Global spending on smart cities initiatives will reach US$189.5 billion in 2023, according to the latest report published by market research firm IDC.
“Although smart grid and smart meter investments still represent a large share of spending within smart cities, we see much stronger growth in other areas, related to intelligent transportation and data-driven public safety, as well as platform-related use cases and digital twin, which are increasingly implemented at the core of smart cities projects globally,”said Serena Da Rold, program manager in IDC’s Customer Insights & Analysis group, in the statement.
The research firm is expected to see five cases account for over half of all smart cities spending in 2019: smart grid, fixed visual surveillance, advanced public transportation, smart outdoor lighting, and intelligent traffic management. However, their share in investment will somehow decline by 2023, the firm said.
Strong vertical applications drive the investments in smart cities, but with horizontal platforms and digital twins picking up speed.