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Smart Grid Technology will Deliver $18.8B in Savings

Smart Cities are applying Internet of Things (IoT) based solutions. A smart city is an ecosystem that places emphasis on the use of digital technology to drive efficiency for existing social, economic and environmental processes, while developing new, data-driven processes.

According to findings from the latest worldwide market study by Juniper Research, smart traffic management and smart parking initiatives will save 4.2 billion man-hours annually by 2021 -- that's equivalent to each city driver saving nearly an entire working day per year.

Juniper analysts also found that while the smart city remains a relatively young concept, many metropolitan governments are beginning to recognize the need to improve in terms of competitiveness and quality of life. Moreover, increasing urban populations around the world are creating pressure on city resources, driving the need for new and efficient solutions.

Smart City Transportation

Juniper’s comprehensive study found that traffic easing measures are at the forefront of many smart city's efforts. Central to those considerations are the establishment of viable public transportation networks to replace private vehicle use.

Meanwhile, other proactive actions by local governments -- such as the 2 million smart parking spaces Juniper anticipates to be installed globally by 2021 -- will serve to improve private and commercial traffic flow.

"Facilitating the movement of citizens within urban agglomerations via transport networks is fundamental to a city’s economic growth” said Steffen Sorrell, senior analyst at Juniper Research. "Growing traffic congestion reduces business competitiveness."


Smart Grid Energy Savings

Overall, Juniper anticipates that the smart grid technology deployment will deliver $18.8 billion in cost savings in 2021. This will be achieved through reduced energy use and avoided economic costs from emissions. The reduced emissions are equivalent to those produced by nearly 15 million homes annually.

Additionally, the research found that the smart street lighting market, consisting of micro-controlled LED units and sensors is expected to surge over the next 5 years, with over half of installed LED fixtures being networked globally by 2021.

The potential for smart street lighting is not limited to reducing the city’s energy bill. Additional sensors installed on lighting fixtures enable new services for revenue generation, such as municipal Wi-Fi hotspot services and retail marketing opportunities.

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