Along with endowment of physical capital of the cities, social and intellectual capitals are also extremely vital. All these aspects assist creating a smart city with strong urban competitiveness and highlight the strength and growth of information technology in modern world. The concept of smart cities is targeted at provision of next generation services and infrastructure that promote smooth processing in information communication technologies or ICT. These kinds of cities are differentiated based on their technological advances, social standards, economic stature and governance. Smart cities market is gaining great traction with rising adoption of innovative technologies and socioeconomic development of emerging markets.
Concept Scope of Market Research in Smart City Market
The Concept of an efficient and smarter city encompassing modern approaches to security, transportation, CO2 emission, energy management, sustainability and governance is gaining great attention in terms of adoption. Technology and innovation in terms of information technology are two vital elements that determine smooth mechanism of smart cities. These technologies are especially designed with features capable of identifying the problems and providing ideal solutions to them as well. In order to understand the reach and future prospects of smart cities market, experts divide the market into different segments.
The smart cities market is segmented on the basis of the types of smart homes, buildings, energy management solutions, industrial automation systems and other systems like security, transport and citizen services. Smart buildings and homes segments are further categorized based on the types of product, services and solutions. Smart homes segment is further divided based on the types of products, which include security, entertainment, lighting, HVAC, home health and energy management. Service market for smart homes is segmented into installation and customization options. Energy management segment is classified by products, which is highlighted by smart grid.
Smart industrial automation segment in smart cities market is categorized into field services, industrial control systems, enterprise resource planning, manufacturing execution system, field devices. Based on application, the industry is classified into different industrial verticals. Attractive rate of adoption is the strongest driving factor for the growing revenue channels in smart cities market. Growth in the associated service markets is also working for this industry. Constant evolution in the industry is creating better business opportunities for the industry. As a result, the market is poised to witness healthy growth across the world.
Latest market research reports study smart cities market segments to drive conclusions about current market trends, opportunities, competitive outlook, challenges and future prospects. According to these reports, the industry is expected to maintain healthy CAGR of over 14% and cross $1 trillion by 2016. The market was valued at about $526.3 billion in 2011. Amongst various application segments, smart energy management and energy segments will maintain strongest growth pattern with an impressive CAGR of over 28% during the forecasting period.