Rapid Global Urbanization is Majorly Propelling the Growth of the Smart Cities Market

In the MarketsandMarkets taxonomy, we define Smart Cities as- Modern human settlements with smarter utilization and deployment of available resources. Smart cities can be correlated with economic stability and wise usage of natural resources to provide smart investments in human and social capital along with transportation and modern communication infrastructures and a high quality of life to the citizens. Smart cities could be described with the help of six main parameters: smart economy, smart mobility, smart environment, smart people, smart living, and smart governance. These six smart attributes accelerate the pace of conventional urbanization in a futuristic way.

One of the main drivers in Smart Cities market- The global urban population is expected to exceed the 5 billion mark in the next 20 years. With the migration of rural population towards urban places, existing urban infrastructures are being put under tremendous pressure to accommodate and facilitate the ever-increasing population. There is an urgent demand for a smarter, more sustainable city ecosystem.

As cities grow and expand their services to match the exploding resident population, the management and governance across the city becomes increasingly complex. Asia shows intense urban migration trends due to major developing economies in the region. China, India, and other South-east Asian countries have a greater demand for smart cities due to rapid urbanization. This factor is one of the major drivers for the transformation of the urban infrastructure bundled with social, economic, engineering, and environmental challenges.

Interesting stats in Smart Cities Market-

  • In 2014, the intelligent building automation market accounts for ~20.0% of the overall smart cities market by type
  • The life security market is expected to grow at a CAGR of ~30.0% during the period 2014-2019
  • In the intelligent building automation physical security market by type, video surveillance system is expected to exhibit the highest CAGR of ~24.0% during the period 2014-2019
  • In 2014, the, NA market accounts for ~30.0% of the overall intelligent building automation life security market by region
  • In the overall intelligent building automation market by type, facilities management exhibits the highest market size during the period 2014-2019

One of the main restraints in smart cities market– Large technology deployments invoke system downtime, where IT systems and support have to be switched off and become unavailable for operations. However, certain systems with critical operations crucial for national security such as Air Traffic Control (ATC), public safety and Emergency Rescue (ER) systems, hospitals, and financial companies which require 24Ă—7 runtime could pose a major restraint for the transformation process for smarter infrastructure. Also, deployment of new technologies means a greater time commitment towards the learning curve.

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