IoT in Smart Cities Market by Offerings Solutions (Remote Monitoring, Real-time Location System, Data Management, Reporting and analytics, Security, Network Management) by Services (Professional Services (Consulting, System Integration and Deployment, Support and Maintenance) Managed Services) by Application (Smart Transportation, Smart Building, Smart Utilities, Smart Citizen Services, Education, Healthcare, Public Safety)- Growth, Future Prospects And Competitive Analysis, 2016 - 2028

IoT in Smart Cities Market Analysis

The worldwide IoT in the smart cities market is expected to proliferate over the next decade. Various factors will be driving this trend. This includes the increased deployment of IoT for managing infrastructure and monitoring cities. Also, the rapid increase in the population of urban areas is projected to increase the use of IoT for smart cities.

The covid-19 epidemic has had a significant impact on all walks of life. It has changed markets as well as customer behavior. Moreover, it continues to impact economies and societies. Governments, utilities, media, telecommunications, and healthcare are working to restore economies and organizations so things can return to normal. In particular, the global telecom industry is endeavoring to support and expand the digital infrastructure across various countries during the pandemic.

Global IoT in the Smart Cities market is expected to witness a CAGR of 13.86% during the forecast period. The global IoT in Smart Cities market in 2021 was over USD 130.56 million and is expected to generate revenue worth USD 355.53 million in 2028. The incremental growth opportunity offered by the global IoT in Smart Cities is estimated to be USD 1.75 trillion between 2022 and 2028.

• Interesting Facts about IoT in Smart Cities Industry
• At present, there are more than 250 innovative city projects undergoing around the world.
• 5G implementation is poised to play a significant role in the growth of IoT in the Smart Cities industry
• Currently, there are more than 4.3 billion internet users, which makes IoT in Smart Cities the most attractive industry
• IoT is all set to transform intelligent buildings and transportation in Smart Cities.
• However, cyber security is a significant threat to the growth of IoT in Smart Cities.
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Growing Demand for Connected Smart Cities

According to surveys, offline organizations had to endure more losses than online organizations owing to the pandemic. On the other hand, online organizations saw increased online demand, which boosted their revenue. A large percentage of business executives belonging to online organizations have said that their business revenue has improved following the covid-19 outbreak. On the other hand, over half of the offline organizations said that they experienced declining revenue. There is a significant demand for IoT-based intelligent city solutions from different sectors. Smart cities can leverage network connectivity, security, cloud, analytics, and big data using IoT-based solutions.

Wide-Ranging Applications of IoT in Smart Cities

IoT is now being utilized across different fields in smart city applications like intelligent citizen services and smart utilities. As a result, the growth of smart cities will increase during the outbreak. This is because regulatory authorities in different countries focus on their citizens' living standards, safety, and health. Therefore, vendors of IoT solutions need to manage IoT devices deployed in different cities to be able to exploit the management features of their platforms.

Solutions to Dominate Global Market

Solutions and Services are significant segments of IoT in the Smart Cities market by offering. The solutions segment dominated the total revenue generation by IoT in the intelligent cities industry in 2021. Solutions can be further segmented as Remote Monitoring, Real-time Location systems, Data Management, Reporting and analytics, Security, and Network Management. In contrast, the services segment is segmented as Professional Services, Consulting, System Integration and Deployment, and Support and Maintenance.

Smart Building & Transportation to Lead 

Smart Transportation, Smart Building, Smart Utilities, and Smart Citizen Services are some of the major application areas of IoT in smart cities. Smart Transportation and Smart Building collectively held over 35% share in 2021. The intelligent citizen services segment can be further subdivided into Education, Healthcare, and Public Safety.  

Amalgamation Smart Cities with Various Technologies

The market dynamics are being shaped by the rise in smart technologies and connected solutions in smart city initiatives. The smart city environment is being managed with various technologies such as AI, data communications, mobility, cloud, and IoT, which are now critical components of city infrastructures. Furthermore, the increased deployment of such technologies in the past few years allows better connectivity. As a result, the smart city ecosystem is undergoing a radical transformation and continuous evolution.

From the technological point of view, interest is growing in various emerging technologies. As a result, digital technologies like cybersecurity, IoT, data analytics, machine learning, and deep learning will significantly influence the development of smart city projects around the world in the next decade.

5G is Poised to Play Major Role

The implementation of 5G technology, in particular, is poised to fuel the rise of smart cities. Thanks to IoT and 5G connectivity advancements, cities, and urban centers are now becoming autonomous and self-governing. The system gathers data from different sources for smart transportation and transmits it to a centralized system over the cloud. Such technologies will help enrich the lives of citizens residing in intelligent cities. AGT Group GmbH, Appyway, Arm Ltd., Cisco Systems Inc., Confidex Ltd., Deutsche Telekom AG, Enevo Inc., FlamencoTech Technology Solutions Pvt. Ltd, Hitachi Ltd., Honeywell International Inc., Huawei Technologies Co.Ltd, IBM Corporation, Intel Corporation, Microsoft Corporation, Optibus Ltd., PTC, Quantela, Robert Bosch GmbH, SAP SE, Schneider Electric, Siemens AG, Sierra Wireless, Signify Ltd., Takadu Ltd., Tech Mahindra Ltd., Verizon Communications and Youon Technology Co., Ltd. are some of the major players operating in IoT in Smart Cities market around the world.