LONDON, July 21, 2022 (GLOBE NEWSWIRE) -- The "Smart Cities – Thematic Research" report offered by GlobalData Plc provides an overview of the smart cities theme and identifies the key trends impacting the growth of the theme over the next 12 to 24 months. The report also includes a comprehensive industry analysis, including forecasts for global smart city spending to 2025. Moreover, it contains details of M&A deals driven by the smart cities theme, and a timeline highlighting milestones in the development of smart cities.
According to the thematic intelligence report published by GlobalData, the smart cities market size was valued at $221.1 billion in 2019 and is expected to grow at a CAGR of more than 11% by 2025. Increased urbanization is already causing infrastructure headaches for cities, which will only worsen. These challenges are driving the creation of smart cities.
Smart Cities Mergers and Acquisitions
Smart grid and smart transportation have seen the most significant M&A activity. Two of the biggest acquisitions, Veolia's purchase of Suez and Emerson Electric's acquisition of OSI, are centered around smart grids and water. They arguably reflect the importance of the smart metering market and its potential for steady growth. The growing importance of water infrastructure can also be seen in the acquisitions of Irrisoft and S-Group Solutions.
Key Trends Impacting the Smart Cities Theme
Technology Trend: Early signs are that the metaverse could play several roles in smart cities. The pandemic has shown that the most resilient cities enable their citizens to work, learn, and socialize remotely. Accordingly, in November 2021, Seoul announced plans to use a metaverse platform to provide this flexibility to its citizens. The platform (to be completed by 2023) will virtually conduct public services such as tourism, education, cultural experiences, and civilian services.
Macroeconomic Trend: The pandemic's fallout means cities face a growing number of problems during a period of serious economic uncertainty. As a result, cities will view proposed smart city initiatives differently. To be a justifiable investment, an initiative must have a clear, relevant purpose and be as cost-effective as possible.
Regulatory Trend: Cities worldwide are starting to create ethical guidelines for their adoption of technology. London has published an emerging technology charter; a set of rules that outline the city's expectations for how new data-enabled technologies should be developed and deployed for use in the public realm. Dubai has also been discussing a similar charter, while cities like Boston have created a playbook that governs the relationship between suppliers and citizens.
Smart Cities Value Chains
The smart cities value chain consists of three main areas: smart city platforms, smart city applications, and smart city services.
Smart City Platforms: Smart city platforms provide a platform for the unified delivery of local public services. Although each city is unique, and all have their challenges around delivering services and providing vital infrastructure, a common factor is that more value will be delivered by integrating each smart city service into an all-encompassing platform. This allows for the creation of open data services to encourage innovation and the development of new digital services.
Smart City Applications: Smart city applications can be further segmented into smart buildings, smart transport, smart infrastructure, and smart grid. Health measures in the form of improved heating, ventilation, and air conditioning (HVAC) and screening systems will become crucial components of smart buildings. The structure or framework for smart transportation starts with infrastructure. There cannot be a smart city without smart mobility, and smart mobility is impossible without smart transport infrastructure. The cities have also invested in two infrastructure types: health infrastructure that directly tackles the spread of COVID-19 and infrastructure that improves citizens' digital access. Moreover, a smart grid modernizes power systems through self-healing designs, automation, remote monitoring and control, and the establishment of microgrids.
Smart City Services: Cities do not have the design, technical, integration, or data analysis skills to become smart cities on their own. There is an active market for smart city design and integration services, which stitch together applications for smart buildings, transportation, infrastructure, and power grids. On the integration side, the providers of these services include large players such as IBM, Siemens, and Huawei, together with the likes of TCS, Capgemini, Wipro, and notably in Asia, Mitac.
Leading Public Companies Associated with the Smart Cities Theme
- Johnson Controls
- Schneider Electric
Leading Private Companies Associated with the Smart Cities Theme
- Via Transportation
Smart Cities Sector Scorecards
At GlobalData, we use a scorecard approach to predict tomorrow's leading companies within each sector. Our sector scorecards have three screens: a thematic screen, a valuation screen, and a risk screen.
