스마트 시티 시장 규모, 점유율, 동향 및 예측 : 중점 분야별(스마트 교통, 스마트 빌딩, 스마트 유틸리티, 스마트 시민 서비스) 및 지역별(2026-2034년)

The global smart cities market size was valued at USD 1,633.2 Billion in 2025. Looking forward, IMARC Group estimates the market to reach USD 5,569.3 Billion by 2034, exhibiting a CAGR of 14.16% during 2026-2034. North America currently dominates the market, holding a significant market share of over 30.6% in 2025. The smart cities market share is propelled by the emergence of innovative, advanced information and communication technology (ICT), along with the increasing levels of urbanization.

The smart cities market growth is primarily driven by rapid urbanization, with cities increasingly adopting digital solutions to enhance living conditions. As per industry reports, in 2024, 57.5% of the total global population lived in urban cities. Government initiatives and investments in various smart infrastructures, including smart grids, intelligent transportation systems, and energy-efficient buildings, are key contributors to market growth. Technological advancements, particularly in IoT, AI, and data analytics, enable cities to improve services, reduce costs, and optimize resources. Rising concerns over sustainability and the need for energy-efficient solutions also play a significant role in propelling cities toward adopting smart technologies. Furthermore, the increasing requirement for enhanced public safety and better urban mobility also supports industry expansion.

The United States has emerged as a key regional market for smart cities, driven by the increasing demand for sustainable urban development and enhanced quality of life. The need for improved infrastructure to support expanding urban populations is significantly driving the smart cities market demand. According to recent reports, 82.8% of the total population in the United States lives in urban areas in 2025. Moreover, government initiatives, such as funding for smart infrastructure projects and urban revitalization efforts, are creating a positive smart cities market outlook. Additionally, the growing focus on public safety, health, and mobility solutions, along with the need for reduced environmental impact, is fueling investments in smart city technologies.

SMART CITIES MARKET TRENDS:

Increasing integration of artificial intelligence (AI)

The smart cities market trends indicate that the proliferation of the Internet of Things (IoT) and artificial intelligence (AI) is transforming the industry outlook. For instance, Chandigarh Smart City Limited (CSCL) has launched 'BIRBAL,' an AI-powered chatbot, in November 2023, with the goal of enhancing the city's citizen services experience city. Moreover, it is designed to provide information and help citizens find and access the resources they require, thereby creating seamless experiences for residents. In addition, it also covers a wide range of services, including public transport, online payments, complaint management, and health-related inquiries. Furthermore, these technological innovations are gaining extensive traction, as they enable the interconnection of several devices and systems, thereby allowing for data collection and analysis in real time. Additionally, the UK's City of Manchester established a community-led citizens' panel in March 2024 to engage locals in conversations about the potential applications of AI to address different issues in the city. Similarly, in order to promote artificial intelligence-based technologies and help create a modern, human-centered environment, the Saudi Data and Artificial Intelligence Authority (SDAIA) established the Global Smart City Forum in the Kingdom of Saudi Arabia in February 2024 in collaboration with the Ministry of Interior and the Ministry of Municipal and Rural Affairs.

Growing focus on sustainable urban development

The increasing consumer concern toward reducing carbon emissions levels is among the key drivers augmenting the smart cities market value. As per a 2022 report by the World Bank, 600 Million individuals are projected to live in urban areas in India by 2036, equating to approximately 40% of the total population of the country. In April 2024, Josh Talks, an upskilling platform in India, announced the development of City Champions to identify and support organizations working toward sustainable urban development. Additionally, the UN-Habitat Urban Lab released "My Neighborhood" in February 2024, a guide that provides a checklist of urban design principles targeted at building more resilient, sustainable cities. Besides this, containing actions that are applicable at the neighborhood scale, it strives to present an integrated approach that responds to key sectors, such as housing, public spaces, transportation, local urban initiatives, utilities, etc. Furthermore, key players are focusing on enhancing resource management, which will continue to fuel sustained market growth.

Rising demand for improved public services

Smart cities prioritize improving public services and safety via technology. This includes the deployment of emergency response automation, smart surveillance systems, and improved healthcare services. For instance, one of the major computer vision platform startups, Matterport, teamed up with Arcadus in February 2024 to provide the Matterport digital twin platform, which will help the U.S. public sector and manage Arcadus' assets more effectively. Additionally, BT launched a new NB-IoT network in the UK in February 2024 to support logistics, utilities, and construction in the smart city arena. Besides this, the widespread security concerns among government bodies are further strengthening the smart cities market. For example, the Chief Minister of Sindh launched the Sindh Smart Surveillance System (S4) in June 2024 to provide a comprehensive security service for all important exit and entry points and connect all major cities in the region.

