Skip to main content

Progressive Local Governments Invest in Smart Cities

Smart City initiatives are one of the most important developments worldwide in public sector digital transformation. Given the crucial role that cities will play in both overall digitization efforts and the development of national economies, the largest or fastest-growing use cases have the attention of municipal leaders across the globe.

Smart City initiatives will attract technology investments of more than $81 billion globally in 2018, and spending is forecast to reach $158 billion in 2022, according to the latest worldwide market study by International Data Corporation (IDC).

Smart City Initiatives Market Development

"We are now delivering detailed sizing of 25 named use cases, as well as the first release of a new database of spending at City level," said Serena Da Rold, program manager at IDC.

Intelligent transportation and data-driven public safety remain the largest investment areas, but IDC analysts report they are also finding significant pockets of investment and growth in back-office and platform-related use cases, which are less often publicized but increasingly happening behind the scenes in cities around the world.

That being said, the three largest use cases, which will attract nearly one-quarter of global Smart Cities spending in 2018, are fixed visual surveillance, advanced public transit, and smart outdoor lighting.


By 2022, intelligent traffic management will overcome smart outdoor lighting in the third position, and the top three use cases will only account for one-fifth of total spending, as smaller and fast-growing use cases emerge and reach critical mass.

Officer wearables and vehicle to everything (V2X) connectivity, in particular, will generate the fastest growth, although they currently start from a small base in most regions.

On a geographic basis, the Asia-Pacific region, including China and Japan, will account for nearly 42 percent of global spending in 2018, followed by the Americas (33 percent), and Europe, Middle East and Africa (EMEA) (25 percent). The United States is the largest country market for Smart City spending (over $23 billion in 2018), followed by China.

According to the IDC assessment, the three largest use cases appear among the top five in terms of spending across all regions, but other use cases that emerge among the largest current Smart Cities investment areas include mobile video capture and recording in the United States and Latin America, and digital permitting, licensing, and inspection in the Middle East and Africa region.

Outlook for Smart City Technology Investment

Spending by the 53 Cities that are currently sized in IDC's database accounts for around 15 percent of global Smart City spending, with Singapore, Tokyo, New York City, London, and Shanghai leading the way in terms of 2018 investments.

"IDC expects to see strong, continued investment by the private and public sector in urban areas and in Smart Cities and Communities programs and projects," said Ruthbea Yesner, vice president at IDC. "This also means that it is a more competitive market."

Popular posts from this blog

How the COVID-19 Pandemic Advanced Telehealth Adoption

The global COVID-19 pandemic has accelerated digital transformation across many industries. As an example, consider the healthcare sector. Some routine medical situations can be diagnosed and resolved online. While the trend was already in motion long before the pandemic arrived, the adoption of telehealth increased rapidly in 2020. Around the world, many governments responded to the disruption and inaccessibility of healthcare facilities by loosening previous regulations and restrictions on the practice of telemedicine apps, and teleconsultations. This decision resulted in the mass adoption of these medical services among patients and providers. According to the latest market study by Juniper Research, telemedicine will save the healthcare industry $21 billion in costs by 2025 -- that's rising from an estimated $11 billion in 2021. This increased app usage represents an anticipated growth rate of over 80 percent in the next four years. Telehealth Services Market Development The co

Worldwide Semiconductor Demand will Accelerate in 2021

The technology sector is a key driver of the U.S. economy. Therefore, components like semiconductors play an important role in America's future. The 'CHIPS for America Act' is a new law that calls for incentives on domestic semiconductor manufacturing and investments in research and development. But these renewed efforts will require years of ongoing commitment. Meanwhile, despite the impact of the COVID-19 pandemic, the semiconductor market performed well in 2020. However, new demand by industry was uneven throughout last year due to global lockdowns, remote working adoption, and shifts in consumer and commercial buying behavior. Worldwide semiconductor revenue grew to $464 billion in 2020 -- that's an increase of 10.8 percent compared to 2019, according to the latest market study by International Data Corporation (IDC). Semiconductor Technology Market Development IDC now forecasts that the semiconductor market will reach $522 billion in 2021, that's a 12.5 percent

Hyper-automation Propels Superior Business Process Redesign

When the world was disrupted by a global pandemic during 2020, many CEOs and their board of directors were consumed by reacting to immediate problems. Meanwhile, a few forwarding-thinking enterprise leaders also paused to invest in accelerating their prescient digital transformation agenda. What enables executives to envision an opportunity while others see only challenges? Strategic foresight, and a willingness to embrace the apparent changes that are transforming the legacy status quo. During this period of uncertainty, hyper-automation investment has gained new momentum. Hyperautomation is the application of advanced technologies that augment humans by helping to streamline processes in new ways that are significantly more impactful than the legacy approach. Hyperautomation Market Development The global market for technology that enables hyperautomation will reach $596.6 billion in 2022, according to the latest worldwide market study by Gartner. This is up from $481.6 billion in 202