Smart City Platforms Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 42.01 Billion |
| Market Size (2029) | USD 192.22 Billion |
| CAGR (2024 - 2029) | 35.55 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Smart City Platforms Market Analysis
The Smart City Platform Market size is estimated at USD 42.01 billion in 2024, and is expected to reach USD 192.22 billion by 2029, growing at a CAGR of 35.55% during the forecast period (2024-2029).
The COVID-19 pandemic heightened the need to invest in connectivity infrastructure and solutions that alleviate public health and safety concerns. The demand for safe and secure transport and connected applications rose to make systems safer by providing real-time warnings about crowding, access problems, or delays to help people make better informed public travel decisions.
- Smart cities are growing globally due to urbanization, which is enabling market growth. According to projections by the United Nations, in India, 404 million, China, 292 million, and Nigeria, 212 million urban dwellers are expected to be added to the existing populations by 2050.
- The government initiatives and spending are also giving much more significance to platform providers than standalone smart solutions because of the scalability and integration of other smart solutions. For instance, as of January 2022, the Indian government has released INR 28,413.6 crore for 100 smart cities.
- Smart city platforms perform various functions, such as analytics, remote asset monitoring, performance management, decision support, or presentation components. Most technologically advanced cities use the Internet of Things platform to monitor city infrastructure, manage traffic flows and parking to water and air quality, and use the resulting smart data to tackle longer-term planning decisions around environmental sustainability.
- The smart city platforms offer a foundation for urban infrastructure, applications, services, and various city-specific functions. One of the significant factors expected to drive the market's growth in cities is giving priority to platform providers compared to standalone smart solutions because of the scalability and integration of other smart solutions.
- As smart city projects across the world have grown and have taken up the pace, the primary vision, the technologies, and the realities on the ground level have become layered and more complex to deal with. Furthermore, to simplify these complexities, the market will witness a strong drive toward the usage of more intuitive processes, which includes the increased adoption of machine learning solutions to gather and analyze the huge amount of generated data.
Smart City Platforms Market Trends
This section covers the major market trends shaping the Smart City Platform Market according to our research experts:
Smart Governance to be the Major Application Area
- The smart city platform increases the efficiency of government programs and helps them reach their beneficiaries. Some smart cities are trying to put technology to use to engage their citizens through eGovernment initiatives, which improve public sector efficiency and streamline government systems to support sustainable development.
- eGovernment uses online, one-step gateways for citizens to access primary government services quickly and easily. An example would be a local government keeping records of life events - births, marriages, deaths - in the cloud, rather than in paper files, for easy access for government officials and employees.
- Huawei e-Government is an integral platform for government networks, cloud, collaborative offices, multi-dimensional security, and operational efficiency. In India, Cisco has implemented solutions such as Wi-Fi, remote e-governance, and citizen kiosks, coupled with Cisco Kinetic for Cities and analytics solutions at City Command and Control Centre (C-4).
- Based on the Horizon Digital Platform, Huawei Technologies Co. Ltd announced the launch of the "HiCity" Intelligent City Solution that optimizes the integration of the data and a variety of ICT technologies to streamline service processes and transfer information flows, reducing the threshold for the use of new technologies and making integration easier. Together with ecosystem partners, the company aims better to support the governance and innovation of smart cities.
- To help solve some of the issues faced in modern urban centers, such as the revitalization of communities and enhancement of safety, this service uses IoT technology to collect comprehensive data in numerous fields and spheres (for example, disaster management, tourism, energy, etc.) from multiple locations throughout the region and city.
- As per European Telecommunications Network Operations (ETNO), the number of IoT smart buildings' active connections was expected to increase through the years. It was 15.99 million connections in 2019 and is expected to reach 154.06 million by 2025.
North America Expected to Dominate the Market
- North America emerged as the dominant regional market for smart cities in terms of revenue, owing to widespread adoption of smart city solutions, high ICT investment among government organizations, and high demand for linked solutions across the region.
