Cumulative global investment in smart city technologies is expected to total $174.4 billion from 2014 to 2023, says a new report from Navigant Research.
The global smart city technology market is forecast to be worth more than $27.5 billion annually by 2023, compared to $8.8 billion in 2014.
Much of this growth is expected to come in Asia Pacific, which is projected to become the largest market for smart city technologies by 2015 and to grow to $11.3 billion annually by 2023, the report said.
Technologies like smart grids, advanced water monitoring systems, transportation management systems, and energy efficient buildings are driving the market. These technologies have the potential to profoundly change the way cities operate and how people live and work in these environments.
“Smart city pilots around the world are demonstrating the benefits of technology innovation to cities,” says Eric Woods, research director with Navigant Research.
However city leaders must show how these technologies can address the day-to-day concerns of citizens, by developing new forms of engagement, using analytics to better understand actual needs, and benchmarking services to better demonstrate innovation-led improvements, Woods added.