October 05, 2023
Smart city is a new urban model based on technology of Internet of things. It applies various information sensors, smart devices, artificial intelligence and other technologies to all aspects of city to achieve an intelligent, informatized and sustainable development of city. Smart cities have become a global urban development trend with broad market prospects and huge investment value. This article will analyze market size, development direction and market situation of IoT manufacturers to better understand the development status of smart cities and related industries.
1. Market Size
The market for smart cities is large and is expected to continue to grow in coming years. According to MarketsandMarkets, global smart city market is expected to grow from $924 billion in 2019 to $2,434 billion in 2024, at a compound annual growth rate (CAGR) of 21.5%. Among them, North American market has largest share, followed by European market, and Asia-Pacific market has fastest growth. This is mainly due to rapid urbanization and industrialization in Asia-Pacific region, as well as increased government support and investment. At same time, as population ages and demand for medical care continues to grow, healthcare market in smart cities will also grow rapidly.
2. Direction of development
The development direction of smart city mainly includes intelligent transportation, intelligent security, intelligent medical care, intelligent construction and other fields. Among them, intelligent transport is one of key areas for development of smart cities. With acceleration of urbanization, problem of traffic congestion is becoming more and more prominent, and application of smart transportation is becoming an inevitable choice for urban management. According to IHS Markit, global smart transportation market will grow from $106 billion in 2019 to $247 billion in 2024 at a CAGR of 18.5%. In field of smart security, global smart city security market will also grow rapidly in next few years, mainly influenced by security factors such as rising crime rates and terrorist attacks.
3. Situation in market of IoT manufacturers
The rapid development of smart cities is inseparable from support of IoT technologies, and market position of various IoT manufacturers is also of concern. According to IDC, global IoT market will grow from $690 billion in 2020 to $132 billion in 2024 at a CAGR of 12.5%. As for IoT vendor market, global IoT vendor market is also showing a rapid growth trend. According to ABI Research, global IoT vendor market will grow from $234 billion in 2020 to $512 billion in 2026 at a CAGR of 12.7%. Among them, top three in global IoT vendor market are Huawei, Ericsson and Nokia.
Huawei is one of world's largest IoT manufacturers. According to IDC, Huawei's IoT market share reached 14.1% in 2019, first in world. Huawei's IoT technology is widely used in smart cities, smart transportation, and smart agriculture. Ericsson is one of world's leading manufacturers of communications equipment. Its IoT technology has been widely used, mainly covering smart cities, smart transportation, smartfactories and other areas. Nokia is also a global communications equipment manufacturer, its IoT technology is widely used in smart cities, smart transportation, smart healthcare and other fields.
Overall, with rapid development of smart cities around world, IoT vendor market will continue to grow. At same time, as people's demand for smart cities, smart transportation, and other areas continues to grow, IoT manufacturers will also face increasing competition in market. Therefore, IoT manufacturers need to continuously improve technology research and development capabilities, product innovation capabilities, and service levels in order to meet market demand and gain a better position in market competition.
Smart City is a large-scale IoT application scenario with broad market prospects. The scale of global smart city market will continue to grow, and areas such as smart transportation, smart security, smart healthcare, and smart buildings have huge market potential. IoT technology plays a vital role in smart cities and global IoT vendor market will continue to grow. IoT manufacturers such as Huawei, Ericsson, and Nokia have a relatively large market share, and continuous improvement of their technology research and development capabilities and product innovation capabilities will better meet market demand.
Analysis of state of development of smart cities in terms of market size, direction of development and market conditions of IoT manufacturers - current weak smart grid