IoT in smart cities market to reach $132.2 billion by 2026
The global IoT in smart cities market size to grow from $130.6 billion in 2021 to $132.2 billion by 2026, at a Compound Annual Growth Rate (CAGR) of 19.0 % during the forecast period, according to ResearchAndMarkets.
The service segment in the IoT in smart cities market to have a higher CAGR
The services segment in the IoT in smart cities market is expected to grow, as major players are focused on offering services. Through professional services, vendors offer comprehensive services by deploying the latest techniques and tools, skills, knowledge, and strategies to address the need for IoT in smart cities.
Managed services are provided to outsource specific solutions. The major factors responsible for the growth of the services segment is the rising trend of adopting IoT professional services to reduce Capital Expenditure (CAPEX) and Operational Expenditure (OPEX) and the demand for highly customized IoT services in the industrial and transportation sectors.
Smart citizen service app segment to account for larger market size
IoT is reshaping citizen services. It has wide applications in healthcare, education, and public safety. Smart education solutions have undergone a rapid transformation, and organizations are moving toward mobile technologies, With the help of IoT, educational institutions are not only improving their learning experiences but also efficiently manage their OPEX and CAPEX.
The adoption of Interactive White Boards (IWBs), projectors, and printers are seen as a driver for change in the education industry, and the increasing number of connected medical devices and the proliferation of smartphones have significantly contributed toward the growth of IoT. Thus, Governments across the globe are actively using IoT to increase the safety of their citizens. To lower the crime rates and address the increasing number of illegal activities, governments have been using IoT based smart city solutions and services.
Among regions, APAC to hold higher CAGR during the forecast period
Asia Pacific is an emerging IoT in smart cities market. China, Japan, and Singapore are the major countries contributing to the growth of the market in the region. Asia Pacific also houses other major economies, such as Australia, South Korea, and India.
Japan and China are among the largest manufacturing economies that produce automobiles, information technology products, and electronic products. The IoT in smart cities market paradigm has changed considerably with the growing popularity of advanced technologies such as AI and big data analytics.