- It is one of the leading regions in terms of the development of smart city platforms. IoT Smart Cities' technology enables the cutting-edge intelligence and flexibility necessary to help cities use resources more efficiently and improve everything, from air and water quality to transportation, energy, and communication systems. According to Smart America, the governments in the cities of the United States may invest approximately USD 41 trillion over the next 20 years to upgrade their infrastructure to leverage the benefits of the IoT.
- Furthermore, the region has a strong foothold of vendors, contributing to the market studied's growth. Some vendors include Microsoft Corporation, Cisco Systems Inc., GE Current, and IBM Corporation.
- Increasing internet penetration also plays a crucial role in establishing smart city platforms, enabling IoT connections that act as a base for smart city platforms. The first line of South Korean telecom provider KT's innovative technology, 'GiGa Wire, was installed in the United States. It provides an internet speed of up to 1 Gbps without any fiber-optic cable. This initiative is in line with the Boston Digital Equity Project, which is aimed to improve network infrastructure.
- In 2021, Las Vegas and New York City adopted the Digital Twin technology, with Phoenix and other U.S. and European cities expected to follow. However, Cityzenith, United States, the leading Urban Digital Twin platform, plans to donate the technology to 10 cities by the end of 2021 and 100 cities by 2024.
- In March 2021, Nokia signed a reseller agreement with ClearWorld, an alternative energy systems provider, to sell smart poles to U.S. cities and military bases as part of Nokia's smart city solutions portfolio. It will be deployed in parks, parking lots, and roadways; the ClearWorld connected digital pole supports applications such as video analytics, Wi-Fi access points, gunshot detection, smart lighting, and license plate reading.
- Furthermore, urbanization results in increased traffic and climate change which drives the urgent need for a next-generation traffic monitoring and management solution. The deployment of traffic cameras in cities is hampered by a lack of or subpar autonomous video monitoring systems that require cloud access or extensive high-bandwidth internet infrastructure.
Smart City Platforms Industry Overview
The Smart City Platform Market is highly competitive, with many companies providing such platforms across the globe. The market players are consistently evolving and innovating the solutions they provide to attract most of the market share globally. Companies are spending huge sums of money on R&D to innovate new solutions by integrating different technologies, making it a highly competitive market.
- November 2021 - The Manila Municipal Government formed a partnership with Microsoft to accelerate Microsoft's goal of building a 21st-century economy and strengthening how the city government works internally. Also, the partnership aims to optimize the city's "GoManila" platform, a city-wide digital data infrastructure initiative, and strengthen its data governance policy. Microsoft will provide access to government-specific resources and expertise in artificial intelligence, broadening the horizons of future digital plans.
- October 2021 - Cyta chose Nokia to deliver its Integrated Operations Center (IOC) solution in the Municipality of Nicosia. This enables Nicosia to advance its smart city transformation, enhancing citizen services and improving environmental sustainability. Nokia IOC will also deliver a range of new digital services, including urban mobility, smart parking, intelligent street lighting, environmental sensors, sustainable waste management, digital signage, and information services.
- March 2021 - Nokia has announced to deliver a smart city management platform for Nicosia as a part of Nicosia's long-term smart city strategy. The platform will enhance existing citizen services and enable city authorities to deliver a range of new ones in areas such as mobility, smart parking, intelligent lighting, and sustainable waste management.
Smart City Platforms Market Leaders
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Nokia Corporation
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Microsoft Corporation
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Hitachi Ltd.
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Huawei Technologies Co., Ltd.
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Schneider Electric
*Disclaimer: Major Players sorted in no particular order
Smart City Platforms Market News
- May 2022 - Datumate signed a strategic distribution agreement with Hitachi Solutions to expand digital transformation in Japan and globally. The multi-year strategic partnership agreement entails that Hitachi Solutions, Ltd. will integrate Datumate's construction analytics platform into its professional service offerings.
- March 2022 - Juganu, an Israeli-based LED lighting and communications solutions provider, has partnered with Qualcomm, Nokia, and Abdi to showcase its 5G and smart cities solutions. Juganu and Qualcomm have collaborated in smart city and communication ventures for several years, including in Brazil and the U.S.
