There will be more than 26 smart cities across the world by 2025
The smart city market will grow over $2.46 trillion in 2025, presenting significant opportunities for solution providers operating within the smart city space, according to a recent analysis by Frost & Sullivan.
The research and consultancy firm also noted that the coming decade will see a widespread uptake of smart city solutions, especially in medium-sized cities and cities in developing nations.
By 2025, there will be more than 26 smart cities with the majority existing in North America and Europe.
Furthermore, smart cities' spending on technology in the next six years is expected to grow at a CAGR of 22.7%, reaching $327 billion by 2025 from $96 billion in 2019. Technologies like artificial intelligence and big data will be in high demand to combat the pandemic, with growing opportunities for crowd analytics, open data dashboard, and online city services.
As part of Saudi Crown Prince Mohammed Bin Salman’s vision, Saudi Arabia aims to create the world's most livable city that can attract the greatest minds and best talents by 2030.
Being primarily an oil-reliant economy today, the Kingdom is increasingly looking to diversify, and a smart city is a step in that direction. For instance, the Kingdom is looking at raising the share of non-oil exports in non-oil GDP from 16% to 50% by 2030. It also expects smart cities to add hundreds of thousands of jobs by 2030; smart cities are expected to drive diversification and will contribute significantly to the domestic GDP by 2030.
The Kingdom has already allocated $500 billion to invest across 285 municipalities to implement smart cities.
Saudi Arabia has already initiated efforts towards transforming the first five cities, including Makkah, Riyadh, Jeddah, Al-Madinah, and Al-Ahsa. The country has a clear vision and has taken a holistic approach focusing on key dimensions such as governance, mobility, economy, environment, people, and living to achieve its aspirations.
The development of new economic sectors combined with the rise in demand for sustainable and eco-friendly cities supported by green initiatives globally and improving living conditions for its citizens/residents are the main drivers for developing smart cities in Saudi Arabia.
According to Frost & Sullivan's Techvision Team, "We believe that while it is important to focus on economic return on investment in building smart cities by developing a highly-skilled workforce, it is equally important to deliver tangible solutions to the citizens by ensuring their participation in public life and decision-making. In our view, Saudi Arabia should ensure a fair balance in strengthening both the economic and social fabric of its communities to achieve the stated objective of building a better future for their country. "
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Autor(en)/Author(s): Adelle Geronimo
Quelle/Source: ITP.net, 02.05.2021
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