The city of the future will rely on and develop around collaborative and connected infrastructures: 5G, artificial intelligence, big data, but also digital tracking of contact cases and facial recognition… These so-called “smart” technologies will not only provide innovative solutions but also generate a very promising economic market, according to an analysis by an American firm. By 2025, it lists 26 smart cities, including 16 in North America and Europe.
“Smart cities” will be worth their weight in gold, according to a study by the U.S. agency Frost & Sullivan released on October 29. Smart cities, those cities focused on technology for the benefit of their citizens, could generate a market valued at more than $2 trillion. Extraordinary financial opportunities are expected by 2025. A race already launched with the Covid-19 pandemic.
2.46 trillion dollars: this is the astronomical sum that could be generated by the development of “smart cities” in 2025, reports the study. According to the research, the post-pandemic context, which is still uncertain, could push these cities of the future to develop even more technologies and thus create new economic opportunities, particularly through health facilities and public safety services.
Smart cities will provide innovative solutions
“Now more than ever, the strategy that puts technology at the forefront, advocates for optimism, and emphasizes all things ‘smart’ is essential. While Covid-19 was largely a health crisis, it was hugely disruptive to city ecosystems and infrastructure”
said Archana Vidyasekar, director at Frost & Sullivan.
“Smart” technologies offer innovative solutions that can reverse the damage and bring some respite, if not normalcy. For example, digital contact tracing can play a critical role in empowering citizens to know where Covid-19 has affected them and promoting safer urban travel.
Where will these smart cities be located?
Smart city technology spending over the next six years is expected to grow at a compound annual growth rate (CAGR) of 22.7 percent. Spending that may reach $327 billion in 2025, the study estimates, up from $96 million in 2019.
“Smart cities will focus on connected and data-driven infrastructure, leading to even greater adoption of technologies such as artificial intelligence and 5G. They will prioritize more digital services and more data analytics infrastructure, which will lead to more spending on technology”
says Malabika Mandal, analyst at Frost & Sullivan.
More than 26 “smart cities” will be developed by 2025 with the majority of them, 16 to be exact, located in North America and Europe, according to the study. More than 70 percent of these tech-savvy cities will be in the United States, Western Europe and China by 2030. The study also indicates that the use of 5G, robotic and autonomous technologies will continue to be deployed in Europe and the United States.
Almost all of these “smart cities” have already invested with open-data initiatives during the pandemic. China is not to be outdone as the country has renewed its investments with 5G, artificial intelligence and smart grids. The crowd analytics market will grow by 20-25% by 2030. In 2020, the market already had revenues of $748.6 million.
Taiwan’s Bionic Arch: Nature Vertical In Taichung’s Gateway Park in Taiwan, this tower is like a forest in the city. Meadows and gardens spread out in tiers over 390 m high in a self-sufficient building, thanks to solar and wind energy. One walks there to appreciate nature and to find a panoramic view of the megalopolis. The tower is also used for telecommunications relays.