We currently have no smart cities — by 2025 there’ll be 26
US$2.46 trillion market
Overall, smart cities are forecast to generate business opportunities worth US$2.46 trillion by 2025 and Frost & Sullivan expects at least 26 smart cities to be established by then.
Malabika Mandal, Visionary Innovation Group Industry Analyst, Frost & Sullivan, said: “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.”
There is no universal definition of what constitutes a smart city. Frost & Sullivan characterizes it as those with “active and verifiable pursuits” in at least five of eight areas: smart governance and education; smart healthcare; smart buildings; smart mobility; smart infrastructure; smart technology; smart energy; and smart citizens.
Mandal toldCities Todaythat by this definition there are no truly smart cities yet. Sixteen of the 26 leading cities are expected to be in North America and Europe, with the rest in Asia and Oceana. Mandal said Amsterdam, Seoul, Singapore and Copenhagen are among the frontrunners .
COVID recovery
More than 70 percent of global smart city spending by 2030 will be from the United States, Western Europe and China, the report finds.
Archana Vidyasekar, Visionary Innovation Group Research Director at Frost & Sullivan, commented: “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.”
Other analysts have suggested that the pandemiccould curb smart city spending in the short-termas local governments face severe budget challenges, althoughresearch from the U.S. Conference of Mayorsfound that investing in infrastructure, including technology, is US mayors’ top immediate and long-term priority for economic recovery. There is also arenewed focuson prioritizing solutions that make cities more resilient.
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Story byCities Today
Cities Today is the leading news platform on urban mobility and innovation, reaching an international audience of city leaders.Cities Today is the leading news platform on urban mobility and innovation, reaching an international audience of city leaders.
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