Smart City Platforms Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Rising Adoption of Internet and IoT Devices
4.2.2 Governments Increasing Focus on Smart City
4.3 Market Restraints
4.3.1 Governments Increasing Focus on Smart City
4.4 Value Chain / Supply Chain Analysis
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.5.1 Bargaining Power of Suppliers
4.5.2 Bargaining Power of Consumers
4.5.3 Threat of New Entrants
4.5.4 Threat of Substitutes
4.5.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Platform Type
5.1.1 Connectivity Management Platform
5.1.2 Integration Platform
5.1.3 Device Management Platform
5.1.4 Data Management Platform
5.1.5 Security Management Platform
5.2 Application
5.2.1 Smart Mobility/Transportation
5.2.2 Smart Security
5.2.3 Smart Utilities
5.2.4 Smart Governance
5.2.5 Smart Infrastructure
5.2.6 Smart Healthcare
5.2.7 Other Applications
5.3 Deployment
5.3.1 On-premise
5.3.2 Cloud
5.4 Geography
5.4.1 North America
5.4.2 Europe
5.4.3 Asia Pacific
5.4.4 Latin America
5.4.5 Middle East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Siemens AG
6.1.2 Schneider Electric SE
6.1.3 Microsoft Corporation
6.1.4 Hitachi Ltd
6.1.5 Huawei Technologies
6.1.6 Cisco Systems Inc.
6.1.7 Current, Powered by GE
6.1.8 IBM Corporation
6.1.9 Alibaba Group Holding Limited
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Smart City Platforms Industry Segmentation
A smart city platform provides the integrated capability to transform the urban infrastructure and services by deploying IoT, solutions, and other technologies. It helps to coordinate data, applications, and services at one or more levels across operational domains for multiple stakeholders. A smart city platform strategy leverages AI, blockchain, and sensor data crowdsourcing in the smart city IoT platform environment.
The Smart City Platform Market is segmented by Platform Type (Connectivity Management Platform, Integration Platform, Device Management Platform, Data Management Platform, Security Management Platform), Application (Smart Mobility/Transportation, Smart Security, Smart Utilities, Smart Governance, Smart Infrastructure, Smart Healthcare), Deployment (On-premise, Cloud), and Geography.
| Platform Type | |
| Connectivity Management Platform | |
| Integration Platform | |
| Device Management Platform | |
| Data Management Platform | |
| Security Management Platform |
| Application | |
| Smart Mobility/Transportation | |
| Smart Security | |
| Smart Utilities | |
| Smart Governance | |
| Smart Infrastructure | |
| Smart Healthcare | |
| Other Applications |
| Deployment | |
| On-premise | |
| Cloud |
| Geography | |
| North America | |
| Europe | |
| Asia Pacific | |
| Latin America | |
| Middle East and Africa |
Smart City Platforms Market Research FAQs
How big is the Smart City Platform Market?
The Smart City Platform Market size is expected to reach USD 42.01 billion in 2024 and grow at a CAGR of 35.55% to reach USD 192.22 billion by 2029.
What is the current Smart City Platform Market size?
In 2024, the Smart City Platform Market size is expected to reach USD 42.01 billion.
Who are the key players in Smart City Platform Market?
Nokia Corporation, Microsoft Corporation, Hitachi Ltd., Huawei Technologies Co., Ltd. and Schneider Electric are the major companies operating in the Smart City Platform Market.
Which is the fastest growing region in Smart City Platform Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Smart City Platform Market?
In 2024, the North America accounts for the largest market share in Smart City Platform Market.
What years does this Smart City Platform Market cover, and what was the market size in 2023?
In 2023, the Smart City Platform Market size was estimated at USD 30.99 billion. The report covers the Smart City Platform Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Smart City Platform Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Smart City Platforms Industry Report
Statistics for the 2024 Smart City Platforms market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. Smart City Platforms analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Smart City Platforms Market Report Snapshots