SMART CITIES INDUSTRY SEGMENTATION:

Analysis by Focus Area:

• Smart Transportation
• Smart Buildings
• Smart Utilities
• Smart Citizen Services

Smart transportation leads the market, holding around 37.8% of the market share in 2025. According to the smart cities market research report, smart transportation represented the largest market segment as it involves the use of innovative technologies to develop more efficient, sustainable, and user-friendly urban mobility systems. This includes the integration of IoT, AI, and big data analytics to improve traffic management, reduce congestion, and enhance public transport services. For instance, the Indian Institute of Technology (IIT), Madras, introduced the Mobility and Intelligent Transportation initiative in April 2024, aiming to support the building of global smart city infrastructure. Additionally, autonomous buses and ride-sharing services are also being tested to provide flexible and efficient transportation options.

Analysis by Smart Transportation:

• Smart Ticketing
• Traffic Management System
• Passenger Information Management System
• Freight Information System
• Connected Vehicles
• Others

Traffic management system represents the leading segment, accounting for 25.7% of the market share in 2025. According to the report, the traffic management system represented the largest market segmentation due to the increasing need to address urban congestion, improve transportation efficiency, and enhance public safety. As cities grow, traffic congestion is becoming a significant challenge, leading to increased travel times, pollution, and stress for individuals. Smart traffic management systems leverage various advanced technologies, including IoT sensors, AI and real-time data analytics, to enhance traffic flow, manage incidents, and provide dynamic traffic signal control. For instance, the Sikkim Transport Department introduced an AI-based traffic management system in May 2024 to enhance regulation efficiency by verifying documents and detecting violations automatically.

Analysis by Smart Buildings:

• Building Energy Optimization
• Emergency Management System
• Parking Management System
• Others

Emergency management system holds the largest market share of 20.6% in 2025 as these systems are a vital part of smart cities, designed to enhance the effectiveness and efficiency of responses to emergencies and disasters. They are equipped with smart sensors and surveillance cameras that can detect fires, floods, or other emergencies, triggering immediate alerts to emergency services and providing vital information on the issue in real time. AI algorithms can analyze data from various sources to predict and lessen the negative effects of natural disasters. By leveraging technology, emergency management systems significantly improve urban resilience, ensuring faster, more coordinated, and effective responses to crises, ultimately saving lives and reducing damage. For instance, ILO and the Ministry of Emergency Management of China jointly established the China SCORE program in May 2024 to promote the prevention of occupational accidents.

Analysis by Smart Utilities:

• Advanced Metering Infrastructure
• Distribution Management System
• Substation Automation
• Others

Smart utilities are a fundamental aspect of smart cities, encompassing technologies that enhance the efficiency, reliability, and sustainability of essential services such as electricity, water, and gas. Advanced metering infrastructure (AMI) involves the deployment of smart meters that deliver data on consumption in real time, enabling utilities to optimize resource distribution, detect leaks or outages promptly, and empower consumers with detailed usage information to promote energy savings. Distribution management systems (DMS) utilize advanced analytics and real-time data to monitor and control the distribution network, ensuring efficient energy delivery and reducing the risk of outages. Substation automation integrates intelligent electronic devices and communication networks to monitor and control substations remotely, enhancing the reliability and security of the power supply. Other smart utility initiatives include smart water management systems that use sensors to monitor water quality and distribution and smart grids that enable the incorporation of renewable energy sources and improve the stability of grids.

Analysis by Smart Citizen Services:

• Smart Education
• Smart Healthcare
• Smart Public Safety
• Smart Street Lighting
• Others

Smart citizen services encompass a wide range of innovative solutions designed to enhance the quality of life in urban environments. Smart education leverages digital platforms and e-learning tools to provide personalized learning experiences and improve access to educational resources. Smart healthcare integrates telemedicine, wearable health devices, and electronic health records to offer efficient, accessible, and personalized medical care. On the other hand, smart public safety utilizes technologies such as AI-driven surveillance, emergency response automation, and predictive policing to ensure safer communities. Smart street lighting features LED lights equipped with sensors and connectivity, allowing for adaptive lighting based on real-time conditions, which improves energy efficiency and public safety. Other smart services include waste management systems that optimize and improve collection routes and recycling processes, as well as smart transportation solutions that enhance mobility and reduce traffic congestion.

