According to a new market report published by 7801 Transparency Market Research "Smart Cities Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2013 - 2019", the global smart cities market is expected to reach a value of US$1,265.85 billion by 2019, growing at a CAGR of 14.0 per cent from 2013 to 2019. Increase in migration from rural to urban areas is the major factor responsible for the growth of smart cities market, globally. North America was the largest contributor to the smart cities market and accounted for a share of 34.5 per cent in 2012. This is mainly attributed to the increasing smart grid investments, upgrading of the water infrastructure and transportation sector. The manufacturers in this region are investing more in smart meters and smart grids to provide an excellent foundation for smart city programs.
Among the different application categories, the smart transportation segment held the largest share of around 16 per cent in 2012. This was due to the growing demand for advanced traffic management, building a superior environment and reducing the volume of delivery vehicles. At the same time, smart transportation links the modes of transport to improve traffic flow in both urban and inter-urban networks. smart transportation systems help in minimising the economic burden of government by reducing travelling delays and fuel consumption rate. Smart security is the fastest growing segment and is expected to grow at a CAGR of 15.0 per cent during the forecast period from 2013 to 2019. One of the reasons for the growing popularity of smart security is that it avoids third party misuse by imposing high security requirements onto the used technology.
In terms of geography, North America represents largest market for smart cities and is expected to reach a market size of US$392.41 billion by 2019. The regional governments are taking steps towards reducing the carbon footprint by increasing the use of renewable energy resources. Governments in North America are currently working on an objective to accomplish the target of zero wastage of energy by the year 2020.
Among the different application categories, the smart transportation segment held the largest share of around 16 per cent in 2012. This was due to the growing demand for advanced traffic management, building a superior environment and reducing the volume of delivery vehicles. At the same time, smart transportation links the modes of transport to improve traffic flow in both urban and inter-urban networks. smart transportation systems help in minimising the economic burden of government by reducing travelling delays and fuel consumption rate. Smart security is the fastest growing segment and is expected to grow at a CAGR of 15.0 per cent during the forecast period from 2013 to 2019. One of the reasons for the growing popularity of smart security is that it avoids third party misuse by imposing high security requirements onto the used technology.
In terms of geography, North America represents largest market for smart cities and is expected to reach a market size of US$392.41 billion by 2019. The regional governments are taking steps towards reducing the carbon footprint by increasing the use of renewable energy resources. Governments in North America are currently working on an objective to accomplish the target of zero wastage of energy by the year 2020.