Smart city is a theme that impacts many of the 17 technology, media, and telecom (TMT) sectors we cover. In this report, we focus specifically on the industrial automation and IT services sectors.
- Thematic screen: Our thematic screen ranks companies based on overall leadership in the 10 themes that matter most to their industry, generating a leading indicator of future performance.
- Valuation screen: Our valuation screen ranks our universe of companies within a sector based on selected valuation metrics.
- Risk screen: Our risk screen ranks companies within a particular sector based on overall investment risk.
- The report identifies the key trends impacting the growth of the theme over the next 12 to 24 months, split into three categories: technology trends, macroeconomic trends, and regulatory trends.
- It includes comprehensive industry analysis, including forecasts for global smart cities spending to 2025.
- It contains details of M&A deals driven by the smart cities theme, and a timeline highlighting milestones in the development of smart cities.
- The detailed value chain illustrates how smart cities fit into the IoT technology stack. The report covers three layers of the smart cities value chain: the platform layer, the app layer, and the services layer.
Reasons to Buy
The smart city is an important market that attracts substantial investment. This report is a clear and insightful overview of this increasingly important theme, telling you everything you need to know about what makes a city smart and which companies are benefitting from increased urbanization.
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Smart Cities Market Overview
|Market Size 2019||$221.1 billion|
|Key Technology Trends||The Metaverse, Cyber Threats, Digital Twins, AI Adoption, 5G, Surveillance Tech, and Digitalization|
|Key Macroeconomic Trends||The Post-COVID Smart City, Water Shortages, Smart City Geopolitics, and The Digital Silk Road|
|Key Regulatory Trends||COP26 Impact on Cities and Emerging Tech Charters|
|Value Chains||Smart City Platforms, Smart City Apps, and Smart City Services|
|Leading Public Companies||Accenture, Alibaba, Cisco, Hikvision, Hitachi, Honeywell, IBM, iFlytek, Johnson Controls, Microsoft, Nokia, Schneider Electric, Siemens, and ZTE|
|Leading Private Companies||75F, Cleverciti, Huawei, Quantela, and Via Transportation|
What was the smart cities market size in 2019?
The smart cities market size was valued at $221.1 billion in 2019.
What is the smart cities market growth rate?
The smart cities market is expected to grow at a CAGR of more than 11% from 2019 to 2025.
What are the key technology trends impacting the smart cities theme?
The key technology trends impacting the smart cities theme are the metaverse, cyber threats, digital twins, AI adoption, 5G, surveillance tech, and digitalization.
What are the key macroeconomic trends impacting the smart cities theme?
The key macroeconomic trends impacting the smart cities theme are the post-COVID smart city, water shortages, smart city geopolitics, and the digital silk road.
What are the key regulatory trends impacting the smart cities theme?
The key regulatory trends impacting the smart cities theme are COP26 impact on cities and emerging tech charters.
What are the key value chains in the smart cities market?
The key value chains in the smart cities market can be divided into three segments: smart city platforms, smart city apps, and smart city services.
Which are the leading public companies associated with the smart cities theme?
The leading public companies associated with the smart cities theme are Accenture, Alibaba, Cisco, Hikvision, Hitachi, Honeywell, IBM, iFlytek, Johnson Controls, Microsoft, Nokia, Schneider Electric, Siemens, and ZTE.
Which are the leading private companies associated with the smart cities theme?
The leading private companies associated with the smart cities theme are 75F, Cleverciti, Huawei, Quantela, and Via Transportation.
GlobalData is a leading provider of data, analytics, and insights on the world's largest industries. In an increasingly fast-moving, complex, and uncertain world, it has never been harder for organizations and decision makers to predict and navigate the future. This is why GlobalData's mission is to help our clients to decode the future and profit from faster, more informed decisions. As a leading information services company, thousands of clients rely on GlobalData for trusted, timely, and actionable intelligence. Our solutions are designed to provide a daily edge to professionals within corporations, financial institutions, professional services, and government agencies.
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