Smart Cities Market Growth and Investment 2034
Global Smart Cities Market Growth, Size, Trends Analysis - By Applications, By Smart Governance, By Smart Utilites, By Smart Transportation, By Smart Healthcare - Regional Outlook, Competitive Strategies and Segment Forecast to 2034
| Published: Oct-2025 | Report ID: IACT25177 | Pages: 1 - 269 | Formats*: |
| Category : Information & Communications Technology | |||
Global Smart Cities Market Introduction and Overview
According to SPER Market Research, the Global Smart Cities Market is estimated to reach USD 11800.4 billion by 2034 with a CAGR of 29.65%.
The report includes an in-depth analysis of the Global Smart Cities Market, including market size and trends, product mix, Applications, and supplier analysis. The global smart cities market was valued at USD 879.37 billion in 2024, and it is expected to rise at a 29.65% CAGR from 2025 to 2034. The expansion of the market is mainly fueled by swift urbanization, compelling governments and municipalities to implement sustainable and effective urban planning strategies. Furthermore, high implementation costs, complicated infrastructure, specialized labor requirements, unknown ROI, long-term benefit realization, budget limits, and limited finance all hinder smart city adoption, particularly in poor countries, limiting technological advancement.
By Application Insights
The smart utility segment dominates smart city infrastructure, which includes water treatment, electricity distribution, data management, and civil infrastructure, with smart grids and advanced analytics driving adoption. Rapid energy demand is encouraging governments and businesses to improve renewable energy integration, hence accelerating growth. Meanwhile, investments in linked vehicles, intelligent traffic management, and autonomous mobility are boosting urban mobility and reducing congestion. Together, these technologies are hastening the creation of efficient, technology-driven urban infrastructure.
By Smart Governance Insights
The smart infrastructure segment led the market and held the biggest market share in 2024. The shift in government focus on digitizing business operations is expected to drive demand for smart infrastructure solutions in a variety of industries, including BFSI, healthcare, retail, manufacturing, and food and beverage. Most governments are investing in smart infrastructure solutions to promote economic digitalization. The government will also develop a regulatory framework for BFSI infrastructure to enable, monitor, and oversee emerging payment systems and cryptocurrency ecosystems, thereby driving segment growth.
By Smart Utilities Insights
The energy management sector accounted for the biggest market share in 2024, owing to rising energy consumption, which prompted the development of virtual power plants that rely on AI, machine learning, and IoT for security and efficiency. Key market players are focusing on building a strong R&D infrastructure to drive the development and overview of advanced energy management systems, as well as design analytics solutions to integrate emerging technologies such as blockchain, which will contribute to the energy management segment's dominance in the smart cities industry.
By Smart Transportation Insights
The intelligent transportation system segment held the biggest market share in 2024, owing to the growing number of cars on the road and the desire to alleviate traffic congestion, both of which are important considerations when adopting advanced traffic management systems. These systems decrease delays and air pollution, improve traffic management by shortening travel times, and allow authorities and public safety organizations to respond quickly and efficiently to accidents and crises
By Smart Healthcare Insights
The medical devices segment held the greatest market share in 2024, owing to the increasing integration of medical equipment into urban health infrastructure. Devices provide real-time health monitoring, early detection, and quick action, greatly decreasing hospital burden and increasing patient outcomes. Governments and urban planners are prioritizing the integration of smart healthcare solutions as part of larger smart city initiatives to improve quality of life, lower healthcare delivery costs, and manage the growing demand for healthcare services in densely populated places.
Regional Insights
North America accounted for largest share of global Smart Cities Market, owing mostly to the region's strong emphasis on urban innovation and early adoption of smart city technology. Intelligent transportation systems, energy-efficient utilities, public safety technology, and digital governance platforms are among the fastest growing sectors. The broad deployment of AI, IoT, 5G, and cloud computing enables cities to provide smarter services, optimize resource utilization, and improve quality of life, confirming the region's leadership in the smart cities market.
Market Competitive Landscape
The smart city sector is extremely competitive. The top three businesses, ABB Ltd, AT&T Inc, AVEVA Group plc account for a significant shares of the market. Market firms compete through technology advances, pricing changes, and expansion into new regions. The rising need for high-speed internet connectivity, widespread IoT use, AI, 5G, and edge computing are all driving up competition. Companies are devoting resources to create AI smart city solutions that enhance power efficiency, reduce latency, strengthen security, and add other features by integrating R&D.
Recent Developments:
In March 2025, Huawei and the Barcelona City Council announced a strategic partnership at MWC Barcelona 2025 to assist the development of smart city initiatives in Barcelona. The agreement prioritizes critical areas such as the City Command Centre, Smart Buildings, Connectivity, Green Energy, and ICT Talent Development.
