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Global Smart City ICT Infrastructure Market Set For 27.2% Growth, Reaching $4,371.91 Billion By 2029

2025-05-30  |  14:55:06
The Business Research Company

The Business Research Company

The Business Research Company’s Smart City ICT Infrastructure Global Market Report 2025 – Market Size, Trends, And Forecast 2025-2034

The Business Research Company’s Smart City ICT Infrastructure Global Market Report 2025 – Market Size, Trends, And Forecast 2025-2034”
— The Business Research Company

LONDON, GREATER LONDON, UNITED KINGDOM, May 30, 2025 /EINPresswire.com/ -- Revealing the staggering growth trajectory of the smart city ICT infrastructure market size, a new report emphasizes that the market is set to flourish from $1,672.12 billion in 2024 to $2,029.46 billion in 2025 at a compound annual growth rate CAGR of 21.4%. Rooted in urbanization growth, government initiatives, a rise in IoT adoption, public safety concerns, and infrastructure modernization, this historic period witnessed substantial development.

Where Is The Smart City ICT Infrastructure Market Headed In The Future?
Looking beyond the current horizon, the smart city ICT infrastructure market size is predicted to experience exponential growth, hitting the $4,371.91 billion mark in 2029 at a CAGR of 27.2%. The growth during the forecast period is anticipated due to increasing cybersecurity needs, climate resilience focus, smart governance initiatives, rising data consumption, and edge computing adoption. The sector also finds itself aligned with major trends such as AI-driven city management, increasing IoT integration, adoption of blockchain, rise of autonomous infrastructure, and expansion of digital twins.

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What Is Driving The Growth of the Smart City ICT Infrastructure Market?
A surge in the adoption of digital solutions is propelling the smart city ICT infrastructure market forward. Digital solutions encompass technology-driven systems, platforms, and tools that leverage software, data, and connectivity, aiming to enhance operational efficiency, enrich user experiences, and drive innovation across various sectors. With its enablement of automation, provision of real-time data access, improvement in resource management contributing to smoother and more efficient operations, the adoption of digital solutions is gaining traction.

Ensuring foundational connectivity, real-time data processing, and integrated platforms, smart city ICT infrastructure proves instrumental in facilitating seamless deployment and scalability of digital solutions. Evidence of this increasing adoption comes from the European Commission EC, asserting that in December 2023, the European Union embraced cloud-based solutions adding a 4.2 percentage points increase to 45.2% overall manifesting a notable rise compared to 2021. Reflecting on such indicators, the continued adoption of digital solutions is set to further boost the market in the times to come.

Which Companies Are Spearheading The Smart City ICT Infrastructure Market?
Key industry players in the smart city ICT infrastructure market include Microsoft Corporation, Verizon Communications, AT&T Inc., Deutsche Telekom AG, Huawei Technologies Co. Ltd., Siemens AG, Hitachi Ltd., Accenture, International Business Machines Corporation IBM, Cisco Systems Inc., Vodafone Group Plc., Oracle Corporation, Telefonica SA, Schneider Electric, Honeywell International Inc., ABB Group, Tata Consultancy Services TCS, Telefonaktiebolaget LM Ericsson, Nokia Corp., and NTT Communications.

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What Emerging Trends Are Impacting The Global Smart City ICT Infrastructure Market?
Leading companies in the smart city ICT infrastructure market are setting their focus on IoT integration with techniques such as low-power network technologies devised to enhance urban connectivity and automation. This in turn ensures a more efficient management of smart city infrastructure, veering away from manual intervention and improving overall efficiency.

For instance, British Telecommunications plc, a UK-based telecommunications company, launched a nationwide Narrowband Internet of Things NB-IoT network in February 2024 to aid the development and expansion of smart city initiatives across the country. Extending over 97% of the United Kingdom population, this low-data-demand network aims at connecting assets like street lighting and underground water sensors, thereby enhancing efficiency across sectors through real-time monitoring and reducing manual intervention.

How Is the Global Smart City ICT Infrastructure Market Segmented?
The smart city ICT infrastructure market segmentation is as follows –
1 By Type: Smart Grid, Smart Building, Smart Water Network, Smart Healthcare, Smart Education, Smart Security, Smart Transport
2 By Components: Hardware, Software, Services
3 By Deployment Type: On-Premises, Cloud-Based, Hybrid Solutions
4 By Technology: Internet Of Things, Artificial Intelligence, Big Data Analytics, Cloud Computing
5 By Application: Communications Industry, Transportation Industry, Express Industry, Government, Education, Other Applications

Furthermore, the subsegments in the smart city ICT infrastructure market are split into:
1 By Smart Grid: Advanced Metering Infrastructure AMI, Distribution Management System DMS, Energy Management Systems EMS, Demand Response, Supervisory Control And Data Acquisition SCADA
2 By Smart Building: Building Automation Systems, Energy Management Systems, Smart Lighting, HVAC Control, Security And Access Control Systems
3 By Smart Water Network: Smart Meters, Leak Detection Systems, Pressure Management, Water Quality Monitoring, Advanced Analytics
4 By Smart Healthcare: Remote Patient Monitoring, Electronic Health Records EHR, Telemedicine, Health Information Systems: Smart Medical Devices
5 By Smart Education: Virtual Classrooms, Learning Management Systems LMS, Interactive Whiteboards, Smart Content, Student Information Systems
6 By Smart Security: Video Surveillance, Biometric Access Control, Emergency Response Systems, Cybersecurity Solutions, Intrusion Detection Systems
7 By Smart Transport: Intelligent Transportation Systems ITS, Traffic Management Systems, Smart Parking, Connected Vehicles, Public Transit Management

What Are The Regional Insights Of The Smart City ICT Infrastructure Market?
Broadly speaking, North America was the largest region in the smart city ICT infrastructure market in 2024 while Asia-Pacific is projected to achieve the fastest growth in the forecast period. The market report takes into account various regions including Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.

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