시장보고서
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스마트 시티에서의 IoT 시장 규모, 점유율, 성장, 세계 산업 분석, 지역별 인사이트 및 예측(2026-2034년)

IoT in Smart Cities Market Size, Share, Growth and Global Industry Analysis, Regional Insights and Forecast to 2026-2034

발행일: | 리서치사: 구분자 Fortune Business Insights Pvt. Ltd. | 페이지 정보: 영문 130 Pages | 배송안내 : 2-3일 (영업일 기준)

    
    
    



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스마트 시티에서의 IoT 시장 성장요인

정부, 지자체, 기술 제공업체, 인프라 개발 사업자가 도시 운영 및 삶의 질 향상을 도모하기 위해 커넥티드 기술 도입을 점점 더 확대함에 따라, 전 세계 스마트 시티의 IoT 시장은 급속한 성장을 이루고 있습니다. 전 세계 스마트 시티용 IoT 시장 규모는 2025년에 2,722억 6,000만 달러로 평가되며, 2026년 3,271억 5,000만 달러에서 2034년에는 1조 4,217억 5,000만 달러로 성장하여, 예측 기간 동안 연평균 성장률(CAGR)은 20.16%에 달할 것으로 전망됩니다. 북미는 선진적인 디지털 인프라, 정부 주도의 스마트 시티 프로그램, 5G의 광범위한 보급, 그리고 주요 IoT 기술 제공업체의 존재에 힘입어 2025년에는 38.03%의 점유율로 세계 시장을 선도했습니다.

스마트 시티에서의 IoT란, 연결된 기기, 센서, 통신 네트워크, 소프트웨어 플랫폼 및 데이터 분석 기술을 활용하여 도시 환경에서 실시간 정보를 수집·처리하는 것을 의미합니다. 이러한 기술을 통해 도시는 교통, 에너지 관리, 공공안전, 폐기물 관리, 의료, 인프라 모니터링 및 건물 운영을 개선할 수 있게 됩니다. 급속한 도시화, 인터넷 및 스마트폰 보급률 향상, 에너지 효율이 높은 자원에 대한 수요 증가, 그리고 연결형 인프라에 대한 투자 확대가 시장 성장을 뒷받침할 것으로 예상됩니다. 또한, 5G 네트워크의 확대로 인해 다수의 연결된 기기 간에 고속 및 저지연 통신이 가능해지면서 새로운 기회가 창출되고 있습니다.

시장의 정의 및 범위

스마트 시티에서의 IoT 시장은 센서, 통신 네트워크, 클라우드 플랫폼, 분석 시스템 및 지능형 소프트웨어를 통해 도시의 물리적 자산과 환경을 연결하는 기술과 서비스를 대상으로 합니다. 이러한 솔루션을 통해 지자체와 기업은 실시간 정보 수집, 자산 원격 모니터링, 도시 상황 분석 및 다양한 도시 운영의 자동화가 가능해집니다. IoT 플랫폼은 건물, 교통 시스템, 공공 서비스, 공공 공간, 의료 시설 및 기타 연결된 인프라에서 나오는 정보를 통합할 수 있습니다.

이 시장에는 위치 정보 분석, 보안 관리, 실시간 스트리밍 분석, 원격 모니터링 시스템, 데이터 관리 솔루션, 보고서 및 분석 등의 솔루션이 포함됩니다. 서비스에는 전문 서비스 및 관리형 서비스가 포함됩니다. 주요 응용 분야로는 스마트 빌딩, 스마트 헬스케어, 스마트 에너지, 스마트 교통, 공공안전, 스마트 인프라, 환경 모니터링, 스마트 거버넌스 등이 있습니다. 커넥티드 시티에 대한 정부 지출 증가와 디지털 도시 인프라 개발로 인해 대도시와 신흥 도시에서 IoT 기술의 적용 범위는 더욱 확대되고 있습니다.

시장 역학

촉진요인

정부 주도의 노력과 스마트 시티 프로젝트의 증가

정부의 노력과 대규모 스마트 시티 개발 프로그램은 IoT 기술 도입을 촉진하는 주요 요인 중 하나입니다. 급속한 도시화로 인해 대도시와 주요 도시의 인구 밀도가 높아지면서 교통 정체, 보안, 에너지 소비, 폐기물 관리, 인프라 이용률, 공공 서비스와 관련된 과제가 대두되고 있습니다. IoT를 활용한 시스템을 통해 행정 당국은 도시 상황을 실시간으로 모니터링하고, 데이터에 기반한 의사결정을함으로써 자원 활용 효율과 업무 효율을 향상시킬 수 있습니다.

