global smart city market system, the intelligent transportation sector is expected to occupy the largest segment of the global smart city market in 2018, and this sector is expected to grow dramatically during the forecast period.
Intelligent transportation solutions provide an important impetus for existing and new transportation infrastructure projects, while taking into account multiple factors such as urban population growth and increasingly serious environmental issues.
After researching smart city markets in North America, Europe, Asia Pacific, and the rest of the world, MarketsandMarkets came to the following three conclusions:
Smart Citizen Services will receive the highest compound annual growth rate
The report pointed out that in the smart citizen service system, because the ultimate goal is to provide users with high-quality health care solutions and services, Yujiang will also receive express growth in the smart healthcare market.
In addition, effective monitoring of health needs and remote health monitoring solutions, and the growth of demand for services have also played a significant role in advancing the development of smart healthcare.
Emergency management is expected to occupy the largest market share in smart building solutions
Due to the increasing number of natural disasters and terrorist attacks around the world, public safety-related regulatory policies are also increasing and advancing implementation, coupled with the need for emergency preparedness and the increasing demand for public safety solutions. Both will continue to promote the development of emergency management departments.
The report also stated that public safety solutions need to be completed through complex computing systems that must provide the correct information needed for law enforcement, firefighters and emergency medical support providers to respond effectively and securely.
Asia Pacific (APAC) is expected to occupy the largest market share
After analyzing the smart city markets in five regions of the world – North America, Asia Pacific, Europe, Middle East and Africa (MEA) and Latin America, MarketsandMarkets believes that due to the increasing adoption rate of smart technologies in North America, 2016 North America It has the largest market share in the global smart city market.
However, thanks to government policy support, the Asia Pacific region is expected to surpass North America.
It should be mentioned that in the Asia-Pacific region, China is expected to be in a leading position in the region as China is striving to build 500 smart cities. So far, nearly 290 cities in China have launched pilot projects for smart cities.
Key events in the 2018 global smart city market
In September 2018, Cisco and the Indonesian government signed a global national digital acceleration (CDA) program agreement. Under the agreement, the program will focus on digital government, digital industry, digital state-owned enterprises, and cybersecurity and digital content.
In September 2018, Hitachi Vantara partnered with the Colorado Smart City Alliance to develop smart city solutions for the Colorado city.
In April 2017, Schneider Electric signed a contract with Naya Raipur Development Authority and IL&FS Technologies to develop a comprehensive greenfield project under the Naya Raipur Smart City project, which is expected to be India’s first integrated greenfield smart city project.
In April 2017, IBM partnered with Dublin City University (DCU) to harness the benefits of the Internet of Things to protect water resources.
In March 2017, Siemens and SAP signed an agreement to provide instrument data management for the new utility business model.
The main player in the global smart city: the first in the United States
Finally, MarketsandMarkets also pointed out that in the global smart city market, major and emerging market participants include Cisco (USA), IBM (USA), Siemens (Germany), Schneider Electric (France), Ericsson (Sweden), Vodafone (UK), Itron Inc. (US), Verizon (USA), Telenas (England), ABB (Switzerland), Honeywell International Inc. (USA), SAP SE (Germany), KAPSCH Group (Austria) and AGT International (Switzerland).
MarketsandMarkets believes that these solution providers are the leading providers in the market.
Why do you think this? MarketsandMarkets gives reasons:
These companies use new product launches, acquisitions, business expansions and partnerships to expand their business and drive revenue.
In addition, various smart city vendors are adopting various strategies, including venture capital financing, first-currency issuance (ICO) and other funds to increase their influence in the global smart city market.
At present, domestic manufacturers such as BATJ, Ping An, and Inspur actually perform well in the smart city field, but they still lack certain influence in international development.
Of course, for this latest global smart city industry report, we still need to be rational and objective. At present, the competition in smart cities in China has not yet reached the stage of white-hot, and the giants are still in the stage of finding a good business model. The real crazy harvesting period is far from coming.
The government’s need for security, stability, and scientific planning also tests the global and vertical nature of each smart city participant.
It can be said that a smart city is an absolute slogan, but not everyone can fly high on the wind.