Smart cities are predicted to create a great deal of business opportunities, projected to be valued at $2.46 trillion by 2025, a new study finds.
According to the analysis by Frist & Sullivan, post-pandemic uncertainty means that smart cities will likely focus efforts more on collaborative, data-driven infrastructure as this will ensure better healthcare and public security services- among many others.
“Smart cities will focus on data-driven and connected infrastructure, which will lead to higher adoption of technologies like AI and 5G. They will prioritize more digitalized services and a strong data analytics infrastructure, leading to increased spending toward technology,” said visionary innovation group industry analyst, Malabika Mandal.
The report predicts an increase in investments in smart initiatives within the next two years. Due to the pandemic, several smart cities across the world have already invested in open data platforms, crowd analytics, contact-tracing tech and autonomous drones.
Post-pandemic however, it seems that investments will focus more on projects that include smart grids, autonomous vehicles, e-governance, traffic management and public safety/security services driven by data.
Visionary group industry analyst at Frost & Sullivan, Archana Vidyasekar, said, “Now more than ever, the strategy of being technology-first, optimistic, and focused on ‘smart’ is critical. While covid-19 has largely been a health crisis, it has disrupted city ecosystems and infrastructure tremendously.”
She added, “Smart technologies offer innovative solutions that can reverse the damage and bring some respite, if not normalcy. For instance, digital contact-tracing can play a critical role in empowering citizens with knowledge of covid-impacted areas and promote safer urban movement.”
Some of the report’s other key predictions and findings include:
· The rise of 26 smart cities by 2025, including 16 in North America and Europe;
· A growth in demand for crowd management and monitoring in smart cities which will grow by 20-25% by 2030;
· A compounded annual growth rate (CAGR) of 22.7% in smart city technology spending by 2025, reaching $327bn compared to $96bn in 2019.