In February 2025, IBM announced in February 2025 that it would collaborate with C40 Cities through its Sustainability Accelerator program to encourage innovation in the Smart Cities industry. The effort focuses on developing AI-driven solutions to improve urban resiliency and address global concerns.
Scope of the report:
| Report Metric | Details |
| Market size available for years | 2021-2034 |
| Base year considered | 2024 |
| Forecast period | 2025-2034 |
| Segments covered | By Applications, By Smart Governance, By Smart Utilites, By Smart Transportation, By Smart Healthcare |
| Regions covered | North America, Latin America, Asia-Pacific, Europe, and Middle East & Africa |
| Companies Covered | Cisco Systems, Inc, General Electric, Hitachi, Ltd, Honeywell International Inc, Huawei Technologies Co, Ltd, International Business Machines Corporation, Microsoft, NEC Corporation, Quantela, Inc, Schneider Electric. |
Key Topics Covered in the Report
- Global Smart Cities Market Size (FY’2021-FY’2034)
- Overview of Global Smart Cities Market
- Segmentation of Global Smart Cities Market By Application (Smart Governance, Smart Building, Environmental Solution, Smart Utilities, Smart Transportation, Smart Healthcare, Smart Public Safety, Smart Security, Smart Education)
- Segmentation of Global Smart Cities Market By Smart Governance (City Surveillance, C.C.S., E-governance, Smart Lighting, Smart Infrastructure)
- Segmentation of Global Smart Cities Market By Smart Utilities (Energy Management, Water Management, Waste Management, Meter Data Management, Distribution Management System, Substation Automation, Other Smart Utilities Solutions)
- Segmentation of Global Smart Cities Market By Smart Transportation (Intelligent Transportation System, Parking Management, Smart Ticketing & Travel Assistance, Traffic Management, Passenger Information, Connected Logistics, Other Smart Transportation Solutions.)
- Segmentation of Global Smart Cities Market By Smart Healthcare (Medical Devices, Systems & Software)
- Statistical Snap of Global Smart Cities Market
- Expansion Analysis of Global Smart Cities Market
- Problems and Obstacles in Global Smart Cities Market
- Competitive Landscape in the Global Smart Cities Market
- Details on Current Investment in Global Smart Cities Market
- Competitive Analysis of Global Smart Cities Market
- Prominent Players in the Global Smart Cities Market
- SWOT Analysis of Global Smart Cities Market
- Global Smart Cities Market Future Outlook and Projections (FY’2025-FY’2034)
- Recommendations from Analyst
1.Introduction
1.1.Scope of the report1.2.Market segment analysis
2.Research Methodology
2.1.Research data source
2.1.1.Secondary Data2.1.2.Primary Data2.1.3.SPERs internal database2.1.4.Premium insight from KOLs
2.2.Market size estimation
2.2.1.Top-down and Bottom-up approach
2.3.Data triangulation
3.Executive Summary
4.Market Dynamics
4.1.Driver, Restraint, Opportunity and Challenges analysis
4.1.1.Drivers4.1.2.Restraints4.1.3.Opportunities4.1.4.Challenges
5.Market variable and outlook
5.1.SWOT Analysis
5.1.1.Strengths5.1.2.Weaknesses5.1.3.Opportunities5.1.4.Threats
5.2.PESTEL Analysis
5.2.1.Political Landscape5.2.2.Economic Landscape5.2.3.Social Landscape5.2.4.Technological Landscape5.2.5.Environmental Landscape5.2.6.Legal Landscape
5.3.PORTERs Five Forces
5.3.1.Bargaining power of suppliers5.3.2.Bargaining power of buyers5.3.3.Threat of Substitute5.3.4.Threat of new entrant5.3.5.Competitive rivalry
5.4.Heat Map Analysis
6.Competitive Landscape
6.1.Global Smart Cities Market Manufacturing Base Distribution, Sales Area, Product Type6.2.Mergers & Acquisitions, Partnerships, Product Launch, and Collaboration in Global Smart Cities Market
7.Global Smart Cities Market, By Application (USD Million) 2021-2034
7.1.Smart Governance7.2.Smart Building7.3.Environmental Solution7.4.Smart Utilities7.5.Smart Transportation7.6.Smart Healthcare7.7.Smart Public Safety7.8.Smart Security7.9.Smart Education
8.Global Smart Cities Market, By Smart Governance (USD Million) 2021-2034
8.1.City Surveillance8.2.C.C.S.8.3.E-governance8.4.Smart Lighting8.5.Smart Infrastructure
9.Global Smart Cities Market, By Smart Utilities (USD Million) 2021-2034
9.1.Energy Management9.2.Water Management9.3.Waste Management9.4.Meter Data Management9.5.Distribution Management System9.6.Substation Automation9.7.Other Smart Utilities Solutions
10.Global Smart Cities Market, By Smart Transportation (USD Million) 2021-2034
