Global smart cities market to reach $3.482 trillionStaff Writer | January 4, 2017
The $622 billion smart cities market is anticipated to surpass $1 trillion in 2019 and take a leap to $3.48 trillion by 2026 end.
Technology and business A 10-year assessment period 2016-2026
This is according to the report published by Persistence Market Research - "Smart Cities Market: Global Industry Analysis and Forecast 2016-2026."
By application, smart energy registered over 18% value share in 2015, attributed to deployment of a large number of smart grid technologies. However, this segment will possibly witness a setback over the second half of the assessed period.
Smart transportation and smart governance are projected to hold over 14% and 11% revenue shares in 2026. Smart healthcare, water network systems, and smart education are gaining traction gradually.
Smart security, recorded over 15% share of the market value in 2015, is expected to rule by 2026 end with over 22% share. With the highest CAGR, this segment will possibly reach $780 billion in 2026.
Owing to growing inclination toward eco-friendly construction technology, smart building is estimated to register over 15% market value share in 2026, crossing $520 billion.
In terms of Y-o-Y growth, smart security and smart building segments will dominate over others, with the respective Y-o-Y growth rates of over 23% and over 20% in 2017 over 2016.
By component, decent growth will be observed in all the three key segments. While hardware segment can witness a slight decline post-2021, it will remain dominant through 2026 with over 35% value share.
Service segment is likely to capture over 30% share in 2026 revenues, whereas the highest growth is anticipated to be seen in the software segment, resulting in over 33% revenue share in 2026. ■