Three interesting new reports tap into several aspects of the smart cities space, including:
- Perspectives on the sectors that will dominate smart city market growth and who the leaders are
- A look at how smart citizens making smart choices drive smart cities
- Eight elements that define a smart city
Smart security, smart transportation will dominate market
Rapid industrialization in emerging markets will fuel growth in the smart cities market with smart security expected to remain the dominant segment up to 2020. That's according to a study by Grand View Research, which also notes that "smart transportation is expected to minimize the economic burden of regulatory bodies by reducing fuel consumption and traveling delays."
Grand View expects North America to continue being the largest regional market over the next six years and also anticipates high growth in Asia Pacific, mainly due to high residential development demand in China and India.
Smart citizens make cities smarter
Smart citizens using the Internet to make smarter choices are making cities smarter too. That's a key finding from a study by Ericsson ConsumerLab titled Smart Citizens: How the Internet facilitates smart choices in city life. The study covered nine cities -- Beijing, Delhi, London, New York, Paris, Rome, São Paulo, Stockholm and Tokyo – and determined that inhabitants of those cities want to use their smartphones to alleviate concerns with health, improve communication with authorities and navigate urban traffic.
"Citizens want current players to Internet-enable their services," said Michael Björn, Head of Research at the lab. "This means for example that city authorities are expected to provide ICT services related to traffic, public services and water quality."
He also says that young and full-time workers are those with the overall highest predicted daily use of the concepts and the ones who will most actively push cities to grow smarter."
8 elements that define a smart city
Looking at the impact of increasing urbanization and the convergence of industries, Frost & Sullivan (F&S) expects smart cities to present market opportunities worth USD 1.5 trillion by 2020 and believes smart governance and smart education segments will account for the greatest spending.
In F&S's view, there are eight elements that define a smart city:
- Smart governance
- Smart building
- Smart healthcare
- Smart mobility
- Smart infrastructure
- Smart technology
- Smart energy
- Smart citizens
By 2025, F&S says it's estimated there will be over 26 smart cities with at least five of the eight mentioned elements; with more than 50% located in North America and Europe.
However, F&S suggests, cost and existing infrastructure remain the key factors influencing the development of smart cities. Most smart cities initiatives, F&S notes, are currently being funded by special development funds as well as public-private sector partnerships.
What do you think will be the key drivers of the smart cities market? Smart security? Smart governance? Smart citizens? Use the Comment form below (must be logged in as a registered member) and share your thoughts.