Global Internet of Things (IoT) in Smart Cities Market to Reach US$987.9 Billion by 2030

The global market for Internet of Things (IoT) in Smart Cities estimated at US$345.5 Billion in the year 2024, is expected to reach US$987.9 Billion by 2030, growing at a CAGR of 19.1% over the analysis period 2024-2030. Solutions, one of the segments analyzed in the report, is expected to record a 20.3% CAGR and reach US$691.8 Billion by the end of the analysis period. Growth in the Services segment is estimated at 16.6% CAGR over the analysis period.

The U.S. Market is Estimated at US$97.3 Billion While China is Forecast to Grow at 18.0% CAGR

The Internet of Things (IoT) in Smart Cities market in the U.S. is estimated at US$97.3 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$147.0 Billion by the year 2030 trailing a CAGR of 18.0% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 17.0% and 16.2% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 13.6% CAGR.

Global Internet of Things (IoT) in Smart Cities Market - Key Trends and Drivers Summarized

How Is the Internet of Things (IoT) Shaping the Future of Smart Cities?

The Internet of Things (IoT) is playing a crucial role in the development of smart cities, enabling urban planners and local governments to optimize city operations, improve sustainability, and enhance the quality of life for citizens. IoT-powered sensors and connected devices are used in smart cities to monitor traffic flow, manage energy usage, reduce pollution, and ensure public safety. These devices provide real-time data that helps authorities make informed decisions, such as adjusting traffic lights to reduce congestion or activating smart lighting systems to conserve energy. IoT solutions are also being deployed to improve public services, such as waste management and water supply, by providing continuous monitoring and predictive maintenance, ensuring more efficient and sustainable use of resources.

How Are Technological Advancements Driving IoT Adoption in Smart Cities?

Technological advancements such as 5G connectivity, edge computing, and artificial intelligence (AI) are driving the rapid adoption of IoT in smart cities. The rollout of 5G networks is significantly enhancing the capabilities of IoT by providing ultra-low latency and high-speed communication, allowing real-time data transmission across connected devices. Edge computing is enabling faster processing of data closer to the source, reducing reliance on cloud-based platforms and improving response times in critical urban applications such as traffic management and public safety. AI-powered analytics are being integrated into IoT platforms to analyze data from various sensors and devices, offering predictive insights that help city planners optimize resource allocation and improve urban services.

How Do Market Segments Define the Growth of IoT in Smart Cities?

Solutions include hardware such as sensors and connected devices, software platforms for data analysis and management, and services such as integration and maintenance. Key applications of IoT in smart cities include traffic management, smart energy grids, waste management, and public safety, with traffic management and smart energy grids being the largest segments as cities prioritize improving mobility and reducing energy consumption. Geographically, North America and Europe are leading the market, driven by large-scale smart city projects and investments in digital infrastructure, while the Asia-Pacific region is emerging as a growth area due to rapid urbanization and government initiatives to build sustainable, tech-driven cities.

What Factors Are Driving the Growth in the IoT in Smart Cities Market?

The growth in the IoT in smart cities market is driven by several factors, including the increasing need for efficient urban management, advancements in 5G and AI technologies, and the growing emphasis on sustainability. As cities face challenges related to population growth, traffic congestion, and environmental sustainability, IoT solutions offer a way to optimize city operations and improve the delivery of public services. Technological innovations in sensors, connectivity, and data analytics are enabling real-time monitoring and predictive maintenance, allowing cities to become more responsive and resilient. Additionally, government investments in smart city initiatives and the rising demand for sustainable, energy-efficient urban solutions are accelerating the adoption of IoT technologies in cities worldwide.