Report says it will grow at an annual rate of 28 per cent as climate challenges increase, IoT devices grow and cities become familiar with AI system outcomes.
The market for smart city artificial intelligence (AI) and predictive analytics platforms will reach $6.5bn by 2032, up from $693m today, according to a report.
It represents a compound annual growth rate of more than 28 per cent. There remain barriers to entry though, chiefly municipal procurement practices, privacy and cybersecurity concerns.
Utilising municipal data
The report, "AI for Sustainable Cities", from Guidehouse Insights says that AI offers a path to “meaningful utilisation” of the growing amounts of municipal data. Cities are facing increasing environmental problems from climate change at the same time more government funding has become available.
The recent passage of infrastructure and climate investment programmes in key markets like the US and Europe will further boost the AI market space.
“In the coming decade, as climate challenges increase, deployment of data colleting IoT devices expands, and cities become familiar with the outcomes that can be achieved through AI systems, the market is expected to grow substantially,” says Grant Samms, research analyst with Guidehouse Insights.
“AI’s ability to process large amounts of data from diverse sources makes it a useful tool in addressing difficult, sticky problems, which have many interacting factors that may be difficult to detect manually.”
The report says AI can be a key tool in solving problems that would otherwise be difficult or impossible to address. To date, smart cities have used AI for sustainability mostly in three segments: transportation, energy management, and environmental quality.
The largest barriers to AI adoption are municipal procurement practices, which are not designed to accommodate many AI companies’ pricing models, and concerns from residents about how cities will protect their privacy and how they will manage these new technologies’ IT and cybersecurity demands.
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Quelle/Source: Smart Cities World, 21.03.2023
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