Smart City Platforms Market

The global Smart City Platforms market size was valued at USD 191.6 billion in 2023 and is expected to grow at a CAGR of 8.8% from 2023 to 2028. The revenue forecast for Smart City Platforms industry is projected to reach $292.1 billion by 2028. The base year for estimation is 2022, and the historical data spans from 2023 to 2028.

The primary factor driving the growth of smart city platforms market is the increasing government spending and initiatives to establish smart city platforms developments. Governments worldwide have strong visions to improve the smart city platforms segment and fulfill future demands. They are undertaking several initiatives to provide better infrastructures, enhance security and safety, and offer seamless smart transportation. The augmented adoption of technologies in recent years has enabled better connectivity, resulting in the complete remodeling of the smart city platforms ecosystem.

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Smart City Platforms Market Dynamics

Driver:  Digital transformation augmenting scope for smart cities

With the rapid advancements in technologies, there is an increase in the adoption of digital solutions, connected devices, and IoT systems. This rapid rise in technological innovations has paved the way for digital transformation. Organizations across the world are increasingly implementing new technologies across their verticals to engage customers in innovative and captivating ways. The augmented adoption of multiple technologies, such as IoT, cloud, mobility, data communications, and AI, in recent years, has enabled better connectivity, resulting in complete remodeling of the smart cities ecosystem.

Restraint: Lack of standardization in IoT protocols

The diverse range of devices to be connected has increased the need to coordinate with these different devices. Various devices use different hardware, run over different platforms, and are manufactured by different vendors. This incompatibility among devices, sensors, and even interfaces of remote servers cause interoperability challenges in the IoT space. IoT and its applications involve every aspect of human life, and the challenge lies in unifying these standards so that M2M communication becomes user-friendly and flexible. Several associations and organizations are working toward resolving this issue. The absence of a universal standard for IoT is restraining IoT services and the smart city ecosystem from being more effective and scalable.

Opportunity:  Rising smart city initiatives worldwide

The rapid explosion of IoT and smart cities initiatives is enhancing the need for smart security solutions, such as Perimeter Intrusion Detection System (PIDS), to make boundaries more secure. There is a growing focus on efficient energy management solutions to ensure proper metering and wastage minimization. Smart city infrastructure makes use of IoT technology to monitor and control different smart devices, minimize carbon emissions, and ensure improved and optimized route planning.

Challenge:  Increasing concern over data privacy and security

The smart city platforms market has significant growth potential for enterprises across all verticals; however, maintaining data security and privacy is a key challenge for players operating in this market. The volume of data collected using installed smart devices and sensors introduces new security and privacy risks. The sharing of data through cloud services increases locations where personal data resides. Most of the cellular-based M2M application providers map, monitor, and store private data of individuals, and asset and vehicle information and provide remote access to different IT systems.

Smart City Platforms Market Ecosystem

Prominent companies in this market include well-established, financially stable provider of smart city platforms solutions and services. These companies have been operating in the market for several years and possess a diversified product portfolio, state-of-the-art technologies, and strong global sales and marketing networks. Prominent companies in this market include Huawei Technologies Co., Ltd. (China), Siemens AG (Germany), Cisco (US), IBM (US), and Hitachi (Japan).

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By platform type, connectivity management platform  to hold the largest market size during the forecast period

Connectivity management platforms reduce additional costs and operational overheads while delivering an intelligent network of connected things. They primarily deal with connectivity operations across infrastructure that are carried out through cellular connectivity, Low Power Wide Area Network (LPWAN), and Wi-Fi. Prominent companies offering connectivity management platforms specifically for smart cities include Cisco, IBM, and Huawei. Since connectivity is the backbone of any smart infrastructure, the growth rate of the connectivity management platforms segment is relatively higher than that of other platforms.

By offering, the services segment is expected to register the fastest growth rate during the forecast period.

Smart city platforms services are segmented into professional services and managed services. These services facilitate smooth implementation, development, and maintenance of ongoing activities in organizations. Smart city platform providers assist and support customers, partners, support teams, marketing teams, and employees with individual development and training. The growing need for technical expertise for deployment is expected to be one of the key factors supporting the growth of deployment & training services.

North America is expected to hold the largest market size during the forecast period.

North America is expected to hold the largest share of the overall smart city platforms market. North America leads smart city usage, with the US and Canada at the forefront. These countries have sustainable and well-established economies, which empower them to invest strongly in R&D activities, thereby contributing to developing new technologies. Network operators in this region constantly invest in expanding and upgrading their telecom networks and transition toward 5G infrastructure. This leverages technologies, such as cloud edge computing and network slicing, thereby actuating the adoption of smart cities at a low cost for strategic urban management.

Market Players:

The major players in the smart city platforms market are Alibaba Group Holding Limited (China), Amazon Web Services, Inc. (US), Bosch.IO GmbH (Germany), Quantela, Inc. (US), Cisco Systems, Inc. (US), Ericsson (Sweden), Fujitsu Limited (Japan), Fybr (US), Google LLC (US), Hitachi, Ltd. (Japan), Huawei Technologies Co., Ltd. (China), IBM (US), Intel Corporation (US), KaaIoT Technologies (US), Microsoft (US), NEC Corporation (Japan), Oracle Corporation (US), SAP SE (Germany), Schneider Electric (France), SICE (Spain), Siemens AG (Germany), Sierra Wireless Inc. (Canada), SIRADEL SAS (France), Smarter City Solutions (Australia), Thethings.Io (Spain), Ubicquia, Inc (US), Verdigris Technologies, Inc (US), Softdel (US), Igor, Inc (US), Telensa Inc (UK), Enevo Inc. (US), Confidex Ltd (Finland), 75F (US), Ketos (US), and Cleverciti Systems GmbH (Germany). These players have adopted various growth strategies, such as partnerships, agreements and collaborations, new product launches and product enhancements, and acquisitions to expand their footprint in the smart city platforms market.

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Scope of the Report

This research report categorizes the smart city platforms market to forecast revenues and analyze trends in each of the following submarkets:

Based on Offering:

• Platforms
  • Connectivity Management Platforms
  • Integration Platforms
  • Device Management Platforms
  • Security Platforms
  • Data Management Platforms
• Services
  • Professional Services
    • Consulting & Architecture Designing
    • Infrastructure Monitoring & Management
    • Deployment & Training
  • Managed Services

Based on Delivery Model:

• Offshore
• Hybrid
• On-site

Based on Application:

• Smart Transportation
• Public afety
• Smart Energy & Utility
• Infrastructure Management
• Citizen Engagement

By Region:

• North America
  • United States (US)
  • Canada
• Europe
  • United Kingdom (UK)
  • Germany
  • France
  • Italy
  • Spain
  • Nordics
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia and New Zealand
  • Southeast Asia
  • Rest of Asia Pacific
• Middle East and Africa
  • Middle East
    • KSA
    • UAE
    • Rest of Middle East
  • Africa
    • South Africa
    • Egypt
    • Nigeria
    • Rest of Africa
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America

Recent Developments

• In November 2022, Hitachi launchedTRO610 cellular router, developed specifically to serve industrial internet of things (IIoT) applications for utilities, smart cities, oil & gas, manufacturing, and mining activities, offers cutting-edge communications and cybersecurity.
• In august 2022, Siemens acquired Brightly Software, this acquisition helped Siemens Smart Infrastructure (SI) to hold a dominant position in the software market for structures and built infrastructure.
• In September 2022, IBM acquired Dialexa, with a purpose to enhance the organization's hybrid cloud and AI expertise and capabilities. Contributing to IBM’s smart infrastructure solutions.

Frequently Asked Questions (FAQ):

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