Global Investment in Smart City Technology Infrastructure to Total $108 Billion by 2020, According to Pike Research

BOULDER, Colo.--(BUSINESS WIRE)--Urbanization is a defining trend of the 21^st century, and for the first time in human history, more people now live in cities than in rural areas. As the world’s population continues to grow in the coming decades, and urban populations grow even faster, “smart” information and communication technologies will be at the forefront of the effort to improve the efficiency and effectiveness of urban systems and services, both in developed and emerging economies. A new report from Pike Research forecasts that investment in smart city technology infrastructure will total $108 billion during the years from 2010 to 2020. By the end of that period, the cleantech market intelligence firm anticipates that annual spending will reach nearly $16 billion.

“Smart city models are at a nascent stage, and smart cities will take many different forms in different parts of the world”

“Smart city models are at a nascent stage, and smart cities will take many different forms in different parts of the world,” says senior analyst Eric Woods. “Pilot projects are underway that could provide templates for the design of new urban centers in Asia and the Middle East, as well as frameworks for overlaying infrastructure to make older cities smarter in Europe and North America. However, today there is still no example of a smart city that is supporting hundreds of thousands, never mind millions, of people and there are many challenges still to be faced by smart city planners.”

Pike Research defines a smart city as the integration of technology into a strategic approach to sustainability, citizen well-being, and economic development. Any adequate model for the smart city must be multi-dimensional, encompassing different aspects of “smartness” and stressing the importance of integration and interaction across multiple domains. A city is a system of systems, and any models that attempt to define its dynamic nature must also be able to represent the diversity of those elements.

The key industry and service sectors for smart cities include Smart Utilities (a subset of the larger smart grid market), Smart Transport, Smart Building, and Smart Government. Representative technologies that will enhance the intelligence and connectedness of the city include smart meters, sensor networks, fiber optic and wireless communication networks, software to provide data analytics for city services, and myriad other hardware and software components.

Pike Research’s report, “Smart Cities”, examines smart city developments around the world, along with an assessment of the market opportunity for smart city technologies in the decade ahead. The study analyzes the impact of the smart city on key technology markets including smart utilities, smart transport, smart buildings, and smart government. It forecasts the size and growth of the market for smart city technologies through 2020 and the growth in each of the key smart city industry sectors and the main regional markets. The report also looks at the strategies of key players in the smart city market including IT companies, telecommunications companies, utilities, infrastructure providers, and real estate developers. An Executive Summary of the report is available for free download on the firm’s website.

Pike Research is a market research and consulting firm that provides in-depth analysis of global clean technology markets. The company’s research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Smart Energy, Smart Grid, Smart Transportation, Smart Industry, and Smart Buildings sectors. For more information, visit www.pikeresearch.com or call +1.303.997.7609.