Smart Cities: Growing New IT Markets

NEW YORK, July 20, 2017 /PRNewswire/ --

-- The global smart cities market for information and communications technologies reached $342.4 billion in 2016 and should reach $774.8 billion in 2021, with a compound annual growth rate (CAGR) of 17.7% from 2016 to 2021.

Read the full report: http://www.reportlinker.com/p05002450/Smart-Cities-Growing-New-IT-Markets.html

-- North America represents the largest region of the smart cities market with revenue of nearly $148.6 billion in 2016 and should reach $327.0 billion in 2021, a CAGR of 17.1% from 2016 to 2021.
-- Europe as a segment of the smart cities market reached $100.8 billion in 2016 and should reach nearly $259.6 billion in 2021, a CAGR of 20.8% from 2016 to 2021.

Introduction
With the number of smart cities increasing from about two dozen to more than 100 in just a few years, the market for smart city information and communication technology is already on a strong growth curve. However, these early cities are just the tip of the iceberg. The true addressable market comprises more than 1,500 cities with populations of more than 500,000 people and twice that many number of cities with populations over 150,000 people. This means that the smart cities market consists of about 5,000 medium to large cities, with most experts predicting at least 10% to 13% penetration, or about 600 cities, within the next 20 years.

The smart cities market opportunity is driven by the convergence of information and communications technology in a number of areas, in particular the development of advanced connectivity and analytic software and hardware. A branch of the Internet of Things (IoT), smart cities leverage the array of connected sensors and analytics platforms to drive stronger coordination within departments and across city agencies and community groups. Everything from video surveillance for security and traffic management to emergency coordination and public events participation benefit from smart city technology.

Study Goals and Objectives
The goal of this report is to highlight information and communication technology investment driven by smart city applications. The market opportunity is expressed in terms of potential revenue for the addressable market for smart city technologies by geographic region, technology type and end-user segment. This report serves as an update to BCC Research's first smart cities report (IFT115A) published in 2015.

Reasons for Doing This Study
The purpose of the study is to update the market size and forecasts for smart city information and communication technologies. Further, communications, hardware, sensors and software are sized, forecast and discussed in depth. This data will enable manufacturers to determine the most effective research and development (R&D), product packaging and marketing and sales strategies.

Scope of Report
This report covers the global market for smart city technologies and regional analysis of North America, Latin America, Europe, Asia-Pacific and the Rest of World. Component segments include communications, hardware, sensors and software as well as in-depth market size and forecast for key end-user segments including energy management, water management, transportation management, assisted living, e-government and waste management.

Information Sources
Primary information sources include manufacturers and suppliers of smart city technologies and associated products around the world, suppliers for the manufacture of these products, major users of these products, research organizations, governmental agencies, trade associations and various equipment suppliers. Additional secondary research sources are databases, trade literature, specialized journals and government statistics.

Methodology
Both primary and secondary research methodologies were used in preparing this report. Initially, a comprehensive and exhaustive search of the literature on smart cities was conducted. These sources include relevant journals and related books, trade literature, marketing literature, other product/promotional literature, annual reports, analyst reports and other publications. Subsequently, telephone interviews and email correspondence was conducted with marketing executives, product sales engineers, international sales managers, application engineers and other personnel of connected medical device companies. Other sources included academics, related suppliers, technical experts and consulting companies.

Geographic Breakdown
In this report, the geographic regions considered for market analysis include:
-- North America
-- Latin America
-- Europe
-- Asia-Pacific
-- Rest of World

Summary and Highlights
The global smart cities market for information and communications technologies has continued to expand at a rapid pace since the 2015 report issued by BCC Research. Total market value increased to an estimated $342.4 billion in 2016 from around $320 billion in 2015. BCC Research estimates that the market will reach $774.8 billion in 2021 at a compound annual growth rate (CAGR) of 17.7%. This will exceed the $668.5 billion estimated for 2019 in the previous report, with a similar growth rate. In short, the market has continued to gain momentum in the last few years as demand for more effective citywide management methods becomes more popular.

Regionally, North America will continue to dominate the global market for smart city technologies, although its 43% market share is estimated to drop by one percentage point in 2021. Technology ubiquity, advanced investment and organizational models in cities led by New York, Los Angeles and Chicago in the U.S. and Toronto, Vancouver and Calgary in Canada will continue to drive investment. There were more than a dozen smart city projects in the region as of June, 2017. Further, BCC Research estimates that investment rate in the region will increase from $118.5 billion in 2016 to $244.5 billion in 2021 at a CAGR of 15.6%.

Competing next for scale are the markets of Europe and Asia-Pacific, where regional and local governments are driving smart city technology adoption. Early investments in Asia-Pacific will boost market value in the short term, at $91.7 billion in 2016, helped by the aggressive growth investments by major countries. However, Asia-Pacific's CAGR of 14.7% will be surpassed by Europe in the latter years of the forecast period as the economic climate improves in the E.U. and major initiatives, such as energy management, will drive a 24.3% CAGR in the region.
Read the full report: http://www.reportlinker.com/p05002450/Smart-Cities-Growing-New-IT-Markets.html

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