According to a new market research report published by Marketsand Markets, the market size of IoT in Smart Cities is estimated to reach $147.51 Billion by 2020, at an estimated Compound Annual Growth Rate (CAGR) of 23.2% during the next five years.
The report “Internet of things (IoT) in smart cities market by Solutions (Remote Monitoring, Data Management) Platform (Application & Device Management) Application (Building Automation, Energy Management, Transportation) – Global Forecast to 2020”, says that the increasing adoption of IoT is driving this market; the IoT platforms segment is expected to grow higher than the IoT solutions segment during the forecast period. Presently, North America is the largest market for IoT in smart cities platform.
“The holistic idea of IoT in smart cities is gaining a significant momentum throughout the globe. While greater demand could be seen for smarter technologies over utility grids, the focus would eventually shift toward other emerging areas, such as transportation, infrastructure management, building automation, energy management, and intelligent cities services, during the next decade. With the increasing demand for IoT devices, smart cities are highly inclined to adopt these solutions.” Says the report.
The major growth drivers of this market include increasing demand for intelligent cities globally and the rising demand for IoT devices. More than 200 smart city projects across the globe provide huge opportunities in this market for IoT vendors, service providers, platform providers, and consulting companies.
Growing concept of connected cities and increasing deployment of connected devices to open major opportunities
The market smart city has considerably grown over the past few years and the emergence of disruptive technologies such as IoT and connected devices has further augmented the opportunity areas for IoT in smart cities. The advancement in IoT technologies, cloud-based platforms, and services are marked with increasing IoT application and has led to significant investment in smart cities. The development of smart devices such as smart meters, home gateways, smart appliances, and smart plugs would also act as an opportunity for the IoT in smart cities market. Government policies, privacy and security issues, inadequate financial incentives for utilities and interoperability and standard interface are the major restraints of the overall growth of this market.
Data management solutions sub segment expected to hold the most promising potential for next five years
The IoT in smart cities market is divided into solutions, services, technologies, platforms, and applications. The data management and location analytics solution sub segment is projected to grow at a high growth rate and present good market opportunity during the forecast period. System integration services hold a major share in the IoT smart cities services segment. The increasing integration of ICT and IoT with different industries is considered as the primary driver influencing the growth of the IoT in smart cities services market.
North America contributes maximum market share in 2015
North America is expected to hold the largest market share and dominate the IoT in smart cities market from 2015 to 2020, with the growing number of smart city projects and increasing grants from the U.S. government. Asia-Pacific and Middle East & Africa offer potential growth opportunities due to large-scale infrastructure development and growing number of smart city projects.
Retrofitting and refurbishing have become the key strategies for modernizing the residential and social infrastructure in the developed countries with large-scale public sector assets zoned centrally across urban areas. In emerging economies, such as China, Brazil, and India, where there are poorly maintained commercial markets, housing, schools, and governance buildings, the Refit model has become essential to develop commercial space along with new social infrastructure. With more than 200 smart city projects across the globe, there are huge opportunities in the IoT smart cities market for IoT vendors, service providers, platform providers, and consulting companies.
The major vendors in the IoT smart cities market include Cisco Systems Inc., Huawei Technologies, IBM Corporation, Intel Corporation and others. These players adopted various growth strategies such as new product launches, partnerships, contracts, collaborations, acquisitions, and expansions to increase their footprints globally.
MarketsandMarkets segments the Internet of things (IoT) in smart cities market on the basis of solutions: location analytics, network security, application security, real-time streaming analytics, network bandwidth management, remote monitoring system and data management solutions; services: system integration services and other services; platforms: device management, application management, and connectivity management platform; technologies: satellite networks, cellular networks, Radio Frequency Identification (RFID), Near Field Communication (NFC), and Wi-Fi; applications: transportation, infrastructure management, building automation, energy management, intelligent cities service, and emergency and incident management; and regions. A detailed analysis of the regional markets has been done to provide insights into the potential future business opportunities in different regions.
IoT in Smart Cities Market Worth $147.5 Billion by 2020