IoT in Smart Cities Market To More Than Double By 2026, Says MarketsandMarkets

(Credit: MIT)

Market research firm MarketsandMarkets published a report last week forecasting that the IoT in smart cities market will grow from $130.6 billion in 2021 to $312.2 billion by 2026 — a compound annual growth rate (CAGR) of 19%.

The IoT, or internet of things sector describes physical objects embedded with technology such as sensors, computers, and software that allow data about them to be collected and communicated. With IoT technology, users can intelligently automate the operation of medical devices, HVAC systems, driverless cars, washing machines, lighting, and much more.

The IoT in smart cities market includes IoT-based products and services designed to improve the efficiency and quality of life in cities. By utilizing IoT-derived data to understand trends in water use, electricity consumption, pollution, crime, traffic, etc., governments can devise informed policies to provide their citizens with a healthier and more stable living environment.

Factors driving the IoT in smart cities market’s anticipated growth include:

• Expanding urban populations, which fuels demand for intelligent city management.
• Government initiatives, which fund large-scale IoT projects.
• Increasing adoption of connected and smart technologies capable of pairing with IoT technology.
• Public-private partnerships.

MarketsandMarkets identifies privacy and security concerns as a potential restraint on the growth of the IoT in smart cities market. Acknowledging that IoT collects “much data about personal movements, actions, and purchases,” the firm advocates implementing advanced software and hardware-based security mechanisms to prevent hacks and boost the confidence of industries and governments. Another challenge to the market’s growth is securing the funds necessary to finance the “huge initial investments” required for IoT in smart cities. The market must demonstrate its cost-saving opportunities given that government regulatory authorities are forced to monetize these systems and ensure significant return on investment before green-lighting the projects. 

MarketsandMarkets breaks down IoT in smart cities solutions into seven categories:

1. Location analytics.
2. Network security.
3. Application security.
4. Real-time IoT in smart cities.
5. Network bandwidth management.
6. Remote monitoring system.
7. Data management.

The firm expects the reporting and analytics segment, which encompasses tools that processes IoT data to inform decision-making, to account for higher CAGR during the forecast period. 

Key players in the IoT in smart cities market are Microsoft, Huawei, Intel, Siemens, Hitachi. Other players include IBM, Cisco, Tech Mahindra, Honeywell, Bosch, PTC, Schneider Electric, ARM, Quantela, Sierra Wireless, Youon, SAP, Deutsche Telekom, Confidex, Verizon, AGT International, Takadu, Optibus, Enevo, Signify, FlamencoTech, and AppyWay.

A list of recent IoT developments within these and other companies can be found at the bottom of the report summary.