- Smart cities are a collaboration between many organizations
- City governments need to work with private sector
- Telecoms benefit from smart cities
The global smart-city market was valued at $1 trillion globally in 2016, according to Paul Budde Communication.
Between 2016 and 2020, the market is forecasted to grow at a compound annual growth rate (CAGR) of 19.65%, according to TechNavio.
Meanwhile, the global smart-city ICT infrastructure market is forecasted to grow at a CAGR of 17.12%, TechNavio says, during the same period.
Smart cities are a collaboration between governments, network providers, product developers, IT companies, and managed service providers.
A smart city use the Internet of Things (IoT) to improve sustainability, increase resilience to natural disasters, and improve the efficiency of city operations and security levels.
Data is captured by an intelligently connected infrastructure, enabling citizens to access the information.
The market’s largest challenge is funding, although cities in some parts of the world have budgeted for smart-city projects.
Becoming a Smart City
In a sharing economy model, citizens actively participants in smart-city initiatives, and in many cases people and businesses adopt technology before city governments. Citizens, therefore, are demanding their local governments implement smart-city technology.
Cities must show leadership when it comes to creating a smart city, promoting the benefits to its citizens and stimulating collaboration. Doing so, allow cities to take advantage of the social and economic benefits smart cities bring.
When implementing projects, cities need to consider how one aspect of a smart city benefits another.
Private industry also should be involved in the implementation of smart city various projects.
In 2021, the number of connected objects will exceed 2 billion, according to IDATE, and the market will grow between 2015 and 2021 at a CAGR of 18%.
Traditional city operations are ineffective and only allow for one-way distribution of utilities such as energy and water.
However as urban populations increase, so does the demand for education, safety, transportation, and healthcare. Two-way communication between devices and machine-to-machine technology allows for the development of smart grids, smart-water management systems, smart transport systems and smart building systems.
In the telecoms sector, smart city developments offer growth opportunities. Billions of dollars are being invested in smart-city telecoms infrastructure and technologies. The telecoms sector is heavily involvement in IoT infrastructure and machine-to-machine technology.
Global Smart Cities Market
- In 2015, the International Telecommunication Union (ITU) established a group to standardize requirements for the broader IoT.
- In 2016, the ITU along with the United Nations Economic Commission for Europe launched a new initiative, United for Smart Sustainable Cities.
- Smart communities of the future may rely on wearable technology.