Smart city solutions empower city governments to acquire distributed city data and unify it while offering a platform to provide innovative solutions for effective city management.
Frost & Sullivan’s Smart City Solutions Growth Opportunities reveals that the sector is evolving from aiming to create traffic management solutions to converging with industry participants creating solutions for data simulation, the sharing economy, social media, and mass transit.
The smart city solutions market will likely experience a boom as investments in upgrading telecommunication networks in cities to 5G standards will drive growth in digitizing city infrastructure and services.
“In every smart city project, one of the most important layers is connectivity, which is the city-wide network infrastructure that facilitates the data flow between devices and the central monitoring platform,” said Avishar Dutta, mobility senior research analyst at Frost & Sullivan.
He posited that to reduce the cost of setting up such a network, low-power wide-area network technology is seeing adoption to make smart city projects feasible for small urban areas.
“The main market growth drivers are regulations that mandate the biggest cities to reduce their carbon emissions in a timely manner. These regulations demand public spending in smart city investments, and governments are sanctioning smart city projects at an increasing pace, driving competitive intensity.”Avishar Dutta
Lucrative growth opportunities
Frost says the demand for smart city solutions with increasing applications across areas presents lucrative growth opportunities for market participants. These include:
Autonomous mobility: Smart city solution providers should offer solutions that include vehicle-to-infrastructure and vehicle-to-vehicle communication devices.
Future city planning: Municipal authorities should consider the capabilities of smart city solutions to increase a city’s quality of living and harvest data to visualise how to plan out the city for the future.
Smart infrastructure: The mapping of cities to prepare them for autonomous vehicle services is also a market opportunity for smart city solution providers and can be included in smart city solutions.