IoT in Smart Cities Market worth $312.2 billion by 2026

According to a research report “IoT in Smart Cities Market by Offering, Solution (Remote Monitoring, Network Management, and Reporting and Analytics), Service, Application (Smart Transportation, Smart Building, and Smart Utilities) and Region – Global Forecast to 2026”, published by MarketsandMarkets™, the global IoT in Smart Cities Market size to grow from USD 130.6 billion in 2021 to USD 312.2 billion by 2026, at a Compound Annual Growth Rate (CAGR) of 19.0 % during the forecast period.

Various factors such as increase in adoption of IoT technology for infrastructure management and city monitoring and exponential rise in urban population are expected to drive the adoption of IoT in smart cities solutions and services.

In a short time, the COVID-19 outbreak has affected markets and customer behaviours and substantially impacted economies and societies. Healthcare, telecommunication, media and entertainment, utilities, and government verticals function day and night to stabilize conditions and facilitate prerequisite services to every individual. The telecom sector, in particular, is playing a vital role across the globe to support the digital infrastructure of countries amid the COVID-19 pandemic.

According to Fujitsu’s Global Digital Transformation Survey, offline organizations were damaged more, while online organizations witnessed growth in online demand and an increase in revenue. 69% of the business leaders from online organizations have indicated that they witnessed an increase in their business revenue in 2020. In contrast, 53% of offline organizations saw a drop in revenues.

Innovative IoT-based smart city solutions, which can be effectively coupled with big data, analytics, cloud, security, and network connectivity, are witnessing massive demand from various sectors. The adoption of IoT technology in smart city applications, such as smart utilities and smart citizen services, is expected to raise the adoption of IoT in smart cities during the pandemic as regulatory authorities of various countries are majorly focused on monitoring health, safety, and living standards of their citizens. To cater to the need for managing IoT devices across various cities, IoT solutions vendors need to enhance the management capabilities of their platforms.

The solution segment to hold a larger market size during the forecast period
IoT solutions for smart cities are at the forefront of technologically enabled changes forming a smart city paradigm. IoT in smart cities makes infrastructure safer, reduces the rate of criminal activities, and leads to an equitable society, with citizens desiring to receive better services and officials striving to make utilities economically viable.

IoT in smart cities solutions could be described with the help of seven key parameters, such as location analytics, network security, application security, real-time IoT in smart cities, network bandwidth management, remote monitoring system, and data management.

Reporting and analytics solution segment to account for higher CAGR during the forecast period
Reporting and analytics tools enable organizations to exploit all dimensions of data, harness the power of geospatial dimensions, and better understand interactions and results in a better representation through dashboards and reports. Reporting and analytics solution is crucial to enable the authorities to make data-based decisions. It leads to a better understanding of key business metrics, turning location data and spatial analytics into valuable information for organizations. Most analytics solutions in the industry help in processing technology for enabling applications to integrate with the streaming data and quickly produce extracted data from multiple sources in real-time. These analytics solutions are capable of fraud detection, Customer Relationship Management (CRM), privacy protection services, and reliable analysis of data-generated IoT devices.

Professional services segment to hold a larger market size during the forecast period
Professional services are services offered through professionals, specialists, or experts to support business operations. The professional services segment is categorized into three segments: deployment and system integration, consulting, and support and maintenance services. The major drivers for the rise in demand for IoT professional services segment include a rising trend of adopting IoT professional services to reduce Capital Expenditure (CAPEX) and Operational Expenditure (OPEX) and the demand for highly customized IoT services in the industrial and transportation sectors. Furthermore, there is an increase in the adoption of digital transformation services in various sectors, such as transportation, utilities, buildings, and others. These professional services are required during and after the implementation of IoT systems in organizations. Service providers deploy the latest IoT technology to improve the operational performance and gain a smarter enterprise.

Smart transportation application segment to have a higher CAGR during the forecast period
IoT emerges as the game-changer in the transportation domain. It has wide applications in transportation. From increasing safety to enhancing the driving experience, it plays a pivotal role in the transportation sector. Many countries across the globe are focusing on improving transportation infrastructure, as this sector has a direct impact on the country’s GDP. Transportation-related software and applications are gaining traction. The IoT in Smart Cities Market is still in the introductory stage and can be defined as interconnected devices that the transportation and IoT solutions providers use to get more visibility into transportation and the associated other components, such as traffic management and parking management.

APAC to hold higher CAGR during the forecast period
Asia Pacific is an emerging IoT in Smart Cities Market. China, Japan, and Singapore are the major countries contributing to the growth of the market in the region. Asia Pacific also houses other major economies, such as Australia, South Korea, and India. Japan and China are among the largest manufacturing economies that produce automobiles, information technology products, and electronic products. The IoT in smart city market paradigm has changed considerably with the growing popularity of advanced technologies such as AI, and big data analytics. PR Newswire