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Smart City Platform Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

·7 min read

The smart city platform market was valued at USD 10. 14 billion in 2020, and it is expected to reach USD 60. 07 billion by 2026, registering a CAGR of 36. 60% during the forecast period (2021-2026). A smart city is a system of systems.

New York, Dec. 01, 2021 (GLOBE NEWSWIRE) -- announces the release of the report "Smart City Platform Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" -
These systems can include various facilities like building automation systems, smart transportation systems, smart lighting systems, security and control systems, intelligent grids, renewable power, water treatment, and supply, etc.

Key Highlights
Smart cities are growing globally due to urbanization, which is enabling growth. According to projections by the United Nations, in India, 404 million, China, 292 million, and Nigeria, 212 million urban dwellers are expected to be added to the existing populations by 2050.
The government initiatives and spending are also giving much more importance to platform providers as compared to standalone smart solutions because of the scalability and integration of other smart solutions. According to Consumer Technology Association, smart city spending on a global scale is expected to reach USD 34.35 billion.
Smart city platforms perform various functions, such as analytics, remote asset monitoring, performance management, decision support, or presentation components. Most technologically advanced cities are using the Internet of Things platform to monitor city infrastructure, manage everything from traffic flows and parking to water and air quality, and use the resulting smart data generated to tackle longer-term planning decisions around environmental sustainability.
The smart city platforms offer a foundation for urban infrastructure, applications, and services, and various city-specific functions. One of the significant factors expected to drive the growth of the market in cities is giving priority to platform providers as compared to standalone smart solutions because of the scalability and integration of other smart solutions.
As smart city projects across the world have grown and have taken up the pace, the primary vision, the technologies, and the realities on the ground level have become layered and more complex to deal with. Furthermore, to simplify these complexities, the market will witness a strong drive toward the usage of more intuitive processes, which includes the increased adoption of machine learning solutions to gather and analyze the huge amount of generated data.
COVID-19 heightened the need to invest in connectivity infrastructure and solutions that alleviate concerns around public health and safety. The demand for safe and secure transport and connected applications rose to make systems safer by providing real-time warnings about crowding, access problems, or delays to help people make better informed public travel decisions.

Key Market Trends

Smart Governance to be the Major Application Area

Smart governance is one of the characteristics of smart cities, and it accounted for a major share of 20.92% in 2020 and is expected to grow at a CAGR of 41.4% during the forecast period.

Smart city platform increases the efficiency of government programs and helps them reach their beneficiaries. Some smart cities are trying to put technology to use to engage their citizens is through eGovernment initiatives, which serve to improve public sector efficiency and streamline government systems to support sustainable development.
eGovernment uses online, one-step gateways for citizens to access primary government services quickly and easily. An example would be a local government keeping records of life events – births, marriages, deaths – in the cloud, rather than in paper files, for easy access for both government officials and employees.
Huawei e-Government is an integral platform for government networks, cloud, collaborative offices, multi-dimensional security, and operational efficiency. In India, Cisco has implemented solutions in areas, such as Wi-Fi, remote e-governance, and citizen kiosks, coupled with Cisco Kinetic for Cities and analytics solutions at City Command and Control Centre (C-4).
Based on the Horizon Digital Platform, Huawei Technologies Co. Ltd announced the launch of the “HiCity” Intelligent City Solution that optimizes the integration of the data and a variety of ICT technologies to streamline service processes and transfer information flows, reducing the threshold for the use of new technologies and making integration easier. Together with ecosystem partners, the company aims better to support the governance and innovation of smart cities.
To help solve some of the issues faced in modern urban centers, such as the revitalization of communities and enhancement of safety, this service uses IoT technology to collect comprehensive data in numerous fields and spheres (for example, disaster management, tourism, energy, etc.) from multiple locations throughout the region and city.

North America Expected to Dominate the Market

North America emerged as the dominant regional market for smart cities in terms of revenue, owing to widespread adoption of smart cities solutions, high ICT investment among government organizations, and high demand for linked solutions across the region.

It is one of the leading regions in terms of the development of smart city platforms. IoT Smart Cities’ technology enables the cutting-edge intelligence and flexibility necessary to help cities use resources more efficiently and improve everything, from air and water quality to transportation, energy, and communication systems. According to Smart America, the governments in the cities of the United States may invest approximately USD 41 trillion over the next 20 years to upgrade their infrastructure to leverage the benefits of the IoT.
Furthermore, the region has a strong foothold of vendors, which contributes to the growth of the market studied. Some of these vendors include Microsoft Corporation, Cisco Systems Inc., GE Current, and IBM Corporation, among others.
Increasing internet penetration also plays a crucial role in establishing smart city platforms, as they enable IoT connections that act as a base for smart city platforms. The first line of South Korean telecom provider KT’s innovative technology, ’GiGa Wire’, was installed in the United States. It provides an internet speed of up to 1 Gbps without any fiber-optic cable. This initiative is in line with the Boston Digital Equity Project, which is aimed to improve network infrastructure.
In 2021, Las Vegas and New York City have adopted the Digital Twin technology, with Phoenix and other U.S. and European cities expected to follow. However, Cityzenith, United States, the leading Urban Digital Twin platform, plans to donate the technology to 10 cities by the end of 2021 and 100 cities by 2024.
Furthermore, urbanization results in increased traffic, and climate change is driving the urgent need for a next-generation traffic monitoring and management solution. The deployment of traffic cameras in cities is hampered by a lack of or subpar autonomous video monitoring systems that require cloud access or extensive high-bandwidth internet infrastructure.

Competitive Landscape

The smart city platform market is moderately fragmented, with many companies providing such platforms across the globe. The market players are consistently evolving and innovating the solutions provided by them to attract the majority of the market share globally. Companies are spending huge sums of money on R&D to innovate new solutions by integrating different technologies, making it a highly competitive market. Some companies such as Huawei are expected to experience a negative impact in the market owing to the United States government-initiated actions and, as a result, supply chain companies cutting the support to it.

May 2020 - Hitachi Ltd. Incorporated new advancements to the Lumada software platform and industry solutions to accelerate the digital transformation of industrial processes. These offerings help deliver real-time, actionable insights that accelerate the ability to predict problem areas, streamline production and maintenance, and create a connected supply chain.
January 2021 - Schneider Electric launched an end-to-end digital solution for building ‘Future Ready’, energy-efficient airports through their IoT-enabled platform EcoStruxure for airports. EcoStruxure for airport platform provides a collaborative environment for secure, efficient, reliable, and sustainable airport service by digitizing the value chain of airport infrastructure management. - Microsoft announced several new features in Azure to accelerate the development and success of smart city solutions. The majority of the updates involve Azure Maps. For instance, the cloud solution now uses weather services to give cities an easy way to integrate real-time weather data into their applications. It also integrates with a mobility-as-a-service company, Moovit, and visual assistance app Aira to make public transport accessible to blind or low-vision users.
March 2021 - Nokia signed a reseller agreement with ClearWorld, an alternative energy systems provider, to sell smart poles to the U.S. cities and military bases as part of Nokia’s smart city solutions portfolio. It will be deployed in locations such as parks, parking lots, and roadways; the ClearWorld connected digital pole supports applications such as video analytics, Wi-Fi access points, gunshot detection, smart lighting, and license plate reading.

Additional Benefits:

The market estimate (ME) sheet in Excel format
3 months of analyst support
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