Global Smart City Market 2016-2020
Overview of the global smart city market
Market research analysts at Technavio predict that the global smart city market will grow steadily and post a CAGR of almost 20% by 2020. Increasing installation of smart meters will be one of the key factors attributing to the growth of the global smart city market during the forecast period. Smart meters can be integrated with an in-home display (IHD) to provide instantaneous information on gas and electricity usage in a household. It will help the consumers to monitor and control all energy devices through energy management systems (EMS) and provide a range of interactive and intelligent solutions. Technological advancements will enable smart meters to amalgamate with smart grids, which will help in energy management, reduce operational costs, and provide energy efficient solutions. Furthermore, the implementation of smart meters will permit smart homes to use cutting-edge technologies like programmable thermostats, occupation detectors and motion sensors, solar-powered products, and zone-based thermostats to conserve energy and promote a reduction in the carbon footprint. The implementation of such energy-efficient systems will help in environmental sustainability and result in the positive growth of the smart city market over the predicted period.
One of the recent trends observed in the market is the presence of strategic alliances between telecommunications operators, hardware and software providers, and analytics software providers. The integration of cloud-based IoT and mobile technology will help in the growth of the mHealth market, which is one of the major segments of smart city infrastructure. The extensive use of mobile devices in the healthcare sector to collect clinical and community health data, real-time patient monitoring, and health information delivery will aid in the development of medical services. Furthermore, the introduction of smart wearables will assist in monitoring blood pressure, sugar content, heart and pulse rate, and calorie content in the body. Such innovations in the healthcare sector will propel the growth of the overall market over the period of next four years.
Competitive landscape and key vendors
The market appears to be highly fragmented due to the presence of various regional and international players. The dynamic nature of consumers’ tastes and preferences coupled with advancements in technologies have resulted in vendors focusing on the development of new and enhanced products to sustain the competition in the market. Various businesses are also forming strategic partnerships to collaborate and invest in R&D, product or service extensions, technological innovations to expand the consumer base and increase their presence in the global market.
Leading players in the smart city market are -
- Huawei Technologies
- Schneider Electric
Other prominent players in the market are Accenture, Aeris Communications, Nokia, Digi International, HCL, Hitachi, Honeywell, HP, Jasper Technologies, KORE Wireless, LG, Mercedes-Benz, NEC, Novatel Wireless, NTT DATA, SAP, Sierra Wireless, Telefonica, Vodafone, and Wipro.
Segmentation based on component and analysis of the smart city market
- Smart security
- Smart infrastructure
- Smart energy
- Smart governance and smart education
- Smart building
- Smart healthcare
- Smart mobility
According to the market analysts, the smart infrastructure sector will be the largest segment in the market and will post a CAGR of almost 23% by 2020. The rising adoption of smart water management systems, which are based on ICT (information and communications technology), will be one of the main drivers for the growth of this segment. The ICT technology coupled with automated control systems helps supply organizations to provide purified water in a cost-efficient manner. Also, these smart water management systems collect real-time information on water leakage and assist in the prevention of water loss.
Segmentation based on geography and analysis of the smart city market
Market research analysts predict that EMEA will dominate the market by posting a CAGR of around 22% by 2020. The availability of high-speed wireless networks and the introduction of smart grids enables the increased adoption of sensors in the automotive and healthcare sectors. Also, huge investments by the government for the implementation of intelligent traffic systems and development of smart homes will help in the evolution of the market.
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 city market?
- What are the key market trends impacting the growth of the global smart city market?
- What are the challenges to market growth?
- Who are the key vendors in the global smart city market?
- What are the market opportunities and threats faced by the vendors in the global smart city market?
- Trending factors influencing the market shares of the Americas, APAC, and EMEA.
- What are the key outcomes of the five forces analysis of the global smart city market
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