Smart city question over US$5 trillion posed in new ABI Research survey: Cheaper or smarter?

Rahim Bhatia of CA Technologies

Smart city technologies could save enterprises, governments and citizens globally over US$5 trillion (€4.21 trillion) annually by 2022 according to a new whitepaper by ABI Research. The new white paper analyses the scope for cost savings and efficiency as a driver for smart city deployments, smart technologies and the IoT.

According to the report, titled ‘Smart Cities and Cost Savings,’ the use and deployment of IoT and smart technologies will be pivotal to the future success of smart cities, but only if players collaborate to embrace a holistic approach.

With higher concentrations of people and enterprises in cities as a result of urbanisation, smart city and IoT technology, along with new sharing and service economy paradigms, will be key for cities to optimise the use of existing assets, maximise efficiencies, obtain economies of scale and ultimately create a more sustainable environment. Automation, artificial intelligence, along with sensors, data-sharing and analytics, will all be critical in helping cities save costs.

The report, commissioned by InterDigital, on behalf of its Smart Cities-focused business, Chordant™, in partnership with CA Technologies, considers the aggregated absolute cost-saving potential for the government, enterprises and citizens in a typical smart mega city of the future (i.e., in the next 5 years) with 10 million inhabitants. This is based on the yearly savings achievable for 75 of the world’s cities that have a total urban population of more than 5 million (source: World Atlas).

Key cost savings from the ABI Research report highlight that, in each such typical smart mega city of the future:

  • Governments: Could save as much as $4.95 billion (€4.17 billion) annually. Street lighting and smart buildings are two areas that could yield savings, with smart street lights expected to cut repair and maintenance costs by 30%.
  • Enterprises: A $14 billion (€11.80 billion) cost-saving opportunity exists for enterprises, in areas that include freight transportation by using more energy efficient transport options, such as drones, robots or driverless vans and trucks, and smart manufacturing plants.
  • Citizens: Savings of up to $26.69 billion (€22.50 billion) per year could be achieved in areas such as utilities, through the deployment of smart metres and micro-grids, and in education with the development of a hybrid education system (physical and online).

“While smart cities technologies offer multiple benefits, very significant direct cost savings represent a key incentive to embrace urban innovation for city governments, citizens and enterprises alike; this allows building stronger business cases with faster ROI, facilitating project approval and accelerating deployments,” said Dominique Bonte, VP Markets, ABI Research.

Dominique Bonte

The report references a B2B technology survey of 455 US-based companies across nine vertical markets conducted in March 2017 in which the companies ranked a list of 11 key benefits expected from implementing innovative technologies. “Reduction in operational costs” barely surpassed “faster and more efficient decision making” as the number one expected benefit, with a 5% margin.

“Smart cities are built upon the Internet of Things (IoT) allowing citizens to reimagine how they work, live and play,” said Rahim Bhatia, general manager, API Management, CA Technologies. “We’re excited to see quantifiable outcomes being delivered across today’s local governments, with application programming interfaces (APIs) playing a fundamental role in seamlessly connecting the critical infrastructure that makes smart cities a reality.

If managed effectively, APIs deliver a number of benefits including the secure exposure and reuse of open data, acceleration of app development velocity, and the expansion of city partner ecosystems, to help maximise ROI and improve decision making across all corners of the new smart city.”

Additional findings from the report also include:

  • The scope for efficiency improvements across all urban sectors and segments amounts to more than US$5 trillion in yearly cost savings globally by 2022; and
  • Enterprises within a mega city (a city of with a population in excess of 10 million) could save as much as US$14 billion, or 25% of total enterprise costs, with smart city technologies.
Jim Nolan

“We understand the important role of smart cities for our future, and this report further reinforces how much these will contribute in both economic and social terms,” said Jim Nolan, executive vice president, Chordant, at InterDigital. “But the true potential of smart cities won’t be realised if governments, enterprises and citizens don’t work together in harmony.

Doing so will promote the emergence of smart city marketplaces and open platforms, where third-party players are able to ensure seamless integration of new smart city technologies into legacy platforms and systems.”

The new report points to several use cases of smart city technology. One example is the oneTRANSPORT project in the United Kingdom which used the Chordant platform to address challenges in transportation systems with IoT technology. The oneTRANSPORT project enabled transport information to be shared by a number of stakeholders including transport authorities, municipal authorities, and new third parties, to optimise transport networks across towns and cities.

The full ABI Research report, ‘Smart Cities and Cost Savings,’ is available to download here.

Comment on this article below or via Twitter: @IoTNow_OR @jcIoTnow

RECENT ARTICLES

DANA bolsters financial inclusion in Indonesia with HERE Technologies

Posted on: August 9, 2022

Jakarta, Indonesia. 04 August, 2022 – HERE Technologies, the location data and technology platform, announced that DANA, one of Indonesia’s digital wallet services, is utilising HERE location services to bolster inclusive financial services in the country.

Read more

Putting fleets in the fast lane: AT&T Fleet Complete launches FC Hub, a suite of next-gen fleet management tools

Posted on: August 9, 2022

Dallas, United States. 05 August, 2022 – Fleet Complete is introducing AT&T Fleet Complete FC insights solution suite, a big data IoT platform with web and mobile apps for fleets to monitor and manage all aspects of their mobile operations.

Read more
FEATURED IoT STORIES

9 IoT applications that will change everything

Posted on: September 1, 2021

Whether you are a future-minded CEO, tech-driven CEO or IT leader, you’ve come across the term IoT before. It’s often used alongside superlatives regarding how it will revolutionize the way you work, play, and live. But is it just another buzzword, or is it the as-promised technological holy grail? The truth is that Internet of

Read more

Which IoT Platform 2021? IoT Now Enterprise Buyers’ Guide

Posted on: August 30, 2021

There are several different parts in a complete IoT solution, all of which must work together to get the result needed, write IoT Now Enterprise Buyers’ Guide – Which IoT Platform 2021? authors Robin Duke-Woolley, the CEO and Bill Ingle, a senior analyst, at Beecham Research. Figure 1 shows these parts and, although not all

Read more

CAT-M1 vs NB-IoT – examining the real differences

Posted on: June 21, 2021

As industry players look to provide the next generation of IoT connectivity, two different standards have emerged under release 13 of 3GPP – CAT-M1 and NB-IoT.

Read more

IoT and home automation: What does the future hold?

Posted on: June 10, 2020

Once a dream, home automation using iot is slowly but steadily becoming a part of daily lives around the world. In fact, it is believed that the global market for smart home automation will reach $40 billion by 2020.

Read more

5 challenges still facing the Internet of Things

Posted on: June 3, 2020

The Internet of Things (IoT) has quickly become a huge part of how people live, communicate and do business. All around the world, web-enabled devices are turning our world into a more switched-on place to live.

Read more

What is IoT?

Posted on: July 7, 2019

What is IoT Data as a new oil IoT connectivity What is IoT video So what’s IoT? The phrase ‘Internet of Things’ (IoT) is officially everywhere. It constantly shows up in my Google news feed, the weekend tech supplements are waxing lyrical about it and the volume of marketing emails I receive advertising ‘smart, connected

Read more
IoT Newsletter

Join the IoT Now online community for FREE, to receive: Exclusive offers for entry to all the IoT events that matter, round the world

Free access to a huge selection of the latest IoT analyst reports and industry whitepapers

The latest IoT news, as it breaks, to your inbox