Smart City Information And Communication Technologies (ICT) Infrastructure Market Size 2025-2029
The smart city information and communication technologies (ict) infrastructure market size is valued to increase by USD 188.87 billion, at a CAGR of 25.9% from 2024 to 2029. Growing investments in smart cities will drive the smart city information and communication technologies (ict) infrastructure market.
Major Market Trends & Insights
- Europe dominated the market and accounted for a 40.4% growth during the forecast period.
- By Application - Communication segment was valued at USD 22.30 billion in 2023
- By Component - Smart utilities segment accounted for the largest market revenue share in 2023
Market Size & Forecast
- Market Opportunities: USD 229.78 billion
- Market Future Opportunities: USD 188.87 billion
- CAGR from 2024 to 2029 : 25.9%
Market Summary
- The smart city information and communication technologies (ICT) infrastructure market is foundational to modern urban transformation, enabling cities to become more responsive, sustainable, and efficient. This market encompasses the hardware, software, and networking systems that facilitate the collection, analysis, and exchange of data from a vast network of connected devices.
- Key applications like intelligent transportation systems are revolutionizing urban mobility by optimizing traffic flow and reducing congestion through real-time data analytics. Similarly, smart grid technology enhances energy distribution, integrates renewable sources, and provides utilities with the tools for better load management and conservation.
- A core business scenario involves optimizing municipal service delivery, where predictive analytics derived from sensor data can forecast maintenance needs for public assets, reducing downtime and operational costs. This shift from reactive to proactive governance is a central tenet of the market.
- However, the integration of disparate technologies and the need for robust cybersecurity present ongoing challenges, demanding interoperable and secure solutions to protect critical urban infrastructure and sensitive citizen data, ensuring the long-term viability and trustworthiness of smart city initiatives.
What will be the Size of the Smart City Information And Communication Technologies (ICT) Infrastructure Market during the forecast period?
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How is the Smart City Information And Communication Technologies (ICT) Infrastructure Market Segmented?
The smart city information and communication technologies (ict) infrastructure industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.
- Application
- Communication
- Transportation
- Express
- Governement
- Education
- Component
- Smart utilities
- Smart transport
- Smart home and building
- Others
- Technology
- IoTs
- Cloud computing
- AI
- Big data analytics
- Geography
- Europe
- Germany
- UK
- France
- North America
- US
- Canada
- Mexico
- APAC
- China
- India
- Japan
- Middle East and Africa
- Saudi Arabia
- UAE
- South Africa
- South America
- Brazil
- Argentina
- Colombia
- Rest of World (ROW)
- Europe
By Application Insights
The communication segment is estimated to witness significant growth during the forecast period.
The communication segment is a critical part of the overall smart city technology stack, enabling a new generation of urban mobility solutions.
It relies on advanced IoT integration platforms to connect everything from intelligent transportation systems to smart grid technology, with some implementations showing a 40% reduction in energy consumption.
The deployment of 5G for smart cities is fundamental for supporting IoT for urban services. This connectivity underpins public safety networks, which increasingly use biometric authentication and decentralized identity for secure access.
Innovations in smart city data analytics platforms are leveraging federated learning models and even energy harvesting sensors to create self-sustaining monitoring systems that improve operational intelligence.
The Communication segment was valued at USD 22.30 billion in 2023 and showed a gradual increase during the forecast period.
Regional Analysis
Europe is estimated to contribute 40.4% to the growth of the global market during the forecast period.Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The geographic landscape is diverse, with North America and Europe leading in mature deployments, while APAC shows the fastest growth, contributing to 40% of the market's incremental growth.
In leading regions, there is a strong focus on autonomous vehicle readiness and deploying cloud services for government. The use of automated public transit and smart waste management systems is becoming widespread.
Environmental monitoring systems leverage narrowband-IoT networks for data collection. Advanced logistics use remote container monitoring enabled by M2M communication protocols. Big data in urban planning and geospatial data analysis are crucial for these initiatives.
The focus is now shifting to cyber-physical systems protection and ensuring smart city interoperability. The use of autonomous delivery robots and edge computing in public safety is growing, alongside a push for open data platform benefits to foster transparency.
Market Dynamics
Our researchers analyzed the data with 2024 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
- Strategic deployment within the smart city information and communication technologies (ICT) infrastructure market requires a deep understanding of specific use cases and their financial implications. For instance, analyzing the role of 5G in autonomous vehicle deployment is critical for mobility planning, while law enforcement agencies are exploring how to use IoT sensor data for predictive policing models.
- Urban planners now rely on digital twin simulation for urban planning to visualize outcomes before committing capital. The core of traffic management involves employing AI algorithms for traffic flow optimization. However, these advancements bring new vulnerabilities, making the analysis of cybersecurity threats in smart grid networks a top priority.
