We’ve been witnessing so much growth, starting from the appearance of the Internet to the updated versions. Web2 to Web3 and now Smart Cities from 1 to 2. The fusion of technology and urban planning is redefining the way we live. A smart city is a vertical of Internet of Things (IoT)—a term used to define a network that not only connects people but also the objects around them.
The Future Of Smart Cities
As an entrepreneur deeply entrenched in the IT industry for over two decades, I see so many changes in daily life thanks to IT, like smart homes and innovations in solar and wind power. The potential of Smart Cities 2.0 is now developing fast.
In the early days of smart city initiatives, we saw the initial integration of technology to enhance urban living. According to Statista, the Smart Cities market is expected to witness significant revenue growth, with projected revenue reaching $104.80 billion in 2024. This growth is further expected to continue at a compound annual growth rate (CAGR) of 12.15% from 2024 to 2028. As a result, the market volume is anticipated to reach $165.80 billion by 2028. The next wave is here, marked by advancements in IT-driven urban planning.
Urban planning has undergone a digital metamorphosis thanks to innovative IT solutions. Cities like Singapore and Dubai are pioneering the way. According to the latest research data, South Korea is leading the way in implementing smart city initiatives. In my travels, I noticed how other cities and countries are trying to win this competition. And, of course, you can see clearly how OAE is forcing this industry to show the latest innovations, like adapting flying taxis in Abu Dhabi by 2026. Life is changing so rapidly that many of us should be ready to break up the old paradigms and adapt to a new one. Moreover, if you look deeply into some countries’ initiatives, you will find many aspects; for example, Saudi Arabia plans to build an OXAGON, a 100% sustainable industrial city located southwest of NEOM. The plan is to revolutionize the reliance on renewable energy and zero carbon emissions, making it an important model to be emulated internationally and the focus of attention of investors and international economic institutions.
Countries worldwide have adopted new regulations. Let’s look into a few facts: China has introduced fiscal subsidies for new energy vehicles, while Norway and the United Kingdom will ban the sale of all new internal combustion engine vehicles starting in 2025 and 2030. According to the latest data by PWC, by 2050, about 70% of the world’s population will live in urban areas, up from 57% today. As an entrepreneur in IT, I see many perspectives in terms of implementing technologies in building new cities or reshaping the existing ones.
The Internet of Things (IoT) is the heartbeat of Smart Cities 2.0. IoT applications, from smart traffic management to waste disposal, are reshaping urban landscapes. Statista reports that the number of connected IoT devices worldwide is expected to surpass 30B by next year already. Cities embracing IoT witness a 15% to 20% reduction in operational costs, making a compelling case for its integration. And now, clearly, we can witness that data has become a new currency in city governance. Big data analytics is optimizing resource allocation and service delivery. According to McKinsey, cities utilizing data-driven decision-making achieve a 30% improvement in emergency response times and a 25% reduction in crime. And it’s significant growth.
At the same time, PwC highlights that cities investing in sustainable practices witness a 25% increase in citizen satisfaction, fostering a positive environment for businesses.
However, the road to success is not without challenges, such as:
- Privacy concerns.
- Cybersecurity threats.
- Implementation of technologies.
- Standardized protocols in adapting technologies.
- Cost.
- Sustainability.
- Universal policies.
- Ethics.
On the path of implementing IT technologies, like IoT and Big Data, we should ensure the pivotal role for entrepreneurs in the IT market. Their expertise and visionary contributions are extremely in demand in navigating the challenges and directing smart city projects towards a future in which technology acts as a facilitator for social progress.
As a business owner, one of the most important assets is human capital, which includes tacit and explicit knowledge. Cities should attract talent to live there and work in the local economies. We have many examples of that around the world, by attracting talents they are leveraging all ingredients for the implementation of technologies to build different cities with completely diverse goals. By combining all of these aspects, I’m sure we will witness the growth of these Smart Cities.
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Autor(en)/Author(s): Aleksandrs Malins
Quelle/Source: Frbes, 19.03.2024
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