Smart City Platforms Market Forecasts to 2028 – Global Analysis By Delivery Model (Offshore, Hybrid), Offering (Platforms, Services), Application (Smart Infrastructure, Smart Security) and By Geography

Smart City Platforms Market Forecasts to 2028 – Global Analysis By Delivery Model (Offshore, Hybrid), Offering (Platforms, Services), Application (Smart Infrastructure, Smart Security) and By Geography

According to Stratistics MRC, the Global Smart City Platforms Market is accounted for $156.02 billion in 2021 and is expected to reach $358.05 billion by 2028 growing at a CAGR of 12.6% during the forecast period. Smart city platforms are IoT-enabled solutions that allow smart city end users to gain seamless access to data across the multiple siloes of functionality that exist in today’s cities, including applications like transportation management, health, and public safety, environmental, energy, governance, the built environment, and more. Traditionally, these systems have existed in isolation, with a wide variety of legacy equipment and systems.

Market Dynamics:

Driver:

Increase in adoption of IoT technology for infrastructure management and city monitoring

IoT connects companies and governments with all smart prospects, such as smart cities, smart transportation, and smart utilities, enabling them to get location-based data in real-time. IoT generates vast amounts of data from millions of sources in real-time. Deployment of IoT solutions in smart city projects requires joint efforts from multiple stakeholders, such as telecom operators, infrastructure providers, service providers, manufacturers, public sectors, and user groups. The PPP model is the most encouraged model by government authorities globally to promote smart city initiatives. The smart city environment comprises multiple technologies, such as IoT, cloud, mobility, data communications, and AI, which add to the cities’ infrastructure. The development of 5G and NB-IoT technologies, in particular, is expected to drive the growth of the smart city platforms market. These technologies are not only used to enrich the lives of citizens, but also used in other areas, such as security, privacy, and environmental sustainability.

Restraint:

Complicated and cost-intensive infrastructure of smart city platforms

Installing and maintaining smart city platforms involve huge capital expenditure. In the initial phase of platform deployment, the kind of solutions that would be implemented in the city is determined. Hence, it makes more sense to opt for smart city platforms where new solutions can be integrated easily. Post the implementation of a platform in a city, continuous maintenance and upgrades are needed, which adds to the cost of the platform implementation. Additionally, smart city platforms also utilize sensor technology to gather and analyze information. Sensors collect data on everything, from rush hour stats to crime rates to overall air quality. To provide such advanced capabilities, such as sensors, the overall cost for platform providers goes on a higher end. Moreover, smart cities also require funding and financing from various investors. Some investors are willing to invest only in traditional infrastructures, such as roads and transportation systems, while others want to invest only in projects that match investment strategies focused on assets, sectors, countries, or themes.

Opportunity:

Industrial and commercial deployments of smart city platforms

Organizations in diverse verticals are consistently trying to increase the use of IoT to automate their processes and increase throughput. Hence, the proliferation of IoT and associated technologies are expected to create numerous opportunities for the smart city platforms market. A smart city platform allows users to integrate diverse sensors, machines, people, vehicles, and other devices across a wide range of applications and usage circumstances. The platform takes care of reliability, service quality, security, and compliance. Companies such as NEC, Hitachi, and Cisco are some of the major players who are working toward the incorporation of smart city platforms. Industrial IoT is another major use case; with the advent of Industry 4.0, manufacturers are aiming to implement smart city platforms for better decision-making insights. An increase in the number of business parks also provides opportunities for the deployment of smart city platforms.

Threat:

Integration of smart city platforms with legacy ERP systems

Legacy Enterprise Resource Planning (ERP) software continues to witness increased preference in larger businesses. Smart city platforms solutions cannot be used as isolated solutions in the facility’s digital architecture. They are often required to be integrated with ERP systems. The integration of smart city platforms solutions with ERP systems is a complicated task, as the integration is done in different stages. Unfortunately, legacy ERP platforms are not adequate to operate independently to cater to the requirements of customers. In addition, companies are apprehensive of switching to an Integrated Workplace Management System (IWMS) or Computer-Aided Smart city platforms (CAFM) software, and integration is difficult due to the complex features of most enterprise software solutions.

