The global IoT in smart cities market size to grow from USD 130.6 billion in 2021 to USD 132.2 billion by 2026, at a Compound Annual Growth Rate (CAGR) of 19.0 % during the forecast period. IoT bringing improvement to communication infrastructure is one of key drivers for IoT in smart cities, every smart city needs to ensure that communications platforms are established and accessible to realize the concept in an open and resource-efficient manner. for instance, fixed networks, mobile networks, and dedicated networks for IoT applications would be critical for such cities.
In a short time, the COVID-19 outbreak has affected markets and customer behaviors and substantially impacted economies and societies. Healthcare, telecommunication, media and entertainment, utilities, and government verticals function day and night to stabilize conditions and facilitate prerequisite services to every individual. The telecom sector, in particular, is playing a vital role across the globe to support the digital infrastructure of countries amid the COVID-19 pandemic.
According to Fujitsu’s Global Digital Transformation Survey, offline organizations were damaged more, while online organizations witnessed growth in online demand and an increase in revenue. 69% of the business leaders from online organizations have indicated that they witnessed an increase in their business revenue in 2020. In contrast, 53% of offline organizations saw a drop in revenues.
Innovative IoT-based smart city solutions, which can be effectively coupled with big data, analytics, cloud, security, and network connectivity, are witnessing massive demand from various sectors. The adoption of IoT technology in smart city applications, such as smart utilities and smart citizen services, is expected to raise the adoption of IoT in smart cities during the pandemic as regulatory authorities of various countries are majorly focused on monitoring health, safety, and living standards of their citizens. To cater to the need for managing IoT devices across various cities, IoT solutions vendors need to enhance the management capabilities of their platforms.
The Service segment to have a higher CAGR during the forecast period
The services segment in the IoT in smart cities market is expected to grow, as major players are focused on offering services. Through professional services, vendors offer comprehensive services by deploying the latest techniques and tools, skills, knowledge, and strategies to address the need of IoT in smart cities. Managed services are provided to outsource specific solutions. The major factors responsible for the growth of the services segment is the rising trend of adopting IoT professional services to reduce Capital Expenditure (CAPEX) and Operational Expenditure (OPEX) and the demand for highly customized IoT services in the industrial and transportation sectors.
Smart citizen service application segment to account for larger market size during the forecast period
IoT is reshaping citizen services. It has wide applications in healthcare, education, and public safety. Smart education solutions have undergone a rapid transformation, and organizations are moving toward mobile technologies, With the help of IoT, educational institutions are not only improving their learning experiences but also efficiently manage their OPEX and CAPEX. The adoption of Interactive White Boards (IWBs), projectors, and printers are seen as a driver for change in the education industry, and the increasing number of connected medical devices and the proliferation of smartphones have significantly contributed toward the growth of IoT. Thus, the Governments across the globe are actively using IoT to increase the safety of their citizens. To lower the crime rates and address the increasing number of illegal activities, governments have been using IoT based smart city solutions and services.
Among regions, APAC to hold higher CAGR during the forecast period
Asia Pacific is an emerging IoT in smart cities market. China, Japan, and Singapore are the major countries contributing to the growth of the market in the region. Asia Pacific also houses other major economies, such as Australia, South Korea, and India. Japan and China are among the largest manufacturing economies that produce automobiles, information technology products, and electronic products. The IoT in smart cities market paradigm has changed considerably with the growing popularity of advanced technologies such as AI and big data analytics.
Breakdown of primaries
In-depth interviews were conducted with Chief Executive Officers (CEOs), innovation and technology directors, system integrators, and executives from various key organizations operating in the IoT in smart cities market.
- By Company: Tier I: 34%, Tier II: 43%, and Tier III: 23%
- By Designation: C-Level Executives: 50%, Directors: 30%, and Others: 20%
- By Region: Europe: 30%, APAC: 30%, North America: 25%, MEA: 10%, Latin America: 5%
The report includes the study of key players offering IoT in smart cities solutions and services. It profiles major vendors in the global IoT in smart cities market. The major vendors in the global IoT in smart cities market include IBM (US), Cisco (US), Intel (US), Huawei (China), Microsoft (US), Tech Mahindra (India), Siemens (Germany), Honeywell (US), Bosch (Germany), PTC (US), Schneider Electric (France), ARM (England), Quantela (US), Hitachi (Japan), Sierra Wireless (Canada), Youon (China), SAP (Germany), Deutsche Telekom (Germany), Confidex (Finland), Verizon (US), AGT International (Switzerland), Takadu (Israel), Optibus (Israel), Enevo (US), Signify (Netherlands), FlamencoTech (India), AppyWay (UK).
The market study covers the IoT in smart cities market across segments. It aims at estimating the market size and the growth potential of this market across different segments, such as components, deployment mode, organization size, vertical, and region. It includes an in-depth competitive analysis of the key players in the market, along with their company profiles, key observations related to product and business offerings, recent developments, and key market strategies.
Key Benefits of Buying the Report
The report would provide the market leaders/new entrants in this market with information on the closest approximations of the revenue numbers for the overall IoT in smart cities market and its subsegments. It would help stakeholders understand the competitive landscape and gain more insights better to position their business and plan suitable go-to-market strategies. It also helps stakeholders understand the pulse of the market and provides them with information on key market drivers, restraints, challenges, and opportunities.