Infotech Lead Asia: The smart city technology market will surpass $20 billion in annual value by 2020, according to Pike Research.
Across the globe, the number of people living in cities will increase to 6.3 billion by 2050, up from 3.6 billion in 2010.
It is projected that by 2025 there will be 37 megacities with populations of more than 10 million; 22 of those cities will be in Asia.
Pike Research says one consequence of this urbanization will be a corresponding growth in smart city initiatives – characterized by the integration of technology into a strategic approach to sustainability, citizen well-being, and economic development.
Pike Research research director Eric Woods says over the last twelve months, the market has shifted away from being shaped largely by technology suppliers and city developers. Te market is being driven by the enthusiasm of city leaders. Mayors and other city executives have seized on the smart city concept as a rallying point for the technological, commercial, and social innovation needed to meet the challenges and opportunities facing their communities.
Pike Research suggests that the smart city should be seen as a complex confluence of several existing markets, as well as a driver for new, emergent solutions that span several traditional domains, according to the report.
The biggest test for the smart city now is to show that innovative pilot projects can be deployed at a citywide scale and replicated across cities. This will be vital to ensuring momentum in pathfinder cities and building confidence for other cities to embark on the same journey. It will also be necessary to convince commercial partners and other stakeholders that these are economically viable models that will provide long-term returns for citizens and investors.