The services segment is expected to have the highest CAGR during the forecast period

The services segment is growing at the highest CAGR in the market during the forecast period. Smart city platform service providers offer various services. Smart city platforms services are segmented into professional services and managed services. These services facilitate smooth implementation, development, and maintenance of ongoing activities in organizations. Smart city platform providers assist and support customers, partners, support teams, marketing teams, and employees with individual development and training. Managed services include end-to-end services associated with smart city platforms, which reduce the hassle of managing deployment and performance of the platforms.

The hybrid segment is expected to be the largest during the forecast period

The hybrid segment is expected to be the largest share in the market. The hybrid delivery model is highly adopted, owing to the connectivity management and security platforms. In this delivery model, the benefits of both the on-site and offshore models can be harnessed. Moreover, hybrid solutions deliver a wide range of functionalities and core features, fueling the overall adoption of hybrid solutions during the forecast period.

Region with highest share:

North America is projected to hold the largest share in the market. The US and Canada have sustainable and well-established economies, which empower them to invest highly in R&D activities, thereby contributing to the development of new technologies. Network operators in this region consistently invest in expanding and upgrading their telecom networks and transitioning toward 5G infrastructure leveraging technologies such as cloud edge computing and network slicing, actuating the adoption of smart city platforms for low cost and strategic urban management.

Region with highest CAGR:

The Asia Pacific is projected to have the highest CAGR in the market. Japan and China are among the largest manufacturing economies that produce automobiles, information technology products, and electronic products. The smart city platform paradigm has changed considerably with the growing popularity of advanced technologies such as robotics and big data analytics.

Key players in the market:

Some of the key players profiled in the Smart City Platforms Market include ABB Ltd., Alibaba Group Holding Ltd., Amazon.com Inc., Verdigris Technologies, Cisco Systems Inc., Enevo, Ericsson, Fujitsu Ltd., Fybr, Google, Hitachi Ltd., Huawei, IBM, Intel, Microsoft, Oracle, Quantela Inc., Robert Bosch GmbH, Schneider Electric, and Siemens.

Key developments:

In January 2021: Schneider Electric launched an end-to-end digital solution for building ‘Future Ready’, energy-efficient airports through their IoT-enabled platform EcoStruxure for airports. EcoStruxure for airport platform provides a collaborative environment for secure, efficient, reliable, and sustainable airport service by digitizing the value chain of airport infrastructure management. - Microsoft announced several new features in Azure to accelerate the development and success of smart city solutions. The majority of the updates involve Azure Maps. For instance, the cloud solution now uses weather services to give cities an easy way to integrate real-time weather data into their applications. It also integrates with a mobility-as-a-service company, Moovit, and visual assistance app Aira to make public transport accessible to blind or low-vision users.

In May 2020: Hitachi Ltd. Incorporated new advancements to the Lumada software platform and industry solutions to accelerate the digital transformation of industrial processes. These offerings help deliver real-time, actionable insights that accelerate the ability to predict problem areas, streamline production and maintenance, and create a connected supply chain.

Delivery Models Covered:
• Offshore
• Hybrid
• Onshore/On-Site

Offerings Covered:
• Platforms
• Services

Deployments Covered:
• Cloud
• On-Premise

Applications Covered:
• Smart Infrastructure
• Smart Security
• Smart Energy and Utilities
• Smart Governance
• Smart Healthcare
• Smart Mobility/Transportation
• Citizen Engagement
• Extended City Services
• Environment Planning

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

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Comprehensive profiling of additional market players (up to 3)
SWOT Analysis of key players (up to 3)
• Regional Segmentation
Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
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