Global smart cities market to be worth $2.6tn by 2025
The global smart cities market will grow to be worth over US$2 trillion ($2.59 trillion) by 2025 as cities seek to facilitate the transition to an increasingly urban population, according to Frost & Sullivan.
The research firm predicts that by 2050 over 80% of the population in developed countries and 60% in the developing world will live in cities.
Technological advances such as AI and robotics are helping municipalities optimise resources to best benefit the population.
“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, Frost & Sullivan principal consultant for visionary innovation.
The primary drivers of AI adoption include Google, IBM and Microsoft. AI is meanwhile playing a key role in smart cities in areas such as smart parking, smart electric grids and waste management.
Other technologies expected to be technological cornerstones for smart cities of the future include distributed energy generation, advanced driver assistance systems and personalised health care.
Asia–Pacific is expected to be the fastest growing region in the smart energy space by 2025. Growing demand from the region is also expected to be a primary driver of demand for the global smart gas meter market, which Frost & Sullivan predicts will be worth US$1.62 billion in 2025.
“Currently most smart city models provide solutions in silos and are not interconnected. 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,” added Vijay Narayanan, Frost & Sullivan visionary innovation senior research analyst.
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