Smart city market value to surpass US$2 trillion by 2025, study predicts
April 4, 2018
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By 2050, over 80% of the population in developed countries is expected to live in cities. This number is expected to be over 60% for the developing world, says the research firm Frost & Sullivan.
The creation of smart cities enables a smooth transition to urbanization, with technological advances helping municipalities optimize resources for maximum value to the population, whether that value is financial, savings in time, or improvement in quality of life.
“Artificial Intelligence (AI) has been the most funded technology innovation space in the past two years, with large investments coming from independent and corporate venture capital companies,” said Jillian Walker, visionary innovation principal consultant at Frost & Sullivan.
AI plays a key role in smart cities in the areas of smart parking, smart mobility, the smart grid, adaptive signal control, and waste management. Major corporations such as Google, IBM, and Microsoft remain key tech innovators and the primary drivers of AI adoption.
Other findings include:
*Smart cities are anticipated to create huge business opportunities with a market value of over US$2 trillion by 2025.
*AI, personalized healthcare, robotics, advanced driver assistance systems (ADAS), distributed energy generation and other five technologies are believed to be the technological cornerstones of smart cities of the future.
*In Asia, more than 50% of smart cities will be in China. Smart city projects will generate US$320 billion for China’s economy by 2025.
*The total North American smart buildings market, comprising the total value of smart sensors, systems, hardware, controls, and software sold, is projected to reach $5.74 billion in 2020.
*Europe will have the largest number of smart city project investments globally, given the engagement that the European Commission has shown in developing these initiatives.
“Currently most smart city models provide solutions in silos and are not interconnected,” said Vijay Narayanan, senior research analyst at Frost & Sullivan. “The future is moving toward integrated solutions that connect all verticals within a single platform. IoT is already paving the way to allow for such solutions.”
Further information on the study is available at http://frost.ly/2d3.