The number of smart city projects being implemented around the world has increased by almost 40% in just over two years.
That’s according to a new report by Navigant Research, which said that in the last few years city leaders, central government ministries, and technology and service suppliers have announced a range of new smart city initiatives, incentives, and product and service offerings. At the same time, more cities are moving from one specific technology interest to a broader range of solutions that have multiple applications.
The study identified 235 smart city projects, up from 170 in the third quarter of 2013.
The expansion of smart city projects is happening not only in terms of the quantity of projects being developed, but also in relation to the level and variety of integration being pursued, commented Ryan Citron, research analyst at Navigant Research. This expansion is expected to increase as governments continue to recognise the tremendous associated benefits of smart cities, including improved economic opportunity, sustainability, and quality of life.
The research firm highlighted new national programmes — particularly in the United States and India — which demonstrate the commitment major economic players are making with regard to smart cities.
Continued global investment in smart grids, networked LED street lights, urban mobility, climate action plans, open data platforms, water management, smart parking systems and government service applications for smart cities shows that there is a growing market for smart city technology.
Additionally, the market is seeing an increase in innovations from suppliers in terms of product and solution offerings, as well as the partnerships they are forming with cities and other stakeholders. This is expected to further propel the industry’s growth, Navigant Research said.
The firm predicts that the global smart city technology market will be worth $27.4bn (£19.2bn) by 2023, an increase from $10.4bn (£7.3bn) in 2015.