Smart Cities to Create Business Opportunities Worth $2.46 Trillion by 2025, says Frost & Sullivan

In observance of World Cities Day on October 31st, our experts reveal key findings on the smart city ecosystem

SANTA CLARA, Calif., Oct. 29, 2020 /PRNewswire/ -- The uncertain post-pandemic situation will compel smart cities to focus more on developing collaborative, data-driven infrastructure to provide appropriate healthcare facilities as well as public security services. They will create significant business opportunities with a market value of $2.46 trillion by 2025.

For further information on this analysis, please visit: http://frost.ly/4r3

"Smart cities will focus on data-driven and connected infrastructure, which will lead to higher adoption of technologies like AI and 5G. They will prioritize more digitalized services and a strong data analytics infrastructure, leading to increased spending toward technology," said Malabika Mandal, Visionary Innovation Group Industry Analyst at Frost & Sullivan.

Archana Vidyasekar, Visionary Innovation Group Research Director at Frost & Sullivan, added, "Now more than ever, the strategy of being technology-first, optimistic, and focused on 'smart' is critical. While COVID-19 has largely been a health crisis, it has disrupted city ecosystems and infrastructure tremendously. Smart technologies offer innovative solutions that can reverse the damage and bring some respite, if not normalcy. For instance, digital contact tracing can play a critical role in empowering citizens with knowledge of COVID-impacted areas and promote safer urban movement."

Frost & Sullivan's key findings on smart cities include:

    --  Smart cities' spending on technology in the next six years is expected
        to grow at a CAGR of 22.7%, reaching $327 billion by 2025 from $96
        billion in 2019. Technologies like artificial intelligence and big data
        will be in high demand to combat the pandemic, with growing
        opportunities for crowd analytics, open data dashboards, and online city
        services.
    --  There will be more than 26 smart cities by 2025, with 16 in North
        America and Europe.
    --  More than 70% of global smart city spending by 2030 will be from the
        United States, Western Europe, and China. Smart cities in the US and
        Europe will continue spending on 5G and autonomous and robotic
        technologies. Almost all smart cities in the US and Europe have already
        invested in open-data initiatives during the pandemic. In addition,
        China has renewed investments in 5G, smart grids, AI, data centers, and
        other smart city-related areas through the "new infrastructure
        initiative" introduced in 2018.
    --  Growing demand for crowd management and monitoring in smart cities will
        lead the crowd analytics market to grow by 20%-25% by 2030. It had
        market revenues of $748.6 million in 2020. Crowd analytics can be used
        to access collective real-time data. It can help ensure proper public
        healthcare services, traffic movement, and security and surveillance
        services across the smart city.
    --  Investments in smart initiatives are expected to rise over the next two
        years. Smart cities have already invested in contact tracing wearables
        and apps, open data platforms, autonomous drones, and crowd analytics to
        fight the pandemic. Post-pandemic, investment in smart projects like
        smart grids, intelligent traffic management, autonomous vehicles, smart
        lighting, e-governance services and data-enabled public safety and
        security will gain traction.

About Frost & Sullivan

For over five decades, Frost & Sullivan has become world-renowned for its role in helping investors, corporate leaders and governments navigate economic changes and identify disruptive technologies, Mega Trends, new business models, and companies to action, resulting in a continuous flow of growth opportunities to drive future success. Contact us: Start the discussion.

Media Contact:
Srihari Daivanayagam
Corporate Communications
E: Srihari.Daivanayagam@frost.com
http://ww2.frost.com

View original content to download multimedia:http://www.prnewswire.com/news-releases/smart-cities-to-create-business-opportunities-worth-2-46-trillion-by-2025--says-frost--sullivan-301163432.html

SOURCE Frost & Sullivan