- A frequent boardroom debate centers on cloud versus edge computing for smart cities, with decisions depending on latency and data processing needs. The impact of smart lighting on public safety is well-documented, showing a decrease in incidents in well-lit areas. Furthermore, municipalities must navigate complex data privacy regulations for urban IoT.
- From a financial perspective, calculating ROI of smart water metering provides a clear business case for investment, even as public transit system integration challenges persist. A key technical hurdle involves integrating legacy systems with IoT platforms. For utilities, narrowband-IoT for smart utility monitoring offers a low-power solution.
- Logistics departments focus on optimizing smart waste collection routes, and IT teams grapple with the challenges of city-wide sensor deployment. The economic benefits are clear, with significant cost savings from smart building automation. Planners are now focused on using big data for urban resilience planning.
- The versatility of drone applications in municipal services is expanding, fundamentally changing the impact of ICT on citizen service delivery. The push for benefits of open data platforms for transparency is growing, but this requires sustainable financing models for public ICT infrastructure.
What are the key market drivers leading to the rise in the adoption of Smart City Information And Communication Technologies (ICT) Infrastructure Industry?
- Growing investments in smart cities, driven by government initiatives and the need for sustainable urban development, serve as a key driver for the market.
- Market growth is driven by the demand for efficiency, supported by strong smart city governance frameworks and increased smart city project funding. The implementation of building automation systems and smart metering solutions directly addresses sustainability goals.
- A key driver is the need for real-time data exchange to power connected vehicle technology and populate urban data platforms. The focus on sustainable urban development technology and effective citizen engagement tools is pushing municipalities to adopt integrated systems.
- Securing this ecosystem requires robust ICT infrastructure security protocols and careful management of data privacy in urban tech.
- The adoption of digital payment systems and AI-driven predictive scheduling enhances public service delivery, leading to up to a 15% improvement in resource allocation.
What are the market trends shaping the Smart City Information And Communication Technologies (ICT) Infrastructure Industry?
- The proliferation of smart city projects in emerging economies is a significant upcoming market trend. This development is driven by the need to address rapid urbanization and improve citizen services.
- Key trends are shaping the market, including the widespread adoption of digital twin applications for urban simulation and planning. This digital twin modeling relies on robust cybersecurity infrastructure to protect sensitive city data. The use of AI-powered urban analytics and AI in traffic control is becoming standard, with some cities seeing an 18% improvement in traffic flow.
- 5G communication networks are the backbone for these real-time systems, including drone surveillance systems and LIDAR-based mapping for infrastructure assessment. Connected public transit is being optimized through robotic process automation in scheduling and maintenance, while smart building energy management and urban environmental monitoring tech address sustainability. However, overcoming smart grid implementation challenges remains a focus.
What challenges does the Smart City Information And Communication Technologies (ICT) Infrastructure Industry face during its growth?
- The increasing adaptation of machine-to-machine communication across various industries presents a key challenge, primarily due to issues of network fragmentation and protocol integration.
- Significant challenges persist, particularly around the complexity of integrating diverse systems and the need for viable public-private partnership models. The shift toward flexible cloud computing architecture and edge computing deployment introduces new security considerations. Ensuring resilient urban infrastructure requires advanced network function virtualization and software-defined networking to manage dynamic loads.
- While predictive maintenance algorithms can reduce asset downtime by over 20%, their implementation is complex. The deployment of intelligent water management systems and smart lighting control faces hurdles related to initial investment. Additionally, intelligent traffic management and smart parking technology require seamless data integration, a challenge addressed by modern e-governance platform deployment and comprehensive e-governance platforms.
Exclusive Technavio Analysis on Customer Landscape
The smart city information and communication technologies (ict) infrastructure market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the smart city information and communication technologies (ict) infrastructure market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape of Smart City Information And Communication Technologies (ICT) Infrastructure Industry
Competitive Landscape
Companies are implementing various strategies, such as strategic alliances, smart city information and communication technologies (ict) infrastructure market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.
ABB Ltd. - Core offerings include grid automation, intelligent lighting, and energy management solutions, optimizing urban operational efficiency and sustainability.
The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
- ABB Ltd.
- Accenture PLC
- AT and T Inc.
- China Mobile Ltd.
- Cisco Systems Inc.
- Deutsche Telekom AG
- Hitachi Ltd.
- Honeywell International Inc.
- Huawei Technologies Co. Ltd.
- IBM Corp.
- Microsoft Corp.
- Nokia Corp.
- NTT Communications Corp.
- Oracle Corp.
- Schneider Electric SE
- Siemens AG
- Telefonaktiebolaget Ericsson
- Telefonica SA
- Verizon Communications Inc.
- Vodafone Group Plc
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key industry players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Recent Development and News in Smart city information and communication technologies (ict) infrastructure market
- In September 2024, IBM Corp. and Siemens AG announced a strategic partnership to co-develop an advanced digital twin platform for urban infrastructure management, integrating IBM's AI analytics with Siemens' industrial IoT capabilities to enhance predictive maintenance and energy efficiency in smart cities.
