Smart city spending to soar
Written by NTN news
IDC forecasts smart cities spending to reach $158 billion in 2022, with Singapore, Tokyo, and New York City among top spenders. Smart City initiatives will attract technology investments of more than $81 billion globally in 2018, with three use cases leading the way.
Smart City spending is set to grow to $158 billion in 2022, according to the new release of the International Data Corporation (IDC) Worldwide Semiannual Smart Cities Spending Guide, which delivers sizing of 25 named use cases, as well as the first release of a new database of spending at city level.
IDC tracks 53 cities in its database currently, with Singapore, Tokyo, New York City, London, and Shanghai leading the way in terms of 2018 investments.
Intelligent transportation and data-driven public safety remain the largest investment areas, with “significant pockets” of spending and growth in back-office and platform-related use cases, which are less often publicized but increasingly happening behind the scenes in cities around the world, said IDC.
The three largest use cases, which will attract nearly one quarter of global Smart Cities spending in 2018, are fixed visual surveillance, advanced public transit, and smart outdoor lighting. By 2022, intelligent traffic management will overcome smart outdoor lighting in third position, and the top three use cases will only account for one fifth of total spending, as smaller and fast-growing use cases emerge and reach critical mass. Officer wearables and vehicle to everything (V2X) connectivity, in particular, will generate the fastest growth, although they currently start from a small base in most regions.
On a geographic basis, the Asia/Pacific region, including China and Japan, will account for nearly 42% of global spending in 2018, followed by the Americas (33%), and Europe, Middle East and Africa (EMEA) (25%). The United States is the largest country market for Smart City spending (over $23 billion in 2018), followed by China. The three largest use cases appear among the top five in terms of spending across all regions, but other use cases that emerge among the largest current Smart Cities investment areas include mobile video capture and recording in the United States and Latin America, and digital permitting, licensing, and inspection in the Middle East and Africa region.