Navigant Research says global smart energy for smart cities revenue is forecast to grow from $7.3 billion in 2015 to $20.9 billion in 2024.
The reason? City leaders are increasingly active in developing climate change mitigation and adaptation policies and goals. And those they are being carried out by adopting smart grid technologies, renewable and other sources of power generation, demand management and distributed energy generation.
"Energy is the lifeblood of a city. Developing an integrated and sustainable energy strategy within the smart city framework is one of the most effective ways cities can contribute to their larger goals of addressing climate change, supporting citizen well-being, and fostering economic development," said Lauren Callaway, a research analyst with Navigant Research.
Over the next 10 years cities, utilities and third-party vendors are likely to bring complementary technologies together in a way that will allow cities to get the most from city-owned and citizen-owned electricity generation resources -- which will cut down on redundant infrastructure investments, according to the firm's Smart Energy for Smart Cities report. That outcome is likely because the technological foundations of advanced energy, the smart grid and additional smart cities applications already have several synergies, or points where they interact.