이에 따라 전 세계 정부들이 커넥티드 인프라와 스마트 시티 프로그램에 투자하고 있습니다. 2020년, 서울특별시는 세계은행과 제휴하여 ‘한국 혁신 주간’을 개최하고, 기술 개발과 스마트 시티로의 전환을 소개했습니다. 서울시는 폐기물 관리, 전자정부, 스마트 에너지 및 기타 디지털 솔루션에 주력하고 있습니다. 마찬가지로, 싱가포르는 ‘스마트 네이션 계획’을 도입하여 IoT를 포함한 기술을 통해 디지털 인프라를 강화하고 도시 서비스를 개선하고 있습니다. 이러한 노력을 통해 기술 제공업체들은 커넥티드 빌딩, 교통, 공공사업, 공공안전 및 지자체 서비스를 위한 솔루션 개발을 촉진하고 있습니다.

스마트 시티 기술은 경제적 및 운영상의 이점도 가져옵니다. 보고서에 기재된 정보에 따르면, 바르셀로나는 스마트 주차장을 통해 3,650만 유로의 수익을 올렸으며, 스마트 물 관리 솔루션을 통해 4,250만 유로의 비용 절감을 실현했습니다. 또한, 이 도시의 IoT 서비스와 시스템은 4만 7,000개의 일자리 창출에도 기여했습니다. 이러한 사례들은 도시의 자원 관리를 개선하면서 경제 발전을 뒷받침하는 커넥티드 기술의 가능성을 보여줍니다.

동향

5G 기술 도입 확대

5G 인프라의 확대는 스마트 시티 내 IoT 시장에서 중요한 동향으로 자리 잡고 있습니다. 5G 네트워크는 고속 데이터 통신, 저지연, 대용량, 그리고 다수의 기기를 동시에 연결하는 능력을 제공합니다. 이러한 기능은 센서, 차량, 건물, 공공 인프라 및 중앙 관리 플랫폼 간의 지속적인 통신이 필요한 스마트 시티 애플리케이션에 특히 중요합니다.

5G는 교통, 공공안전, 스마트 빌딩, 에너지 관리, 환경 모니터링에 걸친 실시간 모니터링 및 데이터 처리를 강화할 수 있습니다. 정부와 기술 제공업체들은 미래의 커넥티드 도시 환경을 뒷받침하기 위해 5G 인프라에 점점 더 집중하고 있습니다. 인도에서는 스마트 시티 용도를 위한 5G 아키텍처를 개발하려는 정부의 노력이 IoT 지원 솔루션의 도입을 촉진할 것으로 기대됩니다. 5G 커버리지가 확대됨에 따라 각 도시에서는 더 많은 연결 기기와 실시간 지능형 서비스가 통합될 것으로 예상됩니다.

연결되고 데이터 기반의 도시 서비스 보급 확대

연결된 도시 기기에서 생성되는 데이터 양이 증가함에 따라, 각 도시에서는 정교한 보고, 분석, 모니터링 및 데이터 관리 솔루션의 도입이 진행되고 있습니다. IoT 시스템은 건물, 교통망, 공공 인프라, 공공 공간, 환경 센서에서 지속적으로 정보를 수집합니다. 이 정보를 처리함으로써 도시 당국과 서비스 제공업체는 운영상의 문제를 파악하고 보다 효율적으로 대응할 수 있게 됩니다.

또한, IoT, 클라우드 컴퓨팅, 분석, 인공지능, 디지털 플랫폼의 결합은 점점 더 지능화되는 도시 환경의 발전을 뒷받침하고 있습니다. 디지털 트윈, 커넥티드 빌딩, 원격 모니터링 시스템, 실시간 분석은 스마트 시티 인프라의 핵심 구성요소로 자리 잡고 있습니다. 이러한 기술들은 보다 효율적인 의사결정을 지원하고, 점점 더 복잡해지는 도시 시스템의 관리를 개선할 것으로 기대됩니다.

제약요인

IoT에 수반되는 보안 및 개인정보 보호 위험

보안 및 개인정보 보호에 대한 우려는 스마트 시티에서의 IoT 도입에 있어 큰 과제가 되고 있습니다. 연결된 도시 시스템은 시민, 건물, 교통 시스템, 공공 서비스, 공공 인프라에 관한 방대한 양의 정보를 수집하고 저장합니다. 연결된 기기의 수가 늘어남에 따라 사이버 범죄자들에게 잠재적인 공격 대상 범위도 확대됩니다.

사이버 공격, 무단 접근, 데이터 유출 및 연결된 기기의 취약점은 스마트홈, 의료 시스템, 공공 인프라 및 기타 스마트 시티 서비스에 영향을 미칠 수 있습니다. 개인 정보 및 업무 데이터 보호에 대한 우려는, 특히 지자체에 종합적인 사이버 보안 체계가 부재한 경우, IoT 솔루션 도입을 지연시키는 요인이 될 수 있습니다. 따라서 강력한 데이터 보호, 안전한 기기 관리, 암호화, 네트워크 보안, 그리고 효과적인 거버넌스는 지속가능한 시장 발전을 위해 계속해서 중요할 것입니다.

COVID-19의 영향

COVID-19 팬데믹은 정부와 기업이 의료, 긴급 대응, 경제 회복을 위해 자원을 재배치함에 따라 스마트 시티 프로젝트의 개발 및 실행에 영향을 미쳤습니다. 인프라 프로젝트의 지연과 공급망의 혼란은 일부 시장에서 커넥티드 기기 및 관련 기술의 도입에 영향을 주었습니다.

