Urban population growth and resulting pressure on infrastructure and resources drives demand for smart city solutions
Compass Intelligence, a market analytics and consulting firm specializing in metrics-driven intelligence and insights released its latest study titled “SMART CITIES: THE NEW FRONTIER FOR OPPORTUNITIES IN IoT” today.
The report covers various aspects of Internet of Things (IoT) including hardware, software, connectivity, and data analytics to study demand for smart energy, smart transportation, smart infrastructure and smart buildings, smart security, smart or connected homes, and smart healthcare across the globe. The study also provides insights into key drivers and challenges impacting smart cities.
With the continuing growth in urban population across the globe, both public and private sector stakeholders are coming together to develop and implement solutions that alleviate pressures on existing infrastructure and resources while also enhancing quality of life for urban dwellers. This study highlights steps that are being taken by hardware and software vendors, systems integrators, governments, and other members of the smart city eco-system in creating sustainable solutions that effectively address challenges faced by modern day cities. Moreover, the study offers a review of the overall market opportunity for vendors involved in developing and delivering smart city solutions.
“Smart energy such as grids and supporting infrastructures have benefited from early adoption,” states Lavanya Rammohan, Sr. Analyst, M2M & IoT. “The use cases and ROI for smart energy solutions is straight forward and technology companies as well as political decision-makers are well aware of the benefits.”
The smart cities market is expected to grow globally from $664 billion in 2015 to $1,420 billion in 2020 at a CAGR of 16.4 percent over the forecast period. Revenues include hardware, software and integration and value-added services. While North America currently accounts for a majority of revenues generated through deployment of smart city solutions, other regions such as Europe and Asia-Pacific also offer tremendous growth opportunities for a range of vendors involved in IoT. Key findings of the study include:
1. Smart transportation segment accounted for a large portion of the revenues. The Smart Transportation solutions market is driven by the need for effective traffic as well as environmental management solutions in metropolitan areas.
2. Smart grids and renewable energy segments constitute another big area of focus for utility companies, governmental agencies, and the private sector. Smart grid solutions help utility companies reduce waste, reduce carbon footprint, and optimize asset usage.
3. Greater adoption of IoT-based technologies across consumer and industrial/commercial segments is further fueling interest in smart city deployments.
4. Within healthcare, migration to mHealth initiatives is driving adoption of wearable technology among consumers as well as healthcare providers. Such solutions aim at improving overall quality of healthcare while reducing costs.
5. Smart city eco-systems are comprised of network providers such as AT&T and Verizon, systems integrators such as IBM and Hewlett-Packard, hardware vendors such as Cisco and Ericsson, building management solutions providers such as Honeywell and General Electric, and others such as Big Data analytics’ companies.
6. The smart city market is expected to experience some degree of vendor consolidation, as well as emergence of strategic alliances across hardware, software, and services providers.
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