US Smart Cities Market Synopsis

US Smart Cities Market Size Was Valued at USD 82.36 Billion in 2023 and is Projected to Reach USD 237.01 Billion by 2030, Growing at a CAGR of 16.3% From 2023-2030.

A smart city is a technologically modern urban area that uses different types of electronic methods and sensors to collect specific data. The information gained from that data is used to manage assets, resources, and services efficiently; in return, that data is used to improve operations across the city.

• This includes data collected from citizens, devices, buildings, and assets that are processed and analysed to monitor and manage traffic and transportation systems, power plants, utilities, and other community services.
• The smart city concept integrates information and communication technology, and various physical devices connected to the Internet of Things network to optimize the efficiency of city operations and services and connect to citizens.
• Many US cities are actively investing in smart city projects and initiatives. Municipalities have partnered with technology companies and start-ups to implement innovative solutions in areas such as transportation, energy management, public safety and healthcare.
• Sustainable development has been a key driver of the smart city market. Cities have adopted green practices, promoted renewable energy sources and implemented smart energy grids to optimize energy consumption and reduce greenhouse gas emissions.
• Developing a strong digital infrastructure, including high-speed Internet connectivity, was critical to enabling smart city technologies and applications. Investments in 5G networks and broadband expansion were necessary to support data-intensive smart city solutions.
• Smart mobility solutions were gaining traction in various cities. Initiatives included intelligent traffic management systems, electric vehicle charging infrastructure, bike-sharing programs, and the integration of public transportation with digital platforms for improved commuter experience.

Top Key Players Involved Are:

"Cisco (US), IBM (US), Google LLC (US), Microsoft (US), Intel (US), Oracle (US), Honeywell (US), Elko Group (Latvia), ABB Limited (Switzerland), Terranova SRL Società Benefit (Italy), Cognata (Israel), Akeptus LLC (US), Alibaba Group Holding Limited (China), Cyclomedia Technology Inc. (Netherlands), Amazon Web Services Inc. (US), Bosch.IO GmbH (Germany), Quantela Inc. (US), Fybr (US), General Electric (US), Itron Inc. (US), and Other Major Players"

The US Smart Cities Market Trend Analysis

Advancements in IoT and Connectivity

• Advances in the Internet of Things (IoT) and connectivity have become important drivers for the growth and development of US Smart Cities. IoT refers to the connection of everyday objects and devices through the Internet, enabling them to collect and exchange data, communicate with each other, and perform intelligent functions.
• This technology has revolutionized several industries and its impact on US Smart Cities is profound. The availability of high-speed connections, especially with the introduction of 5G networks, will play a crucial role in supporting the massive amount of data generated by IoT devices. It enables real-time data analysis and decision-making, allowing city officials to respond quickly to changing circumstances and emergencies.
• For example, in disaster management, IoT-enabled devices can quickly identify potential threats and alert authorities to them, enabling timely evacuation and response measures. IoT-based solutions also extend to public services that increase citizen engagement and improve quality of life.
• US Smart Cities can leverage IoT to provide residents with real-time information about public transportation schedules, air quality, trash collection, and more through mobile apps and other digital platforms. This connectivity increases transparency, efficiency, and convenience for residents and increases the sense of community and trust in local government.

Public-Private Partnerships (PPPs)

• Public-Private Partnerships (PPP) offer significant opportunities for the development and growth of US Smart Cities. A public-private partnership is a collaborative arrangement between public sector actors (such as states or local governments) and private companies or organizations. These partnerships combine the resources, knowledge, and skills of both industries to jointly design, finance, develop and implement projects that benefit society and the economy.
• Public-private partnerships bring expertise and innovation from the private sector. Technology companies, infrastructure developers, and service providers often have extensive experience and know-how in implementing cutting-edge solutions across industries. In collaboration with public authorities, these companies can bring innovative ideas, best practices, and efficiency-oriented approaches to smart city projects.
• The complementary strengths of the public and private sectors also make it possible to implement smart city initiatives more quickly and efficiently. Public entities have a deep understanding of local government, the regulatory framework, and community needs, while private companies have agile decision-making processes and the ability to quickly adapt to market demands. Together, they can improve the implementation of projects, avoid bureaucratic obstacles and ensure that smart city solutions meet the specific requirements of the local population.