- In November 2024, Cisco Systems Inc. unveiled its 'Urban Secure' suite, a new cybersecurity infrastructure solution designed specifically to protect municipal networks, IoT devices, and critical infrastructure from sophisticated cyber threats.
- In January 2025, Microsoft Corp. partnered with the City of London to launch the 'Sustainable London Data Hub,' a cloud-based platform utilizing Azure to collect and analyze environmental data from thousands of sensors, aiming to support the city’s net-zero carbon goals.
- In April 2025, Verizon Communications Inc. completed a large-scale 5G network and edge computing deployment across Phoenix, Arizona, to support the city's new autonomous vehicle pilot program, enabling low-latency communication for connected vehicle technology.
Dive into Technavio’s robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Smart City Information And Communication Technologies (ICT) Infrastructure Market insights. See full methodology.
| Market Scope | |
|---|---|
| Page number | 320 |
| Base year | 2024 |
| Historic period | 2019-2023 |
| Forecast period | 2025-2029 |
| Growth momentum & CAGR | Accelerate at a CAGR of 25.9% |
| Market growth 2025-2029 | USD 188866.7 million |
| Market structure | Fragmented |
| YoY growth 2024-2025(%) | 21.5% |
| Key countries | Germany, UK, France, Italy, The Netherlands, Spain, US, Canada, Mexico, China, India, Japan, South Korea, Australia, Indonesia, Saudi Arabia, UAE, South Africa, Israel, Turkey, Brazil, Argentina and Colombia |
| Competitive landscape | Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Research Analyst Overview
- The smart city information and communication technologies (ICT) infrastructure market is characterized by the convergence of multiple advanced technologies. Intelligent transportation systems and smart grid technology are becoming standard, underpinned by robust IoT integration platforms and high-speed 5G communication networks.
- Decision-making is being transformed by digital twin modeling and AI-powered urban analytics, which rely on data from environmental monitoring systems and smart metering solutions. Securing these complex ecosystems is paramount, requiring sophisticated cybersecurity infrastructure and protocols like biometric authentication and decentralized identity. At the building level, building automation systems and robotic process automation are driving efficiency.
- Mobility is advancing with connected vehicle technology, automated public transit, and autonomous delivery robots guided by LIDAR-based mapping. Foundational technologies such as network function virtualization and software-defined networking provide the necessary agility for real-time data exchange. In logistics, remote container monitoring and smart waste management are optimized through M2M communication protocols and narrowband-IoT networks.
- Operations are enhanced by predictive maintenance algorithms, geospatial data analysis, and AI-driven predictive scheduling. The deployment of cloud computing architecture and edge computing deployment supports these applications, while e-governance platforms and digital payment systems improve citizen services.
- The use of federated learning models, energy harvesting sensors, and drone surveillance systems represents the next frontier, with companies achieving a 25% reduction in response times through integrated platforms.
What are the Key Data Covered in this Smart City Information And Communication Technologies (ICT) Infrastructure Market Research and Growth Report?
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What is the expected growth of the Smart City Information And Communication Technologies (ICT) Infrastructure Market between 2025 and 2029?
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USD 188.87 billion, at a CAGR of 25.9%
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What segmentation does the market report cover?
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The report is segmented by Application (Communication, Transportation, Express, Government, and Education), Component (Smart utilities, Smart transport, Smart home and building, and Others), Technology (IoTs, Cloud computing, AI, and Big data analytics) and Geography (Europe, North America, APAC, Middle East and Africa, South America)
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Which regions are analyzed in the report?
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Europe, North America, APAC, Middle East and Africa and South America
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What are the key growth drivers and market challenges?
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Growing investments in smart cities, Growing adaption of machine-to-machine in various industries
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Who are the major players in the Smart City Information And Communication Technologies (ICT) Infrastructure Market?
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ABB Ltd., Accenture PLC, AT and T Inc., China Mobile Ltd., Cisco Systems Inc., Deutsche Telekom AG, Hitachi Ltd., Honeywell International Inc., Huawei Technologies Co. Ltd., IBM Corp., Microsoft Corp., Nokia Corp., NTT Communications Corp., Oracle Corp., Schneider Electric SE, Siemens AG, Telefonaktiebolaget Ericsson, Telefonica SA, Verizon Communications Inc. and Vodafone Group Plc
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Market Research Insights
- The market is defined by a rapid evolution toward integrated, data-driven urban management. The adoption of a cohesive smart city technology stack is enabling municipalities to achieve significant operational gains, with some reporting a 15% increase in service delivery efficiency.
- The deployment of smart city data analytics platforms is critical, allowing for the analysis of information from public safety networks and IoT for urban services. This data-centric approach, supported by robust ICT infrastructure security protocols and clear smart city governance frameworks, is essential for realizing the full potential of urban technology.
- For instance, the strategic use of smart lighting control has been shown to reduce energy costs by over 30% while simultaneously improving public safety.
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