동시에, 이번 팬데믹은 원격 모니터링, 커넥티드 헬스케어, 디지털 서비스, 자동화 및 실시간 데이터 관리의 중요성을 부각시켰습니다. 스마트 시티 기술은 조직이 공공 공간을 모니터링하고, 자원을 관리하며, 원격 서비스를 지원하고, 업무 가시성을 높이는 데 도움이 되었습니다. 팬데믹 이후, 도시들이 회복탄력성과 디지털 전환에 점점 더 집중함에 따라, 장기적인 도시 인프라 계획에서 IoT 기술의 중요성은 더욱 커졌습니다.

목차

제1장 소개

제2장 요점

제3장 시장 역학

제4장 경쟁 구도

제5장 세계 스마트 시티에서의 IoT : 주요 기업의 시장 점유율에 관한 인사이트와 분석, 2025년

제6장 주요 시장 인사이트와 전략적 제안

제7장 주요 인터뷰 대상자의 주요 응답

제8장 소개된 기업(주요 10개사만을 대상으로 하고 있습니다)

제9장 부록/보충 자료

제10장 분석 대상 기업(시장 규모 추정 및/또는 시장 생태계에 대한 이해를 목적으로 함) (단, 아래 목록은 조사 범위의 포괄성을 보여주기 위한 것입니다. 반드시 아래에 나열된 모든 기업이 본 조사의 대상이 되는 것은 아닙니다. 자세한 내용은 ‘분석 대상 기업’ 섹션을 참조해 주십시오. 다만, 구체적인 요청이 있을 경우 추가 기업을 분석 대상에 포함하는 것도 가능합니다)

KSM 26.10.26

Growth Factors of IoT in smart cities Market

The global IoT in smart cities market is experiencing rapid expansion as governments, municipalities, technology providers, and infrastructure developers increasingly adopt connected technologies to improve urban operations and quality of life. The global IoT in smart cities market size was valued at USD 272.26 billion in 2025 and is projected to grow from USD 327.15 billion in 2026 to USD 1,421.75 billion by 2034, exhibiting a CAGR of 20.16% during the forecast period. North America dominated the global market with a 38.03% share in 2025, supported by advanced digital infrastructure, government-backed smart city programs, widespread 5G deployment, and the presence of major IoT technology providers.

IoT in smart cities refers to the use of connected devices, sensors, communication networks, software platforms, and data analytics technologies to collect and process real-time information from urban environments. These technologies enable cities to improve transportation, energy management, public safety, waste management, healthcare, infrastructure monitoring, and building operations. Rapid urbanization, increasing internet and smartphone penetration, rising demand for energy-efficient resources, and growing investments in connected infrastructure are expected to support market growth. The expansion of 5G networks is also creating opportunities by enabling high-speed, low-latency communication among a large number of connected devices.

Market Definition and Scope

The IoT in smart cities market covers technologies and services that connect physical urban assets and environments through sensors, communication networks, cloud platforms, analytics systems, and intelligent software. These solutions enable municipalities and businesses to collect real-time information, monitor assets remotely, analyze urban conditions, and automate various city operations. IoT platforms can integrate information from buildings, transportation systems, utilities, public spaces, healthcare facilities, and other connected infrastructure.

The market includes solutions such as location analytics, security management, real-time streaming analytics, remote monitoring systems, data management solutions, and reporting and analytics. Services include professional and managed services. Major application areas include smart buildings, smart healthcare, smart energy, smart transportation, public safety, smart infrastructure, environmental monitoring, and smart governance. Increasing government expenditure on connected cities and the development of digital urban infrastructure are further expanding the scope of IoT technologies across metropolitan and emerging cities.

Market Dynamics

Drivers

Increasing Government Initiatives and Smart City Projects

Government initiatives and large-scale smart city development programs are among the major factors driving the adoption of IoT technologies. Rapid urbanization is increasing population density in metropolitan and tier-one cities, creating challenges related to traffic congestion, security, energy consumption, waste management, infrastructure utilization, and public services. IoT-enabled systems allow authorities to monitor urban conditions in real time and make data-driven decisions to improve resource utilization and operational efficiency.

Governments across the world are therefore investing in connected infrastructure and smart city programs. In 2020, the Seoul Metropolitan Government, in partnership with the World Bank, hosted Korea Innovation Week to showcase technological development and smart city transformation. The city has focused on waste management, e-governance, smart energy, and other digital solutions. Similarly, Singapore introduced its Smart Nation Plan to strengthen digital infrastructure and improve urban services through technologies including IoT. Such initiatives are encouraging technology providers to develop solutions for connected buildings, transportation, utilities, public safety, and municipal services.

Smart city technologies can also generate economic and operational benefits. According to the information provided in the report, Barcelona generated 36.5 million euros through smart car parking and saved 42.5 million euros through smart water management solutions. The city's IoT services and systems also contributed to the generation of 47,000 jobs. These examples demonstrate the potential of connected technologies to improve urban resource management while supporting economic development.