                                                                                                                                                                                                   Source: Statista

According to the data, the number of Internet of Things (IoT) connected devices in different regions in 2021, with America having 2390.3 million connected devices, Japan with 670 million, MENA (Middle East and North Africa) with 200.56 million, and India & South Asia with 167.4 million. The increasing number of IoT-connected devices in America reflects the growing acceptance and adoption of smart city technologies by both the public and private sectors. As more cities and municipalities embrace these innovations, there will be a growing market for smart city solutions and services in the USA.

Segmentation Analysis of the US Smart Cities Market

US Smart Cities market segments cover the Solution and Service, Component, Level, and End-user. By Solution and Service, the Smart Healthcare segment is Anticipated to Dominate the Market Over the Forecast Period.

• Smart healthcare solutions and services in US Smart Cities include a number of innovative technologies and applications that aim to improve the efficiency, accessibility, and overall quality of healthcare.
• These solutions use IoT devices, data analytics, and connectivity to enable remote patient monitoring, telemedicine, real-time health data analysis, and personalized healthcare. With the growing demand for better health outcomes and the need to efficiently manage health resources, smart health solutions have tremendous potential to transform the medical landscape of US Smart Cities.
• The spread of digital health technologies, the rise of chronic diseases, and the aging population are the main factors influencing the dominance of the smart healthcare segment. In addition, the integration of smart health systems with other aspects of US Smart Cities, such as transportation and emergency services, will improve the overall health infrastructure and ensure a timely and effective response to medical emergencies.

Country Analysis of the US Smart Cities Market

California is Expected to Dominate the Market Over the Forecast Period.

• California's potential dominance is its position as a global economic and financial centre. The city has significant resources and investments that can be channeled into smart city projects that attract both public and private partnerships. This financial strength allows California to realize ambitious projects that address urban challenges and improve the overall quality of life for residents.
• California's commitment to innovation and technological progress plays a crucial role in the development of this smart city. The city has actively used new technologies such as the Internet of Things (IoT), data analytics, and artificial intelligence to optimize the city's operations and improve public services.
• Intelligent transport systems, digital infrastructure, and public safety measures based on IoT are among the many initiatives undertaken to create a smarter and better-connected city. The large and diverse population of the city also offers the opportunity for large-scale use of smart city solutions.
• California is very technological and open to adopting new technologies that can improve their daily lives. As a result, smart city initiatives are demanded and accepted, creating a favorable environment for their successful implementation.

Covid-19 Impact Analysis on US Smart Cities Market

• During the pandemic, the importance of digital transformation became evident as cities rushed to adopt smart technologies to ensure essential services and continuity. This has accelerated the adoption of digital infrastructure and broadband solutions.
• In terms of public health and safety, smart city technology has played a crucial role. Cities have used IoT devices for contact tracing, surveillance cameras for mass surveillance, and telemedicine solutions to reduce the burden on healthcare facilities and protect vulnerable populations.
• The demand for smart mobility and transport solutions has changed due to the disruption of traditional transport systems. Cities prefer alternative modes of transport and look for real-time traffic information and contactless payment systems.
• Workplace and home solutions attracted interest as telecommuting became more common. Smart buildings focused on automation, energy efficiency, and indoor air quality monitoring to create a safer and more sustainable environment.
• Data analytics and artificial intelligence have been instrumental in crisis management, enabling cities to track infection rates, predict outbreaks, and optimize resource allocation to health and essential services.

Top Key Players Covered in The US Smart Cities Market

• Cisco (US)
• IBM (US)
• Google LLC (US)
• Microsoft (US)
• Intel (US)
• Oracle (US)
• Honeywell (US)
• Akeptus LLC (US)
• Amazon Web Services Inc. (US)
• Quantela Inc. (US)
• Fybr (US)
• General Electric (US)
• Itron Inc. (US), and Other Major Players

Key Industry Developments in the US Smart Cities Market

In June 2023, Cisco announced the launch of a new Full-Stack Observability Platform—a vendor-agnostic solution that harnesses the power of the company's full portfolio. It delivers contextual, correlated, and predictive insights that allow customers to resolve issues more quickly and optimize experiences, while also minimizing business risk.

In Dec 2021, IBM unveiled the IBM Z and Cloud Modernization Center, a digital front door to a vast array of tools, training, resources, and ecosystems partnered to help IBM Z clients accelerate the modernization of their applications, data, and processes in an open hybrid cloud architecture.