The surging use of artificial intelligence and IoT technologies continues fuelling the growth of smart city technologies as more and more cities look for innovative solutions for urban challenges. Over the past five years, the market size of smart city technologies has jumped by an impressive 140%. But this year, the entire industry is set to hit a new milestone.
According to data presented by Stocklytics.com, smart city technologies are expected to become a $100 billion industry in 2024.
China Remains the Largest and Fastest-Growing Market, Generating One-third of Total Revenue
Smart cities use the Internet of Things (IoT) and a variety of software, user interfaces, and communication networks to deliver connected, innovative solutions for urban challenges, from public and cybersecurity threats, traffic congestion and energy management to e-governance. These solutions include security cameras, smart waste sensor technology, smart parking system devices, air quality monitoring devices, utility management devices, and smart lighting devices.
Smart City Technologies Become a $100 Billion Industry
Over the past years, the usage of these technologies has grown tremendously, and the Statista survey shows just how much. In 2018, the global revenue from smart city technologies amounted to $37.5 billion. Since then, this figure has jumped by 140% and hit almost $90 billion last year. Statista expects the entire market to hit a new milestone this year, with revenues jumping over $100 billion for the first time.
Statistics show that global smart city revenues will grow by 17% and hit $104.8 billion this year, and more than one-third of that value will come from China, the largest and fastest-growing market in this segment.
According to Statista, Chinese smart city revenues will grow by 18.5% and $43.5 billion this year. Europe has emerged as the leading smart city technology adopter outside China, but North America still represents the second-largest market. North American revenues are expected to grow by 14.9% and hit $21.2 billion in 2024, while Europe follows with $20 billion in revenue and a 17.2% year-over-year growth.
$168 Billion in Revenue and 5.2 billion Connections by 2028
While the $100 billion milestone is a significant achievement, it’s just the beginning for the smart city industry. Projections indicate the sector will continue to grow, with global smart city technology revenues rising by an average of $15 billion per year to $165.8 billion by 2028.
The number of active connections in smart cities will also significantly increase in this period. According to a Statista survey, the global number of smart city connections will hit 2.2 billion by the end of 2024. This figure is forecasted to grow by 140% and reach almost 5.3 billion in the next four years. Nearly 80% of all connections in 2028, or 4.23 billion, will be in China. Europe and North America will count ten times less connections than that, or 460 million and 250 million, respectively.
