A newly released report projects the global smart cities market to balloon during the next five years, reaching an estimated $1,266.58 billion by 2019.
The report “Smart Cities Market (Smart Home, Building Automation, Energy Management, Industrial Automation, Smart Healthcare, Smart Education, Smart Water, Smart Transportation, Smart Security), Services)-Worldwide Market Forecasts and Analysis (2014-2019) came up with the total using an estimated CAGR (compound annual growth rate) of 14.1%.
Economic growth in particular regions is seen as the long-term force behind smart cities and is broken down into two categories:
Mature markets: region’s strengths being high engaged citizens, sophisticated and multi-layered government, and access to high innovations.
Emerging markets: region looks into creating more smart cities due to infrastructure deficiencies all while competing for global attention.
What is pushing the growth of technologically mapped smart cities is the large migrating population filing into urban areas. As a result of this population explosion, management of services will become tougher and the need to become more efficient will be greater. Key to the evolution of the smart cities is the increasing awareness of environmental concerns and the need for an ecologically sustainable infrastructure. Places where these ideals are having a noticeable effect are the U.S., China, Japan, South Korea, U.A. E. (United Arab Emirates), and the Netherlands.
Smart transportation is viewed as the big winner during this period due to solutions related to traffic management, ticket management, integrated supervision systems, parking management and guidance systems, and passenger information systems.
Two regions expected to have the highest growth rates and highest regional market segments with the highest market size are the MEA (Middle East and Africa) and APAC (Asia-Pacific).
The report breaks down smart cities into different sub-segments of technologies, solutions, services, and regions using concise analysis and forecasting of revenues. When looking into the forces behind the market, the report took into consideration insights on trends, opportunities, and challenges presented in North America, Europe, Middle East and Africa, Asia Pacific (including Japan), and Latin America.
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