According to a study from Frost & Sullivan, smart cities are anticipated to create business opportunities with a market value of over $2 trillion by 2025.
By 2050, over 80 per cent of the population in developed countries is expected to live in cities, and over 60 per cent for the developing world. Smart city projects are expected to play an important role in urbanization, says Frost & Sullivan.
Additionally, AI plays a key role in smart cities in the areas of smart parking, smart mobility, the smart grid, adaptive signal control and waste management. Major corporations such as Google, IBM and Microsoft remain key tech innovators and the primary drivers of AI adoption, the study says.
Other significant findings include:
• AI, personalized healthcare, robotics, advanced driver assistance systems (ADAS), distributed energy generation and other technologies are believed to be the technological cornerstones of smart cities of the future
• The Asia-Pacific region is anticipated to be the fastest-growing region in the smart energy space by 2025
• In Asia, more than 50 per cent of smart cities will be in China. Smart city projects will generate $320 billion for China’s economy by 2025.
• The total North American smart buildings market, comprising the total value of smart sensors, systems, hardware, controls and software sold, is projected to reach $5.74 billion in 2020.
• Europe will have the largest number of smart city project investments globally, given the engagement that the European Commission has shown in developing these initiatives.
“Currently most smart city models provide solutions in silos and are not interconnected. The future is moving toward integrated solutions that connect all verticals within a single platform. IoT is already paving the way to allow for such solutions,” added Vijay Narayanan, visionary innovation senior research analyst at Frost & Sullivan.