The Smart Cities Market

­The global smart cities market size, estimated at USD 1.48 trillion in 2023, is expected to hit around USD 12.02 trillion by 2033, growing at a CAGR of 23.26% from 2024 to 2033. The unprecedented growth in this market is driven by government initiatives addressing urban population growth, resource management, and sustainable development.

Smart infrastructure projects include building management systems, smart grids/smart meters for utilities, and intelligent transportation systems. The market encompasses manifold systems and applications that integrate digital technology into urban infrastructure to improve efficiency, sustainability, safety, and quality of service to customers (i.e., citizens).

Since IoT and connectivity play a crucial role in smart cities by connecting together various devices and systems, sensors and connected devices are everywhere, from traffic management to waste collection and more. (Think big – like the myriad sensors on bridges and roads that sense strain and movement to warn of potential structural failures. Or cameras that sense traffic patterns, accidents, the volume of pedestrians -- and even solve crimes using facial recognition and license plate, or LPR, recognition.)

Smart cities often focus on sustainability, using technologies to reduce energy consumption, manage limited water and energy resources and minimize waste. Solar panels, energy-efficient lighting, and green building technologies are common examples. These also have measurement and control/remote monitoring built in.

Many smart city initiatives involve engaging with residents through mobile apps and digital platforms, allowing them to report issues like utility outages, gas leaks, street light outages and traffic signal malfunctions. Others help provide feedback and access city services more easily.

We have even seen some M&A activity recently in the industrial segment, with Bosch buying Johnson Controls, for example, to position for the growth in this market. However, there remain technical and political challenges to overcome, as well as privacy and cybersecurity concerns. While this connectivity can help consumers make informed decisions, improve services and predict future needs, it can also turn into a hacker’s playground.

Global governments and private organizations are investing heavily in smart cities. The goal is to use these new technologies to improve the quality of life for everyone while mitigating any big brother-type privacy misuse by governmental agencies or bad actors.

Opportunities abound for our industry since power will be needed from microwatts on the IoT sensor side to AI servers. The power electronics used in smart cities applications range from battery-powered IoT systems to line-powered data acquisition and transmission. After all, this data is sent from remote sites, advanced data analytics are used to process and interpret the vast amounts of data generated by smart city technologies. Computing electronics and everything in between will need power. Let’s just hope these amazing technologies are used for good.  

PSD