Trends

Increasing Implementation of 5G Technology

The increasing deployment of 5G infrastructure is becoming a significant trend in the IoT in smart cities market. 5G networks offer high data speeds, low latency, high capacity, and the ability to connect large numbers of devices simultaneously. These capabilities are particularly important for smart city applications that require continuous communication between sensors, vehicles, buildings, public infrastructure, and centralized management platforms.

5G can strengthen real-time monitoring and data processing across transportation, public safety, smart buildings, energy management, and environmental monitoring. Governments and technology providers are increasingly focusing on 5G infrastructure to support future connected urban environments. In India, government initiatives to develop 5G architecture for smart city applications are expected to encourage the deployment of IoT-enabled solutions. As 5G coverage expands, cities are expected to integrate more connected devices and real-time intelligent services.

Growing Adoption of Connected and Data-Driven Urban Services

The increasing volume of data generated by connected urban devices is encouraging cities to adopt advanced reporting, analytics, monitoring, and data management solutions. IoT systems continuously collect information from buildings, transportation networks, utilities, public spaces, and environmental sensors. Processing this information allows city authorities and service providers to identify operational problems and respond more efficiently.

The combination of IoT, cloud computing, analytics, artificial intelligence, and digital platforms is also supporting the development of increasingly intelligent urban environments. Digital twins, connected buildings, remote monitoring systems, and real-time analytics are becoming important components of smart city infrastructure. These technologies are expected to support more efficient decision-making and improve the management of increasingly complex urban systems.

Restraints

Security and Privacy Risks Associated with IoT

Security and privacy concerns represent a major challenge for IoT adoption in smart cities. Connected urban systems collect and store substantial amounts of information about citizens, buildings, transportation systems, utilities, and public infrastructure. As the number of connected devices increases, the potential attack surface for cybercriminals also expands.

Cyberattacks, unauthorized access, data breaches, and vulnerabilities in connected devices can affect automated homes, healthcare systems, public infrastructure, and other smart city services. Concerns regarding the protection of personal and operational data can slow the adoption of IoT solutions, particularly when municipalities lack comprehensive cybersecurity frameworks. Strong data protection, secure device management, encryption, network security, and effective governance will therefore remain important for sustainable market development.

Impact of COVID-19

The COVID-19 pandemic affected the development and implementation of smart city projects as governments and businesses redirected resources toward healthcare, emergency response, and economic recovery. Delays in infrastructure projects and supply chain disruptions affected the deployment of connected devices and related technologies in several markets.

At the same time, the pandemic highlighted the importance of remote monitoring, connected healthcare, digital services, automation, and real-time data management. Smart city technologies helped organizations monitor public spaces, manage resources, support remote services, and improve operational visibility. As cities increasingly focused on resilience and digital transformation following the pandemic, IoT technologies gained greater importance in long-term urban infrastructure planning.

Segmentation Analysis

By Component

Based on component, the market is divided into solutions and services. The solutions segment includes location analytics, security management, real-time streaming analytics, remote monitoring systems, data management solutions, and reporting and analytics. The services segment is categorized into professional services and managed services.

The solution segment dominated the market and accounted for 74.2% of the global market share in 2025. The large share is associated with the growing need for integrated technologies capable of collecting, processing, analyzing, and visualizing data generated by connected urban infrastructure. Reporting and analytics solutions are expected to experience strong growth because they transform large volumes of IoT-generated data into actionable information for city authorities and service providers.

Remote monitoring systems are also expected to gain significant demand during the forecast period. These systems allow connected devices to be managed remotely across applications such as weather monitoring, smart utility management, home automation, and air quality monitoring. Location analytics, real-time streaming analytics, security management, and data management further improve the efficiency and accuracy of IoT-enabled urban services.

By Application

Based on application, the market is segmented into smart building, smart healthcare, smart energy, smart transportation, public safety, smart infrastructure, and others, including environmental monitoring and smart governance.

The smart building segment dominated the market and accounted for 22.3% of the global market share in 2025. Smart buildings are an essential component of connected cities because they integrate building security, energy management, facility operations, health management, building performance, and operational cost management. Growing demand for efficient commercial and residential spaces is expected to support the segment's expansion.

Public safety is another important application area because metropolitan cities increasingly require connected systems for surveillance, emergency response, security monitoring, and incident management. Smart transportation is also gaining importance due to traffic congestion, road accidents, inefficient traffic flow, and vehicle emissions. IoT-enabled transportation systems can provide real-time information and support more efficient management of urban mobility.

Smart healthcare is expected to experience strong growth as connected devices enable real-time health monitoring. Wearable devices, fitness trackers, connected medical equipment, and remote monitoring systems allow individuals and healthcare providers to access health information continuously. These capabilities can support remote assistance, continuous patient monitoring, and more responsive healthcare services.

