Smart Cities Market Summary

The global smart cities market was estimated at USD 877.6 billion in 2024 and is projected to reach USD 3,757.9 billion by 2030, expanding at a compound annual growth rate (CAGR) of 29.4% from 2025 to 2030. This substantial growth is primarily driven by the accelerating pace of urbanization worldwide, which is putting immense pressure on municipalities and governments to adopt sustainable, technologically advanced city planning and management strategies.

Rapid urban population growth is prompting the need for efficient use of resources, improved public services, and reduced environmental footprints. In response, cities are increasingly turning to smart technologies to streamline operations and enhance livability. The integration of Internet of Things (IoT) devices and sensors within urban infrastructure is enabling real-time monitoring and data collection, allowing authorities to make informed decisions in areas such as traffic control, energy consumption, waste management, and emergency services.

The growing adoption of intelligent infrastructure solutions—including smart grids, connected transport systems, and e-governance frameworks—is playing a central role in reshaping modern urban environments. These systems offer improved operational efficiency and cost savings, while also enhancing safety and sustainability. Moreover, advancements in connectivity technologies, such as 5G and edge computing, are further accelerating the deployment of smart city applications by ensuring low-latency, high-speed communication across networks.

Key Market Trends & Insights

• In 2024, the Asia Pacific region dominated the global smart cities market, accounting for a significant 52.32% share of the total revenue. The region's leadership is driven by large-scale government initiatives in countries like China, India, Japan, and South Korea, which are heavily investing in infrastructure modernization, public service digitization, and urban innovation to accommodate rapid economic growth and urban migration.
• In the United States, the smart cities market is expected to grow at a robust CAGR of over 27% between 2025 and 2030. This growth is attributed to the country’s focus on improving urban sustainability, enhancing mobility solutions, and upgrading aging infrastructure through the use of AI, IoT, and big data technologies. Federal investments in clean energy, digital governance, and smart public services are also catalyzing growth.
• By application, the smart utility segment accounted for the largest market share in 2024, contributing over 27% to the overall revenue. This dominance is driven by increased demand for intelligent energy and water management solutions that ensure efficiency, reduce operational costs, and lower carbon emissions.
• Within smart transportation, the intelligent transportation system (ITS) segment recorded the largest share in 2024. These systems facilitate smoother traffic flow, reduce congestion, and enhance commuter safety by integrating real-time data, automation, and communication between vehicles and infrastructure.
• In the smart healthcare space, the systems and software segment is projected to witness the fastest CAGR from 2025 to 2030. Growing demand for telemedicine, remote health monitoring, and AI-enabled diagnostics is propelling the development and integration of software platforms that support seamless healthcare delivery in urban settings.

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Market Size & Forecast

• 2024 Market Size: USD 877.6 Billion
• 2030 Projected Market Size: USD 3,757.9 Billion
• CAGR (2025-2030): 29.4%
• Asia Pacific: Largest market in 2024

Key Companies & Market Share Insights

Key players in the smart cities market include Cisco Systems, Inc. and Honeywell International Inc., both of which offer comprehensive technology portfolios tailored to urban innovation.

• Cisco Systems, Inc. is a global leader in IT and networking infrastructure. The company supports smart city development through its Smart+Connected Communities initiative, offering IoT platforms, smart network architecture, and cybersecurity solutions to build interconnected urban systems. Cisco’s technology enables cities to collect and analyze real-time data for improved transportation, energy, public safety, and digital governance, helping to enhance both operational efficiency and citizen experience.
• Honeywell International Inc. is renowned for its contributions to industrial automation, building technologies, and urban sustainability. The company provides smart thermostats, security solutions, and integrated building management systems designed to optimize energy use, safety, and comfort in urban environments. Honeywell’s deep focus on operational intelligence and digitization aligns closely with the core objectives of smart city development, such as resource efficiency and responsive public services.

Emerging companies such as UrbanFootprint, Inc. and Quantela, Inc. are also making significant strides in the smart cities market.

• UrbanFootprint, Inc. is a data intelligence and urban planning firm that helps cities build resilience and sustainability through location intelligence. Its platform aggregates environmental, infrastructure, and demographic data to support planning in transportation, energy, land use, and disaster response. By enabling data-driven decision-making, UrbanFootprint empowers cities to design more equitable, efficient, and adaptive urban systems.
• Quantela, Inc. specializes in digital infrastructure and smart city automation, offering AI-powered platforms to manage municipal services like traffic, waste, lighting, and safety. Its flagship solution, Atlantis, enables centralized control and real-time responsiveness. By partnering with governments and city planners, Quantela helps improve resource utilization, reduce operational costs, and enhance quality of life for urban residents through intelligent, outcome-based solutions.

Key Players

• Cisco Systems, Inc.
• Microsoft
• International Business Machines Corporation (IBM)
• Huawei Technologies Co., Ltd.
• Honeywell International Inc.
• Schneider Electric
• Siemens
• Hitachi, Ltd.
• General Electric
• NEC Corporation
• UrbanFootprint, Inc.
• Quantela, Inc.

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Conclusion

The global smart cities market is expanding rapidly as urban centers seek sustainable, data-driven solutions to address infrastructure, mobility, and public service challenges. With the integration of technologies such as IoT, AI, and 5G, cities are becoming more efficient, resilient, and citizen-centric. Asia Pacific leads in adoption, while the U.S. and Europe follow with strong growth momentum. Major players like Cisco and Honeywell, along with innovative firms like UrbanFootprint and Quantela, are reshaping how cities operate and evolve. As urban populations grow and climate concerns mount, smart cities are emerging as essential frameworks for future-ready and environmentally responsible urban development.