Asia Pacific spending on technologies enabling smart city initiatives to reach US$30bn in 2018, says IDC

Gerald Wang of IDC

The latest update of the IDC Worldwide Semiannual Smart Cities Spending Guide expects spending on technologies that enable Smart Cities initiatives to reach a value amounting to US$30 billion (€26.10 billion) in 2018 for Asia/Pacific excluding Japan (APeJ).

IDC provides a detailed view at the technology investments associated with a range of Smart City priorities and use cases. As these initiatives gain traction, IDC spending will continue to accelerate over the 2017-22 forecast period, reaching US$54.4 billion (€47.32 billion) in 2022.

Fixed Usual Surveillance, Advanced Public Transit, Intelligent Traffic Management and Smart Outdoor Lighting use cases are seeing maximum impetus, representing more than 35% share of the overall spending in 2018 from US$25.86 Billion (€22.49) in 2017. However, over the forecast period (2017-22), fastest growing use cases will be in Vehicle to Everything (V2X) Connectivity and Officer Wearables (Fitbit/smart glasses) use cases at a five-year CAGR of 44.4% and 36.9% respectively.

“Cities in the Asia Pacific are challenged to continually deliver smart, livable, and sustainable urban ecosystems by harnessing technology innovations and widespread collaborations. This also requires clarity around implementation policies that are focused on the building and financing of city infrastructures as well as new city digital services in the long-term,” shares Gerald Wang, head of public sector at IDC Asia/Pacific.

“City governments need to continually analyse the impact of rapid advances in technologies on city transformation goals and create outcome-based metrics for future smart city investments. This approach requires a rethink of the way governments traditionally procure for technologies and innovative solutions.”

Hardware continue to account for the highest spending with 38.1% share of the overall spending in 2018 but the trend is likely to observe a linear growth of 14.4% over a five-year CAGR, thus reaching US$19.4 billion (€16.88 billion) by 2022. Services is the second largest technology spend at US$8.9 billion (€7.74 billion), followed by Software and Connectivity in 2018.

Over the forecast period (2017-22), Services is expected to grow the fastest at a five-year CAGR of 18.4%. The growth in Services and Hardware will be mostly driven by State/Local Government segment, with the maximum usage of Fixed Visual Surveillance and Smart Outdoor Lighting use cases. These use cases attract considerable investment across the region.

Fixed Visual Surveillance will be the leading use case in China, accounting for 17.3% of China spending in 2018. This is due to the increasing demand for video information sources to track down the movement of citizens. Consequently, huge investment is expected in surveillance and facial recognition coverage across the country.

China has deployed around 20 million security cameras, facilitated by Artificial Intelligence (AI) technology to locate and track criminals China will complete building its facial recognition and surveillance network nationwide, attaining nearly overall surveillance of urban residents including their homes through smartphones and smart TVs by 2020.

“Data-Driven Public Safety and Intelligent Transportation are the two priority investments centered around the region in response to growing urban population,” said Malini Swamy, market analyst at IDC Asia/Pacific. “However, we are also finding significant spending and growth in platform related and smart lighting related use cases, which are less often publicised but increasingly happening in cities around the region.”

IDC’s Worldwide Semiannual Smart Cities Spending Guide quantifies the expected technology opportunity around smart cities initiatives from a region and worldwide level. Spending data is available for nine regions with a focus on 15 use cases across five strategic priorities, as well as the overall Smart Cities market size. The spending guide is designed to provide IT vendors with insights into this rapidly growing market and how the market will develop over the five-year forecast period.

To learn more about IDC’s Customer Insights & Analysis Group, click here

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

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, iot home automation 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
RECENT ARTICLES

5G to generate 77% of global operator revenue by 2026

Posted on: December 1, 2021

Hampshire, UK. 30th November 2021 – A new study from Juniper Research has found that revenue generated from 5G services will reach $600 billion (€530.34 billion) by 2026; representing 77% of global operator-billed revenue. It found that the adoption of 5G services across consumer and IoT sectors has been driven by a strong uptake of 5G-capable devices, coupled

Read more

IoT CMP vendors add eSIM management capabilities to simplify logistics and localise connectivity

Posted on: December 1, 2021

Gothenburg, Sweden. 30 November 2021 – Berg Insight, the IoT market research provider, released new findings about the market for IoT connectivity management platforms (CMPs), a standard component in the value proposition from mobile operators and IoT MVNOs around the world. Recent developments in the domains of network virtualisation, SIM technology and LPWA networking are

Read more