New Delhi, Dec. 02, 2024 (GLOBE NEWSWIRE) -- The global smart cities engineering & construction services market was valued at US$ 151.05 billion in 2023 and is projected to reach US$ 553.87 billion by 2032 at a CAGR of 15.55% during the forecast period 2024–2032.
The smart cities engineering & construction services market is on the cusp of transformative growth, presenting vast opportunities for innovation and investment. In 2023, there are over 1,000 active smart city projects worldwide, signaling a robust commitment to reimagining urban living. China's investment in over 500 smart city initiatives showcases the global scale and potential of this market.
Download Free Sample Copy @ https://www.astuteanalytica.com/request-sample/smart-cities-engineering-construction-services-market
Technological advancements are accelerating progress. The deployment of more than 35 billion IoT devices globally enables unprecedented connectivity and data-driven decision-making in urban environments. Companies like Siemens are at the forefront, implementing smart grid solutions in cities such as Vienna, which serves over 1.9 million residents with enhanced energy efficiency. Government support is further propelling the market. The European Union's allocation of €1 billion for smart city projects under the Horizon Europe program emphasizes international dedication to sustainable urban development. In Africa, Egypt's new administrative capital, designed to accommodate 6.5 million people, represents one of the largest smart city projects and reflects emerging market growth.
Key smart cities engineering & construction services market players like IBM, with its Smarter Cities Challenge, and Cisco's Smart+Connected Communities, are actively contributing innovative solutions. The incorporation of digital twins, as seen in Singapore's Virtual Singapore project, exemplifies cutting-edge approaches to urban planning. Additionally, the rollout of 5G networks in over 60 countries enhances the capabilities of smart city infrastructure, supporting technologies such as autonomous vehicles—projected to number over 10 million globally by 2030. Sustainability remains a central focus, with green building certifications like LEED awarded to over 100,000 projects worldwide. Companies such as Johnson Controls are delivering smart building solutions that optimize energy consumption and reduce environmental impact. The convergence of technology, government initiatives, and private sector innovation positions the smart cities engineering & construction services market for substantial advancement.
Key Findings Smart cities engineering & construction services market
| Market Forecast (2032) | US$ 553.87 billion |
| CAGR | 15.55% |
| Largest Region (2023) | Asia Pacific (34.16%) |
| By Offerings | Solution (59.51%) |
| By Project | Urban Development (44.69%) |
| By Application | Transportation (22.15%) |
| By City Topography | Developed Economies (72.79%) |
| Top Drivers |
|
| Top Trends |
|
| Top Challenges |
|
Solution Segment to Capture over 59.51% Market Share
The smart cities engineering & construction services market is experiencing transformative growth, driven by the solution segment's dominance, the prioritization of urban development projects, the emphasis on transportation applications, and the leadership of developed economies. The solution segment, which includes design, consulting, network infrastructure, hardware, software, and equipment, is pivotal due to its role in integrating emerging technologies into urban environments. As of 2023, over 50 European cities have launched comprehensive smart infrastructure initiatives, with a 70% increase in smart sensor deployment since 2020. This trend is further accelerated by significant public investments, with China and India committing $200 billion to develop 200 new smart cities. The private sector also plays a crucial role, with over 1,000 companies globally innovating in IoT and AI applications, resulting in 300 new public-private partnerships this year.
Urban development to Continue Leading the Smart cities engineering & construction services market
Urban development projects are at the forefront of the market, driven by the need to accommodate growing urban populations. With over 75% of the world's population residing in urban areas as of 2023, smart infrastructure investments have surged by 60% over the past three years. National governments have prioritized urban development, channeling over $500 billion into smart building and transportation projects, reflecting urban development’s increased share of global infrastructure investment. On a microeconomic level, the rise of digital economies has made urban areas innovation hubs, increasing operational efficiency by 30% and contributing to 80% of GDP in many countries. These developments underscore the direct impact of urban projects on economic activity and employment opportunities, positioning them as central components in the smart city landscape.