Regional Analysis:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

In 2025, North America accounted for the largest market share of over 30.6%. The market in North America is experiencing rapid growth, driven by significant investments in technology and infrastructure aimed at enhancing urban living. For instance, the implementation of the "LinkNYC" initiative in New York, U.S., involves replacing payphones with Wi-Fi kiosks that provide high-speed internet, device charging, and phone calls free of cost, fostering greater digital connectivity. In addition, cities such as San Francisco and Boston across the country are deploying smart traffic management ecosystems that utilize real-time data to lessen congestion and improve traffic flow, significantly cutting down commute times. Furthermore, Toronto's Waterfront Toronto project also exemplifies smart city innovation with plans to integrate sustainable building practices, smart energy grids, and advanced waste management systems. These instances underscore the region's commitment to leveraging technology to create more efficient, sustainable, and livable urban environments.

KEY REGIONAL TAKEAWAYS:

UNITED STATES SMART CITIES MARKET ANALYSIS

In 2025, the United States accounted for 81.7% of the smart cities market in North America. Infrastructure upgrade investments have been the biggest drivers of growth in the United States smart cities market. The city governments are estimated to spend around USD 41 Trillion in the next 20 years in modernizing their infrastructure and implementing IoT technologies, as per reports. Such massive investments will improve urban mobility, public safety, energy efficiency, and quality of life for residents. This will also allow data collection and analysis in real time, enabling smarter decision-making and improved city management. As government initiatives and private sector collaborations accelerate digital transformation, smart city technologies are on the cusp of revolutionizing urban living in the United States. Rapid growth in IoT applications, such as intelligent traffic management, smart grids, and connected public services, further fortifies the growth potential of the market. This means that cities across the U.S. are being transformed into more sustainable, efficient, and citizen-centric urban ecosystems.

EUROPE SMART CITIES MARKET ANALYSIS

According to the European Commission, European cities play a key role in meeting the target of the Green Deal of reducing emissions by 55% by 2030. With smart city technologies, urban areas can make significant contributions to this goal and offer clean air, safe transport, and less congestion and noise for citizens. This is one of the growth drivers of the European smart cities market, driven by sustainability. In addition to this, the integration of AI, IoT, and big data analytics is assisting cities in optimizing energy use, improving public transport systems, and having smart mobility solutions. Smart grids, intelligent lighting, and connected infrastructure are contributing to the reduction of carbon footprints in urban cities, ensuring efficiency. In addition, EUR 95.5 Billion (USD 98.16 Billion) Horizon Europe, the program of the European Commission, supports smart city innovations, further propelling IoT adoption. As cities continue investing in digital infrastructure, smart lighting, and intelligent transportation, the European smart cities market is set for massive growth, encouraging sustainable and technologically advanced urban environments.

ASIA PACIFIC SMART CITIES MARKET ANALYSIS

Investment in smart city initiatives is growing rapidly and acts as a primary growth driver for the Asia Pacific smart cities market. In August 2023, the NEC Corporation India launched a Smart City project in Tirupati, India. Under this initiative, NEC Corporation India will implement ICT solutions across the city and establishing a City Operations Center (COC) to enhance urban management. The project also includes an integrated command and control center, an integrated service framework, collection of data in real time, two-way communication, and enhanced responses to environmental and public safety concerns. Government support is also an important factor in the development of smart cities. IBEF states that the Indian government has allocated INR 2,400 Crore (USD 19.67 Billion) for the Smart Cities Mission as part of the Union Budget 2024-25. This funding indicates the region's commitment to using digital technologies for urban development, efficiency, and quality of life for citizens, which is driving market growth.

LATIN AMERICA SMART CITIES MARKET ANALYSIS

According to industry reports, the smart cities market for Latin America is considerably driven by increased digital infrastructure investment and IoT adoption. Brazil will experience a significant growth rate, at 11.94%, from 2025 to 2029 in its smart city market volume, as it is poised to reach about USD 2.12 billion by 2029, as per industry reports. All governments in the region are putting a lot of focus on smart mobility, energy efficiency, and digital governance to improve the quality of urban living. Cities are also implementing AI-driven traffic management, IoT-enabled public services, and smart grids to improve efficiency and sustainability. Such innovations have enabled the optimization of resources, minimization of operational costs, and an improved quality of life for numerous individuals. As the rate of urbanization continues to escalate, so too does the demand for intelligent infrastructure and data-driven decision-making. The Latin America smart cities market is well positioned for rapid transformation in such an environment, making the region a key player in the global smart city landscape with strong support from public and private sector initiatives.

