Smart Cities Industry Overview

The global smart cities market size is expected to reach USD 3,728.3 billion by 2030, registering a CAGR of 25.8% from 2023 to 2030, according to a new report by Grand View Research, Inc. The market growth can be attributed to rapid favorable government initiatives worldwide and emerging technologies, such as Artificial Intelligence (AI), cybersecurity, big data analytics, and the Internet of Things (IoT). This has encouraged several countries to invest in smart city projects to manage infrastructure and assets. Further, the increasing adoption of Electric Vehicles (EVs) has also created a demand for the development of charging infrastructure in cities globally. Due to this, it provides energy storage and creates new revenue streams from EV batteries. These benefits will further boost the smart cities market's growth during the forecast period.

The smart cities market is witnessing a high investment in smart security, smart metering for utilities, integrated traffic management systems, and smart mobility. Several technologically innovative cities use IoT platforms to monitor their infrastructure, manage traffic flows, water management, parking, and air quality, and use the generated smart data to handle longer-term decisions for environmental sustainability. Market players are establishing strategic partnerships with technology providers to improve their smart cities portfolio. For instance, in February 2022, an electric utility company, E.ON SE, partnered with telecom company Vodafone Group plc to develop smart water, gas, and electricity meters, accrelating the smart cities market growth.

Gather more insights about the market drivers, restrains and growth of the Smart Cities Market

Various country governments, such as India, Germany, Canada, Japan, and Australia, are launching smart city-based projects to improve citizens' lifestyles and create safer communities, propelling smart cities market expansion. Government-authorized associations organizations are collaborating with market players to develop smart city solutions to assist the government in planning smart city strategies. For instance, in October 2022, the non-profit organization, Accelerator for America partnered with Honeywell International Inc. and launched the Smart City Accelerator Program to help smart city developers define priorities, align key stakeholders, and improve service delivery operational efficiency of smart cities projects.

Browse through Grand View Research's Next Generation Technologies Industry Research Reports.

• The global artificial intelligence in marketing market size was estimated USD 20,447.1 million in 2024 and projected to grow at a CAGR of 25.0% from 2025 to 2030.

• The global AI training dataset in healthcare market size was estimated at USD 423.0 million in 2024 and is projected to grow at a CAGR of 22.9% from 2025 to 2030. 

Smart Cities Market Segmentation

Grand View Research has segmented the global smart cities market on the basis of on application, smart governance, smart utilities, smart transportation, smart healthcare, and region:

Smart Cities Application Outlook (Revenue, USD Billion, 2018 - 2030)

• Smart Governance
• Smart Building
• Environmental Solution
• Smart Utilities
• Smart Transportation
• Smart Healthcare
• Smart Public Safety
• Smart Security
• Smart Education

Smart Governance Outlook (Revenue, USD Billion, 2018 - 2030)

• City Surveillance
• C.S.
• E-governance
• Smart Lighting
• Smart Infrastructure

Smart Utilities Outlook (Revenue, USD Billion, 2018 - 2030)

• Energy Management
• Water Management
• Waste Management
• Meter Data Management
• Distribution Management System
• Substation Automation
• Other Smart Utilities Solutions

Smart Transportation Outlook (Revenue, USD Billion, 2018 - 2030)

• Intelligent Transportation System
• Parking Management
• Smart Ticketing Travel Assistance
• Traffic Management
• Passenger Information
• Connected Logistics
• Other Smart Transportation Solutions

Smart Cities Smart Healthcare Outlook (Revenue, USD Billion, 2018 - 2030)

• Medical Devices
• Systems Software

Smart Cities Regional Outlook (Revenue, USD Billion, 2018 - 2030)

• North America
  • US
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordic Region
  • Eastern Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • ASEAN
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa (MEA)
  • UAE
  • South Africa
  • Saudi Arabia

Key Companies profiled:

• ABB Limited
• AGT International
• AVEVA Group plc.
• Cisco Systems, Inc.
• Ericsson
• General Electric
• Honeywell International Inc.
• International Business Machines Corporation
• Itron Inc.
• KAPSCH Group
• Huawei Technologies Co., Ltd.
• Microsoft Corporation
• Oracle Corporation
• Osram Gmbh
• SAP SE
• Schneider Electric SE
• Siemens AG
• Telensa
• Verizon
• Vodafone Group plc

Key Smart Cities Company Insights

Some of the key players operating in the market include Microsoft Corporation, and Oracle Corporation.

• Microsoft Corporation provides business software and solutions. The well-known software products from Microsoft are the Microsoft 365 series of productivity programs, Windows series of operating systems, and the Edge browser. Its flagship hardware products are Xbox video game consoles and Microsoft Surface touchscreen computers.
• Oracle Corporation is a provider of IT software and services. The company sells database software and technology, cloud engineered systems, and enterprise software products, such as, human capital management software, enterprise resource planning software, supply chain management software, enterprise performance management software, and customer relationship management software.
• Ericsson, and Telensa are some of the emerging market participants in the smart cities market.
• Ericsson develops the IT products and services for the telecommunications industry and is currently leading the way in 5G. The company sells infrastructure, software and services in the field of information and communication technology for mobile service providers and enterprises, including 3G, 4G and 5G equipment, Internet Protocol (IP) and optical transport systems.
• Telensa offers simple and effective smart lighting solutions for public and district lighting to help cities, utilities and large areas manage their lighting to save money and reduce costs.

Recent Developments

• In December 2023, Msheireb Properties (MP), Qatar based property developer, signed a Memorandum of Understanding (MoU) with Microsoft Corporation, software products developer, to develop a ‘Smart Experience’ project for visitors, retail, residents, and commercial customers in MP’s development, Msheireb Downtown Doha (MDD).The Smart Experience project is revolutionizing the way citizens interact with the urban environment by incorporating new solutions to improve the lives of MDD members.
• In November 2023,Smart City Expo World Congress (SCEWC), the international event on cities and smart urban solutions organized by Fira de Barcelona. It is an exhibition of innovative urban solutions and projects that focus on ways to transform modern cities into more sustainable, efficient and habitable places. The congress program of SCEWC comprises eight main themes, including energy and environment, enabling technologies, mobility, housing and inclusion, management and economy, security and blue economy, and infrastructure and buildings.
• In August 2023, NEC Corporation India, IT services provider, launched Smart City project in Tirupati, India, for Tirupati Smart City Corporation Limited.Under this project, NEC Corporation India would implement ICT solutions across the city and establish a City Operations Center (COC) in Tirupati. ICT solutions, such as, a unified command and control center, and integrated services enable real-time data collection and analysis and two-way communication, helping to provide more effective responses to environmental, and health safety.

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