While consumers have been getting smarter about energy use, cities are wising up, too.
A new market study shows that demand for smart city technology is poised for growth.
Released in the second quarter of this year, the analysis by Guidehouse Insights, Boulder, Colo., entitled “Market Data: Smart Cities,” observes that the marriage of urban energy management and smart technology is entering a new phase as the world looks to turn the corner on the COVID-19 pandemic.
The study notes that cities have been adopting smart technology for over a decade to help them fight climate change and address other challenges. Recent events have added a new sense of urgency to their efforts.
The pursuit of zero emissions in the fight against global warming continues unabated. Furthermore, the pandemic has underscored the need for cities to engage the most advanced communications technologies, data platforms and analytic capabilities to address heightened health and public safety concerns. On the other hand, the pandemic also put investment into some of these technologies on hold.
However, Guidehouse notes the underlying need for smart technology will continue to drive future growth in the market. The analysis projects that the next two years are likely to be “a defining period” for the smart cities movement. Guidehouse observes that despite budget cuts at the city level, positive signs point to national government stimulus funding, finance innovation from technology suppliers working with the investment sector and pragmatic funding strategies by city leaders.
All of this suggests growth in the years ahead. Guidehouse expects the global smart city technology market to grow from approximately $101 billion in annual revenue in 2021 to $240 billion by 2030, at a compound annual growth rate of 10.2%. Cumulative 2021–2030 revenue is expected to reach $1.65 trillion. Revenue in the North American market is expected to grow from approximately $20 billion to $60 billion.