Global Smart City Market Growth, Share, Size, Trends and Forecast (2025 - 2031)

By Component;

Hardware, Software and Services

By Application Area;

Infrastructure, Smart Governance, Smart Education, Transportation, Construction, Power Management, Water & Waste Management, Healthcare, and Others

By Geography;

North America, Europe, Asia Pacific, Middle East & Africa, and Latin America - Report Timeline (2021 - 2031)
Report ID: Rn113469761 Published Date: June, 2025 Updated Date: July, 2025

Smart City Market Overview

Smart City Market (USD Million)

Smart City Market was valued at USD 670,145.36 million in the year 2024. The size of this market is expected to increase to USD 1,636,128.23 million by the year 2031, while growing at a Compounded Annual Growth Rate (CAGR) of 13.6%.


Global Smart City Market Growth, Share, Size, Trends and Forecast

*Market size in USD million

CAGR 13.6 %


Study Period2025 - 2031
Base Year2024
CAGR (%)13.6 %
Market Size (2024)USD 670,145.36 Million
Market Size (2031)USD 1,636,128.23 Million
Market ConcentrationLow
Report Pages391
670,145.36
2024
1,636,128.23
2031

Major Players

  • Honeywell International Inc.
  • ABB Group
  • General Electric Company
  • Cisco Systems Inc.
  • Siemens AG
  • SAP SE
  • Schneider Electric SE
  • Microsoft Corporation
  • IBM Corporation
  • Alstom SA

Market Concentration

Consolidated - Market dominated by 1 - 5 major players

Global Smart City Market

Fragmented - Highly competitive market without dominant players


The Smart City Market is growing rapidly as cities seek to enhance livability and efficiency through connected infrastructure. Over 60% of city populations are embracing smart systems that optimize essential services. This shift is accelerating the adoption of intelligent solutions in sectors like energy, mobility, and safety.

Advanced Technologies Shaping Urban Ecosystems
More than 55% of infrastructure upgrades now feature technologies such as IoT, AI, and cloud computing. These innovations empower cities with actionable insights, supporting improvements in traffic control, energy distribution, and waste management. The use of smart sensors and analytics is central to these advancements.

Policy Backing and Strategic Alliances
Over 48% of digital urban initiatives are propelled by collaboration between public institutions and private enterprises. Strategic partnerships are enabling deployment of smart surveillance, responsive lighting systems, and digital citizen services, ensuring long-term modernization success.

Sustainability at the Core of Development
Nearly 52% of investments are funneled into sustainable infrastructure, promoting energy-efficient buildings and clean energy integration. These innovations help reduce environmental impact and support global carbon-reduction goals, making smart cities key enablers of climate-conscious development.

  1. Introduction
    1. Research Objectives and Assumptions
    2. Research Methodology
    3. Abbreviations
  2. Market Definition & Study Scope
  3. Executive Summary
    1. Market Snapshot, By Component
    2. Market Snapshot, By Application Area
    3. Market Snapshot, By Region
  4. Smart City Market Dynamics
    1. Drivers, Restraints and Opportunities
      1. Drivers
        1. Rapid Urbanization Growth
        2. Government Initiatives Support
        3. Advanced Technology Integration
        4. Environmental Sustainability Focus
      2. Restraints
        1. High Initial Costs
        2. Data Privacy Concerns
        3. Infrastructure Complexity Issues
        4. Limited Skilled Workforce
      3. Opportunities
        1. Public-Private Partnerships
        2. IoT Expansion Trends
        3. AI-Powered Solutions
        4. Emerging Market Growth
    2. PEST Analysis
      1. Political Analysis
      2. Economic Analysis
      3. Social Analysis
      4. Technological Analysis
    3. Porter's Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of Substitutes
      4. Threat of New Entrants
      5. Competitive Rivalry
  5. Market Segmentation
    1. Smart City Market, By Component, 2021 - 2031 (USD Million)

      1. Hardware

      2. Software

      3. Services

    2. Smart City Market, By Application Area, 2021 - 2031 (USD Million)
      1. Infrastructure
      2. Smart Governance
      3. Smart Education
      4. Transportation
      5. Construction
      6. Power Management
      7. Water & Waste Management
      8. Healthcare
      9. Others
    3. Smart City Market, By Geography, 2021 - 2031 (USD Million)
      1. North America
        1. United States
        2. Canada
      2. Europe
        1. Germany
        2. United Kingdom
        3. France
        4. Italy
        5. Spain
        6. Nordic
        7. Benelux
        8. Rest of Europe
      3. Asia Pacific
        1. Japan
        2. China
        3. India
        4. Australia & New Zealand
        5. South Korea
        6. ASEAN (Association of South East Asian Countries)
        7. Rest of Asia Pacific
      4. Middle East & Africa
        1. GCC
        2. Israel
        3. South Africa
        4. Rest of Middle East & Africa
      5. Latin America
        1. Brazil
        2. Mexico
        3. Argentina
        4. Rest of Latin America
  6. Competitive Landscape
    1. Company Profiles
      1. Honeywell International Inc.
      2. ABB Group
      3. General Electric Company
      4. Cisco Systems Inc.
      5. Siemens AG
      6. SAP SE
      7. Schneider Electric SE
      8. Microsoft Corporation
      9. IBM Corporation
      10. Alstom SA
  7. Analyst Views
  8. Future Outlook of the Market