MIDDLE EAST AND AFRICA SMART CITIES MARKET ANALYSIS

According to industry trends, the Middle East and Africa smart cities market is expanding with a growing number of investments in smart infrastructure. In December 2023, Qatar-based property developer Msheireb Properties signed a Memorandum of Understanding (MoU) with Microsoft Corporation. The MoU comes at the back of a 'Smart Experience' project in Msheireb Downtown Doha (MDD) that seeks to transform how people experience urban living by incorporating sophisticated digital solutions for improving visitor, retail, residential, and commercial experiences. These projects illustrate growing adoption of IoT, AI, and cloud-based technologies across the Middle East and Africa region in energy efficiency, urban mobility, and public services. Governments and private stakeholders are also investing in smart grids, intelligent transport systems, and smart governance by promoting sustainable development and using technology to create technically advanced cities. As this digitization accelerates, major cities, such as Dubai, Riyadh, and Cape Town, are planning smart city initiatives to boost connectivity, environmental sustainability, and management of the city. This progress is positioning the Middle East and Africa smart cities market for tremendous growth.

COMPETITIVE LANDSCAPE:

Major players in the industry are introducing innovative technologies, such as the Internet of Things (IoT) devices, sensors, data analytics platforms, and communication networks. These technologies enable the collection and analysis of real-time data for informed decision-making. In line with this, companies are involved in deploying smart infrastructure, such as smart grids, smart transportation systems, smart lighting, and smart buildings. They are continuously working with municipalities and governing agencies of several countries to integrate these solutions into existing urban frameworks or during new city planning and development. Besides this, various companies are developing platforms and mobile applications to encourage citizen participation in smart city initiatives.

The report provides a comprehensive analysis of the competitive landscape in the smart cities market with detailed profiles of all major companies, including:

• ABB Group (NYSE: ABB)
• Cisco Systems, Inc.
• Alphabet Inc.
• International Business Machines (IBM) Corporation
• Microsoft Corporation
• Oracle Corporation
• Schneider Electric
• Hitachi, Ltd.
• Siemens AG
• Huawei Technologies Co., Ltd.
• Intel Corporation
• General Electric (GE) Company
• Telefonaktiebolaget L M Ericsson
• Toshiba Corporation
• Honeywell International Inc.
• AT&T Communications, LLC

KEY QUESTIONS ANSWERED IN THIS REPORT

1. How big is the smart cities market?

2. What is the future outlook of the smart cities market?

3. What are the key factors driving the smart cities market?

4. Which region accounts for the largest smart cities market share?

5. Which are the leading companies in the global smart cities market?

Table of Contents

1 Preface

2 Scope and Methodology

• 2.1 Objectives of the Study
• 2.2 Stakeholders
• 2.3 Data Sources
  • 2.3.1 Primary Sources
  • 2.3.2 Secondary Sources
• 2.4 Market Estimation
  • 2.4.1 Bottom-Up Approach
  • 2.4.2 Top-Down Approach
• 2.5 Forecasting Methodology

3 Executive Summary

4 Introduction

• 4.1 Overview
• 4.2 Key Industry Trends

5 Global Smart Cities Market

• 5.1 Market Overview
• 5.2 Market Performance
• 5.3 Impact of COVID-19
• 5.4 Market Breakup by Focus Area
• 5.5 Market Breakup by Smart Transportation
• 5.6 Market Breakup by Smart Buildings
• 5.7 Market Breakup by Smart Utilities
• 5.8 Market Breakup by Smart Citizen Services
• 5.9 Market Breakup by Region
• 5.10 Market Forecast

6 Market Breakup by Focus Area

• 6.1 Smart Transportation
  • 6.1.1 Market Trends
  • 6.1.2 Market Forecast
• 6.2 Smart Buildings
  • 6.2.1 Market Trends
  • 6.2.2 Market Forecast
• 6.3 Smart Utilities
  • 6.3.1 Market Trends
  • 6.3.2 Market Forecast
• 6.4 Smart Citizen Services
  • 6.4.1 Market Trends
  • 6.4.2 Market Forecast