Regional Insights

North America

North America dominated the IoT in smart cities market with a 38.03% share in 2025. The region benefits from advanced digital infrastructure, extensive 5G deployment, government funding, and the strong presence of major IoT, cloud, telecommunications, and technology companies. The U.S. and Canada are investing in connected infrastructure, smart buildings, transportation systems, public safety technologies, and digital municipal services.

The presence of established IoT solution providers, network operators, and 5G infrastructure companies is supporting the adoption of connected urban technologies. Increasing demand for energy-efficient buildings and digitally managed infrastructure is also contributing to regional market development.

Europe

Europe is expected to register the fastest regional growth, with a projected CAGR of 25.7% during the forecast period. Significant investments in smart city development, digital infrastructure, connected transportation, energy management, and sustainable urban planning are supporting the adoption of IoT technologies.

European cities are increasingly using connected technologies to improve resource utilization and urban sustainability. According to the provided report, the European Regional Development Fund regulations anticipated substantial annual investments in smart city projects during the 2014-2020 period. The United Kingdom, particularly cities such as London and Bristol, has also demonstrated strong adoption of smart city solutions.

Asia Pacific

Asia Pacific is expected to dominate the market during the forecast period, supported by rapid urbanization, large-scale infrastructure development, government smart city programs, and increasing demand for connected urban services. China, Japan, South Korea, Singapore, and India are investing significantly in IoT technologies and smart infrastructure.

India is projected to grow at a CAGR of 23.8%, supported by increasing adoption of smart buildings, connected infrastructure, 5G networks, and government-led digital development. The Government of India launched its 100 Smart Cities vision in 2015 with a sanctioned investment of USD 14 billion. In China, the Xiangtan municipal government secured a USD 200 million loan from the Asian Development Bank in 2020 for its smart city program.

Japan

The IoT in smart cities market in Japan is projected to reach USD 11,734.6 million in 2025. Investments in connected infrastructure, advanced urban technologies, smart buildings, automation, and digital city management are supporting the Japanese market. Japan's advanced technology ecosystem and focus on efficient urban infrastructure are expected to contribute to continued IoT adoption.

Middle East & Africa

The Middle East & Africa region is gradually increasing its adoption of IoT-based smart city technologies. Governments are collaborating with technology companies to develop connected urban infrastructure, smart buildings, public services, and digital management systems.

For instance, Technology Strategies Middle East, in partnership with Software AG, completed a smart city project in Abu Dhabi in 2018 using Cumulocity IoT as a platform provider. Such collaborations demonstrate the growing role of partnerships between governments and technology companies in developing connected urban environments.

South America

South America is witnessing steady growth in the adoption of IoT and connected devices. Increasing urbanization and demand for smart infrastructure are creating opportunities for connected lighting, transportation, utilities, and public services. According to GSMA information cited in the report, the region was estimated to have 1.2 billion connected devices by 2023.

Sao Paulo and Claro became early adopters of smart lighting solutions, demonstrating the potential for IoT-based urban infrastructure in the region. However, limited resources and infrastructure constraints remain challenges for the rapid implementation of smart city technologies across several South American markets.

Competitive Landscape

The IoT in smart cities market is characterized by strong competition among technology companies providing IoT platforms, cloud services, connectivity solutions, analytics, digital twins, smart infrastructure systems, and cybersecurity technologies. Leading companies are expanding their smart city portfolios through strategic partnerships and collaborations with governments, municipalities, telecommunications providers, infrastructure companies, and other technology organizations.

Microsoft Corporation is focused on expanding its smart city capabilities through IoT, cloud computing, digital twins, and connected building technologies. In October 2020, Microsoft announced a strategic alliance with Bentley Systems to combine Bentley's iTwins platform with Azure Maps and Microsoft's Azure IoT Digital Twins. The combined technologies were designed to provide city-scale digital twin capabilities for construction professionals, architects, engineers, and other users.

In January 2020, Microsoft collaborated with Akenza Core and ewz to implement a Long Range Wide Area Network across public spaces and buildings as part of the Smart City Zurich initiative. The collaboration integrated IoT systems and intelligent services to enable customers to analyze connected data.

Other major companies are also strengthening their market positions through technology development, partnerships, and geographic expansion. In February 2020, Deutsche Telekom expanded its IoT Solution Optimizer ecosystem through collaboration with mobile network operators in European countries. The solution was designed to provide mobile IoT connectivity for applications including smart cities, security services, and asset tracking.

In June 2020, Siemens, in partnership with Salesforce, introduced connected workplace solutions combining Salesforce's Work.com platform with Siemens Smart Infrastructure technologies. Such developments demonstrate the increasing integration of IoT, cloud, building management, connectivity, and enterprise software platforms within smart city ecosystems.

Key Companies Profiled

IBM Corporation

Cisco Systems, Inc.

Intel Corporation

Huawei Technologies Co., Ltd.

Microsoft Corporation

Tech Mahindra Limited

Siemens AG

Robert Bosch GmbH

PTC Ltd.

Schneider Electric Infrastructure Ltd.

