About Smart City ICT Infrastructure
The rapid growth in urban population is increasing the demand for basic amenities that include transportation, healthcare, residents' safety, and education. The traditional operations in cities were ineffective and allowed only one-way distribution system for energy and water. However, with the advances in digital technology, the two-way communication became possible, and machine-to-machine (M2M) technology evolved further to provide smart grid, smart water management systems, smart transport system, and smart building system. All of these verticals form the smart city; and the development of smart cities is needed.
The smart city concept is a framework to support the vision of various governments, IT players, network providers, product providers, and managed service providers.
Technavio’s analysts forecast the global smart city ICT infrastructure market to grow at a CAGR of 17.12% during the period 2016-2020.
Covered in this report
The report covers the present scenario and the growth prospects of the global smart city ICT infrastructure market for the period 2016-2020. To calculate the market size, the report considers the revenue generated from the ICT infrastructure deployed on the following:
Technavio Announces the Publication of its Research Report – Global Smart City ICT Infrastructure Market 2016-2020
Technavio recognizes the following companies as the key players in the Global Smart City ICT Infrastructure Market: ABB, AT&T, China Mobile, Cisco, Hitachi, Honeywell, Huawei, IBM, NTT Communications, Oracle, Siemens, Verizon Communications, and Vodafone.
Other Prominent Vendors in the market are: Accenture, Alcatel-Lucent, Deutsche Telekom, Ericsson, HP, Microsoft, Schneider Electric, Telefonica, and Toshiba.
Commenting on the report, an analyst from Technavio’s team said: “IoT technology enables city planners to gain insights into different aspect of city management by enabling different devices to interconnect. It helps to manage large complex environments, understand the state of the city, and collaborate with different departments to produce cumulative results. There are a number of initiatives by IT and communication service providers. These increasing initiatives are increasing the popularity of the smart city concept across the globe.”
According to the report, rapid industrialization and urbanization have led to various engineering, social, economic, management, and environmental challenges. To overcome these challenges, transformation into smart cities is required; it will encompass aspects of sustainability, energy management, intelligent transport, security, and environmental protection. In addition, with the rise in migration from rural areas to cities and the populace in urban areas, the need for efficient ICT infrastructure and planning is increasing. These have raised concerns regarding waste management, air pollution, human health, and aging infrastructure. Thus, the need for the transformation of existing ICT infrastructure with growing urbanization is expected to propel the market growth during the forecast period.
Further, the report states that the initial costs for smart cities' infrastructure and technology are high and require high maintenance, repair, and upgrade costs. These high costs act as a barrier for transforming to smart cities, which require proper planning along with private-public partnerships. However, in developing regions, there is an ongoing debate regarding the use of financial resources for public welfare rather than investing in smart cities. This may hamper the market growth during the forecast period.
ABB, AT&T, China Mobile, Cisco, Hitachi, Honeywell, Huawei, IBM, NTT Communications, Oracle, Siemens, Verizon Communications, Vodafone, Accenture, Alcatel-Lucent, Deutsche Telekom, Ericsson, HP, Microsoft, Schneider Electric, Telefonica, Toshiba.