7 Market Breakup by Smart Transportation

• 7.1 Smart Ticketing
  • 7.1.1 Market Trends
  • 7.1.2 Market Forecast
• 7.2 Traffic Management System
  • 7.2.1 Market Trends
  • 7.2.2 Market Forecast
• 7.3 Passenger Information Management System
  • 7.3.1 Market Trends
  • 7.3.2 Market Forecast
• 7.4 Freight Information System
  • 7.4.1 Market Trends
  • 7.4.2 Market Forecast
• 7.5 Connected Vehicles
  • 7.5.1 Market Trends
  • 7.5.2 Market Forecast
• 7.6 Others
  • 7.6.1 Market Trends
  • 7.6.2 Market Forecast

8 Market Breakup by Smart Buildings

• 8.1 Building Energy Optimization
  • 8.1.1 Market Trends
  • 8.1.2 Market Forecast
• 8.2 Emergency Management System
  • 8.2.1 Market Trends
  • 8.2.2 Market Forecast
• 8.3 Parking Management System
  • 8.3.1 Market Trends
  • 8.3.2 Market Forecast
• 8.4 Others
  • 8.4.1 Market Trends
  • 8.4.2 Market Forecast

9 Market Breakup by Smart Utilities

• 9.1 Advanced Metering Infrastructure
  • 9.1.1 Market Trends
  • 9.1.2 Market Forecast
• 9.2 Distribution Management System
  • 9.2.1 Market Trends
  • 9.2.2 Market Forecast
• 9.3 Substation Automation
  • 9.3.1 Market Trends
  • 9.3.2 Market Forecast
• 9.4 Others
  • 9.4.1 Market Trends
  • 9.4.2 Market Forecast

10 Market Breakup by Smart Citizen Services

• 10.1 Smart Education
  • 10.1.1 Market Trends
  • 10.1.2 Market Forecast
• 10.2 Smart Healthcare
  • 10.2.1 Market Trends
  • 10.2.2 Market Forecast
• 10.3 Smart Public Safety
  • 10.3.1 Market Trends
  • 10.3.2 Market Forecast
• 10.4 Smart Street Lighting
  • 10.4.1 Market Trends
  • 10.4.2 Market Forecast
• 10.5 Others
  • 10.5.1 Market Trends
  • 10.5.2 Market Forecast

11 Market Breakup by Region

• 11.1 Europe
  • 11.1.1 Market Trends
  • 11.1.2 Market Forecast
• 11.2 North America
  • 11.2.1 Market Trends
  • 11.2.2 Market Forecast
• 11.3 Asia Pacific
  • 11.3.1 Market Trends
  • 11.3.2 Market Forecast
• 11.4 Middle East and Africa
  • 11.4.1 Market Trends
  • 11.4.2 Market Forecast
• 11.5 Latin America
  • 11.5.1 Market Trends
  • 11.5.2 Market Forecast

12 SWOT Analysis

• 12.1 Overview
• 12.2 Strengths
• 12.3 Weaknesses
• 12.4 Opportunities
• 12.5 Threats

13 Value Chain Analysis

14 Porter's Five Forces Analysis

• 14.1 Overview
• 14.2 Bargaining Power of Buyers
• 14.3 Bargaining Power of Suppliers
• 14.4 Degree of Competition
• 14.5 Threat of New Entrants
• 14.6 Threat of Substitutes

15 Price Analysis

16 Competitive Landscape

• 16.1 Market Structure
• 16.2 Key Players
• 16.3 Profiles of Key Players
  • 16.3.1 ABB Group (NYSE: ABB)
  • 16.3.2 Cisco Systems, Inc.
  • 16.3.3 Alphabet Inc.
  • 16.3.4 International Business Machines (IBM) Corporation
  • 16.3.5 Microsoft Corporation
  • 16.3.6 Oracle Corporation
  • 16.3.7 Schneider Electric
  • 16.3.8 Hitachi, Ltd.
  • 16.3.9 Siemens AG
  • 16.3.10 Huawei Technologies Co., Ltd.
  • 16.3.11 Intel Corporation
  • 16.3.12 General Electric (GE) Company
  • 16.3.13 Telefonaktiebolaget L M Ericsson
  • 16.3.14 Toshiba Corporation
  • 16.3.15 Honeywell International Inc.
  • 16.3.16 AT&T Communications, LLC