Arm Limited

Quantela Inc.

Hitachi High-Tech Corporation

Sierra Wireless

SAP SE

Deutsche Telekom AG

Verizon Communications Inc.

AGT International

Qualcomm Technologies, Inc.

Report Coverage

The IoT in smart cities market research report provides an analysis of the global market across major regions, including North America, Europe, Asia Pacific, the Middle East & Africa, and South America. It examines key components, applications, regional market developments, growth drivers, trends, restraints, and competitive developments shaping the industry.

The report also evaluates the increasing adoption of 5G infrastructure, smart buildings, connected transportation, smart healthcare, public safety systems, smart energy solutions, remote monitoring, data analytics, and digital city platforms. Furthermore, it highlights government initiatives, strategic partnerships, technological developments, and investment trends influencing the adoption of IoT solutions in cities worldwide.

Conclusion

The global IoT in smart cities market is projected to expand from USD 327.15 billion in 2026 to USD 1,421.75 billion by 2034, registering a CAGR of 20.16% during the forecast period. Rapid urbanization, government-led smart city programs, increasing demand for efficient infrastructure, expanding 5G networks, and growing adoption of connected devices are expected to remain key contributors to market expansion.

The market is also being shaped by smart buildings, connected transportation, smart healthcare, public safety, remote monitoring, data analytics, and digital twin technologies. North America held the leading position in 2025, while Asia Pacific is expected to dominate over the forecast period and Europe is projected to record rapid regional growth. At the same time, cybersecurity, data privacy, and the protection of connected urban infrastructure will remain important considerations as cities become increasingly dependent on IoT-enabled systems.

Unit Value (USD Billion)

Segmentation Component; Application; and Region

By Component

  • Solution
    • Location Analytics
    • Security Management
    • Real-Time Streaming Analytics
    • Remote Monitoring System
    • Data Management Solutions
    • Reporting and Analytics
  • Services
    • Professional
    • Managed

By Application

  • Smart Building
  • Smart Healthcare
  • Smart Energy
  • Smart Transportation
  • Public Safety
  • Smart Infrastructure
  • Others (Environmental Monitoring, smart governance, etc.)

By Region

  • (Component; Application, and Country)
  • North America (Component; Application, and Country)
    • United States (By Application)
    • Canada (By Application)
    • Mexico (By Application)
  • South America (Component; Application, and Country)
    • Brazil (By Application)
    • Argentina (By Application)
    • Rest of South America
  • Europe (Component; Application, and Country)
    • UK (By Application)
    • Germany (By Application)
    • France (By Application)
    • Italy (By Application)
    • Spain (By Application)
    • Russia (By Application)
    • Benelux (By Application)
    • Nordics (By Application)
    • Rest of Europe
  • The Middle East & Africa (Component; Application, and Country)
    • Turkey (By Application)
    • Israel (By Application)
    • GCC (By Application)
    • North Africa (By Application)
    • South Africa (By Application)
    • Rest of the Middle East & Africa
  • Asia Pacific (Component; Application, and Country)
    • Japan (By Application)
    • China (By Application)
    • India (By Application)
    • South Korea (By Application)
    • ASEAN (By Application)
    • Oceania (By Application)
    • Rest of Asia Pacific

Table of Content

1. Introduction

  • 1.1. Definition, By Segment
  • 1.2. Research Methodology/Approach
  • 1.3. Data Sources

2. Key Takeaways

3. Market Dynamics

  • 3.1. Macro and Micro Economic Indicators
  • 3.2. Drivers, Restraints, Opportunities and Trends
  • 3.3. Impact of COVID-19
    • 3.3.1. Short-term Impact
    • 3.3.2. Long-term Impact

4. Competition Landscape

  • 4.1. Business Strategies Adopted by Key Players
  • 4.2. Consolidated SWOT Analysis of Key Players
  • 4.3. PESTLE Analysis
  • 4.4. Porter's Five Force Analysis

5. Global IoT in Smart Cities Key Players Market Share Insights and Analysis, 2025

6. Key Market Insights and Strategic Recommendations

7. Primary Interviewee's Key Responses

8. Companies Profiled (Covered for key 10 players only)

  • 8.1. Overview
    • 8.1.1. Key Management
    • 8.1.2. Headquarters etc.
  • 8.2. Offerings/Business Segments
  • 8.3. Key Details (Key details are subjected to data availability in public domain and/or on paid databases)
    • 8.3.1. Employee Size
    • 8.3.2. Key Financials
      • 8.3.2.1. Past and Current Revenue
      • 8.3.2.2. Gross Margin
      • 8.3.2.3. Geographical Share
      • 8.3.2.4. Business Segment Share
  • 8.4. Recent Developments

