Description
The smart cities market represents a combination of solutions deployed in an urban environment to transform the administration and support of living and working environments. Accordingly, ICT Infrastructure is transforming at a rapid rate, driven by urbanization, industrialization of emerging economies, and the specific needs of various smart city initiatives.
Smart city development is emerging as a focal point for growth drivers in several key ICT areas including: Artificial Intelligence, Internet of Things, Connected Devices, Broadband Wireless, Computing, Big Data & Analytics.
Smart Cities Market Dynamics
Driving the smart cities market at the macroeconomic level, over 50% of the world’s population lives in an urban area and this is projected to grow to 71% by 2050. Global metropolitan areas are facing unprecedented challenges as the pace of urbanization is increasing at a pace that is testing the ability of city planners to meet the current and anticipated needs of its citizens. In addition, the enhanced mobility of modern society has created extreme competition between cities to attract skilled residents, corporations, and related jobs.
Technological innovation is another driving factor for the smart cities market. Innovation in several ICT areas is Improving the ability to manage resources and deliver services in metropolitan areas. A lot of smart city technologies are being developed to manage specific issues in energy distribution, energy management, transportation management, and public safety. New generations of sensor networks, big data analytics, and IoT applications are being deployed in public and privately managed physical spaces to meet these requirements, though many challenges remain.
Smart Cities Market Technologies
A significant majority of IoT applications will occur within metropolitan areas and will ultimately integrate within smart city ecosystems. Intelligent use of IoT technologies will be the key to continuous improvements in the areas of process automation within the smart city market. IoT technologies are also anticipated to make a substantial positive impact upon smart city physical infrastructure including buildings, transportation, and energy management systems. These impacts include improving operational effectiveness and efficiency, safeguarding assets, and establishing new value-added services.
The use of AI for decision making in IoT and data analytics will be crucial for the smart cities market in terms of support for efficient and effective decision making, especially in the area of streaming data and real-time analytics associated with edge computing networks. Mind Commerce sees significant innovation arising as a result of AIoT (AI + IoT convergence) optimization of smart city systems.
Lessons learned from AIoT platforms will be applied towards enhancement of existing solutions as well as development of completely new applications and services. Many of these will be data-driven offerings based on intelligence about how, why, when, and where solutions are used and what technology combinations are most important to leverage to optimize solutions.
Mind Commerce sees significant opportunities for global wireless carriers in smart cities, homes, and solutions in the areas of LTE-Advanced, 5G, IoT, Connected Devices, Big Data and Analytics as well as a vast number of applications. The importance of communication service provider investment in smart city solutions cannot be understated. By way of example, our research indicates that a significant majority of IoT applications will occur within metropolitan areas and will ultimately integrate within a smart city ecosystem. Our research indicates up to 32% of all carrier revenue will be directly or indirectly dependent upon smart cities by 2025.
Sustainable smart city market deployments will depend upon careful planning and execution as well as monitoring and adjustments as necessary. For example, feature/functionality must be blended to work efficiently across many different industry verticals as smart city address the needs of disparate market segments with multiple overlapping and sometimes mutually exclusive requirements. This will stimulate the need for both cross-industry coordination as well as orchestration of many different capabilities across several important technologies.
Technologies that support the smart cities market will attract innovation that will create further advancements in various industry verticals and other technologies such as robotics and virtual reality. A positive feedback loop is created and sustained through the convergence of three key technologies in particular: AI, IoT, and 5G (AIoT5G).
AIoT5G = Smart Cities Market Innovation
This AIoT5G dynamic, along with edge computing and advanced data analytics solutions, will support both smart city operations optimization as well as incremental application and service enhancements and innovation.
For example, 5G and Mobile Edge Computing (MEC) infrastructure supporting smart cities market solutions will also enable teleoperation and cloud robotics for many new consumer and industrial automation scenarios. This will benefit various services industries as well as connected manufacturing.
Whether it is a factory setting, office environment, or enterprise operation in virtually any industry vertical, Industrial IoT (IIoT) technologies will enable an increasingly intelligence workplace for smart cities. In fact, IIoT will provide the glue that stitches together smart buildings and other smart workspaces for remote, traveling, and teleworkers between smart cities.
Smart Cities Market Report
This report evaluates the smart cities market including leading vendors and strategies (such as a single vendor centric approach), infrastructure, solutions, applications and services. The report analyzes market factors driving solution adoption, technology readiness and fitness for use, and other considerations. The report assesses the aforementioned factors to derive penetration and revenue to forecast market value for the period of 2021 – 2026. The report also assesses the role of technology accelerating digital transformation within the smart cities market including AI, edge processing, 5G deployment and usage, and advanced data analytics.
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