Smart city technology will grow to over $300 billion by 2032

A new report from Guidehouse Insights explores the market for smart city technology globally. 

The next decade is likely to be one of dramatic change for many cities around the world. Trends that have been core drivers for smart city programs have been accelerated by a combination of the COVID-19 pandemic, the growing impact of climate change, and the rapid digitalisation of many services. According to a new report from Guidehouse Insights, the global smart city technology market is expected to grow from approximately $121.1 billion in annual revenue in 2023 to $301.2 billion by 2032 at a compound annual growth rate (CAGR) of 10.7%.

“These global challenges are amplifying long-standing local issues around the quality of public services, environmental standards, and social inequalities,” says Eric Woods, Research Director with Guidehouse Insights. “At the same time technology is transforming how cities work and how they are experienced.”

Cities are showing a strong commitment to infrastructure investment, digital technologies, and increased sustainability, often supported by central government funding. These ambitions will boost future investments across the smart city market and are likely to accelerate the digitalisation of many city services. New business models and finance programs are also expected to help accelerate investment. Additionally, new partnerships are being established across the public, technology, and finance sectors to support smart city investments and overcome the funding gap that has long been a significant drag on the market, according to the report.

The report, Smart Cities, examines recent developments in the global smart city market, with a focus on five key industries: energy, water, mobility, buildings, and government. The study examines key market and technology trends, city strategies, key projects, competitor profiles, and regional developments. Global revenue estimates for smart city technologies, segmented by industry and region, extend through 2032. An executive summary of the report is available for free download on the Guidehouse Insights website

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