9. Annexure / Appendix

  • 9.1. Global IoT in Smart Cities Market Size Estimates and Forecasts (Quantitative Data), By Segments, 2021-2034
    • 9.1.1. By Component (Value)
      • 9.1.1.1. Solution
        • 9.1.1.1.1. Location Analytics
        • 9.1.1.1.2. Security Management
        • 9.1.1.1.3. Real-Time Streaming Analytics
        • 9.1.1.1.4. Remote Monitoring System
        • 9.1.1.1.5. Data Management Solutions
        • 9.1.1.1.6. Reporting and Analytics
      • 9.1.1.2. Services
        • 9.1.1.2.1. Professional
        • 9.1.1.2.2. Managed
    • 9.1.2. By Application (Value)
      • 9.1.2.1. Smart Building
      • 9.1.2.2. Smart Healthcare
      • 9.1.2.3. Smart Energy
      • 9.1.2.4. Smart Transportation
      • 9.1.2.5. Public Safety
      • 9.1.2.6. Smart Infrastructure
      • 9.1.2.7. Others (Environmental Monitoring, smart governance, etc.)
    • 9.1.3. By Region (Value)
      • 9.1.3.1. North America
      • 9.1.3.2. South America
      • 9.1.3.3. Europe
      • 9.1.3.4. Middle East & Africa
      • 9.1.3.5. Asia Pacific
  • 9.2. North America IoT in Smart Cities Market Size Estimates and Forecasts (Quantitative Data), By Segments, 2021-2034
    • 9.2.1. By Component (Value)
      • 9.2.1.1. Solution
        • 9.2.1.1.1. Location Analytics
        • 9.2.1.1.2. Security Management
        • 9.2.1.1.3. Real-Time Streaming Analytics
        • 9.2.1.1.4. Remote Monitoring System
        • 9.2.1.1.5. Data Management Solutions
        • 9.2.1.1.6. Reporting and Analytics
      • 9.2.1.2. Services
        • 9.2.1.2.1. Professional
        • 9.2.1.2.2. Managed
    • 9.2.2. By Application (Value)
      • 9.2.2.1. Smart Building
      • 9.2.2.2. Smart Healthcare
      • 9.2.2.3. Smart Energy
      • 9.2.2.4. Smart Transportation
      • 9.2.2.5. Public Safety
      • 9.2.2.6. Smart Infrastructure
      • 9.2.2.7. Others (Environmental Monitoring, smart governance, etc.)
    • 9.2.3. By Country (Value)
      • 9.2.3.1. United States
        • 9.2.3.1.1. By Application
      • 9.2.3.2. Canada
        • 9.2.3.2.1. By Application
      • 9.2.3.3. Mexico
        • 9.2.3.3.1. By Application
  • 9.3. South America IoT in Smart Cities Market Size Estimates and Forecasts (Quantitative Data), By Segments, 2021-2034
    • 9.3.1. By Component (Value)
      • 9.3.1.1. Solution
        • 9.3.1.1.1. Location Analytics
        • 9.3.1.1.2. Security Management
        • 9.3.1.1.3. Real-Time Streaming Analytics
        • 9.3.1.1.4. Remote Monitoring System
        • 9.3.1.1.5. Data Management Solutions
        • 9.3.1.1.6. Reporting and Analytics
      • 9.3.1.2. Services
        • 9.3.1.2.1. Professional
        • 9.3.1.2.2. Managed
    • 9.3.2. By Application (Value)
      • 9.3.2.1. Smart Building
      • 9.3.2.2. Smart Healthcare
      • 9.3.2.3. Smart Energy
      • 9.3.2.4. Smart Transportation
      • 9.3.2.5. Public Safety
      • 9.3.2.6. Smart Infrastructure
      • 9.3.2.7. Others (Environmental Monitoring, smart governance, etc.)
    • 9.3.3. By Country (Value)
      • 9.3.3.1. Brazil
        • 9.3.3.1.1. By Application
      • 9.3.3.2. Argentina
        • 9.3.3.2.1. By Application
      • 9.3.3.3. Rest of South America
  • 9.4. Europe IoT in Smart Cities Market Size Estimates and Forecasts (Quantitative Data), By Segments, 2021-2034
    • 9.4.1. By Component (Value)
      • 9.4.1.1. Solution
        • 9.4.1.1.1. Location Analytics
        • 9.4.1.1.2. Security Management
        • 9.4.1.1.3. Real-Time Streaming Analytics
        • 9.4.1.1.4. Remote Monitoring System
        • 9.4.1.1.5. Data Management Solutions
        • 9.4.1.1.6. Reporting and Analytics
      • 9.4.1.2. Services
        • 9.4.1.2.1. Professional
        • 9.4.1.2.2. Managed
    • 9.4.2. By Application (Value)
      • 9.4.2.1. Smart Building
      • 9.4.2.2. Smart Healthcare
      • 9.4.2.3. Smart Energy
      • 9.4.2.4. Smart Transportation
      • 9.4.2.5. Public Safety
      • 9.4.2.6. Smart Infrastructure
      • 9.4.2.7. Others (Environmental Monitoring, smart governance, etc.)
    • 9.4.3. By Country (Value)
      • 9.4.3.1. United Kingdom
