Global Smart Communities Market 2016-2020
Market overview of smart communities
Technavio’s research analyst predicts the global smart communities market to grow at a CAGR of more than 18% during the forecast period. The need to save energy is a key growth driver for this market. Smart communities are implementing ICT solutions to reduce carbon footprints, reduce power consumption, and to improve the quality of life. As citizens are becoming increasingly aware of resource scarcity issues, the focus has shifted to develop digital infrastructure services that conserve resources. Energy consumption has been increasing at a very high rate as a result of the increased usage of electronic devices for home and entertainment purposes. Smart grid technologies are enablers of smart power management systems and can aid in managing and reducing power consumption.
The increased adoption of IoT is anticipated to have a positive impact on the growth of this market by the end of 2020. IoE, a superset of IoT technologies, is used to connect people, processes, things, and data through a centralized system that integrates IT systems and applications. IoE is helping to provide a platform where people can connect to social networking sites over the Internet for community development. For instance, Cisco, a pioneer in ICT solutions for smart cities, is collaborating with the city of Nice, France, and other local industry partners to provide IoE platforms for the smart city project. The project is expected to help develop the city by providing services, such as smart lighting and smart waste management.
Competitive landscape and key vendors
The competition among vendors that provide IT solutions for smart communities is intense. Numerous new players are also entering the market to offer specific IT solutions. Key vendors are competing in the domestic and international markets to provide their products and services.
The leading vendors in the market are -
- Schneider Electric
Other prominent vendors in the market include ABB, Accenture, Ericsson, ESRI, Hitachi, HP, Huawei, Microsoft, NEC, NTT DATA, Oracle, SAP, and Wipro.
Segmentation by IT solution and analysis of the smart communities market
- Smart community grid
- Smart community building
- Smart community transportation
- Smart community water
The smart community grid segment led the market during 2015, accounting for a market share of more than 35%. Smart community grids are a next generation power supply system that uses a smart grid architecture to save electricity. IT solutions such as data management, real-time analytics, communications systems, and automation technologies designed to manage smart grid architecture are helping communities to remain connected with power grids and use electricity judiciously. For instance, Smart Grid Smart City (SGSC) is a $100 million project in Australia, funded by the Australian government, in collaboration with Ausgrid, Energy Australia, and technology partners, such as IBM, GE Energy Australia, Sydney Water, and New Castel Council. The outcomes of the project are expected to aid future decision making by governments, technology suppliers, and consumers, across Australia.
Geographical segmentation and analysis of the smart communities market
During 2015, the Americas were the largest contributor to the market, accounting for more than 40% of the market share. The concept of the smart city is in the pilot phase in numerous cities in this region. Some of the cities in the US that are implementing the smart city concept include New York, San Francisco, Boston, Seattle, and San Jose. For instance, NYC recently launched a smart city initiative called the Hudson Yards project, which is estimated to cost around $20 billion. The Hudson Yard project will digitally track environmental and lifestyle factors, such as traffic, energy, consumption, and air quality.
Key questions answered in the report include
- What will the market size and the growth rate be in 2020?
- What are the key factors driving the global smart communities market?
- What are the key market trends impacting the growth of the smart communities market?
- What are the challenges to market growth?
- Who are the key vendors in this market space?
- What are the market opportunities and threats faced by the vendors in the global smart communities market?
- What are the trending factors influencing the market shares of the Americas, APAC, and EMEA?
- What are the key outcomes of the five forces analysis of the smart communities market?
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