Transportation Application to Remain at the Center with Over 22.15% Market Share
Transportation remains a leading application within smart cities engineering & construction services market, essential for urban mobility and economic efficiency. In 2023, investment in intelligent traffic management systems has resulted in a 40% reduction in congestion across major urban centers. National strategies focus on sustainable development, with governments committing over $300 billion to modernize public transport systems. Public transportation ridership has increased by 50% in smart cities, driven by technological innovations in GPS navigation and mobile applications. The rise of ride-sharing and micro-mobility services, which now account for 25% of urban trips, highlights the demand for flexible mobility solutions. Developed economies, such as the United States, Germany, and Japan, lead the market, implementing over 1,000 smart city initiatives and investing $50 billion in smart grid technology. These nations allocate over $100 billion annually to R&D, resulting in 500 new smart city patents filed in 2023. With 80% of urban populations in developed countries accessing smart services and a 60% increase in technology adoption, these regions set the standard for global smart city development, driven by robust public-private partnerships.
Economic Impacts and Benefits of Smart City Initiatives
Smart city initiatives are proving to be powerful drivers of economic growth and urban development. These projects in the smart cities engineering & construction services market are creating new job opportunities and stimulating local economies. For instance, Chattanooga's investment in high-speed fiber-optic internet and smart-grid applications resulted in the creation of approximately 3,950 jobs between 2011 and 2016. On a broader scale, smart city initiatives are expected to contribute to an overall economic development rate of 5% annually, potentially adding up to USD 20 trillion over a decade.
Cost savings and efficiency improvements are key benefits of smart city technologies. San Diego's installation of LED smart lights and sensors saved the city about USD 3 million annually in power costs, offsetting the initial investment. In China, smart city construction led to a 24.3% increase in urban tourism revenue and a 17.2% increase in tourist arrivals, demonstrating the positive impact on the tourism sector. The implementation of smart city pilot policies in China has also significantly improved the quality of new-type urbanization, driven by optimization of industrial structures and innovations in governance.
The economic benefits extend beyond direct cost savings and revenue generation in the smart cities engineering & construction services market. In Italy, advancements in smart living practices within smart cities have driven the localization of female entrepreneurship, promoting economic inclusivity. The integration of digital services in the European Union has led to an 85% reduction in city operating costs, showcasing the potential for significant efficiency gains. Smart city technologies also contribute to sustainability efforts, optimizing resource use and reducing environmental impact. This not only helps cities meet regulatory requirements but also makes them more attractive to environmentally conscious businesses and residents. As cities worldwide adopt smart technologies, those that lag behind risk losing their competitive edge, with U.S. cities being encouraged to invest in smart city technologies to keep pace with advancements in China, East Asia, and Europe.
Request Free Customization of this report: https://www.astuteanalytica.com/ask-for-customization/smart-cities-engineering-construction-services-market
Global Distribution and Investment in Smart City Projects
Smart city projects in the smart cities engineering & construction services market are rapidly proliferating across the globe, with significant investments being made in various regions. The smart city ICT infrastructure market alone is anticipated to grow by USD 138.6 billion from 2024 to 2028, driven by rising smart city investments and AI-driven market transformation. This growth is reflected in the increasing number of smart city connections, which saw nearly 30% growth between 2022 and 2023, adding over 400 million connections worldwide.
Specific projects and investments highlight the scale of smart city development. India's National Industrial Corridor Development Programme (NICDP) has approved 12 new industrial smart cities with a total investment of INR 286.02 billion (approximately USD 3.41 billion). This initiative is expected to attract further investments of INR 1.52 trillion (USD 18.12 billion). In Europe, the Smart City Challenge 2023/2024 is funding two large pilot projects with a budget of 1.2 million euros each for a duration of 36 months, along with two mid-sized projects budgeted at 835,000 euros each for 24 months.
China continues to be a major player in smart cities engineering & construction services market, with plans to create about 500 smart cities by 2024. Germany has committed over EUR 1 billion towards the development and investment in urban technologies, focusing on enhancing smart grids and public safety systems. In the United States, cities like San Francisco are implementing innovative solutions, such as smart sensors in waste bins that have reduced overflowing waste by 80%. Copenhagen is experimenting with data-driven traffic management to reduce air pollution, while Denmark's LEAKman project uses advanced sensors and data analytics to manage water distribution networks efficiently. These diverse projects demonstrate the global nature of smart city investments and the varied approaches taken to address urban challenges through technology.
