Internet of things (IoT) in smart cities market is estimated to grow from $51.96 billion in 2015 to $ 147.51 billion by 2020, at an estimated CAGR of 23.2 percent during the forecast period.
MarketsandMarkets said the market smart city has considerably grown over the past few years and the emergence of disruptive technologies such as IoT and connected devices has further augmented the opportunity areas for IoT in smart cities.
The technology research agency noted that the advancement in IoT technologies, cloud-based platforms, and services are marked with increasing IoT application and has led to significant investment in smart cities.
Moreover, the development of smart devices such as smart meters, home gateways, smart appliances, and smart plugs would also act as an opportunity for the IoT in smart cities market.
Government policies, privacy and security issues, inadequate financial incentives for utilities and interoperability and standard interface are the major restraints of the overall growth of this market.
MarketsandMarkets found that the IoT in smart cities market has been segmented into solutions, services, technologies, platforms, and applications.
The data management and location analytics solution sub segment is projected to grow at a high growth rate and present good market opportunity during the forecast period.
System integration services hold a major share in the IoT smart cities services segment. The increasing integration of ICT and IoT with different industries is considered as the primary driver influencing the growth of the IoT in smart cities services market.
Regionally, North America is expected to hold the largest market share and dominate the IoT in smart cities market from 2015 to 2020, with the growing number of smart city projects and increasing grants from the U.S. government.
Asia-Pacific and Middle East & Africa offer potential growth opportunities due to large-scale infrastructure development and growing number of smart city projects.
The major vendors covered in the IoT in smart cities market for this study include Bosch Software Innovation, Cisco Systems Inc., Huawei Technologies, IBM Corporation, Intel Corporation., Schneider Electric, SAP SE, Symantec Corporation, ThingWorx, and Verizon Communications.