Smart City Projects Will See Greater Tech Investments This Year
Smart City initiatives will attract technology investments of more than $81 billion globally in 2018, and spending is set to grow to $158 billion in 2022, according to IDC. Serena Da Rold, program manager in IDC’s Customer Insights & Analysis Group. “Intelligent transportation and data-driven public safety remain the largest investment areas, but we are also finding significant pockets of spending and growth in back-office and platform-related use cases, which are less often publicized but increasingly happening behind the scenes in cities around the world.”
The three largest use cases, which will attract nearly one quarter of global Smart Cities spending in 2018, are fixed visual surveillance, advanced public transit, and smart outdoor lighting. By 2022, intelligent traffic management will overcome smart outdoor lighting in third position, and the top three use cases will only account for one fifth of total spending, as smaller and fast-growing use cases emerge and reach critical mass. Officer wearables and vehicle to everything (V2X) connectivity, in particular, will generate the fastest growth, although they currently start from a small base in most regions.
On a geographic basis, the Asia/Pacific region, including China and Japan, will account for nearly 42% of global spending in 2018, followed by the Americas (33%), and Europe, Middle East and Africa (EMEA) (25%). The United States is the largest country market for Smart City spending (over $23 billion in 2018), followed by China. The three largest use cases appear among the top five in terms of spending across all regions, but other use cases that emerge among the largest current Smart Cities investment areas include mobile video capture and recording in the United States and Latin America, and digital permitting, licensing, and inspection in the Middle East and Africa region.
Spending by the 53 Cities that are currently sized in IDC’s database accounts for around 15% of global Smart City spending, with Singapore, Tokyo, New York City, London, and Shanghai leading the way in terms of 2018 investments.
“IDC expects to see strong, continued investment by the private and public sector in urban areas and in Smart Cities and Communities programs and projects,” said Ruthbea Yesner, vice president of IDC’s Smart Cities and Communities programs. “This also means that it is a more competitive market.”
As the process of establishing 100 smart cities gathers momentum across India, many global firms and other smart-technology providers are offering governments and city administrations an opportunity to accelerate time to value and deliver innovative and interactive services to the citizens. Cities like Pune and Ujjain in India and many other cities in the world have established Digital Experience Centres. These are quick preview to glimpses of the city’s plan for the present and for the future and considered as a space for spreading awareness among people about the city’s vision. They also provide insights into artificial intelligence, cyber modelling and gesture-based approach to enable remote virtual experience.
Michael Koh, an experienced Singaporean urban designer mentioned that India’s private sector, including startups, are also well positioned to support the centre and state governments in achieving the Smart City Mission project. The key to its success is the right investment of tecnology and the execution of its projects.