As per a new study from Technavio, the smart city market size is poised to grow by more than $2118 billion during 2020-2024 with the decreasing price of connected devices expected to fuel market growth.
The report from global technology research and advisory company Technavio forecasts growth to progress at a compound annual growth rate of 23 per cent throughout the period. It highlights the smart governance and education segment as key areas of growth.
Connected network ecosystem
IoT systems have revolutionised the connected network ecosystem over the last few years. Smart city infrastructure is based on an efficient and connected network system and the reduction in costs of IoT sensors and associated systems, and in the cost of broadband services, has led to the implementation of smart cities across the world.
Furthermore, Technavio states the decline in hardware costs, installation costs, and tariff rates of network operators have triggered a surge in M2M security systems adoption in applications such as smart homes, connected cars, connected health, and precision agriculture.
As the price for connected devices continue to decrease in the coming years, the smart city market will witness significant growth, notes Technavio.
The proliferation of smart city projects in emerging economies, one of the key smart cities market trends, will also influence market growth, the report finds. While developed economies have been working on creating smart cities for a decade, emerging economies are still in the planning phase and are launching several pilot projects.
For instance, the government of India has initiated smart city projects for 100 cities. The installation of smart devices for these upcoming smart cities in emerging economies is expected to generate huge amounts of data. The analysis of this data would be required to improve business quality and innovate for a better future with faster connectivity by facilitating prompt suggestion-based services. As a result of these factors, the market will grow during the forecast period.