Global IoT in Smart Cities Market Size Study & Forecast, by Offering, Solution (Remote Monitoring, Network Management, and Reporting and Analytics), Service, Application (Smart Transportation, Smart Building, and Smart Utilities) and Regional Forecasts 20

The Global IoT in Smart Cities Market is valued at approximately USD 220.08 billion in 2024 and is projected to grow at a CAGR of 19.00% during the forecast period of 2025-2035. IoT in smart cities refers to the integration of connected devices, sensors, and data platforms that allow governments, enterprises, and service providers to optimize resources, improve operational efficiency, and enhance the quality of life for citizens. This technology enables real-time monitoring of transportation, utilities, and infrastructure, while also powering data-driven policies to address challenges like energy management, urban mobility, and sustainability. The global market is being fueled by rapid urbanization, rising digital transformation investments, and the growing need for sustainable, tech-driven urban development models across both developed and emerging economies.

The momentum of smart city initiatives has intensified the demand for IoT solutions. From smart traffic control systems to predictive maintenance of utility grids, IoT-enabled platforms play a vital role in optimizing urban ecosystems. According to global city development projects, governments are allocating significant budgets for the adoption of intelligent infrastructure to reduce congestion, cut emissions, and improve energy efficiency. Additionally, the rise of public-private partnerships and breakthroughs in cloud computing, AI, and 5G connectivity are accelerating deployments worldwide. However, challenges such as high implementation costs, cybersecurity risks, and data privacy regulations remain critical barriers that could limit market expansion over the forecast horizon.

The detailed segments and sub-segments included in the report are:

By Offering:
• Solution
• Remote Monitoring
• Network Management
• Reporting and Analytics
• Service

By Application:
• Smart Transportation
• Smart Building
• Smart Utilities

By Region:

North America
• U.S.
• Canada

Europe
• UK
• Germany
• France
• Spain
• Italy
• ROE

Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• RoAPAC

Latin America
• Brazil
• Mexico

Middle East & Africa
• UAE
• Saudi Arabia
• South Africa
• Rest of Middle East & Africa

Smart transportation is expected to dominate the IoT in smart cities market during the forecast period. Growing concerns over traffic congestion, air quality, and the environmental impact of traditional mobility systems have encouraged the adoption of connected transport networks. Governments and private companies are leveraging IoT-enabled solutions for smart traffic lights, real-time route optimization, and intelligent public transport systems to reduce travel time and improve commuter safety. As urban populations continue to rise, smart mobility solutions will remain at the forefront of city transformation initiatives.

Solutions currently contribute the largest revenue share in the market, primarily due to their critical role in enabling data-driven city operations. Remote monitoring and network management solutions are widely deployed to support real-time decision-making, predictive maintenance, and efficiency improvements across urban infrastructures. At the same time, services are gaining rapid traction as municipalities and enterprises increasingly depend on consulting, integration, and managed service providers to roll out large-scale smart city projects. Thus, solutions dominate revenue today, while services are expected to be the fastest-growing segment.

Across regions, North America accounted for the largest share in 2024, supported by early adoption of smart city frameworks, large-scale investments in IoT infrastructure, and strong collaboration between technology providers and government agencies. The U.S. has pioneered several smart city initiatives, ranging from connected mobility to sustainable urban utilities. Meanwhile, Asia Pacific is projected to register the fastest growth over the forecast horizon, driven by rapid urbanization, population growth, and government-backed projects in India and China. Europe, supported by stringent environmental policies and strong funding for clean energy and digital infrastructure, continues to progress steadily toward wide-scale smart city implementation.

Major market players included in this report are:
• Cisco Systems, Inc.
• IBM Corporation
• Siemens AG
• Huawei Technologies Co., Ltd.
• Oracle Corporation
• SAP SE
• Schneider Electric SE
• Microsoft Corporation
• Ericsson AB
• Hitachi, Ltd.
• Honeywell International Inc.
• Intel Corporation
• General Electric Company
• Accenture Plc
• Amazon Web Services, Inc.

Global IoT in Smart Cities Market Report Scope:
• Historical Data – 2023, 2024
• Base Year for Estimation – 2024
• Forecast period – 2025-2035
• Report Coverage – Revenue forecast, Company Ranking, Competitive Landscape, Growth factors, and Trends
• Regional Scope – North America; Europe; Asia Pacific; Latin America; Middle East & Africa

The objective of the study is to define market sizes of different segments and countries in recent years and to forecast the values for the coming years. The report is designed to incorporate both qualitative and quantitative aspects of the industry within the countries involved in the study. The report also provides detailed information about crucial aspects, such as driving factors and challenges, which will define the future growth of the market. Additionally, it incorporates potential opportunities in micro-markets for stakeholders to invest, along with a detailed analysis of the competitive landscape and product offerings of key players. The detailed segments and sub-segments of the market are explained below:

Key Takeaways:
• Market Estimates & Forecast for 10 years from 2025 to 2035.
• Annualized revenues and regional-level analysis for each market segment.
• Detailed analysis of the geographical landscape with country-level analysis of major regions.
• Competitive landscape with information on major players in the market.
• Analysis of key business strategies and recommendations on future market approach.
• Analysis of the competitive structure of the market.
• Demand side and supply side analysis of the market. Show more