A Surge in Innovation and Growth Through 2030
Portugal’s smart cities market is on a significant upward trajectory, fueled by substantial investments and strategic initiatives aimed at transforming urban living. The sector is set to experience remarkable growth over the coming years, driven by funding from the European Regional Development Fund (ERDF) and other key investments in digital and green technologies.
The ERDF has allocated approximately $12.3 billion to enhance Portugal’s competitiveness and digitalization efforts. This funding emphasizes research, innovation, and digital transformation, particularly for small and medium-sized enterprises (SMEs). A notable portion, $5.6 billion, is dedicated to advancing digital infrastructure, including high-speed broadband connectivity and the modernization of local and regional administrations to improve digital public services. These improvements are crucial for the development of smart cities, ensuring that urban areas are well-equipped to manage the demands of a rapidly evolving digital landscape.
Additionally, $5.8 billion from various funds will support the European Green Deal's implementation. This allocation is expected to drive advancements in smart transportation, energy management, and waste reduction solutions. Such investments are pivotal in fostering sustainable urban development and enhancing the quality of life in Portugal’s cities.
The Portugal Smart Cities Market is projected to grow at a compound annual growth rate (CAGR) of 10.8% from 2024 to 2030. This growth reflects the increasing demand for intelligent mobility and environmental solutions within Portugal’s prominent smart cities, including Lisbon, Guimarães, Porto, and Aveiro. The commitment to green transition and digital transformation is further underscored by cohesion policy funds, which will allocate $12.0 billion towards facilitating these objectives between 2021 and 2027, with an additional $809.5 million for digital transformation.
In 2022, the Transport and Storage sector witnessed substantial growth, with the total number of companies rising to 43,000, marking a 17.9% increase from the previous year. Specifically, transportation activities accounted for 32,100 of these companies, reflecting a 19.1% increase from 2021. The sector’s turnover surged by 39.6%, reaching $31.3 billion, with transportation companies contributing nearly 59% to this total turnover. This remarkable growth underscores the robust demand for urban mobility solutions and highlights the sector's importance in the smart cities ecosystem.
Prominent initiatives in the smart cities sector further illustrate Portugal’s commitment to innovation. For example, Galp achieved a milestone by surpassing 1 million electric vehicle (EV) charging points in 2023, significantly advancing the infrastructure needed to support the growing adoption of electric vehicles. Additionally, EMEL, which manages the GIRA bicycle service in Lisbon, recently expanded its network by inaugurating six new stations. This expansion increases the total number of GIRA stations to 146 and parking docks to 2,873, enhancing the service’s operational efficiency and user convenience.
Market segmentation reveals that during the forecast period, the hardware segment is expected to experience substantial growth. This is driven by increasing investments in smart infrastructure development, including demand for sensors, Internet of Things (IoT) devices, and network equipment necessary for efficient energy management and traffic control.
By application, smart mobility is anticipated to witness the highest growth rate in Portugal’s smart cities industry. This is due to significant investments in sustainable transportation solutions, such as electric vehicles, bike-sharing systems, and intelligent traffic management. The emphasis on smart transportation infrastructure aligns with the broader goal of creating more efficient, sustainable urban environments.
Overall, Portugal’s smart cities market is poised for remarkable development, with substantial investments in digital and green technologies paving the way for a more connected and sustainable urban future. As the country continues to prioritize innovation and sustainability, the smart cities sector will play a crucial role in shaping Portugal’s urban landscape, driving economic growth, and improving the quality of life for its residents.
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Autor(en)/Author(s): Paulo Lopes
Quelle/Source: The Portugal News, 14.09.2024
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