Major Projects and Investment in Smart cities engineering & construction services market
- Smart City Challenge 2023/2024:
- Two large pilot projects: Budget of 1.2 million euros each, duration of 36 months.
- Two mid-sized projects: Budget of 835,000 euros each, duration of 24 months
- India's National Industrial Corridor Development Programme (NICDP):
- Approval of 12 new industrial smart cities.
- Total investment: INR 286.02 billion (approximately USD 3.41 billion).
- Expected to attract further investments of INR 1.52 trillion (USD 18.12 billion) .
- China's Smart City Initiative:
- Plans to create about 500 smart cities by 2024 .
- Global Smart City Connections:
- Nearly 30% growth between 2022 and 2023, adding over 400 million connections
Global Smart Cities Engineering & Construction Services Market Key Players:
- ABB Ltd.
- Accenture
- AECOM
- Cisco
- Honeywell International, Inc.
- IBM
- Microsoft
- Arup
- Bleak & Veatch Singapore
- Buro Happold
- Gaia Smart Cities Solutions Pvt. Ltd.
- Incheon smart city corporation
- Meinhardt Group
- Mott MacDonald
- PWC
- Surbana Jurong Private Limited
- Tata Consulting Engineers
- WSP Global Inc.
- Other Prominent Players
Key Segmentation:
By Offering
- Services
- End to end services
- Surveying
- Master Planning
- Conceptual Architecture
- Geotechnical Engineering & Material Testing
- Design Engineering
- Feasibility Studies
- ICT Consulting
- Environment Impact Assessment
- Tenders & Bid Management
- Vendor Selection & On-boarding
- Solution
- Design & Consulting
- Network
- Infrastructure
- Hardware
- Software
- Equipment
- Others
By Project
- Buildings
- Residential & Commercial Complexes
- Hospitality Building
- IT Parks
- Educational Campuses
- Healthcare Facilities
- Recreation & Training Centers
- Urban Development
- Greenfield Smart Cities
- Integrated Townships
- Brownfield City Upgrades
- Industrial
- Townships & Port Cities
- Roads & Highways
- Industrial Manufacturing
- FMCG
- Automotive
- Agriculture Machinery
- Energy
- Aerospace & Defense Manufacturing
- Others
By Application
- Housing
- Water
- Waste
- Smart Grid
- Energy
- Lighting
- Transportation
- Traffic
- Citizen Services
- Healthcare
- Education
- Safety & Security
- eGovernance
- IoT
By City Topography
- Developed Economies
- New
- Existing
- Emerging Economies
- New
- Existing
By Region
- North America
- Europe
- Asia Pacific
- Middle East
- Africa
- South America
View report summary and Table of Contents (TOC): https://www.astuteanalytica.com/industry-report/smart-cities-engineering-construction-services-market
About Astute Analytica
Astute Analytica is a global analytics and advisory company which has built a solid reputation in a short period, thanks to the tangible outcomes we have delivered to our clients. We pride ourselves in generating unparalleled, in depth and uncannily accurate estimates and projections for our very demanding clients spread across different verticals. We have a long list of satisfied and repeat clients from a wide spectrum including technology, healthcare, chemicals, semiconductors, FMCG, and many more. These happy customers come to us from all across the Globe. They are able to make well calibrated decisions and leverage highly lucrative opportunities while surmounting the fierce challenges all because we analyze for them the complex business environment, segment wise existing and emerging possibilities, technology formations, growth estimates, and even the strategic choices available. In short, a complete package. All this is possible because we have a highly qualified, competent, and experienced team of professionals comprising of business analysts, economists, consultants, and technology experts. In our list of priorities, you-our patron-come at the top. You can be sure of best cost-effective, value-added package from us, should you decide to engage with us.
Contact Us:
Astute Analytica
Phone: +1-888 429 6757 (US Toll Free); +91-0120- 4483891 (Rest of the World)
For Sales Enquiries: sales@astuteanalytica.com
Website: https://www.astuteanalytica.com/
LinkedIn | Twitter | YouTube