10.1.Intelligent Transportation System10.2.Parking Management10.3.Smart Ticketing & Travel Assistance10.4.Traffic Management10.5.Passenger Information10.6.Connected Logistics10.7.Other Smart Transportation Solutions
11.Global Smart Cities Market, By Smart Healthcare (USD Million) 2021-2034
11.1.Medical Devices11.2.Systems & Software
12.Global Smart Cities Market, (USD Million) 2021-2034
12.1.Global Smart Cities Market Size and Market Share
13.Global Smart Cities Market, By Region, (USD Million) 2021-2034
13.1.Asia-Pacific
13.1.1.Australia13.1.2.China13.1.3.India13.1.4.Japan13.1.5.South Korea13.1.6.Rest of Asia-Pacific
13.2.Europe
13.2.1.France13.2.2.Germany13.2.3.Italy13.2.4.Spain13.2.5.United Kingdom13.2.6.Rest of Europe
13.3.Middle East and Africa
13.3.1.Kingdom of Saudi Arabia13.3.2.United Arab Emirates13.3.3.Qatar13.3.4.South Africa13.3.5.Egypt13.3.6.Morocco13.3.7.Nigeria13.3.8.Rest of Middle-East and Africa
13.4.North America
13.4.1.Canada13.4.2.Mexico13.4.3.United States
13.5.Latin America
13.5.1.Argentina13.5.2.Brazil13.5.3.Rest of Latin America
14.Company Profile
14.1.Cisco Systems, Inc
14.1.1.Company details14.1.2.Financial outlook14.1.3.Product summary14.1.4.Recent developments
14.2.General Electric
14.2.1.Company details14.2.2.Financial outlook14.2.3.Product summary14.2.4.Recent developments
14.3.Hitachi, Ltd
14.3.1.Company details14.3.2.Financial outlook14.3.3.Product summary14.3.4.Recent developments
14.4.Honeywell International Inc
14.4.1.Company details14.4.2.Financial outlook14.4.3.Product summary14.4.4.Recent developments
14.5.Huawei Technologies Co., Ltd
14.5.1.Company details14.5.2.Financial outlook14.5.3.Product summary14.5.4.Recent developments
14.6.International Business Machines Corporation (IBM)
14.6.1.Company details14.6.2.Financial outlook14.6.3.Product summary14.6.4.Recent developments
14.7.Microsoft
14.7.1.Company details14.7.2.Financial outlook14.7.3.Product summary14.7.4.Recent developments
14.8.NEC Corporation
14.8.1.Company details14.8.2.Financial outlook14.8.3.Product summary14.8.4.Recent developments
14.9.Quantela, Inc
14.9.1.Company details14.9.2.Financial outlook14.9.3.Product summary14.9.4.Recent developments
14.10.Schneider Electric
14.10.1.Company details14.10.2.Financial outlook14.10.3.Product summary14.10.4.Recent developments
14.11.Others
15.Conclusion
16.List of Abbreviations
17.Reference Links
SPER Market Research’s methodology uses great emphasis on primary research to ensure that the market intelligence insights are up to date, reliable and accurate. Primary interviews are done with players involved in each phase of a supply chain to analyze the market forecasting. The secondary research method is used to help you fully understand how the future markets and the spending patterns look likes.
The report is based on in-depth qualitative and quantitative analysis of the Product Market. The quantitative analysis involves the application of various projection and sampling techniques. The qualitative analysis involves primary interviews, surveys, and vendor briefings. The data gathered as a result of these processes are validated through experts opinion. Our research methodology entails an ideal mixture of primary and secondary initiatives.
Frequently Asked Questions About This Report
Smart Cities Market is projected to reach USD 11800.4 billion by 2034, growing at a CAGR of 29.65% during the forecast period.
Smart Cities Market size from 2025. The Market is expected to reach USD 11800.4 billion by 2034, at a CAGR of 29.65% during the forecast period.
Smart Cities Market CAGR of 29.65% during the forecast period.
You can get the sample pages by clicking the link - Click Here
Smart Cities Market size is USD 11800.4 billion from 2025 to 2034.
Smart Cities Market covered By Applications, By Smart Governance, By Smart Utilites, By Smart Transportation, By Smart Healthcare
The North America is anticipated to have the highest Market share in the Smart Cities Market.
Cisco Systems, Inc, General Electric, Hitachi, Ltd, Honeywell International Inc, Huawei Technologies Co, Ltd, International Business Machines Corporation, Microsoft, NEC Corporation, Quantela, Inc, Schneider Electric.
The report includes an in-depth analysis of the Global Smart Cities Market, including market size and trends, product mix, Applications, and supplier analysis.
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