        • 9.4.3.1.1. By Application
      • 9.4.3.2. Germany
        • 9.4.3.2.1. By Application
      • 9.4.3.3. France
        • 9.4.3.3.1. By Application
      • 9.4.3.4. Italy
        • 9.4.3.4.1. By Application
      • 9.4.3.5. Spain
        • 9.4.3.5.1. By Application
      • 9.4.3.6. Russia
        • 9.4.3.6.1. By Application
      • 9.4.3.7. Benelux
        • 9.4.3.7.1. By Application
      • 9.4.3.8. Nordics
        • 9.4.3.8.1. By Application
      • 9.4.3.9. Rest of Europe
  • 9.5. Middle East & Africa IoT in Smart Cities Market Size Estimates and Forecasts (Quantitative Data), By Segments, 2021-2034
    • 9.5.1. By Component (Value)
      • 9.5.1.1. Solution
        • 9.5.1.1.1. Location Analytics
        • 9.5.1.1.2. Security Management
        • 9.5.1.1.3. Real-Time Streaming Analytics
        • 9.5.1.1.4. Remote Monitoring System
        • 9.5.1.1.5. Data Management Solutions
        • 9.5.1.1.6. Reporting and Analytics
      • 9.5.1.2. Services
        • 9.5.1.2.1. Professional
        • 9.5.1.2.2. Managed
    • 9.5.2. By Application (Value)
      • 9.5.2.1. Smart Building
      • 9.5.2.2. Smart Healthcare
      • 9.5.2.3. Smart Energy
      • 9.5.2.4. Smart Transportation
      • 9.5.2.5. Public Safety
      • 9.5.2.6. Smart Infrastructure
      • 9.5.2.7. Others (Environmental Monitoring, smart governance, etc.)
    • 9.5.3. By Country (Value)
      • 9.5.3.1. Turkey
        • 9.5.3.1.1. By Application
      • 9.5.3.2. Israel
        • 9.5.3.2.1. By Application
      • 9.5.3.3. GCC
        • 9.5.3.3.1. By Application
      • 9.5.3.4. North Africa
        • 9.5.3.4.1. By Application
      • 9.5.3.5. South Africa
        • 9.5.3.5.1. By Application
      • 9.5.3.6. Rest of MEA
  • 9.6. Asia Pacific IoT in Smart Cities Market Size Estimates and Forecasts (Quantitative Data), By Segments, 2021-2034
    • 9.6.1. By Component (Value)
      • 9.6.1.1. Solution
        • 9.6.1.1.1. Location Analytics
        • 9.6.1.1.2. Security Management
        • 9.6.1.1.3. Real-Time Streaming Analytics
        • 9.6.1.1.4. Remote Monitoring System
        • 9.6.1.1.5. Data Management Solutions
        • 9.6.1.1.6. Reporting and Analytics
      • 9.6.1.2. Services
        • 9.6.1.2.1. Professional
        • 9.6.1.2.2. Managed
    • 9.6.2. By Application (Value)
      • 9.6.2.1. Smart Building
      • 9.6.2.2. Smart Healthcare
      • 9.6.2.3. Smart Energy
      • 9.6.2.4. Smart Transportation
      • 9.6.2.5. Public Safety
      • 9.6.2.6. Smart Infrastructure
      • 9.6.2.7. Others (Environmental Monitoring, smart governance, etc.)
    • 9.6.3. By Country (Value)
      • 9.6.3.1. China
        • 9.6.3.1.1. By Application
      • 9.6.3.2. India
        • 9.6.3.2.1. By Application
      • 9.6.3.3. Japan
        • 9.6.3.3.1. By Application
      • 9.6.3.4. South Korea
        • 9.6.3.4.1. By Application
      • 9.6.3.5. ASEAN
        • 9.6.3.5.1. By Application
      • 9.6.3.6. Oceania
        • 9.6.3.6.1. By Application
      • 9.6.3.7. Rest of Asia Pacific

10. Companies Analyzed (In order to estimate the market size and/or understanding the market ecosystem) (Note that the purpose of the below list is to highlight the exhaustiveness of coverage. This does not necessarily mean that all the below companies are profiled in the scope. Kindly refer Companies Profiled Section for more details. However, at the same, we are open to profile additional company(s) on specific request)

  • 10.1. IBM Corporation
  • 10.2. Cisco Systems, Inc.
  • 10.3. Intel Corporation
  • 10.4. Huawei Technologies Co., Ltd.
  • 10.5. Microsoft Corporation
  • 10.6. Tech Mahindra Limited
  • 10.7. Siemens AG
  • 10.8. Robert Bosch GbmH
  • 10.9. PTC Ltd.
  • 10.10. Schneider Electric Infrastructure Ltd.
  • 10.11. Arm Limited
  • 10.12. Quantela Inc.
  • 10.13. Hitachi High-Tech Corporation
  • 10.14. Sierra Wireless
  • 10.15. SAP SE
  • 10.16. Deutsche Telekom AG
  • 10.17. Verizon Communication Inc.
  • 10.18. AGT International
  • 10.19. Qualcomm Technologies, Inc.
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