Smart city tech revenues to reach $4bn by 2023
Written by Peter Walker
Smart city traffic technology solutions deployed to ease chronic congestion in cities will generate $4.4 billion in revenue in 2023, up from $2 billion in 2019, according to Juniper Research.
These solutions typically use sensors in combination with machine learning algorithms to dynamically alter traffic light phasing according to traffic levels; smoothing urban traffic flows.
Juniper’s research found that these tech-driven traffic solutions, which also lower the emissions footprint of cities, will save the equivalent of over 780 billion passenger vehicle miles’ worth of greenhouse gas emissions over the forecast period. It identified North America alongside Asia - specifically China - as major investment regions, driven by strong prevalence for technology deployment over policy-driven solutions to lower traffic congestion.
In terms of the impact of city traffic innovation on citizens of policy and investment direction, technology impact, agency cohesion and traffic management impact on city air quality, the leading cities across the globe are: Barcelona, San Francisco, Singapore, London and Portland.
Juniper found that Barcelona leads the rankings on account of its investment into smart traffic solutions, electric vehicle charging infrastructure and policy, aimed at improving air quality and lowering private vehicle use. While San Francisco shows strong policy and innovation, the lack of regulation in regard to ride-hailing services has damaged its overall performance.
The research suggested that while ride-hailing services are widely blamed for increased congestion, these same companies have an opportunity to capitalise on the road towards future Mobility-as-a-Service (MaaS) deployments.
“Entities such as Didi capture vast amounts of data in regard to congestion, traffic and passenger flows,” explained research author Steffen Sorrell. “Analysis of this data will be fundamentally useful in optimising the MaaS travelling salesman problem, and provides an opportunity for smart city data monetisation.”