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Smart City ICT revenues are forecast to reach $977 Billion by 2022

Smart City ICT revenues are forecast to reach $977 Billion by 2022

Urban living may encompass 86% of the developed world, and 64% of the developing world by 2050.

The worldwide population shift to urban centers is spurring the adoption of “Smart Cities” to maximize the efficiency of crucial resources like utilities, water supply and transportation services. These cities of the future will combine and leverage Internet of Things (IoT) and Information and Communications (ICT).

A new Strategy Analytics report “The Future of Smart Cities – Opportunities, Solutions and Players” forecasts that Urban ICT revenues will reach $977 Billion by 2022. Currently, about one million people are added each week to the world’s cities.

The study reveals that North America and Europe will dominate urban ICT revenue by 2022, with Asia-Pacific the fastest growing market. Smart Health, Smart Infrastructure and Smart Government represent the largest ICT opportunities.

City infrastructures grow more slowly than the population they seek to serve, but faster than the city’s land area, said Andrew Brown, Executive Director of Enterprise and IoT research at Strategy Analytics. “Parking sensors, for example, can together with traffic management platforms and big data warn of, and ward off, inner city traffic congestion before it becomes unmanageable,” Brown said, adding:

“Smart street lighting can be set to operate only when there are people nearby who need it. The smart lamp-post itself can become a sensor platform for other services such as surveillance or smart parking.”

Chart: Total Smart City ICT revenue by solution area - 2010-2022
Total Smart City ICT revenue by solution area – 2010-2022
Source: Strategy Analytics
Smart grids can play a vital part in controlling urban energy supply and demand. At the same time, utilities are seeking to reinvent themselves to be service providers for urban customers.

Smart water‘ offers effective end-to-end monitoring and control for an increasingly valuable resource. Water utility companies using smarter solutions could save between $7.1 Billion and $12.5 Billion each year, engaging multiple IoT vendors, the SA report found.

This foundational study examines the ‘smart city’ approaches of ICT and IoT vendors and service providers. It describes solutions and business models and provides recommendations for the future. The report also explores the role of urban-centric solutions such as Uber and AirBnB.
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